After a pummeling in the month of March, oilfield services giant Baker Hughes Company is leading an industry stock price turnaround as the producers’ ramp-up operation, and shareholders are looking to invest in firms that are more involved in the energy transition. As COVID-19 pandemic spread around the globe, the stock value of major oilfield services firms plummeted in the month of March, falling demand for oil and driving producers to the margins, ultimately draining demand for both the equipment and oilfield services.
While not excluded from the downhill trajectory, Baker Hughes’ stock did better than rivals Halliburton Co., Schlumberger Ltd. and National Oilwell Varco Inc. in the crisis as well as the latest share price rebound. “[Baker Hughes’] stock price outperformance probably reflects multiple reasons like their focus on leading the Energy Transition,” James West, who serves as Evercore ISI analyst, said on December 15 via email.
In 2019 on the month of October, when it formally changed its name from Baker Hughes, a GE firm, to Baker Hughes Co. as well as rebranded from the oilfield services provider to the energy tech firm, Baker Hughes intensified its contribution to renewable energy and the energy transformation. West said the valuation of the company was helped by its leverage as a transition fuel to LNG, its strong balance sheet, its steady dividend, and perhaps most recently, the transition fuel; “Extremely successful IPO of the C3.ai, wherein Baker Hughes has around 13 percent stake.”
Around $70 million was invested in the artificial software vendor C3.ai by Baker Hughes. As per Jacob Lundberg, a Credit Suisse analyst said that the investment increased to an approximate valuation of around $1 billion based on the opening price of the stock of $100 for every share. In the meantime, the comparatively poor market output by market bellwether Schlumberger contributes from “worst balance sheet” of the behemoth group and “most substantial value destruction under previous Chief executive Officer” Paal Kibsgaard, said Bill Herbert, Simmons analyst in an email on December 15. In August 2019, Olivier Le Peuch replaced Kibsgaard as chief executive officer.
Schlumberger as well as the other major oilfield services firms, even less sensitive to the energy revolution than Baker Hughes, are searching for ways to participate in the energy transition as new investments become more and more focused on how a business addresses social, environmental and governance concerns. In June, in collaboration with the Alternative Energies and Atomic Energy Commission of France and Vinci Construction to encourage hydrogen, Schlumberger unveiled its New Energy company, which contains the energy companies Celsius Energy, a low-heat geothermal project, and Genvia.
Halliburton, headquartered in Houston, takes a more conservative view, taking full advantage of the money already spent in new and other technology to help consumer attempts to decarbonize production and meet their targets of lowering emissions. The facilities of carbon capture, as well as geothermal exploration, are also part of the mix.https://soccernurds.com/