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TechnipFMC (FTI) to Obtain Remaining 49% Shares in TIOS

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TechnipFMC FTI announced plans to obtain the remaining 49% stakes in TIOS AS to gain full ownership.

Formed in 2018, TIOS is an offshore well intervention joint venture between TechnipFMC and Norway-based offshore vessel owner Island Offshore Management AS (or Island Offshore).

TIOS offers fully-integrated Riserless Light Well Intervention (“RLWI”) services, which include project management and engineering for plug & abandonment, riser-less coiled tubing, and well completion and intervention operations. Following the acquisition completion, TechnipFMC will continue to utilize Island Offshore’s RLWI services.

The acquisition is expected to advance the development of TechnipFMC’s integrated service model, which is focused on maximizing value to customers. The transaction would contribute additional expertise to maximize the company’s ability to provide a complete range of well services globally to customers in a rapid and cost-efficient manner.

In a separate transaction, TechnipFMC announced the divestment of stakes in its recent spin-off Technip Energies through a private placement of 16 million of the latter’s shares. This represents 9% of Technip Energies’ issued and outstanding share capital. Once completed, TechnipFMC will acquire a direct stake of 22% of Technip Energies’ issued and outstanding share capital.

Company Profile & Price Performance

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It operates through two business segments — Subsea Technologies and Surface Technologies.

Shares of the company have underperformed the industry in the past six months. Its stock has lost 35.4% against the industry’s 7.4% growth.

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Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #4 (Sell).

Some better-ranked players in the energy space are Devon Energy Corporation DVN and Ring Energy, Inc. REI, each currently sporting a Zacks Rank #1 (Strong Buy), and Hess Midstream Partners LP HESM, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Devon’s earnings for 2021 are expected to increase 32.3% year over year.

Ring Energy’s earnings for 2021 are expected to surge 131.8% year over year.

Hess Midstream’s earnings for 2021 are anticipated to rise 20.2% year over year.


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