Back to top

Analyst Blog

FMC Technologies Inc. (FTI - Analyst Report), maker of oil drilling equipment, entered into a deal with Total Upstream Nigeria Ltd, an affiliate of integrated oil and gas company TOTAL SA (TOT - Analyst Report).

Per the contract, FMC Technologies will purvey subsea trees and wellheads, manifolds, installation tooling, flowline connection systems, and related control systems, for the development of the Egina field. The oil field is situated off the coast of Nigeria and the delivery of the equipment is expected to start in 2015. FMC Technologies estimates the value of the order to be roughly $1.2 billion. Moreover, the company reveals that this oil field development is going to be the largest subsea project in West Africa, till date.

FMC Technologies is well positioned in the subsea systems market. It is the company’s largest and fastest-growing business, accounting for about two-thirds of revenues. FMC Technologies has received numerous attractive subsea contracts in the recent past from energy majors that include Petroleo Brasileiro S.A., or Petrobras (PBR - Analyst Report) and Statoil ASA (STO - Analyst Report).

Additionally, with a major portion of its total revenue coming from outside the U.S., FMC Technologies’ international operations are expected to be a key growth driver going forward. We have identified Latin America, Asia Pacific and the Middle East as the key markets in this regard.  

On the flip side, FMC Technologies relies on its ability to develop and acquire essential products and technologies that drive its operational performance and growth. If its technologies and/or products become obsolete, or if it cannot bring them to market in a timely and competitive manner, it may face severe operational and financial dilemmas.

Houston, Texas-based FMC Technologies currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next 1 to 3 months.     

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%
AROTECH COR… ARTX 3.78 +5.59%