TechnipFMC plc
NYSE-FTI
Company Overview
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The Subsea segment engages in the design, engineering, procurement, manufacturing, fabrication, installation, and life of field services for subsea systems, subsea field infrastructure, and subsea pipe systems used in oil and gas production and transportation. It provides subsea production and processing systems; subsea umbilicals, risers, and flowlines; vessels; and Subsea Studio for optimizing the development, execution, and operation of current and future subsea fields. This segment also offers well and asset services; research, engineering, manufacturing, and supply chain; and product management services. The Surface Technologies segment designs, manufactures, and services products and systems used in land and shallow water exploration and production of crude oil and natural gas. This segment offers drilling and completion systems; surface wellheads and production trees systems; iComplete, a digitally enabled pressure control system; fracturing tree and manifold systems; pressure pumping; well service pumps; well control, safety and integrity systems, multiphase meter modules, in-line separation and processing systems, and standard pumps; flowback and well testing services; skid systems; automation and digital systems; and flow measurement and automation solutions. It also offers planning, testing and installation, commissioning, operations, replacement and upgrade, maintenance, storage, preservation, intervention, integrity, decommissioning, and abandonment; and supplies flexible lines and flowline products and services. TechnipFMC plc has a strategic alliance with Talos Energy Inc. to develop and deliver technical and commercial solutions to Carbon Capture and Storage projects. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom.
Name
TechnipFMC plc
CEO
Douglas J. Pferdehirt
Website
www.technipfmc.com
Sector
Energy Equipment and Services
Year Founded
1884
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Bulls Say
TechnipFMC will derive a first-mover advantage from its Subsea 2.0 solution by delivering cost-saving subsea equipment and services to its customers.
The firm is well-positioned to capitalize on the significantly growing demand for integrated services which, beyond expanding its already significant market share will provide downcycle protection, as well.
Increased investment in offshore production will provide ample opportunity for TechnipFMC to secure more long-term contracts that will continue driving value in the event of a future slowdown.
Bears Say
Activity in offshore oil and gas production could take longer than expected to recover (or recover less than expected), limiting TechnipFMC’s opportunities for future value generation.
If the firm’s focus on project integration proves successful, competitors will likely replicate the strategy, ultimately limiting the potential for outsize value generation.
Management’s concentration on integration could pull focus from its core competencies, ultimately eroding the firm’s competitive advantage as the number-one provider of subsea equipment.