HOUSTON - Baker Hughes (NASDAQ: BKR), a global energy technology firm, has announced a major contract with Brazilian state-run oil company Petrobras to deliver a suite of services for offshore oil fields in Brazil. The project, which involves workover and plug and abandonment (P&A) services in both pre-salt and post-salt fields, is scheduled to commence in the first half of 2025.
Under the agreement, Baker Hughes will provide an array of integrated solutions, including wireline, coiled tubing, cementing, tubular running, wellbore intervention, fishing, and geosciences services. Additionally, the company will supply remedial tools, completion fluids, and production chemicals to assist operations in Petrobras' offshore fields.
Maria Claudia Borras, executive vice president of Oilfield Services & Equipment at Baker Hughes, emphasized the importance of their comprehensive technology portfolio and deep understanding of the Brazilian market. According to Borras, the integration of these capabilities is crucial for the project's success. Baker Hughes aims to leverage its expertise in integrated solutions to efficiently support the energy sector's advancement in Brazil.
To facilitate the project and contribute to the growth of the local industry and workforce, Baker Hughes plans to expand its facilities in Macaé, Rio de Janeiro, adding coiled tubing and tubular running services. This move is part of the company's commitment to enhancing the Latin American energy landscape.
Baker Hughes has a significant presence in the global energy market, operating in over 120 countries and focusing on making energy production safer, cleaner, and more efficient. This contract with Petrobras represents an important step in the company's efforts to support energy development in Brazil.
This news is based on a press release statement from Baker Hughes.
In other recent news, Baker Hughes demonstrated robust growth in its Q1 earnings, with a 50% increase in earnings per share (EPS) and a significant rise in EBITDA margins compared to the previous year. The company has secured substantial contracts with Petrobras, Aramco (TADAWUL:2222), and Black & Veatch, and is focusing on growth opportunities in natural gas, LNG, and new energy sectors.
Furthermore, Baker Hughes is exploring the use of artificial intelligence and decarbonization strategies to meet the evolving demands of the energy sector.
In another development, UBS reaffirmed its Neutral stance on Baker Hughes shares, maintaining a price target of $37.00. The company's potential advantages in the burgeoning energy sector within the Permian Basin were the focus of discussions. Baker Hughes is in the preliminary stages of deploying its gas turbine technology to enhance power reliability for oil and gas operators in the area.
Baker Hughes has also expanded its Board of Directors with the appointment of Shirley Edwards, reflecting the company's commitment to broadening the diversity of its leadership. While the specific details of Edwards' background were not disclosed, her appointment is expected to provide fresh perspectives and contribute to the strategic direction of the company.
InvestingPro Insights
Baker Hughes (NASDAQ: BKR) has recently secured a substantial contract with Petrobras, highlighting the company's strategic growth and stability in the energy sector. Investors monitoring BKR's performance will find the following metrics and tips from InvestingPro particularly insightful:
With a robust market capitalization of $31.58 billion, Baker Hughes stands as a significant player in the energy technology industry. The company's revenue growth over the last twelve months as of Q1 2024 impressively stands at 18.93%, signaling strong business expansion that could be bolstered by the new Petrobras contract. Additionally, Baker Hughes has demonstrated a solid track record of profitability, as indicated by their positive gross profit margin of 20.59% during the same period.
An InvestingPro Tip worth noting is that Baker Hughes has maintained dividend payments for 38 consecutive years, which is a testament to the company's commitment to shareholder returns. This consistency is paired with a dividend yield of 2.65% as of mid-2024, offering an attractive incentive for income-focused investors.
Another InvestingPro Tip that might interest potential investors is the low price volatility of BKR's stock. This characteristic suggests that Baker Hughes could be a suitable option for those seeking a more stable investment within the energy sector. Additionally, with 14 analysts having revised their earnings upwards for the upcoming period, there is a positive sentiment surrounding the company's financial prospects.
For those looking to delve deeper into Baker Hughes' financials and strategic outlook, InvestingPro offers additional tips and data. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights to inform their investment decisions.
It's worth mentioning that Baker Hughes operates with a moderate level of debt and analysts predict the company will be profitable this year, which aligns with the company's strategic initiatives, such as the expansion in Brazil. The full suite of InvestingPro Tips, which includes more than five additional insights, can be found at: https://www.investing.com/pro/BKR.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.