HOUSTON - TechnipFMC (NYSE: NYSE:FTI), a global provider of technology solutions to the energy industry, announced it has been awarded a contract valued between $250 million and $500 million by Brazilian oil major Petrobras. The contract entails the supply of flexible pipes for Petrobras's pre-salt fields offshore Brazil. This order was included in TechnipFMC's second-quarter 2024 inbound orders.
The scope of the contract includes the design, engineering, and manufacturing of flexible pipes to be used for water injection and gas lift applications in the development of pre-salt reserves. President of Subsea at TechnipFMC, Jonathan Landes, expressed pride in the company's longstanding relationship with Petrobras and its technologies' role in supporting Petrobras's ambitions.
TechnipFMC is known for its integrated projects, products, and services across the traditional and new energy sectors. With a workforce of approximately 21,000, the company operates in two business segments: Subsea and Surface Technologies.
TechnipFMC's proprietary technologies and digital innovations, such as its integrated ecosystems iEPCI™, iFEED™, and iComplete™, aim to enhance project economics and support clients in the energy transition by reducing carbon intensity.
This press release contains forward-looking statements regarding expectations, projections, and assumptions about the contract's expected benefits. TechnipFMC cautions that these statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from historical experience and current expectations.
The information in this article is based on a press release statement from TechnipFMC.
In other recent news, TechnipFMC, a global technology solutions provider to the energy industry, has secured a significant contract with Woodside (OTC:WOPEY) Energy for the Pluto LNG Project in Australia. The contract, valued between $75 million and $250 million, involves an integrated Engineering, Procurement, Construction, and Installation (iEPCI™) project for the Xena Infill well (XNA03).
Further, TechnipFMC's stock price target was raised by two investment firms, Piper Sandler and BTIG, based on a positive shift in the company's earnings estimates and a recent earnings beat. Piper Sandler set the new price target at $34.00, up from $30.00, while BTIG increased the target from $28.00 to $30.00.
Moreover, the company announced a quarterly cash dividend of $0.05 per share, demonstrating its commitment to returning value to its shareholders. These recent developments reflect TechnipFMC's strong financial health and its consistent practice of enhancing project economics through integrated project delivery and technology-driven solutions.
InvestingPro Insights
TechnipFMC's recent contract win with Petrobras underscores its continuing role as a key player in the energy sector's technological advancements. This is evident as analysts anticipate sales growth in the current year, which aligns with the company's strategic contracts and the expected net income growth.
InvestingPro Data highlights the company's financial metrics, indicating a robust performance. TechnipFMC's market capitalization stands at $12.16 billion, reflecting its significant presence in the industry. The company's P/E ratio, which is currently at 68.69, is projected to adjust to a lower 55.38 in the last twelve months as of Q1 2024, suggesting an improved earnings outlook. Additionally, the PEG Ratio for the same period is 0.21, indicating that the stock may be undervalued relative to its earnings growth.
InvestingPro Tips further reveal that TechnipFMC trades at a high earnings multiple, which could be a point of consideration for investors looking at the company's valuation. Moreover, the stock has experienced a large price uptick over the last six months, with a 6-month price total return of 43.84%, and it is trading near its 52-week high at 98.98% of that value.
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