FMC Technologies Sees 21% Increase in 2Q Earnings

- FMC Technologies Sees 21% Increase in 2Q Earnings

Monday, July 25, 2011
FMC Technologies Inc.

FMC Technologies reported second quarter 2011 revenue of $1.2 billion, up 21 percent from the prior-year quarter. Diluted earnings per share were $0.39, equal to the prior-year quarter.

Total inbound orders of $1.5 billion were up 18 percent from the second quarter of 2010 and included $939 million in subsea systems orders. Backlog for the Company reached a record $5.0 billion including record subsea systems backlog of $4.2 billion. Subsea systems recorded its sixth consecutive quarterly backlog increase.

"We have booked almost $1.9 billion in subsea orders during the first half of 2011, and continue to believe $4.0 billion in orders for the year is possible," said John Gremp, President and Chief Executive Officer. "Our subsea revenue of nearly $800 million during the second quarter has kept us on track to reach $3.3 billion revenue for the year. Our fluid control business is continuing to produce at record levels and as our capacity expansion comes online, we will be able to meet our customers' growing demands."

Review of Operations – Second Quarter 2011

Energy Production Systems

Energy Production Systems' second quarter revenue was $967.6 million, including subsea systems revenue of $795 million. Surface wellhead revenue was up 13 percent from the second quarter of 2010 with stronger North American activity partially offset by market timing and execution issues in our international operations.

Energy Production Systems' operating profit of $97.3 million decreased 25 percent from the prior-year quarter, due to lower margins in subsea systems combined with increased costs and less favorable mix in surface wellhead.

Energy Production Systems' inbound orders for the second quarter were $1.2 billion, including subsea systems orders of $939 million. Backlog for Energy Production Systems was $4.5 billion, including $4.2 billion in subsea systems at the end of the second quarter.

Energy Processing Systems

Energy Processing Systems' second quarter revenue of $262.9 million was 37 percent higher than the prior-year quarter. The increase came mainly from fluid control, with record revenue in the quarter.

Energy Processing Systems had record operating profit of $53.9 million in the second quarter, up 62 percent from the prior-year quarter. The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.

Energy Processing Systems' inbound orders were a record $339.8 million in the second quarter led by strong orders in fluid control. Backlog for the segment finished the quarter at $421.3 million.

Corporate Items

Corporate expense in the second quarter was $10.6 million, an increase of $0.5 million from the prior-year quarter. Other expense, net, was $2.0 million, a decrease of $7.9 million from the prior-year quarter due largely to $4.0 million in foreign exchange gains in 2011 compared to a $2.7 million loss in 2010.

The Company ended the quarter with net debt of $44.8 million. Net interest expense was $2.1 million in the quarter.

The Company repurchased 149,000 shares of common stock in the quarter, at an average cost of $40.87 per share.

Depreciation and amortization for the second quarter was $26.3 million, up $0.9 million from the previous quarter. Capital expenditures for the second quarter totaled $61.8 million.

The Company recorded an effective tax rate of 30.9 percent for the second quarter.

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Shell Awards FMC Technologies Supply Contract for Prelude Field

- Shell Awards FMC Technologies Supply Contract for Prelude Field

Monday, June 27, 201
FMC Technologies Inc.

FMC Technologies has signed an agreement with Shell Development (Australia) Pty. Ltd. to supply subsea production and associated topside systems for the Prelude field development. The companies also announced an aftermarket agreement that will result in FMC Technologies Australia Ltd. performing installation and commissioning services for the project. Orders associated with this award will be received throughout the remainder of 2011.

The Prelude field is located in the Browse Basin, northeast of Broome Western Australia, in water depths of approximately 820 feet (250 meters). It will become Shell's first field development to utilize a floating liquefied natural gas (FLNG) facility. FMC's scope of supply includes seven large bore subsea production trees, production manifolds, riser bases, subsea control systems and other related equipment. All subsea equipment will be delivered from FMC's Asia-Pacific operations.

"Prelude is a landmark project, being the first floating LNG development, and we are proud to support Shell with this project," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems.

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FMC Technologies Lands Subsea Contract for Statoil's Visund Nord Field

- FMC Technologies Lands Subsea Contract for Statoil's Visund Nord Field

Monday, June 06, 2011
FMC Technologies Inc.

FMC Technologies has signed an agreement with Statoil for the manufacture and supply of subsea production equipment to support the Visund Nord offshore development. The contract has a value of approximately $50 million in revenue to FMC Technologies.

Visund Nord is a fast-track oil and gas field located in water depths of approximately 1,150 feet (380 meters) in the Norwegian sector of the North Sea. FMC's scope of supply includes the manufacture of two subsea production trees, one manifold and associated subsea and topside control systems. The equipment will be based on a standard subsea solution designed by FMC for Statoil. The integrated structure and wellhead systems will be delivered in the spring of 2012 and final deliveries will occur in the first quarter of 2013.

"Visund Nord is the fifth fast-track project we have been awarded from Statoil in the last two years," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "We are pleased that Statoil continues to recognize our strengths and capabilities in supporting their tie-back and fast-track developments."

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FMC Technologies to Supply Workover System at Statoil's Statfjord Field

- FMC Technologies to Supply Workover System at Statoil's Statfjord Field

Wednesday, June 01, 2011
FMC Technologies Inc.

FMC Technologies has signed an agreement with Statoil for the manufacture and supply of a workover system to support the Statfjord field. The award has a value of approximately $70 million in revenue to FMC Technologies.

Statfjord is one of the oldest producing fields on the Norwegian continental shelf and one of the largest oil discoveries in the North Sea. Statoil will use the workover system to perform intervention activities on their subsea wells in order to increase performance and enhance oil recovery. It will be the first standardized workover system supplied to Statoil by FMC.

"This workover system is designed to support Statoil's rig scheduling program and its standardized subsea equipment," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "As a result, rig time can be more efficiently allocated, reducing costs and enhancing productivity."

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FMC Wins Brazil Subsea Separation and Boosting Contract

FMC Wins Brazil Subsea Separation and Boosting Contract

Wednesday, May 04, 2011
FMC Technologies, Inc.

FMC Technologies, Inc. announced Tuesday that it has been awarded a contract by Petrobras to supply two subsea separation and boosting systems for the Congro and Corvina fields, located offshore Brazil in the Campos Basin. The contract has a value of approximately $130 million in revenue to FMC Technologies.

In addition to a subsea gas/liquid separation and boosting system for each field, FMC's scope of supply includes two subsea manifolds that will each perform production and gas lift injection for 10 wells. Other equipment includes two subsea boosting module stations, pipeline tie-in equipment and subsea control systems. The control system incorporates an innovative subsea robotics technology, designed by Schilling Robotics, to operate the manifold and separation station valves. The equipment will be engineered and manufactured at FMC's facilities in Rio de Janeiro, Brazil.

The Congro and Corvina project is FMC's fourth implementation of subsea processing technologies in Brazil, following phases I and II of Shell's Parque das Conchas (BC-10) field, and the state-of-the-art heavy oil separation and water re-injection system for Petrobras' Marlim field.

"The significance of this project is it will allow demobilization of one existing production platform and replace it with two subsea separation systems," said Tore Halvorsen, FMC's Senior Vice President of Global Subsea Production Systems. "This is a major milestone for subsea processing technologies and opens a new and attractive alternative solution to extend the life of mature fields and increase oil recovery."

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FMC Technologies Reports $1.1B for 1Q Revenue

FMC Technologies Reports $1.1B for 1Q Revenue

Tuesday, April 26, 2011

FMC Technologies Inc.

FMC Technologies reported first quarter 2011 revenue of $1.1 billion and diluted earnings per share from continuing operations of $0.35. The diluted earnings per share included a tax benefit of $0.03 per diluted share.

Total inbound orders of $1.4 billion were up 11 percent from the first quarter of 2010 and included $940 million in subsea systems orders. Backlog for the Company reached $4.6 billion including subsea systems backlog of $3.9 billion. Subsea systems recorded its fifth consecutive quarterly backlog increase.

"The outlook for the subsea market in general, and our subsea business in particular, is strong," said John Gremp, President and Chief Executive Officer. "We are also encouraged by the continued strength of the North American land activity and its impact on our fluid control and surface wellhead businesses. We are reiterating our estimate for 2011 diluted split-adjusted earnings per share of $1.60 to $1.70."

Review of Operations – First Quarter 2011 

Energy Production Systems

Energy Production Systems' first quarter revenue was $856.4 million, including subsea systems revenue of $683 million. Surface wellhead revenue was up 5 percent from the first quarter of 2010 with stronger North American activity partially offset by weakness in some of our international markets.

Energy Production Systems' operating profit of $82.2 million decreased 48 percent from the prior-year quarter, due to expected lower margins in subsea systems combined with increased costs in surface wellhead.

Energy Production Systems' inbound orders for the first quarter were $1.1 billion, including subsea systems orders of $940 million. Backlog for Energy Production Systems was $4.2 billion, including $3.9 billion in subsea systems at the end of the first quarter.

Energy Processing Systems

Energy Processing Systems' first quarter revenue of $226.1 million was 35 percent higher than the prior-year quarter. The increase came mainly from fluid control, with record revenue in the quarter.

Energy Processing Systems had record operating profit of $43.7 million in the first quarter, up 86 percent from the prior-year quarter. The increase was driven by higher volume in fluid control resulting from strong North American pressure pumping activity.

Energy Processing Systems' inbound orders were a record $267.1 million in the first quarter led by strong orders in fluid control. Backlog for the segment finished the quarter at $342.1 million.

Corporate Items

Corporate expense in the first quarter was $8.4 million, a decrease of $0.6 million from the prior-year quarter. Other expense, net, was $8.2 million, a decrease of $12.6 million from the prior-year quarter.

The Company ended the quarter with net debt of $45.2 million. Net interest expense was $1.5 million in the quarter.

Depreciation and amortization for the first quarter was $25.4 million, down $3.2 million from the prior-year quarter. Capital expenditures for the first quarter totaled $41.0 million.

The Company's effective tax rate was 20.9 percent for the first quarter and included a $7.3 million credit for a foreign tax holiday.

FMC Technologies Scores Gig for Hibernia Southern Extension Proj.

FMC Technologies Scores Gig for Hibernia Southern Extension Proj.

Monday, April 25, 2011
FMC Technologies Inc.

FMC Technologies has signed an agreement with Hibernia Management and Development Company Ltd. (HMDC) to manufacture and supply subsea systems for the Hibernia Southern Extension Project.

The Hibernia Southern Extension Project is an expansion of the Hibernia field, located on the Grand Banks, approximately 200 miles (315 kilometers) southeast of St. John's, Newfoundland and Labrador. FMC's scope of supply includes provision for up to six subsea injection trees and wellheads, one manifold and associated control systems. All equipment will be manufactured at FMC's St. John's and Houston operations. Deliveries will commence in the second quarter of 2013.

Hibernia Field

"Hibernia Southern Extension is a significant offshore project," said John Gremp, President and Chief Executive Officer of FMC Technologies. "We look forward to supporting ExxonMobil Canada and its co-venturers' efforts and to expanding our technologies in Canada's offshore fields."