TechnipFMC (FTI) Wins Snorre-Expansion Contract From Statoil
TechnipFMC plc FTI recently won a Engineering, Procurement & Construction contract for Snorre Field Expansion Project. The contract was awarded by the integrated major Statoil ASA STO which owns a 33.3% stake in the Snorre field. Other partners in the field include Petoro AS, ExxonMobil Corporation XOM, Idemitsu Petroleum Norge AS, DEA Norge AS and Point Resources AS, holding a 30%, a 17.4%, a 9.6%, an 8.6% and a 1.1% stake, respectively.
Discovered in 1979, the Snorre field started production in 1992. The field is located at the Tampen area in the northern part of the North Sea, 300-380 meters below sea level. So far, the Snorre field has produced 1.4-billion barrels of oil.
The Snorre field plays an important part in Statoil's attempt to enhance long-term value and operations at Norwegian continental shelf (NCS). Snorre expansion is the largest improved oil recovery project (IOR) on the NCS and provides valuable production and activity, which are beneficial for Statoil and other co-partners in the project.
The Snorre Expansion contract covers the delivery of subsea production systems and includes 6 subsea templates and subsea production equipment. TechnipFMC hasdelivered subsea equipment to Snorre since the field started production.
Early this month, TechnipFMC was awarded a contract worth $4.2 billion by the Bahrain Petroleum Company (Bapco). TechnipFMC's strong backlog — of $13.9 billion as on Sep 30, 2017— underscores the steady demand from customers and enables the company to steer clear of uncertainties better than many of its peers. The robust backlog is likely to contribute to the long-term earnings and cash flow visibility of the company.
Zacks Rank & Key Pick
London-based TechnipFMC is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which reached its current form following the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically sophisticated systems and products for subsea, onshore/offshore, and surface projects.
TechnipFMC has lost 11.4% of its value year to date compared with 26.6% decline of its industry.
The company has a Zacks Rank #3 (Hold).
A better-ranked player in the same industry is Halliburton Company HAL, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The company delivered positive earnings surprise in each of the four trailing quarters, with an average beat of 41.23%.
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