Oct. 26 (UPI) -- The energy market is set up for oilfield service contracts to outperform levels from the depths of the downturn, French company TechnipFMC said.
French energy services company TechnipFMC reported third quarter earnings before interest, taxes, depreciation, and amortization, a metric that serves as a measure of profitability, of $536.2 million, down 23.3 percent from last year.
In December, the collective shareholders approved a merger between FMC, which specialized in subsea oil and gas operations, and Technip, a leader in submarine pipeline installation and broad-based oil and gas infrastructure development
The company in July said an error in calculations meant it overstated its first quarter figures by $209.5 million. TechnipFMC reported an initial first quarter net income attributable to the company was $190.8 million.
In a milestone for the first quarter, the company secured a contract from a subsidiary of Exxon Mobil working offshore Guyana awarded for the engineering, manufacturing and delivery of equipment slated for the Liza project in deep waters, one of the more promising prospects in the world. In September, the company said it would help Norwegian energy company Statoil with new pipeline and production infrastructure at the Peregrino project in the oil-rich Campos Basin off the coast of Brazil, where production passed 100 million barrels in 2015.
CEO Doug Pferdehirt said the rest of 2017 and into 2018 shows potential for additional contracts across the sector.
"We believe that most major subsea projects can move forward at today's oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns," he said in a statement.
Historic lows for crude oil prices last year forced most major companies to tighten the purse string for exploration and production spending. The price for Brent crude oil, the global benchmark, is up about 6 percent since the start of the year to trade near $58 per barrel, but coming off lows in the mid-$40 range.
The head of oilfield services company Schlumberger, Paal Kibsgaard, said last week that trends to the third quarter were pointing to market recovery.
"We see significant opportunities ahead, and these will be driven by internal initiatives as well as market fundamentals," TechnipFMC's chief executive said.