Yahoo Finance TechnipFMC (FTI) Wins iEPCI Contract for Dover Development
TechnipFMC FTI, a renowned engineering and construction company, clinched a significant integrated Engineering, Procurement, Construction and Installation (“iEPCI”) contract from Shell plc (SHEL) for the Dover development in the Gulf of Mexico.
This contract showcases TechnipFMC's expertise and capabilities in subsea engineering and construction, thereby strengthening its position as a key player in the industry.
The Dover Development Project
The company, which had previously collaborated with SHEL on the Appomattox platform, has been entrusted with the task of providing and installing subsea production systems for the Dover development. This project is an important initiative by Shell to enhance its operations in the Gulf of Mexico.
Roles and Responsibilities
FTI has several responsibilities in the aforementioned project. First, the company will supply the subsea tree systems required for the development. These systems play a vital role in the efficient extraction of hydrocarbons from underwater reservoirs.
Second, it will undertake the engineering, procurement, construction and installation of the umbilical, riser and flowline systems. These form the lifeline of offshore production operations, ensuring the seamless transfer of resources between the subsea wells and the Appomattox platform.
TechnipFMC's involvement in multiple facets of the project exemplifies its comprehensive capabilities and extensive expertise in delivering turnkey solutions for complex offshore endeavors.
Significance of the iEPCI Contract
The contract is valued in the range of $75-$250 million. This indicates the magnitude of the project and further reinforces TechnipFMC's position as a trusted and preferred partner for major oil and gas operators.
Mutual Trust and Confidence
The agreement strengthens the longstanding relationship between TechnipFMC and Shell. The companies’ former collaboration on the Appomattox platform and their current involvement in the Dover development underscore the trust and confidence that Shell has in TechnipFMC's capabilities.
The iEPCI contract also demonstrates SHEL's recognition of FTI's ability to assess complex problems in the offshore energy sector and deliver high-quality solutions.
Financial Impact and Recognition
The Dover development project is expected to have a significant impact on TechnipFMC's inbound orders in the second quarter of 2023. This, in turn, is likely to boost the company’s revenues and ensure its continued growth in the industry.
Conclusion
TechnipFMC's recent contract with Shell is a testament to FTI's exceptional capabilities and expertise in the field of subsea engineering and construction. With a proven track record and a longstanding partnership with Shell, the company continues to deliver innovative solutions for the offshore energy sector.
FTI reaffirms its position as a trusted partner for the world's leading oil and gas companies by successfully executing complex projects of this scale.
Zacks Rank and Key Picks
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry.
Shell is an energy and petrochemical company operating in Europe, Asia, Oceania, Africa, the United States and the rest of the Americas. It operates under many segments — Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions.
Both TechnipFMC and Shell currently carry a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are Evolution Petroleum EPM, sporting a Zacks Rank #1 (Strong Buy), and Archrock AROC and Ranger Energy Services RNGR, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum: EPM is worth approximately $219.16 million. EPM currently pays investors $0.48 per share, or 7.38% on an annual basis.
The company currently has a forward P/E ratio of 6.07. In comparison, its industry has an average forward P/E of 7.50, which means EPM is trading at a discount to the group.
Archrock: AROC is valued at around $1.55 billion. It delivered an average earnings surprise of 26.27% for the last four quarters and its current dividend yield is 6.06%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
Ranger Energy Services: RNGR is valued at around $183.61 million. In the past year, its shares have risen 13.8%.
Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.
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TechnipFMC plc (FTI) : Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
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Ranger Energy Services, Inc. (RNGR) : Free Stock Analysis Report
