TechnipFMC And DOF JV Deliver Skandi Recife To Petrobras

TechnipFMC plc FTI recently announced delivery of the flexible lay and construction vessel, Skandi Recife to Petróleo Brasileiro S.A. or Petrobras PBR. The delivery was carried out by the company along with its joint venture (JV) DOF Subsea, a Norway-based subsea solutions providing company. The vessel started its eight-year contract with the Brazilan state-run energy company and is scheduled to work in the prolific Campos, Santos and Espírito Santo basins.

The 50-50 JV enables TechnipFMC to be in charge of flexible pipelay, while DOF will execute marine operations.

About Skandi Recife

Per TechnipFMC, the vessel is furnished with a 340-ton Vertical Lay System tower and 2,500-ton underdeck carousel, along with two work-class remotely operated vehicles, which enables it to lay flexible pipes in 2,500 meters of water depth. Skandi Recife was built by Vard Promar Brazilian yard, where Skandi Olinda, a similar vessel is presently being built.

The commencement of the contract will be accretive to TechnipFMC’s cash flow, and is expected to improve its free cash flow (FCF) position. Notably, TechnipFMC’s trailing 12-month FCF is negative, reflecting the company’s inability to finance capital spending from net operating cash flow.

Price Performance and Zacks Rank

London, UK-based oilfield service provider, TechnipFMC has gained 16.3% in the past year against 6.5% decline of its industry. Currently, the company has a Zacks Rank #3 (Hold).

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Stocks to Consider

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Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 39.2% year over year, while its bottom line is expected to increase 248.4%.

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Petroleo Brasileiro S.A.- Petrobras (PBR): Free Stock Analysis Report
 
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