With the subsea recovery slowly gaining momentum, TechnipFMC plc (FTI - Free Report) was recently awarded a slew of three fresh contracts offshore Malaysia, the Gulf of Mexico (GoM) and Israel. The company has secured engineering, procurement, construction and installation contracts on three separate projects.
The first integrated EPCI (iEPCI) contract clinched by TechnipFMC is from Energean Oil & Gas for the Karish field development project, located offshore Israel. Per the contract, the London-based oilfield services provider will design, procure, construct and install the subsea system, a floating production storage and offloading unit along with a pipeline system and valve station at the receiving junction.
The second EPCI contract has been awarded by Sabah Shell Petroleum Company Ltd. for the Gumusut-Kakap phase 2 project, located offshore Malaysia. According to the deal, TechnipFMC will execute the delivery and installation of subsea equipment including umbilicals, flowlines and the subsea production system.
The third contract is awarded by LLOG Exploration for the development of Who Dat field in Mexico. The iEPCI contract entails the delivery and installation of multiphase pumping system by TechnipFMC.
With the massive recovery of crude prices from the historic lows, the commodity has been comfortably trading above $60 a barrel since the past couple of months. As a result, many energy companies are slowly increasing their spending on upstream projects, translating into more contracts for oilfield service providers like TechnipFMC.
The subsea orders of the company have gradually started building up. The same for the 2017 stood at $5.1 billion, reflecting an increase of 27% compared with the tally in 2016. In fact, last quarter, the company’s subsea segment secured new orders of worth $1.72 billion inclusive of the Fenja development agreement in the Norwegian North Sea.
TechnipFMC carries a Zacks Rank #3 (Hold). A few better-ranked players in the same industry are Flotek Industries, Inc. (FTK - Free Report) , Solaris Oilfield Infrastructure, Inc. (SOI - Free Report) and Archrock, Inc. (AROC - Free Report) . While Flotek and Solaris Oilfield sport a Zacks Rank #1 (Strong Buy), Archrock holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flotek’s earnings are likely to witness year-over-year growth of 557.14% in 2018.
Solaris Oilfield earnings are likely to witness a year-over-year rise of 258.33% in 2018.
Archrock’s bottom line is likely to witness a year-over-year surge of 195% in 2018.
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