Guyana’s Hammerhead development contributed to an 18% increase in MODEC’s engineering, procurement, construction and installation (EPCI) revenue during the first half of 2026, as work on the project advanced into its second year of construction.
In its first-half 2026 investor presentation released on August 7, the Japanese offshore contractor reported revenue of US$2.447 billion, up 18% from the same period in 2025 and representing 53% of its full-year revenue guidance of US$4.6 billion.
MODEC said higher EPCI revenue was driven primarily by progress on the Hammerhead and Gato do Mato projects, which more than offset lower revenue from the more mature Uaru and Raia developments and the completed Bacalhau project.
MODEC cuts first steel on Hammerhead FPSO project ahead of schedule | OilNOW
The company also reported net income of US$224 million, a 54% increase year-on-year, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 65% to US$297 million.
Gross profit rose 82% compared with the first half of 2025 as construction continued across existing EPCI projects, and operations and maintenance (O&M) earnings increased through steady fleet performance and new contracts, including support for the Bacalhau and Uaru developments.
MODEC said its financial position also strengthened during the period, with cash flow leverage remaining low at 0.8 times debt-to-EBITDA and cash holdings reaching approximately US$1.9 billion, largely reflecting advance payments for major EPCI projects.
The Hammerhead FPSO contract was awarded to MODEC in September 2025 after ExxonMobil Guyana and its Stabroek Block co-venturers approved the project’s final investment decision. Earlier that year, the company received a limited notice to proceed, allowing engineering and design work to begin ahead of full project execution.
MODEC is constructing the Essequibo 1899 floating, production, storage and offloading (FPSO) vessel for the development, its second production vessel for Guyana after the Errea Wittu, which is en route from Singapore for the Uaru project. The company will provide operations and maintenance services for the FPSO for 10 years after first oil.
The FPSO is designed to produce an initial average of 150,000 barrels of oil per day and will be moored in approximately 1,025 meters of water using a spread mooring system developed by SOFEC.
Hammerhead is one of several sanctioned developments in the Stabroek Block, where offshore production is expected to increase to about 1.7 million barrels per day by 2030.
