Oil drilling equipment maker FMC Technologies Inc. (FTI) announced the receipt of a $720 million contract from Italian energy major Eni SpA (E) to supply subsea technology solutions for its deepwater Jangkrik project offshore Indonesia.
FMC Technologies, which already has a strong presence in Indonesia, said that the deal includes the development of subsea trees, manifolds, umbilicals, jumpers and connection systems, tooling, related subsea control systems and systems integration.
The FMC Technologies-supplied subsea production systems will aid the fast track development of the Jangkrik development, located in the Muara Bakau working area, in Makassar Straits offshore Kalimantan, Indonesia.
Incorporated in 2000, Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which operates 30 manufacturing facilities in 16 countries, is engaged in the designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.
FMC Technologies – which counts Cameron International Corp. (CAM) as its competitor – currently retains a Zacks Rank #3 (Hold), implying that it is expected perform in line with the broader U.S. equity market over the next one to three months.
The company has a diversified product portfolio, specialty service capabilities and proprietary technological expertise. Other positives for FMC Technologies include a strong backlog position, growing international operations and a favorable outlook for subsea activity levels. However, with markets remaining competitive and pricing likely to be weak, any substantial capital appreciation is not likely.
A better-ranked stock in the oilfield machineries and equipment sector would be Matrix Service Co. (MTRX), which carries a Zacks Rank #1 (Strong Buy).