QUOTE AND NEWS
newratings.com  11 hrs ago  Comment 
WASHINGTON (dpa-AFX) - FMC Technologies Inc. (FTI) reported that its first-quarter net income attributable to company increased to $135.2 million or $0.57 per share, from $102.4 million or $0.43 per share, previous year. On average, 29 analysts...
Market Intelligence Center  Apr 22  Comment 
After Monday’s trading in FMC Technologies Inc (FTI) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 4.13% return, or 17.12% annualized (for comparison...
Market Intelligence Center  Apr 21  Comment 
MarketIntelligenceCenter.com's option-trade picking algorithms have identified an attractive covered-call trade on FMC Technologies Inc (FTI). Look at the Oct. '14 $52.50 covered call for a net debit in the $49.90 area. This trade has a duration...
OilVoice  Apr 15  Comment 
FMC Technologies Inc. NYSE FTI announced that it has received an order from BP to supply subsea systems for its Shah Deniz Stage 2 project in the Caspian Sea. The order has an estimated value of
OilVoice  Mar 10  Comment 
FMC Technologies NYSEFTI announced that Maryann T. Seaman has been appointed Executive Vice President effective March 1 2014. Seaman who is the company39s Chief Financial Officer has been wi
Forbes  Mar 5  Comment 
Samih Sawiris, a scion of Egypt’s richest business family is reportedly buying a 25% - 35% stake in the FTI Group, the fourth largest tour operator in Germany.
DailyFinance  Mar 4  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 03/04/14 -- William Hullah, President of FTI Foodtech International Inc. ("FTI") (TSX VENTURE:FTI) has signed a contract with Oscar Hinojosa, of Hinojosa Abogados Asociados, S.C. ("HAA") of Mexico for the...
SeekingAlpha  Feb 18  Comment 
ByPrescient Investment Analysis: Executive summary: There is sell side enthusiasm toward FTI stock. The company's revenues, operating income, and backlog are mostly attributed to subsea technologies, a sub sector believed to be in secular...
DailyFinance  Feb 13  Comment 
TORONTO, ONTARIO -- (Marketwired) -- 02/13/14 -- William Hullah, President of FTI Foodtech International Inc. ("FTI" or the "Corporation") (TSX:FTI) announces he has signed a contract with Globalex Global for the exclusive marketing and...
SeekingAlpha  Feb 11  Comment 
ByHeather Ingrassia: When a company demonstrates a stronger-than-expected quarter, most investors have a tendency to a take a closer look at that particular company. In this article, I wanted to highlight a number of reasons why I'm staying...




 

FMC Technologies (NYSE:FTI) is a global provider of technology solutions for the energy industry. It designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. Its operations are aggregated into two reportable segments: Energy Production Systems and Energy Processing Systems.[1]

On July 31, 2008, FTI spun-off its FoodTech and Airport Systems businesses, which are now known as JBT, through a tax-free dividend to its shareholders. FTI distributed 0.216 shares of JBT common stock for every share of FTI stock outstanding as of the close of business on July 22, 2008. FTI did not retain any shares of JBT common stock. [2]

On 16 Jan 2009, FTI struck a $140 million deal with BP (BP) to make and supply subsea equipment for a development located off the shore of Angola. The deal will allow FTI to increase their portfolio in subsea systems business.[3]

Company Overview

FTI designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.

Business Segments[4]

Energy Production Systems (84% of net revenue)

Energy Production Systems designs and manufactures systems and provides services used by oil and gas companies involved in land and offshore, including deepwater, exploration and production of crude oil and gas. Principal products are Subsea Systems, Surface Wellheads, Separation Systems, and Multi Phase Meters.

Energy Processing Systems (16% net revenue)

Energy Processing Systems designs, manufactures and supplies technologically advanced high pressure valves and fittings for oilfield service customers. The company also manufactures and supplies liquid and gas measurement and transportation equipment and systems to customers involved in the production, transportation and processing of crude oil, natural gas and petroleum-based refined products.

Trends and Forces

Ongoing Subsea project is driving force for growth

On 16 Jan 2009, FTI struck a $140 million deal with BP (BP) to increase their portfolio in subsea operations located off the shore of Angola.[3] The deal will allow FTI to increase their portfolio in subsea energy exploration business. This trend in production is due to the continued high demand for energy, customer exploration and production activities. They continue to be focused in remote deepwater locations with complex recovery challenges. This trend has also led to new and ongoing projects located in the North Sea, in the Gulf of Mexico and offshore Brazil. Furthermore, on 26 Dec 2008, FTI acquired a 45% stake in Schilling Robotics LLC in a move to expand its subsea energy exploration business further. The $116 million deal will allow FTI the right to buy the rest of Schilling Robotics between 2012 and 2014.[5].

Foreign currency translation effect on Energy Production Systems’ revenue

As mentioned, FTI is a global that reaches out to over 90 different countries. The notable projects that have large foreign currency translation are located offshore West Africa, the North Sea, in the Gulf of Mexico and offshore Brazil.

Demands for FTI operations depends on oil and gas industry

Energy Systems businesses are substantially dependent on conditions in the oil and gas industry and that industry’s willingness and ability to spend capital on the exploration for and development of crude oil and natural gas. The level of spending is generally dependent on current and anticipated crude oil and natural gas prices, which have been volatile in the past.

Competition

FTI Loading System.FTI Loading System
FTI Loading System.FTI Loading System

Energy Production Systems competes with other companies that supply subsea systems, surface production equipment, and separation systems, and with smaller companies that are focused on a specific application, technology or geographical niche in which they operate. While FoodTech competes with a variety of local and regional companies typically focused on a specific application, technology or geographic area, and with a few large multinational companies. Lastly, Airport Systems competes with a variety of local and regional companies typically focused on a specific application, technology or geographic area, and with a few large multinational companies, including ThyssenKrupp Airport Systems, S.A. and Téléflex Lionel-Dupont (TLD).

Cameron Corporation (CAM) and Emerson Electric Company (EMR) are their main competitors- Cameron Corporation (CAM) - Cameron International Corporation provides flow equipment products, systems, and services to oil, gas, and process industries worldwide. It operates in three segments: Drilling and Production Systems, Valves and Measurement, and Compression Systems. Their business segments include spare parts, technical services, repairs, overhauls, and upgrades. The company was founded in 1833 and is headquartered in Houston, Texas.

Emerson Electric Company (EMR) - Emerson Electric Co., a diversified global technology company, engages in designing and supplying product technology and delivering engineering services to various industrial and commercial, and consumer markets worldwide. The company operates through five segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Appliance and Tools.

References

  1. FTI 2009 10-K "Overview" pg. 3
  2. FoodTech and Airport Systems Spinoff
  3. 3.0 3.1 BusinessWeek - FMC Tech buys 45 pct stake in Schilling Robotics
  4. FTI 2009 10-K "Business Segments" pg. 3-7
  5. BusinessWeek - FMC strikes $140 million supply deal with BP
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