Maker of oil drilling equipment FMC Technologies Inc. (FTI) declared that it has an order from Brazilian energy giant Petrobras S.A. (PBR) to supply five subsea manifolds for the development of the latter's offshore pre-salt fields in Brazil. The order is the second installment of its last year's award for 16 subsea manifolds. On Sep 10, 2013 the company got an initial order for 11 manifolds at the time of deal with Petrobras.
The subsea manifolds – which will be designed and built in Brazil – are expected to be delivered by the first half of 2016. FMC Technologies will likely generate revenues of $650 million after delivery of all the 16 subsea manifolds to Petrobras.
FMC Technologies added that it has got an order of total 19 subsea manifolds from Petrobras to date, for the latter's pre-salt fields' development.
FMC Technologies' noteworthy investments in Brazil, coupled its knowhow in delivering subsea manifolds in the Latin American country, shows that the company's Brazilian operations are competent to support the development of offshore pre-salt fields of Petrobras.
Incorporated in 2000, Houston, TX-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company's strong backlog, which was nearly $7.3 billion as of Jun 30, 2014, not only reflects a steady demand from customers but also offers long-term earnings and cash flow visibility. This enables FMC Technologies to tackle uncertainty in a better manner than many of its peers.
At present, FMC Technologies has a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next 1 to 3 months.
Investors interested in the energy sector could also consider stocks like Cheniere Energy Inc. (LNG), Patterson-UTI Energy Inc. (PTEN) and Cameron International Corp. (CAM). All these sport a Zacks Rank #1 (Strong Buy).
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FMC TECH INC (FTI): Free Stock Analysis Report
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