NEWCASTLE & HOUSTON – TechnipFMC (NYSE:FTI), a global provider of technology solutions to the energy industry, has secured a significant contract with Woodside (OTC:WOPEY) Energy (LON:WDS) for work on the Pluto LNG Project in Australia. The contract involves an integrated Engineering, Procurement, Construction, and Installation (iEPCI™) project for the Xena Infill well (XNA03).
Under this contract, TechnipFMC will design, manufacture, and install the subsea production system, flexible pipelines, and umbilicals. This effort is geared toward supporting sustained production from the Pluto LNG Project. The company will deploy its proprietary Subsea 2.0® production system, and the Xena Phase 3 development will be integrated with existing subsea infrastructure that TechnipFMC has previously provided.
Jonathan Landes, President of Subsea at TechnipFMC, stated, "We are proud to be delivering a fully integrated project from concept to execution. This project will help our long-term client meet their objectives, demonstrating the favorable impact iFEED™, iEPCI™, and Subsea 2.0® can have on project economics."
This contract is a continuation of the existing framework agreement between Woodside Energy and TechnipFMC. The terms of the deal classify it as significant, indicating a value between $75 million and $250 million. The order will be included in TechnipFMC's inbound orders for the second quarter of 2024.
TechnipFMC is recognized as a leading technology provider to both the traditional and new energy industries, known for delivering fully integrated projects, products, and services. The company's focus extends to transforming project economics for clients, reducing carbon intensity, and supporting energy transition goals. With a workforce of approximately 21,000, TechnipFMC operates two business segments: Subsea and Surface Technologies.
This announcement is based on a press release statement and contains forward-looking statements that involve risks, uncertainties, and assumptions. These statements are not guarantees of future performance, and actual results may differ materially.
For more detailed information on the risks associated with these forward-looking statements, please refer to TechnipFMC's filings with the United States Securities and Exchange Commission.
InvestingPro Insights
TechnipFMC's recent contract win with Woodside Energy underscores the company's robust position in the energy sector, and its financial metrics reflect a company poised for growth. With a market capitalization of $11.39 billion and a forward-looking lens, the company's net income is expected to grow this year, aligning with analysts' anticipation of sales growth in the current year. This optimism is reinforced by the company's significant revenue growth over the last twelve months, which stood at 18.36%.
The company's stock is noted for its low price volatility, an InvestingPro Tip that suggests stability in its share price movement, potentially appealing to investors seeking less risk in their portfolio. Moreover, TechnipFMC is trading at a P/E ratio of 64.49, which adjusts to 51.8 when considering near-term earnings growth, indicating that the stock may be undervalued relative to its earnings trajectory.
Investors interested in further insights can find additional InvestingPro Tips on TechnipFMC, such as details on its moderate level of debt and its strong return over the last three months, which saw a 40.36% price total return.
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