Will New Guyana and Brazil Deals Redefine TechnipFMC's (FTI) Competitive Edge in Subsea Solutions?

• In recent days, ExxonMobil Guyana Limited announced it has awarded TechnipFMC a substantial contract, valued between US$250 million and US$500 million, to supply subsea production systems for the Hammerhead development offshore Guyana, while Petrobras selected the company for another major subsea project in Brazil.
• These high-profile contract awards highlight TechnipFMC's continued appeal among global oil majors seeking advanced subsea production solutions for complex offshore developments.
• Next, we will examine how these new offshore contracts enhance TechnipFMC’s investment narrative by strengthening its global subsea project backlog.

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TechnipFMC Investment Narrative Recap

Owning TechnipFMC stock means believing in the continued expansion of global offshore oil and gas projects, which drive demand for advanced subsea production solutions. The recent ExxonMobil Guyana and Petrobras contract wins directly bolster the company’s key short-term catalyst: a robust Subsea project backlog, underpinning near-term earnings visibility. However, these wins do little to offset TechnipFMC’s longer-term exposure to decarbonization trends and potential shrinking demand for fossil fuel-centric technologies.

Among recent announcements, the substantial US$250 million to US$500 million ExxonMobil Guyana contract deepens the firm’s footprint in high-growth offshore markets and validates its proprietary Subsea 2.0 platform. This contract’s alignment with consistent order intake may further strengthen upcoming earnings and backlog momentum, supporting TechnipFMC’s near-term growth narrative built on offshore project execution.

By contrast, investors should also consider how TechnipFMC’s international footprint presents risks such as project delays or margin pressure when operating in volatile regions...

Read the full narrative on TechnipFMC (it's free!)

TechnipFMC's outlook anticipates $11.3 billion in revenue and $1.2 billion in earnings by 2028. This projection is based on a 5.8% annual revenue growth rate and a $262.5 million increase in earnings from the current $937.5 million.

Uncover how TechnipFMC's forecasts yield a $41.71 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for TechnipFMC range widely from US$21.65 to US$51.97 based on 5 distinct analyses. Despite this dispersion, growing offshore and subsea order intake remains a key driver that many believe will influence future revenue strength.

Explore 5 other fair value estimates on TechnipFMC - why the stock might be worth 43% less than the current price!

Build Your Own TechnipFMC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TechnipFMC research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free TechnipFMC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TechnipFMC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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