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TechnipFMC (FTI) Enters Into Strategic Alliance With Equinor

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TechnipFMC plc (FTI - Free Report) recently entered into a strategic collaboration with Norwegian energy giant Equinor ASA (EQNR - Free Report) . The agreement is expected to broaden TechnipFMC’s market and increase demand for its services.

The collaboration will enable TechnipFMC to work on Equinor’s offshore projects all over the world, from the early stages till their execution. The deal also includes scope for TechnipFMC’s services related to installation and subsea operations. Currently, Equinor operates in almost 600 subsea wells.

The recently signed pact builds on the late 2017 framework agreements between the companies regarding subsea equipment and services delivery. The deal is expected to further strengthen the relationship between the two companies and lead to steady improvement of their operations. Notably, in recent times, TechnipFMC — a leading manufacturer and supplier of technology solutions for the energy industry — successfully delivered its product iEPCITM (integrated EPCI) to Equinor for its Trestakk and Visund Nord projects.

This move of integrated project execution is expected to lead to sustainable cost reduction for the projects and increase their profitability, per TechnipFMC. The companies will also focus on improving safety, quality and technology of the project operations.

Price Performance

London-based TechnipFMC is engaged in the designing, producing and servicing technologically sophisticated systems and products for subsea, onshore/offshore, and surface projects. The company has gained 21.4% in the past year against the 13.6% decline of its industry.

Zacks Rank and Stocks to Consider

Currently, TechnipFMC has a Zacks Rank #3 (Hold). Investors interested in the Oil and Gas sector can opt for some better-ranked stocks like Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and RGC Resources Inc. (RGCO - Free Report) . While Petrobras sports a Zacks Rank #1 (Strong Buy), RGC Resources has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Rio de Janeiro, Brazil-based Petrobras is an integrated energy company. The company’s top line for 2018 is likely to improve 7.5% year over year. In the last four reported quarters, it delivered an average positive earnings surprise of 10.4%.

Roanoke, VA-based RGC Resources’ full-year earnings are expected to grow 5.8%. In the last reported quarter, the company delivered an earnings surprise of 40%.

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