FMC Technologies, a provider of technologies and services to the international oil and gas industry, has seen a sharp drop in profit in the first quarter of 2016 compared to the same period last year due to lower activity.
The company on Wednesday posted a profit of $19.8 million for the quarter, a significant drop when compared to a profit of $147.6 million in the same period of 2015.
Further, the company reported first quarter 2016 revenue of $1.2 billion, down 29 percent from the prior-year quarter.
The decline was driven by lower activity and the negative impact of the strengthening U.S. dollar.
Total inbound orders were $671.6 million, including $345.9 million in Subsea Technologies orders. Backlog for the company was $4 billion, including Subsea Technologies backlog of $3.4 billion.
Subsea Technologies first quarter revenue was $864 million, down 25 percent from the prior-year quarter. Operating profit for this segment decreased 35 percent from the prior-year quarter to $109.5 million.
Surface Technologies first quarter revenue was $265.5 million, down 41 percent from the prior-year quarter, primarily due to the significant decline in North American land activity. The segment reported an operating loss of $28.6 million, which includes charges of $41.8 million.
Energy Infrastructure first quarter revenue was $84.1 million, down 17 percent from the prior-year quarter. The revenue decline was primarily due to lower market activity in our measurement solutions business. Energy Infrastructure reported an operating loss of $3.3 million, which includes charges of $2.1 million.
The company ended the quarter with net debt of $209.6 million, down $30.2 million sequentially, due to strong operating cash flow. Net interest expense was $7.5 million in the quarter.
Offshore Energy Today Staff