FMC Technologies Inc.
), maker of oil drilling equipment, entered into a deal with
ConocoPhillips Australia Pty Ltd., an affiliate of Houston,
), to provide subsea tools.
Per the contract, FMC Technologies will purvey subsea trees,
wellheads, jumper kits and related control systems, for the
development of the third phase of the Bayu-Undan gas field
project. The field is situated offshore Timor Sea. Management
estimates the value of the project to be roughly $26 million.
Recently, FMC Technologies reported weaker-than-expected
first-quarter 2013 earnings, which were hurt by tepid fluid
control activity. Earnings per share of 43 cents came in below
the Zacks Consensus Estimate of 46 cents. However, FMC
Technologies' per share profits surpassed the first-quarter 2012
level of 41 cents, owing to improved subsea systems orders.
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 a 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
On the flip side, 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 dilemma 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.
Two oil field machinery and equipment suppliers that are expected
to outperform the broader U.S. equity market over the next one to
three months are
Natural Gas Services Group Inc.
PowerSecure International Inc.
). Both the stocks currently carry a Zacks Rank #2 (Buy).
CONOCOPHILLIPS (COP): Free Stock Analysis
FMC TECH INC (FTI): Free Stock Analysis
NATURAL GAS SVC (NGS): Free Stock Analysis
POWERSECURE INT (POWR): Free Stock Analysis
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