Chapter 1: What is the main topic discussed in this episode?
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baker hughes shares in focus after the company topped earnings expectations despite a sluggish environment the energy services giant remains a key player as the sector navigates shifting market and geopolitical dynamics ceo lorenzo seminelli joins us now lorenzo thank you so much for joining us this morning and the strength i mean we call you an energy services company maybe we should be talking more about data centers announcing your three-year data center order target is three billion dollars
Should we be thinking of Baker Hughes more focused on the industrial and energy technology segment than the more traditional meat and potatoes of energy services around oil and gas?
Well, Danny, great to be with you. And yes, very pleased with the results of 2025 and also the fourth quarter. And you should be thinking of Baker Hughes as really an energy technology company that intersects the industrial world of data centers, electrification, with also that of energy sources and understanding the molecule itself.
And we are benefiting from a portfolio that allows us to play in both. And you've seen the increase in power generation behind the meter off grid applications.
Data centers, you've mentioned that we've taken up our target with regards to free billion during the course of twenty five to twenty seven, doubling our previous estimate and feel very good about the overall outlook for power generation, electricity consumption and doubling over the course of now to twenty forty.
What's your outlook on the oil price here, Lorenzo? Because it seems to me we're all jockeying for more power. Everybody's paying up for electricity, but oil, as much as I drive, continues to hang out in the doldrums, right? New York crude here at $60.57 with all the geopolitical tensions. How long does crude stay this low?
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Chapter 2: What earnings expectations did Baker Hughes exceed?
And you think what's happened to the production since then, it's been declining and the infrastructure obviously needs repair. It needs overhaul. So there's a significant opportunity not just from an OPEX perspective of annual activity, but really the infrastructure improvement going forward.
And I wouldn't state a number right now, but clearly it's an opportunity that we see given the reserves that Venezuela has and also the backdrop of experience that we have there. With regards to safety, again, employee safety and just making sure that the right framework is there is important. It was there before, so again, working with the authorities to make sure it's in place.
And we have good experience of navigating different environments, as many other companies do as well. So we are optimistic about Venezuela, and we are watching it closely.
Have you had conversations with the administration? How easy and how seamless are they going to make it in terms of things like getting any additional licenses you might need, any support from this administration? What are they willing to back up?
Again, those discussions are ongoing. I think you've seen some of those dialogues and also what's been said by the administration. Clearly, there's a dialogue around incremental licenses, how to invest, how to think about the aspect of also payments, etc. And all of that is being worked on. You've got Department of Energy, you've got the National Energy Dominance Council, you've got
there's secretaries involved and so there's a large team that's actively working this
All right, Lorenzo, thanks so much for joining us. Lorenzo Simonelli there, the CEO of Baker Hughes, talking about their foray into AI data centers as well as investment in Venezuela.
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