FMC Technologies’ subsea margins surge to highest level in four years
FMC Technologies has reported third quarter 2014 revenue of $2.0 billion, up 15 percent from the prior-year quarter, buoyed up with success in its subsea technologies division.
Diluted earnings per share were $0.72, which includes a $17 million, or $0.07 per diluted share charge, net of tax, related to an intercompany foreign currency transaction. This is compared to diluted earnings per share of $0.49 in the prior-year quarter.
Total inbound orders were $1.7 billion and included $1.1 billion in Subsea Technologies orders. Subsea Technologies backlog was $5.9 billion.
“Quarterly subsea margins are at the highest level we have delivered in over four years,” said John Gremp, Chairman, President and CEO of FMC Technologies. “Our focus on execution, the strength of our backlog, and the growth of our subsea service revenue has positioned us to continue delivering mid-teen level margins.”
Subsea Technologies third quarter revenue was $1.3 billion, up 16 percent from the prior-year quarter.
Operating profit increased 69 percent from the prior-year quarter to $204 million, primarily as a result of better execution on higher volumes in all regions, and growth in the subsea service revenue.
Gremp told an analyst’s conference call: “The things we are focused on are strengthening and expanding our partnerships with operators. This is the company’s foundation in the deepwater. Regardless of what happens next year or the year after, that’s a big deal to us.
“That means something to these operators that are going to use FMC Technologies regardless of the pace that they develop their deepwater portfolios. We will be adding partnerships, expanding and strengthening them. That’s something we can control.”