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Baker Hughes (BKR) to Supply Gas Technology for Brazil FPSO
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Baker Hughes Company (BKR - Free Report) received a major order from MODEC to supply the combined cycle technology, which will be installed on the floating production, storage and offloading (“FPSO”) vessel for Equinor ASA’s (EQNR - Free Report) BM-C-33 project.
Baker Hughes will supply turbomachinery equipment, including LM2500 gas turbine generators, and steam turbine generator technology for a combined cycle power generation solution to be installed in the BM-C-33 FPSO. This will reduce the project’s carbon footprint.
BM-C-33 is a deepwater gas and condensate field being developed in the pre-salt Campos Basin region offshore Brazil. The field is estimated to hold natural gas and oil/condensate recoverable reserves of more than one billion barrels of oil equivalent.
Combined cycles may help offshore oil and gas producers to reduce the overall FPSO carbon emissions. For the BM-C-33 project, Baker Hughes expects to reduce emissions by more than 20% compared with similar open-cycle FPSOs with the same power demand.
This is the second combined cycle power generation FPSO project to be developed by Baker Hughes for MODEC and Equinor in Brazil’s deep waters. In 2020, BKR was awarded a combined cycle power generation contract for the Bacalhau FPSO.
In May, Equinor made a final investment decision on BM-C-33, home of some pre-salt discoveries in the ultra-deepwater section of the Campos Basin. The company operates BM-C-33 and has a 35% stake in the project.
For the BM-C-33 project, Equinor and its partners expect the FPSO to be able to achieve a carbon intensity target of less than 6 kilograms per barrel of oil equivalent over the field’s lifetime. This is less than half of the global industry average of 16 kilograms of CO2 per barrel of oil equivalent.
Price Performance
Shares of BKR have outperformed the industry in the past three months. The stock has gained 10.6% compared to the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zack Rank #3 (Hold).
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of earnings of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 per share and $4.01 per share, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of earnings of 17 cents per share.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings is pegged at $1.11 per share and $1.05 per share, respectively.
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Baker Hughes (BKR) to Supply Gas Technology for Brazil FPSO
Baker Hughes Company (BKR - Free Report) received a major order from MODEC to supply the combined cycle technology, which will be installed on the floating production, storage and offloading (“FPSO”) vessel for Equinor ASA’s (EQNR - Free Report) BM-C-33 project.
Baker Hughes will supply turbomachinery equipment, including LM2500 gas turbine generators, and steam turbine generator technology for a combined cycle power generation solution to be installed in the BM-C-33 FPSO. This will reduce the project’s carbon footprint.
BM-C-33 is a deepwater gas and condensate field being developed in the pre-salt Campos Basin region offshore Brazil. The field is estimated to hold natural gas and oil/condensate recoverable reserves of more than one billion barrels of oil equivalent.
Combined cycles may help offshore oil and gas producers to reduce the overall FPSO carbon emissions. For the BM-C-33 project, Baker Hughes expects to reduce emissions by more than 20% compared with similar open-cycle FPSOs with the same power demand.
This is the second combined cycle power generation FPSO project to be developed by Baker Hughes for MODEC and Equinor in Brazil’s deep waters. In 2020, BKR was awarded a combined cycle power generation contract for the Bacalhau FPSO.
In May, Equinor made a final investment decision on BM-C-33, home of some pre-salt discoveries in the ultra-deepwater section of the Campos Basin. The company operates BM-C-33 and has a 35% stake in the project.
For the BM-C-33 project, Equinor and its partners expect the FPSO to be able to achieve a carbon intensity target of less than 6 kilograms per barrel of oil equivalent over the field’s lifetime. This is less than half of the global industry average of 16 kilograms of CO2 per barrel of oil equivalent.
Price Performance
Shares of BKR have outperformed the industry in the past three months. The stock has gained 10.6% compared to the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Baker Hughes currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Seadrill Limited (SDRL - Free Report) and Evolution Petroleum Corporation (EPM - Free Report) , currently sporting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of earnings of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 per share and $4.01 per share, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of earnings of 17 cents per share.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings is pegged at $1.11 per share and $1.05 per share, respectively.