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TechnipFMC Gets Subsea Deal From Petrobras to Supply Manifolds

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TechnipFMC plc (FTI - Free Report) obtained a significant subsea contract from oil major Petrobras S.A. (PBR - Free Report) to supply manifolds for the development of the Marlim and Voador oil and gas fields in the offshore Campos Basin of Brazil.

Using its Robotic Valve Controller (“RVC”) technology, TechnipFMC will supply up to eight manifolds for the production and injection processes in the Petrobras-operated oil fields. The subsea contract also involves associated tools, spares and services.

TechnipFMC’s all-electric RVC is a robotic technology, which replaces the usual subsea hydraulics and various mechanical while providing real-time data and analysis on system performance. The RVC component is installed on top of the subsea manifold that results in a smaller, less complicated and cheaper manifold with a much-reduced burden on the environment.

Notably, the innovative all-electric technology offers efficient, autonomous and intelligent field operations. Beside this, the RVC software can be remotely upgraded and maintained subsea, thereby, making the system more reliable and accessible.

The subsea contract is estimated to be worth $75-250 million. TechnipFMC’s innovations in automation and electrification will likely support the continuous development of the Marlim and Voador fields and are expected to reduce the carbon intensity of subsea projects.

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 two business segments — Subsea and Surface Technologies.

Shares of the company have underperformed the industry in the past six months. Its stock has gained 13.6% compared with the industry’s 34.9% growth.

 

 

Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #4 (Sell).

Some better-ranked players in the energy space are PDC Energy, Inc. (PDCE - Free Report) and China Petroleum & Chemical Corporation (SNP - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PDC Energy’s earnings for 2021 are expected to grow 14.6% year over year.

China Petroleum’s earnings for 2021 are anticipated to increase 29.5% year over year.

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