The largest provider of subsea equipment to the industry, FMC Technologies, has recorded its best result so far in 2016, despite a 60 percent drop in profit year-over-year.

In the third quarter of 2016, the Houston-based subsea specialist generated more net income than in the first six months of the same year (approximately $22 million in 1H 2016).

FMC Technologies booked third-quarter profit of $32.2 million, or $0.14 per diluted share, on revenue of $1.1 billion, versus net income of $82 million, or $0.35 per diluted share on revenue of $1.5 billion in the year-ago quarter.

Third-quarter diluted EPS from continuing operations was 20 cents, including pre-tax charges of $43 million, or 15 cents per diluted share.

“Subsea Technologies achieved further improvement in segment operating margins, with third quarter results being the highest levels we have recorded in 2016,” said Doug Pferdehirt, president and CEO of FMC Technologies. “The strong performance resulted from solid project execution, combined with the benefits of our cost reduction actions that continued in the quarter. We have used this downturn as a catalyst to make fundamental changes to our business model that will continue to provide sustainable benefits.”

Revenue was down 29 per cent from the corresponding period in 2015.

FMC Technologies’ subsea division generated revenue of $798.4 million in the Q3 2016, down 27 percent from the prior-year quarter.

The company reported total inbound orders of $692.2 million, including $401 million in subsea.

“We anticipate that small order intake will continue to improve and that large project orders will follow as operators embrace strategies that improve project economics through the acceleration of time to first oil, schedule certainty, and lower costs. At FMC Technologies, our relentless focus on these key drivers is yielding benefits for our customers today and will result in even greater benefits in the future,” added Pferdehirt.

At the end of Q3 2016, FMC Technologies’ backlog stood at $3 billion ($5.5 billion same time last year), of which subsea technologies backlog at $2.5 billion.

Subsea World News Staff