by Daniel J. Graeber
Washington (UPI) Oct 26, 2017
The energy market is set up for oilfield service contracts to outperform levels from the depths of the downturn, French company TechnipFMC said.
French energy services company TechnipFMC reported third quarter earnings before interest, taxes, depreciation, and amortization, a metric that serves as a measure of profitability, of $536.2 million, down 23.3 percent from last year.
In December, the collective shareholders approved a merger between FMC, which specialized in subsea oil and gas operations, and Technip, a leader in submarine pipeline installation and broad-based oil and gas infrastructure development
The company in July said an error in calculations meant it overstated its first quarter figures by $209.5 million. TechnipFMC reported an initial first quarter net income attributable to the company was $190.8 million.
In a milestone for the first quarter, the company secured a contract from a subsidiary of Exxon Mobil working offshore Guyana awarded for the engineering, manufacturing and delivery of equipment slated for the Liza project in deep waters, one of the more promising prospects in the world. In September, the company said it would help Norwegian energy company Statoil with new pipeline and production infrastructure at the Peregrino project in the oil-rich Campos Basin off the coast of Brazil, where production passed 100 million barrels in 2015.
CEO Doug Pferdehirt said the rest of 2017 and into 2018 shows potential for additional contracts across the sector.
"We believe that most major subsea projects can move forward at today's oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns," he said in a statement.
Historic lows for crude oil prices last year forced most major companies to tighten the purse string for exploration and production spending. The price for Brent crude oil, the global benchmark, is up about 6 percent since the start of the year to trade near $58 per barrel, but coming off lows in the mid-$40 range.
The head of oilfield services company Schlumberger, Paal Kibsgaard, said last week that trends to the third quarter were pointing to market recovery.
"We see significant opportunities ahead, and these will be driven by internal initiatives as well as market fundamentals," TechnipFMC's chief executive said.
Boulder CO (SPX) Oct 26, 2017
A rash of earthquakes in southern Colorado and northern New Mexico recorded between 2008 and 2010 was likely due to fluids pumped deep underground during oil and gas wastewater disposal, says a new University of Colorado Boulder study. The study, which took place in the 2,200-square-mile Raton Basin along the central Colorado-northern New Mexico border, found more than 1,800 earthquakes up ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|