Baker Hughes Co. (NASDAQ:BKR) is factoring a prolonged Strait of Hormuz closure into its financial guidance, with CFO Ahmed Moghal telling investors Friday the waterway may not fully reopen until the second half of the year.
“There’s still a great deal of uncertainty regarding, ultimately, the duration and depth of the conflict,” Moghal said on the company’s first-quarter earnings call.
CEO Lorenzo Simonelli also said that geopolitical risk is now an enduring feature of oil and gas markets. He noted that the shutdown has removed about 10% of global oil supply and disrupted roughly 20% of global LNG output, calling it the biggest oil supply disruption ever recorded. He added that these conditions are likely to result in “persistent risk premiums” in the market.
Q1 Results Beat Estimates
Baker Hughes reported its first-quarter results for the period ended March 31, showing revenue of $6.6 billion, a 2% increase …
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