Baker Hughes 2Q23 results read-x to EU OFS: International and LNG optimism maintained Baker Hughes 2Q23 conference call has ended, with the company re-iterating its positive outlook for global upstream spending and the LNG outlook despite commodity price volatility and a softening in activity in the NAM market seen in 2H23. 65mtpa of LNG FIDs in 2023 and 2024 seen, with subsea tree orders 300 p.a. over 2023-25 While Baker Hughes'' commentary has not changed tack meaningfully vs 1Q23, we''d highlight regarding LNG that the company still sees 65mtpa of FIDs in 2023 and a similar level in 2024 (vs c27mtpa annually over 2013-22), as well as a number of opportunities ''solidifying'' for 2025-26 as it expects the need for the market to reach 800mtpa by 2030. International activity, particularly offshore, is still seen increasing as a multi-year upcycle unfolds, with BH noting the possibility for 300 subsea tree awards to the industry each year over 2023-25. North America activity and pricing is softening, driven by smaller private EandPs, while New Energies orders have exceeded BH''s FY23 expectations within 1H23 at $440m of intake. Opportunities in CCUS, hydrogen and blue ammonia could see Baker Hughes reaching $600-700m of New Energies awards in 2023, far ahead of the $400m initially targeted. Positive read-x to gas and offshore-levered EU OFS With EU OFS more geared toward International and offshore markets than US peers, read-x is positive particularly for gas-focused names (TE, GTT and to a lesser extent, SPM) as well as the offshore equipment and installation contractors (AKSO, SUBC, SPM and US-listed FTI). Key conference call takeaways attached overleaf