TechnipFMC plc (FTI - Free Report) signed a Memorandum of Understanding (“MoU”) with McPhy, a source of carbon-neutral hydrogen and provider of distribution equipment. Per the agreement, the two companies will work on technological evolutions and project implementations.
TechnipFMC’s Technip Energies segment is a leading manufacturer and related engineering service provider for the global energy sector. The facility is the most notable in the field for supplying hydrogen and providing a steam reforming technology with proprietary rights for more than 270 hydrogen production plants internationally.
The memorandum supports a collaboration framework for the manufacturing and marketing of hydrogen electrolysis production systems for large industry, renewable energy storage and hydrogen distribution systems for large mobility projects. By the means of the MoU, the oilfield service provider in partnership with McPhy will look for commercial opportunities, work on combining their respective services in addition to research and technological development for hydrogen production.
TechnipFMC is also making an equity investment of $17.5 million in McPhy for interest of 2.3%. Per McPhy, the funds will be utilized in the next four years to improve its production capacity along with stack development with high storage capacity and re-filling stations. McPhy’s aim to develop projects surpassing 100MW capacity, further comprises the formation of hydrogen-refilling stations with a capacity of more than 2 tons per day.
The collaboration with the French hydrogen specialist will boost TechnipFMC’s ambition to attain an environment-friendly society as it plays a major role in providing an alternative to fossil fuels as we transition to low emissions and work towards a clean and healthy environment. The alliance will help develop large-scale and competitive carbon-free hydrogen solutions, which form the basis to achieve net-zero targets for a sustainable future.
Company Profile & Price Performance
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It operates through three business segments — Subsea, Surface Technologies and Technip Energies. The company’s shares have underperformed the industry in the past six months. Its shares have declined 13% against the industry’s 20.5% growth.
Zacks Rank & Stocks to Consider
TechnipFMC currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are Range Resources Corporation (RRC - Free Report) , DCP Midstream Partners LP (DCP - Free Report) and Plains Group Holdings LP (PAGP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 6 months, the Zacks Consensus Estimate for 2020 earnings for Range Resources has been raised 140%.
DCP Midstream Partners is expected to see earnings growth of 162% in 2021, whereas Plains Group is likely to see earnings growth of 160.6% in 2021.
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