Yahoo Finance Baker Hughes (BKR) Gets Major Contract for Hassi R'Mel Project
Baker Hughes Company BKR has been awarded a significant contract by Algeria's state-owned oil company Sonatrach for a gas-boosting project at the Hassi R'Mel field.
The massive field, located 550 kilometers south of Algiers, is the largest gas field in Algeria and one of the largest in the world, representing a critical energy supply source for Algeria and Europe.
As part of this project, Baker Hughes will provide 20 compression trains to be installed across three gas-boosting stations within Hassi R’Mel. These compression trains are essential for boosting and stabilizing the pressure of natural gas, thereby increasing production at the site. The project’s goal is to enhance Algeria’s domestic energy system and economy while also contributing to Europe’s energy security.
While Baker Hughes did not disclose the contract’s value, it is part of a broader order awarded to a consortium of Baker Hughes and Tecnimont, the engineering, procurement and construction arm of the Italian engineering firm Maire. The project highlights Baker Hughes’ proven technology solutions and their critical role in energy infrastructure development.
The new gas-boosting stations are pivotal elements of Algeria's ambitious plan to solidify its position in the global energy market. Algeria has committed to natural gas as a key energy source for its socio-economic development. In 2023, Algeria became the second-largest gas supplier to Europe, enhancing the continent's energy security, particularly in Italy, where Algeria is the largest single source of gas imports.
The Hassi R'Mel project is part of a broader strategic collaboration between Algeria and Italy, underscored by recently signed agreements aimed at fostering bilateral cooperation and providing financial support for Algeria's gas production under the Mattei Plan. This plan promotes cooperation between Africa and Italy across five main policy areas — education and training, agriculture, health, water, and energy.
Baker Hughes' facilities in Italy will handle the packaging of the compressor trains, manufacturing of the compressors and testing of the trains. This project addresses the multi-faceted challenge faced by energy producers of driving sustainable energy development amid increasing energy demand.
By enhancing production at the Hassi R'Mel field, this project is set to significantly contribute to Algeria's energy landscape and strengthen its role as a key player in the global energy market.
Zacks Rank & Stocks to Consider
BKR currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Marathon Petroleum Corporation MPC and Eni SpA E. SM Energy and Marathon Petroleum sport a Zacks Rank #1 (Strong Buy), and Eni carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments can create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 and 2025 earnings per share (EPS) is pegged at $6.60 and $7.46. The company has a Zacks Style Score of B for Value and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.
The Zacks Consensus Estimate for MPC’s 2024 and 2025 EPS is pegged at $19.28 and $16.78. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Eni SpA, based in Rome, Italy, is among the leading integrated energy players in the world. The company’s share buyback program is expected to increase to €1.6 billion from the previously declared guidance of €1.1 billion in 2024, subject to shareholder approval.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $4.65 and $4.76, respectively. The company has a Zacks Style Score of A for Value and B for Momentum. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eni SpA (E) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
