TechnipFMC plc FTI and joint venture (JV) partner DOF Subsea recently secured major long-term charter and services contracts for the pipelay support vessels Skandi Vitória and Skandi Niteroi from Petrobras S.A. PBR. For the company, a major contract is worth a value ranging between $75 million and $250 million.
The operations are slated to commence in February next year. 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.
DOFCON NavegaçoLtda, a 50/50 joint venture between TechnipFMC and DOF Subsea, owns the Brazilian-built and flagged vessels. Each contract is for three years with an extension option. Skandi Vitória is Brazil's first pipelay vessel, featuring both vertical and horizontal pipelaying equipment, a 250-ton crane and two work ROVs (remotely operated vehicles). The vessel can operate at a sea depth of up to 3000 metres.
TechnipFMC's vessels are the key components of its robust flexible pipe ecosystem in Brazil. Management is pleased to extend the company’s multi-decade partnership with Petrobras via these long-haul commitments, which are rooted to the company's solid liaisons and its time-honored reputation that retains its loyal clientele's confidence in its capacity to ensure quality with a hallmark of security and competence., asserted Jonathan Landes, president, subsea, TechnipFMC.
Apart from the aforementioned deal, TechnipFMC secured a significant subsea contract in June from 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 (PA:FTI) and FMC Technologies (NYSE:FTI), 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 Matador Resources (NYSE:MTDR) Company MTDR and Continental Resources (NYSE:CLR), Inc. CLR, each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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