Yahoo Finance TechnipFMC (FTI) Wins Major EPC Contract From Assiut in Egypt
TechnipFMC plc FTI recently secured a major contract from Assiut National Oil Processing Company (ANOPC) to build a new Hydrocracking Complex for the Assiut refinery in Egypt. This engineering, procurement and construction (EPC) deal is valued at more than $1 billion.
Several new process units, such as Vacuum Distillation, Diesel Hydrocracking, Delayed Coker, Distillate Hydrotreating and a Hydrogen Production Facility employing TechnipFMC’s steam-reforming proprietary technology come under this EPC pact. The contract also involves other process units including interconnecting, offsites and utilities.
Per the deal, lower-value petroleum products from Assiut Oil Refining Company’s adjacent facility are likely to be converted into 2.8 million tons per year of cleaner fuels, such as Euro 5 diesel. The company is working on fulfilling the remaining conditions required to initiate the project work.
The agreement with Assiut is considered one of the major strategic projects needed to meet growing local demand for cleaner products. It reinforces the close association of TechnipFMC with the Egyptian petroleum sector and enhances its capability in the delivery of complex projects within the country, thereby boosting its presence in the African nation.
Shares of this London-based operator have plunged 66.8% year to date compared with the 24.3% decline of its industry. The oil price has been persistently displaying a downward curve following the coronavirus pandemic’s adverse impact on global energy demand. The historic oil market crash and the coronavirus-induced demand destruction for the fuel has led to massive capital expenditure curtailments by the upstream players, which has created an extremely challenging operating environment for oilfield service players like TechnipFMC. Snapping up a deal worth $1 billion in this crippling economic condition is a boon for the company.
Brief on the Company
TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions to the energy industry. The company, formed by the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically-sophisticated systems and products for subsea, onshore/offshore and surface projects.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the energy space are Gulfport Energy Corporation GPOR, Devon Energy Corporation DVN and Antero Resources Corporation AR, each presently holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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