TechnipFMC secures over $1 billion contract from Shell

NEWCASTLE & HOUSTON - TechnipFMC (NYSE: FTI), a global provider of technology solutions to the energy industry, has been awarded a contract exceeding $1 billion by Shell for the Gato do Mato project offshore Brazil. This contract, classified as "major" by the company’s standards, will be incorporated into TechnipFMC’s inbound orders for the first quarter of 2025. According to InvestingPro analysis, TechnipFMC maintains profitable operations with earnings per share of $1.97, and analysts remain bullish on the company’s prospects with additional ProTips available for subscribers.

The agreement entails an integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract for the greenfield development. TechnipFMC will leverage its Subsea 2.0® configure-to-order subsea production systems for the project, aiming to streamline project management and hasten the timeline to the commencement of oil production.

Jonathan Landes, President of Subsea at TechnipFMC, expressed confidence in the company’s ability to deliver on schedule, citing a 30-year partnership with Shell and a strong track record of integrating and industrializing innovative solutions.

The announcement comes with the usual caution regarding forward-looking statements, which are subject to significant risks, uncertainties, and assumptions that could cause actual results to differ materially from projected outcomes.

TechnipFMC, with approximately 21,000 employees, operates in two business segments: Subsea and Surface Technologies. The company is focused on advancing the energy industry with integrated ecosystems, technology leadership, and digital innovation, all while supporting clients’ ambitions for energy transition and reduced carbon intensity.

This news is based on a press release statement and provides a glimpse into TechnipFMC’s ongoing endeavors in the energy sector, particularly in the field of subsea engineering and construction.

In other recent news, TechnipFMC reported strong financial results for the fourth quarter of 2024, with earnings per share of $0.54, surpassing expectations of $0.35. The company also exceeded revenue projections, posting $2.37 billion against an anticipated $2.3 billion. This positive performance contributed to a 16% increase in total revenue for the year, reaching $9.1 billion. In addition, TechnipFMC secured a significant contract with Equinor for the Johan Sverdrup oil field development in the North Sea, valued between $500 million and $1 billion. This contract will be included in TechnipFMC’s first-quarter orders for 2025.

TD Cowen analysts have raised their price target for TechnipFMC to $38, maintaining a Buy rating, following the company’s robust quarterly performance and an upgrade to its 2025 Subsea guidance. The analysts noted strong order intake and dismissed concerns about vessel availability, highlighting TechnipFMC’s strategic outlook. Furthermore, TechnipFMC achieved investment-grade ratings from all major agencies, underscoring its solid financial standing. The company plans to distribute at least 70% of its free cash flow to shareholders in 2025, reflecting confidence in its future cash flow generation.

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