Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Oil drilling equipment maker FMC Technologies Inc. (FTI - Analyst Report) has entered into a deal with Brazil's state-run energy giant Petroleo Brasileiro S.A., or Petrobras (PBR - Analyst Report) for the supply of subsea equipment. The estimated value of the contract is $130 million.

Per the deal, FMC Technologies will supply three manifolds, tools, spare parts and system integration with subsea controls for Petrobras’ pre-salt fields, located offshore Brazil. The manifolds will be installed in water depth of about 8,200 feet and the equipment will be manufactured in Brazil.

Development engineering and system integration testing of the equipment will take place at FMC Technologies' technology center in Rio de Janeiro. The company expects to deliver the equipment from the beginning of 2015.

FMC Technologies also signed a renewed Framework Agreement with energy major Statoil ASA (STO - Analyst Report). The contract is for 5 years and can be extended for 3 more years. This deal comes on the back of a previously announced agreement by Statoil.

In this contract, FMC Technologies will provide subsea operation services for the development on the Norwegian Continental Shelf and will keep providing installation services, asset management, equipment intervention and well access services.  

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.

FMC Technologies’ strong backlog, which now stands at more than $5 billion, not only reflects steady demand from its customers but also offers long-term earnings and cash flow visibility. This enables the company to navigate uncertainty better than many of its peers.

However, FMC Technologies relies on its ability to develop and acquire essential products and technologies that drive its operational performance and growth. If its technologies or products become obsolete, or if it cannot bring these to market in a timely and competitive manner, it may face severe operational and financial difficulties.

Meanwhile, oilfield equipment maker Natural Gas Services Group Inc. (NGS - Snapshot Report) with a Zacks Rank #2 (Buy), is expected to perform well in the coming 1 to 3 months.
 

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

Learn more

Start for as little as $4.50 per trade.

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
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%