USA: FMC Technologies Well-Positioned to Exceed 2011 Subsea Orders, Says CEO
FMC Technologies, Inc. reported first quarter 2012 revenue of $1.4 billion, up 29 percent from the prior-year quarter. Diluted earnings per share were $0.41 compared to $0.35 in the prior-year quarter.
Total inbound orders of $2.0 billion were up 50 percent from the prior-year quarter and included $1.4 billion in Subsea Technologies orders. Backlog for the Company was $5.6 billion including Subsea Technologies backlog of $4.7 billion.
“With the award of the Petrobras pre-salt subsea trees, we are well-positioned to exceed our 2011 subsea orders,” said John Gremp, Chairman, President and CEO of FMC Technologies. “We continue to see the subsea market expanding in 2012 and beyond.”
“We are pleased with our Surface Technologies quarterly results and are confident that we can effectively manage through the anticipated capital spending reduction in the North American pressure pumping market.”
Review of Operations — First Quarter 2012
Subsea Technologies’ first quarter revenue was $894.9 million, up 30 percent from the prior-year quarter. Subsea Technologies’ operating profit of $75.1 million increased seven percent from the prior-year quarter as the impact of higher revenue was offset primarily by higher completion costs on a project in West Africa and continuing investments in headcount.
Subsea Technologies’ inbound orders for the first quarter were $1.4 billion and backlog was $4.7 billion.
Surface Technologies’ first quarter revenue of $377.8 million was 30 percent higher than the prior-year quarter. The increase came from strong results in both surface wellhead and fluid control.
Surface Technologies had operating profit of $78.0 million in the first quarter, up 52 percent from the prior-year quarter. The increase was driven by continued strength in fluid control and higher volumes in surface wellhead.
Surface Technologies’ inbound orders were $424.7 million in the first quarter, up 54 percent from the prior-year quarter. Backlog for the segment finished the quarter at a record $627.8 million.
Energy Infrastructure’s first quarter revenue was $137.0 million, up 33 percent from the prior-year quarter. This increase came primarily from improved results in measurement solutions and material handling.
Energy Infrastructure’s operating profit of $9.3 million in the first quarter increased 107 percent from the prior-year quarter. The increase was attributable to the higher volumes in both measurement solutions and material handling.
Energy Infrastructure’s inbound orders for the first quarter were $192.2 million and backlog was $285.4 million.
Corporate expense in the first quarter was $8.5 million, an increase of $0.1 million from the prior-year quarter. Other revenue and other expense, net, was $20.9 million, an increase of $12.7 million from the prior-year quarter due largely to $9.2 million in foreign exchange loss in 2012 compared to $0.2 million in foreign exchange gain in 2011.
The Company ended the quarter with net debt of $380.1 million. Net interest expense was $3.5 million in the quarter.
Depreciation and amortization for the first quarter was $30.1 million, up $1.1 million from the sequential quarter. Capital expenditures for the first quarter were $92.0 million.
The Company recorded an effective tax rate of 23.7 percent for the first quarter.
Summary and Outlook
FMC Technologies reported first quarter diluted earnings per share of $0.41.
Total inbound orders of $2.0 billion in the first quarter included $1.4 billion in Subsea Technologies orders. Backlog for the Company stands at a record $5.6 billion, including Subsea Technologies backlog of $4.7 billion.
The Company reiterated its guidance for 2012 diluted earnings per share of $2.10 to $2.25.
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry. Named by FORTUNE® Magazine as the World’s Most Admired Oil and Gas Equipment, Service Company in 2012, the Company has approximately 14,900 employees and operates 27 production facilities in 16 countries. FMC Technologies designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.
Subsea World News Staff , April 25, 2012