TechnipFMC says surface activity outside North America resilient

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UK-based TechnipFMC says its surface activity outside of North America has been resilient, and the pricing environment has stabilized.

In the company’s 3Q 2017 earnings conference call, CEO Douglas Pferdehirt, said, “The Middle East, North Africa and the North Sea offer the best near-term activity outlook for our international surface business, and we are encouraged to see several longer-term projects moving forward in these regions.”

Pferdehirt pointed to short-cycle activities in North America, which could slow down in the rest of 2017. “In North America, unconventional resource development continues to lead short-cycle activity. The pace of improvement is likely to slow with our expectation of a more moderate rig count growth. We also anticipate reduced levels of hydraulic fracturing fleet reactivations, partially offset by higher levels of inspection, maintenance and repair work that is needed to support the larger install base,” he stated.

For TechnipFMC’s (FTI) Subsea segment, 2017 guidance remained the same in 3Q 2017 compared to 2Q 2017.

The company – one of the top OFS (oilfield services and equipment) providers in the world – expects revenues of $6.1 billion and EBITDA (earnings before interest, tax, depreciation, and amortization) margins of 17%, excluding charges and credits.

TechnipFMC has been awarded a contract by ExxonMobil for the engineering, manufacture and delivery of the subsea equipment for the Liza deep water project in Guyana, South America.