Spending on subsea valves, pipelines and cables to meet the challenges of ferrying oil and natural gas more than 10K feet through the ocean is expected to grow to a record $13.9B this year, a 66% jump over the $8.4B spent in 2012. Subsea development is only "in the middle innings"; FMC Technologies (FTI), Cameron (CAM) and others should enjoy a "powerful wave of orders" for at least the next five years.
FMC Technologies (FTI) nets another subsea services contract with a new deal for operations off Ghana in support of Tullow Oil’s operations in the giant Jubilee field. The value of the contract is not disclosed. FTi earlier this week won a contract to build and supply subsea equipment in support of the second phase of BP’s Mad Dog field development in the Gulf of Mexico.
FMC Technologies (FTI) is awarded a contract to build and supply subsea equipment in support of the second phase of BP's Mad Dog field development in the Gulf of Mexico. FMC will supply subsea trees, manifolds and jumper equipment for the development near Green Canyon Block 825. The value of the contract for the 1B-plus bbl BP project is not revealed.
FMC Tech (FTI +1.5%) is upgraded to Buy from Hold at Dahlman Rose, which detects "a powerful wave of orders" that will affect subsea equipment providers for five years and perhaps longer; "no one will benefit more from this wave than FMC." The firm sees a major upswing in earnings beginning in 2014 and lasting through the end of the decade.
Energy production in the Gulf of Mexico is fueling a big boom in orders for specialized subsea equipment used in offshore wells, FMC Tech (FTI +4.9%) CEO John Gremp tells analysts in today's conference call. Demand for the equipment, anticipated for a while, is finally here, he says, with orders for subsea trees up 30%-40% last year with more to come in 2013. (Q4 earnings)
FMC Technologies (FTI +7%) enjoys strong gains after posting gains in Q4 and full-year profits on a wave of activity both onshore and offshore. Q4 orders for subsea equipment totaled a better-than-expected $1.38B, and 2013 orders are expected to grow beyond the $4.6B booked in 2012. Expects strong business going forward, but performance of North American markets remains a question mark.
FMC Technologies (FTI -0.3%) receives an order from BP for the manufacture and supply of subsea equipment to support water injection in the Thunder Horse field in the Mississippi Canyon area of the Gulf of Mexico. Deliveries will begin in H1 of this year; no deal value is given.
Morgan Stanley upgrades FMC Technologies (FTI +1.5%), Oceaneering (OII +3.4%) and Helix Energy (HLX +1.7%) to Overweight from Equal Weight at Morgan Stanley (I, II, III), citing a pickup in the backlog for floating rigs, a leading indicator for subsea equipment demand which has risen to a record three years per rig, while at least 30% of the known floating fleet is contracted through 2020.
FMC Technologies (FTI +0.4%) is in a prime position to benefit from future deep sea drilling for oil and natural gas, which Barron's says could be a boon for investors willing to take the leap. FMC is the biggest player in subsea trees, and with signs that orders are picking up and significant deepwater equipment demand expected in coming years, FMC shares deserve more respect.
FMC Technologies (FTI) receives a subsea equipment order from LLOG Exploration for its Delta House project in the Gulf of Mexico. FMC will provide nine subsea trees, four subsea manifolds, a quintet of multiphase meters and associated topside control systems as well as subsea distribution systems. The order is valued at ~$114M in revenue.
FMC Technologies (FTI +0.1%) says it's signed a $33M deal with Statoil (STO) to supply additional subsea equipment for the Snorre field in the Norwegian Sea. The deal, which is scheduled for delivery in 2015, calls on FTI to provide 10 production risers and tieback connectors. The equipment is slated for a 2015 delivery.
FMC Technologies (FTI +0.4%) receives an order from Statoil (STO) valued at $152M for subsea equipment for the Oseberg Delta 2 Project. The order is the first option from the fast-track portfolio awarded as part of the Gullfaks South deal announced earlier this year.
FMC Technologies Inc is a provider of technology solutions for the energy industry. It designs, manufactures and services subsea production and processing systems, surface wellhead production systems, measurement solutions and marine loading systems.