Baker Hughes CEO Lorenzo Simonelli Talks Earnings
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That's Vanguard.com slash audio. All investing is subject to risk. Vanguard Marketing Corporation Distributor. Bloomberg Audio Studios. Podcasts. Radio. News. 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?
You know, you look at us in energy and we've always said don't try and predict the oil price because it is emotional and it's going to be range bound. As you look at the supply and demand aspects in 2026. Again, we see an improvement in the back half of the year. There's enough supply out there at the moment. But as you look at beyond 26, demand continues to increase. Oil is always going to be important. It's going to be core for certain end markets. And so we think it will be range bound and 2026, again, being relatively soft.
Lorenzo, there's been a lot of optimism over the past couple of weeks in you and your peers about the opportunity in Venezuela. By some measures, you're one of the largest, if not the largest, having the largest base of some of the machinery in the region itself. You've talked to our Bloomberg News colleagues before about optimism in Venezuela. Have you started yet to ramp up production? Are those plans in place to help with the infrastructure build-out?
Venezuela is a clear opportunity for Baker Hughes. And again, we have a long history just as a reference point back in 2012 across our oilfield services and also our industrial energy technology segments. We were revenues of 500 million. We've got a very large installed base of existing compressors, engines, oil production.
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