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FMC Technologies Q2 earnings jump 21 per cent


FMC Technologies announced that second quarter 2011 revenue hit US$1.2 billion, a rise of 21 per cent from the prior-year quarter , thanks to higher than expected demand in the North American market.

According to a company statement, total inbound orders of $1.5 billion were up 18 per cent from the second quarter of 2010 and included US$939mn in subsea systems orders.

"We have booked almost US$1.9 billion in subsea orders during the first half of 2011, and continue to believe US$4 billion in orders for the year is possible," said John Gremp, President and Chief Executive Officer.

"Our subsea revenue of nearly US$800mn during the second quarter has kept us on track to reach US$3.3 billion revenue for the year. Our fluid control business is continuing to produce at record levels and as our capacity expansion comes online, we will be able to meet our customers' growing demands," Gremp added.

FMC Technologies Energy Processing segment continued to perform at record levels during the quarter as Fluid Control benefited from the strength of the North America pressure pumping market. The company recorded US$1.5 billion in orders during Q2.

Revenue from the Surface Wellhead segment was up 13 per cent from the second quarter of 2010, driven by strong North American activity.

Gremp added: "We believe subsea activity will continue to grow as oil and gas fundamentals remain strong, and the major E&P operators around the world stay committed to deepwater projects."

A reason for FMC Technologies optimism is their bullish outlook on deepwater drilling. Gremp pointed out that,"over the next 3 years, the industry will see more than 70 deepwater drilling rigs enter the market, a 27 per cent increase from where we started 2011. In the second quarter alone, a net of 11 new deepwater rigs were announced. Global capital spending by our customers is expected to grow at 15 per cent from 2011 to 2012."