TechnipFMC (FTI) Clinches Substantial Contract From Petrobras
The Coral do Atlantico is the third of TechnipFMC's (FTI) pipelay support vessels to be hired by Petrobras on a long-term charter in 2021, showing higher demand for flexibles in...
TechnipFMC plc FTI recently secured a substantial long-term charter and services contract for the pipelay support vessel Coral do Atlântico from Petrobras S.A. PBR. For the company, a substantial contract is worth a value ranging between $250 million and $500 million.
The Brazilian-registered vessel, which regularly received the top rating from the client in terms of operational efficiency, work quality, health, safety and the environment, is awarded the contract for three years with an extension option. The operations are slated to commence in the second quarter of 2022.
The Coral do Atlântico is the third of TechnipFMC's pipelay support vessels to be hired by Petrobras on a long-term charter this year, showing increased demand for flexibles in the Brazilian market. The key attraction of the Coral do Atlântico is its adaptability and ability to function in both deep and shallow waters.
TechnipFMC's vessels are the major components of its robust flexible pipe ecosystem in Brazil. Management is pleased to extend the company’s multi-decade partnership with Petrobras via this long-haul commitment, which is rooted to the company's solid liaisons and its time-honored reputation that retain its loyal clientele's confidence in its ability to ensure quality with a hallmark of security and competence.
TechnipFMC's Other Deal Wins From Petrobas
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 Petrobras 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 as well as installation and intervention support with rental tools.
Brief on the Company
TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. The company, having descended from 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.
Zacks Rank & Key Picks
TechnipFMC currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Continental Resources, Inc. CLR and Magnolia Oil & Gas Corp MGY, each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Continental Resources’ earnings beat the Zacks Consensus Estimate in three of the previous four quarters, missing the same on one occasion.
Magnolia’s earnings beat the Zacks Consensus Estimate in all the last four quarters.
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Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report
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