Yahoo Finance TechnipFMC to Strengthen GoM Portfolio With PowerNap Contract
TechnipFMC FTI recently announced an accord with Royal Dutch Shell plc RDS.A. The leading manufacturer of subsea production systems has classified it a “significant” contract which implies that the transaction will likely be valued in the range of $75 million to $250 million.
Per the agreement, TechnipFMC will be working on Shell’s PowerNap project which entails integrated engineering, procurement, construction and installation.
Notably, TechnipFMC’s scope of work includes manufacturing, installing and designing subsea hardware — comprising subsea distribution controls, topside controls, subsea tree systems and flying leads — for three wells. The company will also provide production umbilical and flowlines that will spread across 20 miles.
Investors should know that the installation work for the Gulf of Mexico (GoM)-based PowerNap project is likely to complete by late 2021. The subsea development, which is linked to Shell’s Olympus production hub, is anticipated to produce up to 35,000 oil equivalent barrels at its peak capacity every day.
TechnipFMC believes that the contract will extend its 25-year-long bond with the leading integrated energy player. Importantly, the contract has strengthened TechnipFMC’s portfolio of deepwater projects in GoM.
Headquartered in London, the U.K., TechnipFMC was formed in 2017 following the merger of Technip and FMC Technologies. The company recently reported strong second-quarter 2019 results, aided by robust contribution by the Onshore/Offshore segment. Moreover, analysts have upgraded the company’s third-quarter 2019 earnings per share estimates over the past 30 days to 44 cents, calling for year-over-year growth of roughly 42%.
Zacks Rank & Stocks to Consider
TechnipFMC currently carries a Zacks Rank #3 (Hold). Meanwhile, two prospective players in the energy space are World Fuel Services Corporation INT and Delek Logistics Partners, L.P. DKL. Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
World Fuel beat the Zacks Consensus Estimate in each of the prior four quarters, the average positive earnings surprise being 16.4%.
Delek Logistics is likely to see earnings growth of 4.9% through 2019.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report
TechnipFMC plc (FTI) : Free Stock Analysis Report
World Fuel Services Corporation (INT) : Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
