Oilfield services company,
Oceaneering International, Inc.
) announced that it has signed an agreement with a subsidiary of
the oil drilling equipment maker
FMC Technologies Inc.
) to purvey production control umbilicals.
Per the agreement, Oceaneering will provide super-duplex, steel
tube umbilicals for FMC Technologies' Jangkrik project, located off
the coast of Indonesia, in the Muara Bakau production sharing
contract area. The umbilicals will have a total length of roughly
Oceaneering will manufacture the product at its Oceaneering
Umbilical Solutions facility located in Rosyth, Scotland. Product
manufacturing is slated to begin in the final quarter of this year,
with projected delivery in the second quarter of 2016.
The company added that the umbilicals would be used to deliver
hydraulic and electrical power as well as chemical injection to the
Houston, TX-based Oceaneering primarily serves the global offshore
oilfield industry by providing engineered products and services.
The company also offers inspection work, subsea products and
services. Moreover, it provides supplies to the defense,
entertainment and aerospace industries, and uses its advanced
applied technology expertise for the same.
The company has a favorable working environment, as reflected in
the strong first-quarter 2014 results. In fact, it has delivered
positive earnings surprises in all of the last four quarters with
an average beat of 4.46%.
Last week, Oceaneering took over the remote asset management
software services provider, AIRSIS Inc. The move is likely to boost
the company's current asset tracking service offered on offshore
drilling rigs and vessels employed in subsea activities.
Currently, Oceaneering carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S. market
in the next one to three months.
Meanwhile, one can consider better-ranked players from the oilfield
services industry such as
C&J Energy Services, Inc.
Emerge Energy Services LP
), both of which sport a Zacks Rank #1 (Strong Buy).
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