FMC Technologies posts drop in 3Q profit and revenue
- Business & Finance
FMC Technologies, Inc., a provider of oilfield systems and technology, on Thursday posted its third quarter 2016 revenue of $1.1 billion, citing lower activity across all segments. The company, set to merge with France’s Technip, said its revenue was down 29 percent from the prior-year quarter.
Net income fell to $32 million, down from $82.5 million a year ago.
Subsea Technologies business segment recorded third quarter revenue of $798.4 million, down 27 percent from the prior-year quarter, primarily due to lower inbound orders achieved during 2015 that affected the backlog coming into the year.
“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. Subsea Technologies operating margins were 15 percent; adjusted operating margins were 15.7 percent, excluding charges.
Subsea Technologies inbound orders for the third quarter were $401 million. Backlog was $2.5 billion, compared to prior-year backlog of $4.3 billion.
Total inbound orders were $692.2 million , including $401 million in Subsea Technologies orders. Backlog for the company was $3 billion , including Subsea Technologies backlog of $2.5 billion.
“We received our second subsea multiphase boosting pump order in the quarter. This award, for ENI’s Block 15/06 West Hub Development , further demonstrates our capabilities in this attractive growth segment,” Pferdehirt added. “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.”