HOUSTON - TechnipFMC (NYSE: NYSE:FTI), a global provider of technology solutions for the energy industry, has been awarded a significant contract by bp for the Kaskida development in the Gulf of Mexico. The contract, classified as "substantial" with a value between $250 million and $500 million, involves integrated Engineering, Procurement, Construction, and Installation (iEPCI™) services.
The company will design and manufacture subsea production systems, including 20,000 psi standardized subsea trees and manifolds, as part of the agreement. Additionally, the contract encompasses the design, manufacturing, and installation of subsea umbilicals, risers, and flowlines.
This latest project follows the integrated Front End Engineering and Design (iFEED®) study carried out by TechnipFMC. According to Jonathan Landes, President, Subsea at TechnipFMC, the company's high-pressure solutions are essential for unlocking opportunities in the Paleogene, an ancient deepwater geological formation. Landes highlighted the project as a testament to the enduring partnership between TechnipFMC and bp, emphasizing the innovative and integrated capabilities that TechnipFMC brings to the project.
The award was included in TechnipFMC's inbound orders for the third quarter of 2024. As a leading technology provider to the energy sector, TechnipFMC is known for its integrated project deliveries and services that span across traditional and new energy industries.
Investors and securityholders are cautioned not to place undue reliance on forward-looking statements, which speak only as of their respective dates. The company notes that actual results could differ materially from historical experience and current expectations or projections due to various risks and uncertainties.
This news article is based on a press release statement from TechnipFMC. The company has a workforce of approximately 21,000 employees and maintains a strong focus on client success, execution, innovation, and challenging industry conventions. For more information, interested parties can visit TechnipFMC's website.
In other recent news, TechnipFMC has been the subject of several positive developments. Citi maintained its Buy rating on TechnipFMC, forecasting above-consensus FY25 EBITDA, while Benchmark upgraded the price target from $30.00 to $35.00, also maintaining a Buy rating. The company's financial outlook has been bolstered by securing two substantial contracts from Petrobras for offshore work in Brazil.
TechnipFMC's expectations to reach nearly $10 billion in subsea inbound orders this year have been supported by Citi's forecast of $10.2 billion for fiscal year 2024. The company plans to provide updated revenue and margin guidance for fiscal year 2025 during their third-quarter earnings call. Citi's current estimates for the company in FY25 include revenues of $8.65 billion, which surpasses the consensus of $8.46 billion, and EBITDA matching the consensus at $1.6 billion.
Analysts from JPMorgan reiterated their Overweight rating on TechnipFMC, emphasizing its growth trajectory. The firm's projections for 2025 Subsea revenue and EBITDA margins align closely with market expectations. These recent developments suggest a robust financial position and potential for continued growth for TechnipFMC.
InvestingPro Insights
TechnipFMC's recent contract win with bp aligns well with the company's positive financial trajectory. According to InvestingPro data, TechnipFMC has demonstrated strong revenue growth, with a 19.08% increase over the last twelve months as of Q2 2024. This growth is further supported by an InvestingPro Tip indicating that analysts anticipate continued sales growth in the current year.
The substantial contract, valued between $250 million and $500 million, is likely to contribute to the company's robust financial performance. TechnipFMC's market capitalization stands at $11.77 billion, reflecting investor confidence in its business model and growth prospects. Moreover, the company's profitability is underscored by an InvestingPro Tip stating that TechnipFMC has been profitable over the last twelve months, with analysts predicting continued profitability this year.
While the company operates with a moderate level of debt, its strong return of 13.99% over the last month suggests positive market sentiment. This performance is particularly noteworthy given the company's involvement in high-value projects like the Kaskida development.
For investors seeking a deeper understanding of TechnipFMC's financial health and growth potential, InvestingPro offers additional insights. The platform provides 7 more tips for FTI, offering a comprehensive view of the company's financial landscape and future prospects.
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