HOUSTON - Baker Hughes (NASDAQ: BKR), a global energy technology firm, announced on Tuesday that it has been selected to provide essential gas technology for the third phase of Saudi Arabia's Master Gas System project. The deal, which was recorded in the first quarter of 2024, involves supplying 17 pipeline centrifugal compressors powered by advanced aeroderivative gas turbines.
The new 4,000-km pipeline is a significant component of Saudi Arabia's strategy to enhance domestic gas distribution and support the nation's goal to diminish carbon emissions and reliance on oil. This project is expected to play a pivotal role in the Kingdom's energy transition efforts.
The announcement follows the successful delivery by Baker Hughes of 18 centrifugal compressors for the first two phases of the Master Gas System, reflecting the company's ongoing partnership with Aramco (TADAWUL:2222). Yahya Abu Shal, Aramco's senior vice president of Project Management, expressed confidence in the sustained collaboration with Baker Hughes, emphasizing the shared commitment to decarbonize industries across Saudi Arabia.
Lorenzo Simonelli, chairman and CEO of Baker Hughes, highlighted the company's three-decade history in supporting natural gas operations and its contribution to reducing emissions through the transition to gas. He expressed pride in Baker Hughes' role in developing a reliable system for transporting and distributing gas throughout Saudi Arabia.
In addition to its project commitments, Baker Hughes is expanding its manufacturing site in Modon, Saudi Arabia, aiming to double its workforce capacity and enhance local project delivery capabilities, including for the Master Gas System phase three (MGS3).
This follows the company's recent announcement in February regarding the delivery of the initial two trains of advanced hydrogen compression solutions for the NEOM green hydrogen project in Saudi Arabia, noted as the world's largest project of its kind.
This information is based on a press release statement from Baker Hughes.
InvestingPro Insights
Baker Hughes (NASDAQ: BKR) continues to make significant strides in the energy sector, as demonstrated by their latest involvement in Saudi Arabia's Master Gas System project. This collaboration aligns with their historical commitment to supporting natural gas operations and the global shift towards lower carbon energy solutions.
An analysis of Baker Hughes through InvestingPro reveals a company with a stable financial foundation and a positive outlook. With a market capitalization of $32.38 billion and a Price/Earnings (P/E) ratio of 15.26, the company presents itself as a potentially attractive investment. The P/E ratio, which measures a company's current share price relative to its per-share earnings, suggests that investors are optimistic about future earnings growth, especially since analysts predict the company will be profitable this year. This is further supported by a robust Revenue Growth of 20.56% over the last twelve months as of Q1 2023.
InvestingPro Tips indicate that Baker Hughes operates with a moderate level of debt and has maintained dividend payments for an impressive 38 consecutive years, providing a sense of reliability to investors. The company's stock generally trades with low price volatility, which may appeal to those seeking a more stable investment amidst market fluctuations. For those interested in deeper analysis, there are more InvestingPro Tips available, which can be accessed on the InvestingPro platform.
For investors considering Baker Hughes as part of their portfolio, using the coupon code PRONEWS24 can secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to an array of detailed metrics and insights to inform investment decisions.
With a fair value estimate of $35.89 according to InvestingPro, and analysts setting a higher target of $40.5, the company's stock might have room to grow. Those interested in exploring further can find additional InvestingPro Tips that could provide more nuanced understanding of Baker Hughes' potential in the evolving energy landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.