Key Takeaways
- The European Union has given final approval to a comprehensive ban on Russian gas imports, targeting a full cessation of Russian liquefied natural gas (LNG) by January 1, 2027, and pipeline gas by September 30, 2027. This landmark decision aims to significantly reduce the bloc's energy dependence on Moscow.
- Baker Hughes (BKR) reported a robust fourth quarter, with adjusted earnings of $0.70 per share, surpassing analyst estimates of $0.63 per share, and a 7.7% revenue increase to $7.364 billion. The strong performance, particularly in its Industrial & Energy Technology segment, sent shares up premarket.
- PwC is set to resume work on pitches to Saudi Arabia's Public Investment Fund (PIF) as its temporary ban on advisory and consulting contracts, which was effective until February 2026, concludes. The ban had led to significant job cuts within PwC's Middle East operations.
- Russian energy giant Gazprom supplied 1.83 billion cubic meters (BCM) of natural gas to its domestic clients on January 24, 2024, maintaining consistent supply operations within its home market.
The European Union has solidified its commitment to weaning itself off Russian energy, with member countries granting final approval to a law that will enact a full ban on Russian gas imports. The legislation mandates a complete halt to Russian liquefied natural gas (LNG) imports by January 1, 2027, and Russian pipeline gas by September 30, 2027. This move follows a provisional deal and aims to establish a "legally binding, stepwise prohibition" on these imports, cutting off a significant revenue stream for Russia and enhancing the EU's energy independence. Short-term LNG contracts will face bans starting in April 2026, with pipeline restrictions to follow, and all long-term contracts concluding by late 2027. While Hungary and Slovakia reportedly opposed the measure, they were ultimately outvoted.
In corporate news, energy technology company Baker Hughes (BKR) saw its shares climb in premarket trading after announcing stronger-than-expected adjusted profits for its fourth quarter. The company posted adjusted earnings of $0.70 per share, exceeding the average analyst forecast of $0.63 per share. Revenue for the period also demonstrated solid growth, rising 7.7% to $7.364 billion from $6.835 billion in the previous year. This "blowout quarter" included record revenue, free cash flow, and profitability, with orders reaching $7.5 billion for the quarter and $28.2 billion for the full year. The Industrial & Energy Technology segment was a key driver, experiencing a 21% revenue surge fueled by strong demand in gas infrastructure and LNG systems.
Meanwhile, consulting giant PwC is preparing to re-engage with Saudi Arabia's powerful Public Investment Fund (PIF) as a temporary ban on its advisory and consulting services concludes. The PIF had imposed the ban, which was effective until February 2026, on PwC from securing new advisory and consulting contracts with the fund and its more than 100 subsidiaries. The dispute, reportedly stemming from a "client matter" related to PwC's attempt to recruit a key official from Neom, a PIF-backed megaproject, had led to approximately 1,500 job cuts and 60 partner exits across PwC's Middle East operations. While the ban impacted non-audit services, PwC's auditing work remained unaffected.
In the energy sector, Russian state-owned energy company Gazprom reported that it supplied 1.83 billion cubic meters (BCM) of natural gas to its domestic clients on January 24, 2024. This figure indicates the company's ongoing operations in maintaining gas supplies within its home market.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.