TechnipFMC Awarded Substantial Long-term Contract by Petrobras

Rhea-AI Summary

TechnipFMC (NYSE: FTI) has secured a long-term charter and services contract with Petrobras (NYSE: PBR) for the pipelay support vessel Coral do Atlântico. This three-year contract, starting in Q2 2022, includes an option for extension and highlights the increasing demand for flexible pipelay services in Brazil. The vessel will operate in ultra-deepwater environments, emphasizing TechnipFMC's strong relationship with Petrobras. The contract value is classified as 'substantial,' estimated between $250 million and $500 million.

Positive

• Contract with Petrobras valued between $250 million and $500 million.
• Strengthens relationship with Petrobras, reflecting rising demand in Brazil.
• Vessel capability in ultra-deepwater enhances TechnipFMC's operational portfolio.

Negative

• None.

NEWCASTLE & HOUSTON--(BUSINESS WIRE)-- TechnipFMC (NYSE: FTI) (PARIS: FTI) has been awarded a substantial⁽¹⁾ long-term charter and services contract by Petrobras (NYSE: PBR) for the pipelay support vessel Coral do Atlântico.

The Brazilian-registered vessel has been secured on a three-year contract, with an option to extend. Operations offshore Brazil are expected to begin in the second quarter of 2022.

Coral do Atlântico is an important component of the Company’s leading flexible pipe ecosystem in Brazil and will mainly be deployed in ultra-deepwater of up to 3,000 meters.

Jonathan Landes, President, Subsea at TechnipFMC, commented, “Coral do Atlântico is the third of our pipelay support vessels to be contracted via a long-term charter by Petrobras this year, indicating rising demand in the Brazilian market for flexibles. Coral do Atlântico’s versatility and ability to work in deep or shallow water is a large part of the vessel’s appeal. This latest contract further strengthens our collaborative, trusting relationship with Petrobras that spans decades.”

Coral do Atlântico has a history of long-term charters with Petrobras and has consistently been awarded the client’s highest rating for operational performance, quality of work, and health, safety and environment.

(1) For TechnipFMC, a “substantial” contract is between $250 million and $500 million.

Note: this inbound order is included in the Company’s third quarter financial results.

Important Information for Investors and Securityholders

Forward-Looking Statement

This release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. The words “believe”, “estimated” and other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. Such forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For information regarding known material factors that could cause actual results to differ from projected results, please see our risk factors set forth in our filings with the United States Securities and Exchange Commission, which include our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries, delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.

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Source: TechnipFMC plc

FAQ

What is the significance of the contract between TechnipFMC and Petrobras?

The contract is valued between $250 million and $500 million and highlights TechnipFMC's strong position in Brazil's market.

When will operations for Coral do Atlântico commence?

Operations are expected to begin in the second quarter of 2022.

What is the purpose of the pipelay support vessel Coral do Atlântico?

The vessel is designed for flexible pipelay operations, primarily in ultra-deepwater environments.

How many contracts has TechnipFMC secured with Petrobras in 2021?

Coral do Atlântico is the third pipelay support vessel contracted by Petrobras in 2021.

What operational performance rating has Coral do Atlântico received from Petrobras?

The vessel has consistently received Petrobras's highest rating for operational performance and safety.