TechnipFMC plc (NYSE:FTI) recently announced that the company has received several subsea contracts from a unit of Anadarko Petroleum Corporation (NYSE:APC) for its Golfinho/Atum development offshore Mozambique. These contracts were awarded for the majority of the Mozambique LNG subsea scope in Offshore Area 1.
TechnipFMC received a major contract through its subsidiary in United Arab Emirates, namely Technip (PA:FTI) Middle East FZCO. The London-based oil and gas equipment and services provider estimated the value of the contract for engineering, procurement, construction and installation (EPCI) of the subsea hardware system to be more than $1 billion.
The company plans to carry out installation works for the Mozambique Golfinho/Atum development with its consortium partner, Van Oord. Markedly, TechnipFMC formed deepwater cooperation with Allseas for the offshore job. TechnipFMC’s wholly-owned unit, FMC Technologies Inc. received separate contracts for providing subsea hardware for well construction and EPCI works.
The contracts are expected to increase TechnipFMC’s presence in Mozambique. This February, the company opened a new office in Maputo, Mozambique. It plans to cooperate with local universities therein, offering unique training opportunities to young local engineers.
The Mozambique LNG project is expected to be the country’s first onshore LNG development. The project will be operated by Anadarko, with which TechnipFMC has worked for 25 years. The project includes two 12.88 million metric tons per annum LNG trains at the initial stage. The onshore development will support Golfinho/Atum fields’ production. Oceaneering International, Inc. (NYSE:OII) , an oilfield services provider, is expected to supply distribution hardware, umbilicals and aftermarket services for the Mozambique LNG project.
Price Performance
The company has gained 22.4% year to date compared with 10.7% collective rise of the industry it belongs to.
Zacks Rank & Stock to Consider
Currently, TechnipFMC has a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Subsea 7 SA (OTC:SUBCY) , which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Subsea 7 beat earnings estimates thrice in the trailing four quarters, with average positive earnings surprise of 108.8%.
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TechnipFMC plc (FTI): Free Stock Analysis Report
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