TechnipFMC (FTI) Secures 3 Pipe Frame Agreements From Petrobras
TechnipFMC plc FTI has obtained three frame agreements from Petrobras S.A. PBR, reinforcing FTI's leading position in Brazil's flexible pipe market, which is the industry's biggest and the most recognized market. The frame agreements combine to constitute a major contract for TechnipFMC.
Over the following four years, the framework agreements will include the production of more than 500 kilometers of flexible pipe and services. This puts FTI’s total contractual volumes with Petrobras for the current year to roughly 600 kilometers.
The contracts were granted as part of Rio de Janeiro-based Petrobras' efforts to boost oil recovery in brownfield developments, mostly in post-salt areas off the coast of Brazil.
TechnipFMC has been working with Petrobras, the largest integrated energy firm in Brazil, for a long time now. Management is pleased to extend FTI’s multi-decade partnership with PBR through this commitment.
FTI successfully offered a flexible solution that enhances oil recovery in the Brazilian deepwater environment by cooperation and using its knowledge to engineer, design and manufacture solutions tailored for this environment.
TechnipFMC's Other Deal Wins From Petrobas
FTI recently secured a substantial long-term charter and services contract for the pipelay support vessel Coral do Atlântico from PBR. For TechnipFMC, a substantial contract is worth a value ranging between $250 million and $500 million. FTI's vessels are the major components of its robust flexible pipe ecosystem in Brazil.
Also, in September this year, TechnipFMC and joint venture (JV) partner DOF Subsea recently clinched major long-term charter and services contracts for the pipelay support vessels Skandi Vitória and Skandi Niteroi from Petrobras.
The operations are slated to commence next February. Skandi Niteroi will mostly function in shallow water, while Skandi Vitória will operate in both shallow and deep water. Both ships will be in charge of decommissioning and subsea installation.
Apart from the aforementioned deal, TechnipFMC won a significant subsea contract in June from the oil major PBR for the Búzios 6-9 fields located in the Santos Basin offshore Brazil. Per the terms of the deal, TechnipFMC will provide subsea trees with controls, electrical and hydraulic distribution units, topside systems, and installation and intervention support with rental tools.
London-based TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. Having descended from the January 2017 merger between Technip and FMC Technologies, FTI is engaged in designing, producing and servicing technologically-sophisticated systems and products for subsea, onshore/offshore and surface projects.
Zacks Rank & Key Picks
TechnipFMC currently has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following stocks worth considering with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, Occidental Petroleum's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.
In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. Occidental Petroleum has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.
PDC Energy PDCE is an independent upstream operator dealing in exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, founded by the January 2020 merger with SRC Energy, is currently the second-largest producer in the Denver-Julesburg Basin. As of 2020 end, PDC Energy's total estimated proved reserves were 731,073 thousand barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% compared with the industry's growth of 108.6%. PDCE's earnings for 2021 are expected to surge 273.4% from the prior-year reported figure. In the past 60 days, the Zacks Consensus Estimate for PDC Energy's 2021 earnings has been raised 26.8%. Earnings of PDCE beat the Zacks Consensus Estimate in all the last four quarters, the average being 51.06%.
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