FMC Technologies Inc. (FTI - Free Report) , maker of oil drilling equipment, announced that it has entered into a five-year contract with Tullow Ghana Ltd, a subsidiary of London-based energy explorer Tullow Oil plc. The contract – whose value was not disclosed – entails FMC Technologies to provide subsea services for the development of the Jubilee oil field.
This recent deal is part of a long-standing business relationship between FMC Technologies and Tullow Ghana. Per the deal, FMC Technologies will purvey onshore and offshore technical services which include maintenance, refurbishment, and inspection of the tools.
FMC Technologies will aid the completion and production work of Tullow Ghana for the Jubilee oil field, from its Subsea Service Base in Takoradi in Ghana.
In February, FMC Technologies reported fourth-quarter results with adjusted profit of 57 cents. The profit was in line with our projection and was better than the profit of 41 cents in the year-ago period. The performance was aided by Surface Technologies’ international surface wellhead business and strong performance in the international market.
Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. FMC Technologies conducts its operations in three segments: Subsea Technologies, Surface Technologies and Energy Infrastructure.
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. The company might face operational and financial dilemmas if it is unable to bring its products to the market in time or if the technology and products become obsolete.
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 one to three months.
In the energy sector, Helmerich & Payne Inc (HP - Free Report) , Range Resources Corporation (RRC - Free Report) and Calumet Specialty Products Partners LP (CLMT - Free Report) display better fundamentals and currently carry a Zacks Rank #1 (Strong Buy).