TechnipFMC (FTI) Clinches Subsea Contract From Azule Energy
TechnipFMC plc FTI, a leading global oil and gas service provider, announced that it has been awarded a significant subsea contract by Azule Energy for the Block 18 Infills development.
This contract marks FTI's first subsea production systems agreement with Azule Energy and follows the earlier announcement of a flexible pipe supply contract for the latter’s Agogo Integrated West Hub Development.
Location and Scope
The subsea contract is related to a project located offshore Angola, a region known for its rich oil and gas reserves. The project involves the development of subsea infrastructure and the installation of advanced technologies to facilitate efficient exploration and production activities.
Contract Details
The contract is worth between $75 million and $250 million. TechnipFMC will be responsible for the planning and production of various subsea production systems, including subsea trees, a piece of manifold, subsea distribution equipment, topside controls, jumpers, flowlines and umbilicals.
The existing field layout will be reconfigured to accommodate the new equipment, which will support Azule Energy's production increase plan in Block 18.
Significance of the Subsea Contract
The agreement strengthens FTI’s presence in the subsea market and expands its collaboration with Azule Energy. It demonstrates TechnipFMC's expertise in providing comprehensive subsea solutions and highlights its impeccable knowledge of the existing installed base, which played a key role in securing the contract.
This collaboration also provides opportunities for FTI to expand its presence in Angola’s offshore market and potentially secure more contracts in the future.
Conclusion
TechnipFMC's recent receipt of a subsea contract from Azule Energy signifies its growing presence in the subsea sector. As the company's first subsea production systems contract with Azule Energy, this collaboration further strengthens their relationship and positions FTI for potential opportunities in Angola's offshore market.
Zacks Rank and Key Picks
Currently, FTI carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM, sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC and NGL Energy Partners NGL, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is worth approximately $280.79 million. EPM currently pays a dividend of 48 cents per share, or 5.69% on an annual basis.
The company currently has a forward P/E ratio of 7.64. In comparison, its industry has an average forward P/E of 19.90, which means EPM is trading at a discount to the group.
Archrock is valued at around $1.58 billion. It delivered an average earnings surprise of 8.34% for the last four quarters and its current dividend yield is 5.96%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
NGL Energy Partners is valued at around $498.68 million. In the past year, its units have risen 133.3%.
The partnership currently has a forward P/E ratio of 4.34. In comparison, its industry has an average forward P/E of 13.80, which means NGL is trading at a discount to the group.
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TechnipFMC plc (FTI) : Free Stock Analysis Report
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