FMC Technologies, a provider of technologies and services to the international oil and gas industry, has seen its profit drop in the fourth quarter of 2015 when compared to the one made in the corresponding period of 2014.
The Houston-based subsea services provider on Tuesday posted a $55.6 million profit for the fourth quarter of 2015, a drop when compared to the same period in the year before and a profit of $169 million.
Furthermore, FMC Technologies reported fourth quarter 2015 revenues of $1.4 billion, down 34 percent from the prior-year quarter revenues of $2.16 billion.
According to the company, the significant decline was driven by the sharp reduction in North American land activity, lower revenues in the Subsea Technologies segment, and the negative impact of the stronger U.S. dollar.
The company also reported fourth quarter impairment charges of $73.4 million.
Total inbound orders for FMC Technologies were $833.9 million, including $490 million in Subsea Technologies orders.
The company ended the quarter with net debt of $239.8 million, down $426.8 million from the prior year, due to strong operating cash flow.
FMC Technologies’ backlog stands at $4.4 billion, including Subsea Technologies backlog of $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.”
Gremp added: “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.”
Offshore Energy Today Staff