The booming subsea market has seen FMC Corporation clinch 35 tree orders in the fourth quarter of 2012, bringing its total to 159 for the year out of the sector’s impressive 414 subsea trees awarded in total.
The subsea major’s Chairman and CEO, John Gremp, is also predicting that 2013 will prove to be just as strong. The 2012 total for FMC means that the contractor’s market share for subsea trees awarded last year reached almost 40%, and is one of the main reasons the company was able to report a record full year for subsea technology orders of US $4.6 Bn, and record full year subsea technologies revenue of $4 Bn.
The company’s Q4 2012 revenue was $1.8 Bn, up 23% on the prior-year quarter, while total inbound orders for the quarter were $1.9 Bn, including $1.4 Bn in Subsea Technologies’ orders. FMC’s order backlog currently stands at $5.4 Bn, including the Subsea Technologies backlog of $4.6 Bn.
Gremp, talking during the company’s Q4 2012 results presentation, said that FMC’s subsea revenue had grown by almost 50% since 2010, and that for 2012 orders had been strong for its subsea business despite the delay of some large awards that had been expected.
“Looking forward, in 2013, we expect to see continued year-over-year growth for subsea activity. We think many of the projects we’ve previously discussed will be awarded this year. This includes large projects in West Africa, additional awards in Brazil and a continuation of orders in the North Sea and significant growth in the Gulf of Mexico.
“Focusing on the GoM, we were recently awarded the contract for BP’s Mad Dog Phase 2 development. This project falls under our global frame agreement with BP. We also expect to see major operators, including Shell, Anadarko and Exxon Mobil, increase their activity in the GoM as they have projects slated for award this year.”
The chairman added that, using subsea trees as an activity guide, over the last three years the number awarded per year had been in the ‘300 range’ before jumping to 414 in 2012. “So you have a 30-40% increase in subsea activity in 2012, which will have to be delivered over the course of the next year or so. And then you look at 2013, and it could jump again by another 30% or 40%. And that’s the growth that we’ve been anticipating.”
He added that the company’s confidence in the emerging subsea processing market continued to grow, with its capabilities in subsea separation and compression: “Our confidence in the growth of this market is bolstered by operators becoming increasingly more engaged regarding subsea processing technology, as indicated by the increased number of named project and FEED studies over the next few years.”
FMC is predicting 8 or 9 projects of various sizes, including FEED studies, that could happen in 2013, with a similar number forecast for 2014.
The contractor’s forecast Capex for 2013 will be approximately $400m, mostly directed towards subsea in Brazil, Norway and West Africa.
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