CAM Cameron International Corp.

Oil drilling equipment maker  FMC Technologies Inc. (FTI) will manufacture and deliver surface wellheads to Pemex Exploration and Production, under a three-year contract. The deal will fetch FMC Technologies $36 million in revenue if the full contract is executed.

Pemex has assured orders worth at least 40% of the contract value within the determined call-off period. The supplied equipments will be utilized for drilling and well maintenance programs in the Northeast and Southwest Marine Regions of the Gulf of Mexico.

Per the agreement, FMC Technologies will supply about 150 surface wellheads, installation and supervision services for Pemex operations in the Gulf region. The equipages will be delivered from FMC's unit in Mexico. Delivery of the equipment is expected to start in the fourth quarter of 2011.

FMC Technologies remains upbeat regarding this deal and believes that the company will be able to extend its foothold to various oil and gas fields with its highly advanced equipment and technologies.

Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry and operates 25 manufacturing facilities in 15 countries.

The company is scheduled to release its third quarter 2011 earnings results on October 25, after the market closes. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 46 cents per share, on revenue of $1,297 million.

The analysts have an optimistic view on FMC Technologies’ third quarter results, reflecting a diversified product portfolio, specialty service capabilities and proprietary technological expertise along with a strong backlog position and growing international footprint.

Additionally, the company is favorably poised in the subsea systems market. It is the company’s largest and fastest-growing business, accounting for about 70% of the total revenue. Subsea products have seen an increase in interest, and we expect earnings from this segment to strengthen in the coming months.

FMC Technologies, which competes with the likes of Cameron International Corp. (CAM) and National-Oilwell Varco (NOV), currently retains a Zacks #2 Rank (short-term Buy rating).

 
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