MODEC reports 657% year-on-year profit boost in first quarter

MODEC reported US$71 million profit in the first quarter of 2024, a 657.1% increase from the US$9.4 million profit from the prior year quarter. 

Its revenue amounted to approximately US$823 million, up from US$745 million in the corresponding quarter of 2023. Such revenue was due to progress in the construction of FPSOs, MODEC said. Operating profit for the quarter was approximately US$77 million partly due to the recognition of revenue from the steady progress of construction projects. Profit before tax was US$82 million.

MODEC’s consolidated financial position is characterized by US$3.9 billion in total assets and US$1.1 billion in total equity. 

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For the full year, MODEC expects to rake in US$3.9 billion, with operating profit of US$200 million and profit before tax of US$210 million. 

Notably, MODEC said demand for its main businesses related to floating offshore oil and gas production facilities, especially for large-scale ultra deepwater projects.

Under these circumstances, for the quarter, MODEC reported that total orders on a consolidated basis resulted in US$233 million due to the variation orders of construction projects for floating production, storage and offloading (FPSO) vessels. 

ExxonMobil hired MODEC last year to deliver the Errea Wittu FPSO for the Uaru project offshore Guyana. The order was MODEC’s highest earning engineering, procurement, construction and installation (EPCI) contract in 2023, beating out Equinor’s Raia and Bacalhau. It is expected to be a key contributor to MODEC’s 2024 earnings.