MODEC reported a 78.2% increase in profit for the first quarter of 2026, supported by steady progress on floating production, storage and offloading vessel projects and continued demand for ultra-deepwater oil and gas developments.
The company released its financial results for the three months ended March 31, 2026.
Net profit reached US$99.1 million, up 78.2% from the same period last year. Revenue increased 23.4% to US$1.08 billion, while operating profit climbed 63.2% to US$122.7 million.
MODEC said demand for floating offshore production facilities remained strong despite volatility in global energy markets.
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“While coexisting with the trend toward decarbonization, maintaining a stable energy supply remains an important issue, and the development of deepwater oil and gas fields by oil companies continues to be promoted as an area where sufficient reserves are confirmed for the future and where they are cost-competitive,” the company stated.
“Demand for the Group’s main business related to floating offshore oil and gas production facilities especially for large-scale ultra-deepwater projects, in which the Group has a competitive advantage, has also remained firm,” MODEC added.
The company said oil prices strengthened during the quarter following escalating tensions in the Middle East after military strikes on Iran by the United States and Israel at the end of February.
According to MODEC, oil prices traded mainly in the upper US$50s to US$60s per barrel earlier in the year amid expectations of oversupply linked to higher U.S. production and the easing of voluntary output cuts by OPEC+, which includes members of the Organization of Petroleum Exporting Countries and other oil producing countries. Prices later climbed to between US$80 and above US$100 per barrel as tensions intensified.
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Orders received during the quarter totaled US$129.3 million, down 97.3% from the first quarter of 2025 due to specification changes in existing FPSO construction projects. The company’s order backlog stood at US$17.86 billion at the end of March.
MODEC currently holds engineering, procurement, construction and installation contracts for FPSOs being built for ExxonMobil Guyana’s Uaru and Hammerhead developments offshore Guyana.
The Uaru project will utilize the Errea Wittu FPSO, while the Hammerhead development will use the FPSO named Essequibo 1899.
Both projects are part of ongoing development activity in the Stabroek Block, where ExxonMobil and co-venturers Hess and CNOOC are advancing multiple offshore projects. Oil production in the block is projected to reach about 1.7 million barrels per day by 2030.
