Oil drilling equipment maker
FMC Technologies Inc.
) entered into a deal with privately-owned energy firm LLOG
Exploration Company, LLC for the supply of subsea equipment. The
estimated value of the contract is $30 million.
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Per the deal, FMC Technologies will supply subsea trees, subsea
manifold, multiphase meters, and a subsea distribution system for
LLOG's Who Dat field. The project is placed in a water depth of
approximately 3,200 feet in the Gulf of Mexico, Mississippi
Canyon Block 503. FMC Technologies expects to deliver the
equipment this year.
Earlier in Dec 2011, FMC Technologies manufactured and supplied
subsea production systems to LLOG for the Who Dat project. The
contract was valued at $40 million.
FMC Technologies is well positioned in the subsea systems market
and has received numerous attractive subsea contracts in the
recent past from energy majors
In January, FMC Technologies also won a contract to supply subsea
equipment to LLOG for its Delta House project in the Gulf of
Mexico Mississippi Canyon area. The value of this contract was
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 1 to 3 months.
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
However, FMC Technologies relies on its ability to develop and
acquire essential products and technologies that drive its
operational performance and growth. If its technologies or
products become obsolete, or if it cannot bring these to market
in a timely and competitive manner, it may face severe
operational and financial difficulties.
Meanwhile, oilfield equipment maker
Natural Gas Services Group Inc.
) with a Zacks Rank #2 (Buy), is expected to perform well in the
coming 1 to 3 months.