QUOTE AND NEWS
The Hindu Business Line  Jul 5  Comment 
Vedanta Limited, a globally diversified natural resources company, has been ranked as India’s leading publicly listed company in the India Disclosure Index 2016 report by FTI Consultin...
Benzinga  Jun 27  Comment 
FMC Technologies, Inc. (NYSE: FTI) and Technip (Euronext: TEC) today announced that the pending merger transaction between the companies has received an early decision from the United States antitrust regulators under the Hart-Scott-Rodino...
WA Business News  Jun 25  Comment 
Listed companies Imdex and Nuheara, the FTI’s Kate Raynes-Goldie and the developer of start-up business Family Zone were among the winners at this year’s WAITTA INCITE awards for information and communication technology.
Benzinga  Jun 23  Comment 
The merger between FMC Technologies, Inc. (NYSE: FTI) and Technip (Technip SA (ADR) (OTC: TKPPY)) offers little upside, according to a note from Citi, which said the deal "follows similar steps" taken by peers in the space "as offshore fights to...
OilVoice  Jun 17  Comment 
echnip ParisTEC ISINFR0000131708 ADRTKPPY and FMC Technologies Inc. NYSE FTI today announced that the companies executed a Business Combination Agreement BCA on June 14 2016 regarding
Reuters  Jun 16  Comment 
* On June 14, co and Technip S.A entered into a definitive business combination agreement
Motley Fool  Jun 4  Comment 
Some industry consolidation should help FMC Technologies compete over the long term, but it doesn't change the fact that there isn't a lot of work for offshore equipment manufacturers right now.
The Australian  May 17  Comment 
Qld Nickel’s administrators will fight a $1.2bn lawsuit from Clive Palmer, if he proceeds with it.
WA Business News  May 17  Comment 




 

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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki