NEWCASTLE & HOUSTON - TechnipFMC (NYSE:FTI), a global provider of technology solutions to the energy industry, has been awarded a significant contract by Energean for the Katlan development in the Mediterranean Sea. The contract, valued between $500 million and $1 billion, involves integrated Engineering, Procurement, Construction, and Installation (iEPCI) services.
The agreement follows a comprehensive integrated Front End Engineering and Design (iFEED) study conducted by TechnipFMC. The contract encompasses the design, manufacturing, and installation of production systems, pipelines, umbilicals, and subsea structures, all integral to the development of the Katlan field. These systems will connect to the Energean Power floating production, storage, and offloading vessel (FPSO), which is already operational at the nearby Karish and Karish North fields.
TechnipFMC's President of Subsea, Jonathan Landes, emphasized the efficiency of combining iFEED with the company's Subsea 2.0 production systems and integrated project execution model to expedite production commencement at Katlan. He noted that this contract builds on the existing partnership with Energean, reflecting a shared commitment to delivering improved project economics.
This development marks another milestone for TechnipFMC's iEPCI model, which has been previously utilized in the Karish and Karish North developments. The company's approach aims to optimize project execution and reduce time to first oil, a crucial factor in the energy sector.
TechnipFMC, with approximately 21,000 employees, operates in two business segments: Subsea and Surface Technologies. The company is recognized for its integrated ecosystems, technology leadership, and digital innovation, which are geared towards enhancing project economics and supporting clients' energy transition goals.
The announcement of this contract was included in TechnipFMC's second-quarter Subsea inbound orders. While the company has made forward-looking statements regarding the expected benefits of the contract, these are subject to various risks, uncertainties, and assumptions. As per regulatory requirements, TechnipFMC has cautioned that actual results may differ materially from projections.
The information provided is based on a press release statement from TechnipFMC.
In other recent news, TechnipFMC Plc has been making significant strides in the oilfield services industry. The company's recent earnings report showed an adjusted EPS of $0.22, surpassing the consensus estimate of $0.16. Revenue for the quarter also exceeded expectations, coming in at $2.04 billion against the consensus estimate of $1.96 billion.
In addition to its strong financial performance, TechnipFMC recently secured a significant contract with Woodside (OTC:WOPEY) Energy for the Pluto LNG Project in Australia. The company will design, manufacture, and install the subsea production system, flexible pipelines, and umbilicals for the project.
Analysts have been taking note of TechnipFMC's promising outlook. Piper Sandler increased its price target on shares of the company to $34.00, maintaining an Overweight rating. BTIG also raised its target from $28.00 to $30.00 following the company's recent earnings beat.
These recent developments reflect TechnipFMC's robust market presence and its potential for future growth. The company's management has expressed confidence in the subsea order outlook, raising the 2023-25 subsea order forecast from $25 billion to $30 billion.
Analysts also anticipate earnings per share (EPS) for the fiscal year one to be $1.12 and for fiscal year two to be $1.69. Revenue estimates are projected to increase from $6.7 billion in 2022 to $9.916 billion by 2025.
InvestingPro Insights
TechnipFMC's recent contract win with Energean for the Katlan development is a testament to the company's robust position in the energy sector. As the market evaluates this new development, real-time data from InvestingPro offers key insights into the company's financial health and market performance.
TechnipFMC (NYSE:FTI) is currently trading at a high earnings multiple with a P/E ratio of 67.14, which indicates investor confidence in its earnings potential. Interestingly, the company's P/E ratio is expected to adjust to a lower 54.16 in the last twelve months as of Q1 2024, suggesting a favorable earnings outlook.
InvestingPro data also reveals a solid revenue growth of 18.36% in the last twelve months as of Q1 2024, aligning with the InvestingPro Tips that analysts anticipate sales growth in the current year. Moreover, TechnipFMC's stock has experienced a significant price uptick over the last six months, with a 44.5% total return, reflecting a strong market performance that investors may find encouraging.
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