(Chron) The world’s largest offshore services company, TechnipFMC, reported that its revenues grew from the previous quarter, but the deepwater sector remains mired in a downturn.
CEO Doug Pferdehirt said he sees the early signs of a recovery continuing into 2018 and beyond. TechnipFMC, operating out of Houston and Paris, said its third quarter revenues jumped 15 percent from the second quarter to $4.14 billion. The company posted a modest $121 million profit, down from the $165 million profit in the previous quarter.
TechnipFMC was created in January by the merger of the French company Technip and FMC Technologies of Houston. The $13 billion combination that closed married FMC’s expertise in subsea equipment manufacturing and technology and Technip’s leadership in deep-water engineering and equipment installation
“We believe that most major subsea projects can move forward at today’s oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns,” Pferdehirt said.
The company just needs to manage through this ongoing downturn with oil prices hovering above $50 a barrel.
“As we look to 2018, we are managing revenue declines against the strategic investments needed to sustain our operational capabilities through the recovery,” he added.
While it’s TechnipFMC’s smallest business unit, the company did have 20 percent revenue growth in onshore equipment and services sales versus last year.
The overall TechnipFMC goal is to offer integrated services, such as engineering, equipment, installation and additional services in order to cut costs and streamline oil and gas projects.
“The market acceptance of our unique integrated subsea value proposition continues to accelerate,” Pferdehirt said.