Back to top

Analyst Blog

Offshore oilfield equipment manufacturer FMC Technologies Inc. (FTI - Analyst Report) entered into a deal with Total E&P Angola, wholly-owned subsidiary of Total SA (TOT - Analyst Report) for supply of subsea equipment. Estimated value of the contract is $33 million.

Per the deal, FMC Technologies will supply three additional subsea well systems for the Pazflor field, located in block 17 offshore Angola. The original subsea system, which was delivered to Total for the same field, has been functional for over a year. The order is part of FMC Technologies’ strong and longstanding relationship with Total.

Earlier in 2011, FMC Technologies received an $80 million contract from Total. The deal included manufacture and supply of subsea production systems to Total-operated Girassol Resource Initiative (GirRI) project in Block 17 development, located offshore Angola in the Gulf of Guinea.

FMC Technologies is particularly well positioned in the subsea systems market and has received numerous attractive subsea contracts in the recent past. Earlier, in March, the company signed a four-year subsea equipment supply pact with Brazilian oil major Petroleo Brasileiro S.A. or Petrobras (PBR - Analyst Report).

Texas-based FMC Technologies is engaged in designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.

However, we maintain a long-term Neutral recommendation on the stock, given the uncertain commodity price outlook and a soft global economy that continue to weigh on the company. Additionally, competitive market conditions along with weak pricing also make us apprehensive.

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

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 Zacks.com. 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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%