FINWIRES · TerminalLIVE
FINWIRES

Baker Hughes Reinforces Growth Story, RBC Says

By

Baker Hughes (BKR) executives highlighted the breadth of the company's portfolio and exposure to multiple energy and industrial end markets at the RBC Global Energy, Power and Infrastructure Conference, RBC Capital Markets analysts said in a Wednesday note.

The firm reportedly highlighted power systems within its industrial and energy technology segment as a key growth driver. RBC said management noted the business spans power generation, grid stability and energy management, and is expected to play a significant role in achieving the company's growth targets.

In oilfield services and equipment, Baker Hughes pointed to improving activity trends across international markets, including Argentina, Mexico and offshore regions, while Brazil remains stable.

Venezuela continues to represent an opportunity, though activity there is being managed cautiously.

Middle East markets remain soft, with activity in Saudi Arabia and the UAE still muted, although Baker Hughes reported modest improvement in Qatar, RBC said.

The investment bank also noted that Baker Hughes expects its acquisition of Chart Industries to close in July. It said management remains confident in the strategic rationale for the deal and its target of $325 million in cost synergies despite an anticipated one- to two-quarter integration period.

Baker Hughes said it continues to evaluate portfolio optimization opportunities as it expands across energy and industrial value chains. RBC maintained its outperform rating on the shares and $71 price target.

Price: $65.50, Change: $+1.23, Percent Change: +1.91%

Related Articles

Commodities

Energy Firms Stay Disciplined Despite Price Rally as LNG Expansion Gains Momentum, RBC Says

Energy companies are resisting the temptation to significantly ramp up spending despite a surge in oil prices driven by geopolitical tensions, opting instead for measured growth while focusing on operational efficiency, RBC Capital Markets strategists said in a note on Wednesday.Crude producers remain cautious about committing capital to major expansion projects, even as elevated crude prices provide a near-term earnings boost, RBC analysts said, citing executives speaking at the RBC Global Energy, Power & Infrastructure Conference.The analysts said the key determinant for future investment decisions is not current spot prices but longer-dated crude contracts.Companies indicated that sustained strength in the back end of the oil futures curve through 2027 and beyond would be required before they would materially increase long-term production plans.Though some operators may accelerate existing developments, industry leaders largely refrained from signaling aggressive output growth, reflecting uncertainty about the durability of current geopolitical disruptions and their potential impact on global economic activity and future oil demand."The back end of the curve remains the North Star," RBC analysts said.Meanwhile, refiners expressed confidence that downstream profitability will remain robust. RBC said both North American and European operators pointed to tightening product inventories and resilient fuel demand, supporting expectations that refining margins will remain elevated.There is also growing optimism about Canadian energy exports as buyers seek greater diversification of supply amid ongoing geopolitical risks.RBC said executives highlighted the strategic importance of expanding access to Asian markets through a wave of liquefied natural gas projects on Canada's west coast, including LNG Canada, Cedar LNG, Woodfibre LNG, and Ksi Lisims LNG.The bank said energy-importing countries are prioritizing supply security, creating long-term opportunities for Canadian producers.On the natural gas front, LNG export growth is expected to remain the dominant driver of demand through the remainder of the decade. However, power demand from artificial intelligence-linked data centers continues to attract attention.RBC forecasts that data centers could account for 6 billion to 7 billion cubic feet a day of North American gas demand by the 2030s.Companies across the energy industry emphasized productivity improvements over expansion.RBC said advancements in drilling technology have halved well construction times compared with a decade ago, while better use of existing infrastructure and AI-enabled optimization are helping operators reduce costs and increase asset utilization.However, oilfield service firms painted a more expansionary picture. RBC said that despite producers maintaining conservative production guidance, service providers expect drilling activity to accelerate, particularly in Canada, where higher commodity prices and growing export opportunities are supporting demand for rigs and pressure-pumping equipment.

Commodities

Nayara Energy Completes Vadinar Refinery Overhaul Amid Geopolitical Uncertainty

Nayara Energy said on Thursday it had completed a scheduled turnaround at its Vadinar refinery in western India, carrying out critical maintenance, upgrades, and inspections to improve operational reliability, efficiency, and safety.The energy firm said the maintenance program was essential to ensuring the refinery's long-term performance and supporting India's energy security.Nayara, in addition to routine maintenance and inspections, implemented several projects designed to improve product quality, enhance process efficiency, and extend operating cycles between planned shutdowns.The company also introduced energy-saving measures across its refinery units to reduce energy consumption and lower emissions intensity.Nayara said it maintained uninterrupted fuel supplies across India through coordinated logistics, inventory management and business continuity measures despite the scale of the turnaround.Vadinar refinery is a key component of India's downstream energy infrastructure and serves both domestic fuel demand and the company's expanding petrochemicals business.

Commodities

Update: US Natural Gas Inventories Rise 95 Bcf, EIA Says

(Updates to include additional details.)US natural gas stockpiles in underground storage stood at 2,578 billion cubic feet for the week ending May 29, up 95 Bcf from the previous week, the Energy Information Administration said in its weekly report Thursday.Inventories were 3 Bcf below year-ago levels and 138 Bcf above the five-year average of 2,440 Bcf.At 2,578 Bcf, total working gas remains within the five-year historical range, the EIA said.The net increase is below market expectations for a 99 Bcf build, according to data from Investing.com.