TechnipFMC And DOF JV Deliver Skandi Recife To Petrobras
Zacks Investment Research | Jun 14, 2018 09:20PM ET
TechnipFMC plc (NYSE:FTI) recently announced delivery of the flexible lay and construction vessel, Skandi Recife to Petróleo Brasileiro S.A. or Petrobras (NYSE: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 .
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