FMC Technologies 2Q results hurt by low activity
FMC Technologies, a U.S. based provider of subsea oil & gas production systems, reported a net income of $2.1 million for the second quarter of 2016. This is a drop when compared to the second quarter of 2015, when the company reported a net income of $108 million.
FMC Technologies’ revenue for the quarter fell to $1.15 billion, down from $1.7 billion in the corresponding quarter of 2015. FMC Technologies blamed the drop in revenue on lower activity.
Total inbound orders were $537.9 million, including $334.1 million in Subsea Technologies orders. Backlog for the Company was $3.4 billion, including Subsea Technologies backlog of $2.9 billion.
The company, which during the quarter announced it would merge with French Technip, recorded Subsea Technologies revenue of $854.2 million in the quarter, down 31 percent from the prior-year quarter.
“Subsea Technologies delivered solid operating margins as we continue to benefit from our execution momentum as well as the savings from our ongoing restructuring activities,” said John Gremp, Chairman and CEO of FMC Technologies. Gremp added, “The further deterioration in North America led to a significant impact to our Surface Technologies earnings.”
Gremp added: “Although the timing around the sanctioning of deepwater projects remains uncertain, we continue to focus our strategy on lowering the cost of deepwater development, and I am confident that our merger with Technip will allow us to further improve project economics.”