FMC Technologies, a Houston-based provider of technologies and services to the international oil and gas industry, saw its third quarter revenue in 2015 fall 22 percent to $1.54 billion, compared to $1.95 billion a year ago. The company’s net income fell to $82 million, from $169.8 million in the third quarter of 2014.
The company said the reason for the drop was the continued decline in the North American land market that „severely impacts“ Surface Technologies segment. In addition, FMC cited the negative impact of the strengthening U.S. dollar in the company’s Subsea Technologies segment.
Total inbound orders were $1.5 billion, including $1.0 billion in Subsea Technologies orders. Backlog for the Company was $5.0 billion, including Subsea Technologies backlog of $4.3 billion.
Subsea Technologies third quarter revenue was $1.1 billion, down 16 percent from the prior-year quarter due to the strength of the U.S. dollar.
John Gremp, Chairman and CEO of FMC Technologies said: “The North American onshore market’s prolonged decline negatively impacted our company’s financial results. In response, we continued to take significant actions to reduce our costs.”
He added, “Our Subsea Technologies segment delivered strong operating performance in the third quarter and we received two major awards resulting in another quarter of more than $1.0 billion in orders.”
Providing outlook for the rest of the year, FMC Technologies said it continued to expect at least $3 billion of Subsea Technologies contract awards in 2015. For the nine months ended September 30, 2015, the company’s subsea orderbook stood at $2.6 billion.