Tags: FMC | Technologies | tech | FTI

FMC Combines High Oil and High Tech

Tuesday, 10 Jan 2012 07:32 AM

By Forrest Jones

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
High crude prices are proving to be a boon for energy companies and especially for those that supply them, including FMC Technologies (FTI), a Houston supplier of technology to oil and gas companies.

FMC Technologies manufactures and services systems and products such as subsea production and processing systems, surface wellhead systems, high-pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.

Such value-added services have boosted both the company’s revenue and profits. FMC reported third-quarter 2011 revenue of $1.3 billion, up 34 percent from the same period in 2010, thanks to particularly heavy demand for the company's subsea services.

Total inbound orders of $1.3 billion included $731 million in subsea systems orders. The backlog for the company stands at $4.6 billion, including a subsea systems backlog of $3.8 billion.

Net income came to $121.7 million, up 50 percent from the same quarter a year earlier.

"The third quarter represented the largest subsea sales in our history," company President and CEO John Gremp says in an earnings statement.

"We anticipate an even larger fourth quarter as we establish a new high mark for annual subsea revenue. We continue to expect an expanding subsea market in 2012 as the deepwater market continues to strengthen and our customers remain committed to their long-term projects."

New Deals

FMC Technologies has been rolling out press release after press release announcing new deals with big names.

Since the end of November in 2011, the company announced agreements to provide technology systems and services with Anadarko Petroleum Corporation (APC), LLOG Exploration Company, BP (BP) and Chevron (CVX) as well as plans to repurchase shares and also to buy all remaining outstanding shares of Schilling Robotics.

Similar press releases announcing new business deals rolled out all throughout 2011.

The company expects fourth-quarter earnings to come in between 46 cents a share and 51 cents per share (third quarter earnings hit 50 cents a share) and management bumped up guidance for 2011 diluted earnings per share from continuing operations to a range of between $1.70 and 1.75.

In December, thet analysts at Howard Weil reiterated a market perform recommendation on the company's stock, while in September Stifel Nicolaus resumed a hold recommendation. In July of 2011, Global Hunter Securities upgraded the stock to buy from neutral. Also in July, Barclays Capital reiterated an equal weight recommendation.

Those moves follow a series of largely positive reviews on the company's stock from other Wall Street firms earlier in 2011.

Plus, global research organizations agree that oil prices will stay high for quite some time. While the Arab Spring may have disrupted supply, especially in Libya, the flow will return to normal. Demand, however, will be above normal.

"Short-term pressures on oil markets are easing with the economic slowdown and the expected return of Libyan supply. But the average oil price remains high, approaching $120/barrel (in year-2010 dollars) in 2035," the International Energy Agency says in its most recent World Energy Outlook.

The company will issue its fourth-quarter 2011 earnings release on Feb. 14.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Kay Hagan a No-Show for Final Senate Debate With Thom Tillis

Tuesday, 21 Oct 2014 22:59 PM

With North Carolina Democratic Sen. Kay Hagan a no-show, Republican challenger Thom Tillis on Tuesday night faced an emp . . .

Republican Senate Likely, Say Election Experts

Tuesday, 21 Oct 2014 21:42 PM

With 13 days to go until nationwide elections on Nov. 4, several distinguished (and non-partisan) election experts on a  . . .

Florida Debate: Gov. Scott Slams Charlie Crist for Flip-Flops

Tuesday, 21 Oct 2014 21:31 PM

Florida Gov. Rick Scott blasted Democratic challenger and former Gov. Charlie Crist on Tuesday for saying whatever he th . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved