As oil price stumbles FMC Technologies records losses – Subsea World

As oil price stumbles FMC Technologies records losses

FMC Technologies has recorded a 67 percent net income drop year-over-year during the fourth quarter 2015, faced with the continued decline in the North American land market and the negative impact of the strengthening U.S. dollar, as in the quarters before.

For the Q4 2015, the Houston-based subsea specialist posted profit of $55.6 million, or earnings per share attributable to the company of $0.24, compared to a net income of approx. $169 million, or $0.72 earnings per share for the year-ago quarter.

The net income for the year 2015 was $391 million, or diluted EPS of $1.70, versus $700 million or diluted EPS of 2.96 in 2014.

Subsea technologies revenue for the quarter dropped 29 percent to $1 billion. Full-year subsea technologies revenue was $4.5 billion, including $540.6 million of unfavorable foreign currency impact.

Foreign currency negatively impacted revenues by $652.5 million.

FMC’s total inbound orders were $833.9 million, including $490 million in subsea technologies orders. The company’s backlog stands at $4.4 billion, out of which subsea technologies backlog is $3.8 billion.

John Gremp, chairman and CEO of FMC Technologies said: “Lower oil prices and greater uncertainty around operator cash flows are driving another year of customer spending reductions. We remain intensely focused on what we can control and are taking unprecedented restructuring actions across the entire company with a clear plan to lower costs, increase efficiency, and improve execution, steps that will provide sustainable savings and further strengthen our competitive position.”

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