TechnipFMC-Led Consortium Secures 2 EPCC Contracts In India

TechnipFMC plc (NYSE:FTI) recently announced that the company has won major Engineering, Procurement, Construction and Commissioning (EPCC) contracts in Eastern India for two natural gas-based fertilizer plants. The company received two contracts from Hindustan Urvarak and Rasayan Limited, which is a joint venture of three public sector companies — IOCL, NTPC and CIL.

TechnipFMC, in consortium with L&T Hydrocarbon Engineering (“LTHE”), has received the contracts. LTHE is a unit of the Indian multi-national company, Larsen & Toubro Ltd. TechnipFMC will lead the projects, which will be executed simultaneously and carried out on an EPCC Lump Sum Turn Key basis.

The fertilizer plants are located in Barauni, Bihar and Sindri, Jharkhand. Each of the plants has a production capacity of 2200 tonnes of ammonia and 3850 tonnes of urea per day. The consortium will be responsible for licensing, providing basic and detailed engineering, construction and commissioning of both the complexes within a period of 36 months.

The contracts further mark TechnipFMC’s ability to execute complex and difficult projects in fertilizers, refinery and petrochemical sectors. The company’s France and India operating centers will execute the projects.

Price Performance

London, UK-based oilfield service provider, TechnipFMC has gained 6% in the past year against 4.4% decline of its industry.

Zacks Rank and Stocks to Consider

Currently, TechnipFMC has a Zacks Rank #3 (Hold).

Investors interested in the Energy sector can opt for some better-ranked stocks in the same space like Nine Energy Service, Inc. (NYSE:NINE) , Delek US Holdings, Inc. (NYSE:DK) and BP (LON:BP) p.l.c. (NYSE:BP) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, its bottom line is likely to be up 168.1%. In the last reported quarter, the company delivered a positive earnings surprise of 28.6%.

Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 35.6% year over year, while its bottom line is expected to increase 159.5%.

London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 66.5%. In the last four reported quarters, the company delivered a positive average earnings surprise of 29.6%.

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