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HOUSTON - TechnipFMC (NYSE:FTI), a global provider of technology solutions for the energy industry with a market capitalization of $12.6 billion, has been awarded a significant contract by Equinor for the Phase 3 development of the Johan Sverdrup oil field in the Norwegian North Sea, one of the largest oil fields in the region. According to InvestingPro analysis, the company appears undervalued at its current trading price of $29.84, showing strong potential for growth. The contract, valued between $500 million and $1 billion, will be reflected in TechnipFMC’s first-quarter inbound orders for 2025.
Under the contract, TechnipFMC will employ its integrated Engineering, Procurement, Construction, and Installation (iEPCI™) model to expand the existing infrastructure of the Johan Sverdrup field, which commenced production in 2019. The development aims to increase the field’s production capacity by adding new wells that will be tied into the current field center, which operates using low-emission power from onshore resources. The company’s strong execution capabilities are reflected in its impressive 16.3% revenue growth and healthy return on equity of 27% over the last twelve months.
Jonathan Landes, President of Subsea at TechnipFMC, stated, "It is a privilege to contribute once again to the development of this field, where we delivered subsea production systems for each of the previous phases." The company plans to design, manufacture, and install subsea production systems, umbilicals, and rigid pipelines to integrate new templates with the field’s existing infrastructure.
The award follows an integrated Front End Engineering and Design (iFEED®) study, highlighting TechnipFMC’s ongoing relationship with Equinor and its role in the ongoing development of the Johan Sverdrup field.
TechnipFMC is known for its technology leadership, digital innovation, and integrated ecosystems designed to improve project economics and support clients in their energy transition goals. The company operates through two business segments, Subsea and Surface Technologies, and employs approximately 21,000 people worldwide.
This press release contains forward-looking statements regarding the expected benefits of the awarded contract. However, there are risks and uncertainties that could cause actual results to differ materially from projections. Investors and securityholders are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. For deeper insights into TechnipFMC’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 5+ additional ProTips and detailed financial metrics in our Pro Research Report, part of our coverage of 1,400+ US equities.
The information in this article is based on a press release statement from TechnipFMC.
In other recent news, TechnipFMC reported impressive financial results for the fourth quarter of 2024, with earnings per share (EPS) of $0.54, significantly surpassing the forecasted $0.35. The company also exceeded revenue expectations, posting $2.37 billion against a projected $2.3 billion. For the full year, TechnipFMC achieved a revenue of $9.1 billion, marking a 16% increase from the previous year, while adjusted EBITDA rose by 47% to nearly $1.4 billion. Looking ahead, the company projects high single-digit revenue growth and expects adjusted EBITDA to reach approximately $1.76 billion in 2025. Analysts at TD Cowen recently raised their price target for TechnipFMC shares to $38, maintaining a Buy rating, reflecting confidence in the company’s operational performance and strategic outlook. The firm’s ability to secure strong orders, projected to continue beyond 2025, has been highlighted as a positive indicator for future business prospects. Additionally, TechnipFMC has launched its innovative Subsea 2.0 product architecture, further enhancing its market position. The company has also achieved investment-grade ratings from all three major agencies, underscoring its financial stability.
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