Baker Hughes’s stock price
Since January 9, 2017, Baker Hughes, a GE company (BHGE), stock has fallen 22% as of January 8, 2018. The VanEck Vectors Oil Services ETF (OIH) has generated -18% returns during this period. So, Baker Hughes has underperformed OIH in the past year. On January 8, 2018, the West Texas Intermediate crude oil price was 19% higher compared to the WTI crude oil price on January 9, 2017. To learn more, read Most Important Threat for Crude Oil Prices in 2018.
Oilfield services companies like Weatherford International (WFT) and Halliburton’s (HAL) stock prices have fallen in 2017, despite rising crude oil prices. Since January 9, 2017, the US rig count has risen 39%, led primarily by rising crude oil prices. To learn more, read Weatherford’s Stock, Value Drivers, and Debt Concerns and Weatherford International: Valuation, Analyst Targets, and More.
Saudi Aramco award
On December 14, 2017, Baker Hughes announced that it received a $175 million contract from Saudi Arabia’s energy company Saudi Aramco. Under the contract, Baker Hughes will supply compressors, gearboxes, electric motors, and loop oil systems. The contract aims to drive enhanced production at Saudi Aramco’s Haradh and Hawiyah gas fields. The contract could help Baker Hughes increase its revenues and earnings.