FMC Tech Q3

Liikevaihto $1,088.4 (-3%)
Liiketoiminnan kassavirta $211.6 milj. (+340%)
Liikevoitto $135.5 milj. (-2%)
EPS $0.73 (+14%)

P/E(ttm) 18.9
Tase

Varat
Likvidit $2,325.3
Kaikki $3,431.1

Velat
Lyhytaikaiset $1,758.3 milj.
Kaikki $2,425.2 milj.

Omapääoma $1,005.9 milj.

P/B 7.76

Tilauskirja $2,959.4 milj.(-30%)

Tiedote

Subsea-teknologian ykkönen ja kakkonen eri segmenteissä, mutta kalliihko. FTI:n B ei todellakaan vastaa omaisuuden todellista arvoa.

Acergy Q3

Meriputkifirman Q3-luvut hieman myöhässä

Liikevaihto $558.3 milj.(-13%)
Operatiivinen kassavirta $174.6 milj. (+37%)
Liikevoitto $76.9 milj. (-43%)
EPS $0.30 (-48%)

Tase
Varat
Likvidit $1,621.6 milj.
Kaikki $2,721.2 milj.

Velat
Lyhytaikaiset $1,206.1 milj.
Kaikki $1,718.6 milj.

Omapääoma $1,002.6 milj.

P/B(23.10.2009) 2.57

Tilauskirja $2,628.00 milj.

Raportti löytyy täältä

Acergy on saanut tuon raportointikauden päättymisen jälkeen kaksi suurta tilausta: 19. lokakuuta 500 miljoonan dollarin arvoisen sopimuksen Chevronilta; Acergyn ja Sapura Crestin omistama SapuraAcergy sai 2. lokakuuta 170 miljoonan arvoisen sopimuksen Apachelta.

Subsea7 Q1 result

Revenue 602.8 MUSD (+7%)

Operating profit 82.0 MUSD (-3%)

Net profit 55.04 MUSD (-)

EPS 0.37 USD (-)

Contract backlog 2907 MUSD (-26%)

OUTLOOK
"The market outlook continues to retain a degree of uncertainty for the medium term as a result of the current economic climate. As indicated previously, national oil companies and major operators are generally expected to maintain their spending levels. Notwithstanding this, the whole industry is taking time to re-assess projects and take advantage of potential cost reductions given the current environment. This is resulting in delays in contract awards and, in respect of some of the smaller players in the North Sea and North America, a cancellation or deferment of projects.The Company continues to focus on its efforts to reduce costs and improve efficiencies in the supply chain in order to remain competitive in the current market."

Balance sheet
Assets
Current $1,020.7 million
Total $2,146.2 million

Liabilities
Current $739.5 million
Total $1,396.8 million

Equity $749.4 million

P/E(TTM) 3.89, P/B 1.4

Report(pdf) and Presentation(pdf)

FMC Technologies Q4

Subsea engineering outfit FMC Tech(FTI) reported Q4 on Monday:


Revenues $1,205.1 million (+12.6%)

EBIT $128.9 million (-0.2%)

Net income $91.3 million (+1.5%)

EPS $0.72 (+5.8%)

Order backlog(31/12/2008) $3,651.2 million (-19%)


Balance Sheet

Assets
Current $2,443.7 million

Liabilities
Current $1,962.5 million



Outlook

Peter D. Kinnear, Chairman, President and Chief Executive Officer: "We enter 2009 in the midst of an uncertain macroeconomic environment but with a solid base for future business. We expect the strength of our subsea backlog will help offset declines in our other businesses in 2009. Overall, we estimate 2009 diluted earnings per share from continuing operations to be in a range of $2.40 to $2.65."

P/E 9.5,

FTI looks expensive. A P/E in the range of 5 to 7 would be acceptable. The order backlog provides some visibility, but it only covers a years worth of revenues.

Acergy Q4

Revenue $567.9 million (-18%)

Adjusted EBITDA 135.1 million (-10%)

EPS(from continuing operations) $0.45(+2200%)

Backlog at the end reporting period

$2,511 million (-11%)

Balance sheet

Assets
Total $2,471.1 milion

Liabilities
Total $1,669.7 million

P/E 3.23, P/B 1.3

Dividend yield 4%($0.22)

Presentation(.pdf)

National Oilwell Varco Q4

Q4

Revenues $3,810.2 million (+5%)
Revenue breakdown: Rig technology 55%, Petroleum services % supplies 37%, Distibution services 8%

Operating profit $856.4 million (+49%)

EPS $1.40(+33%)

Order backlog

31.12.2008 $11.1 billion, 30.09.2008 $11.8 billion, 31.12.2007 $9.0 billion

Year-end balance sheet

Assets
Current $9,595.1 million
Total $ $21,399.3 million(goodwill $5,225.0 million)

Liabilities
Current $5,626.6 million
Total $8,666.2 million

On outlook

"While near term economic conditions are challenging, we enter 2009 with a healthy backlog of equipment and technology to deliver to our customers, and a balance sheet with considerably more cash than debt. We believe that the oil and gas industry’s challenge to replace depleting reserves will require upgrading the world’s rig fleet, and we look forward to continuing to help our customers retool their rigs after years of underinvestment.”"

P/E 5.54(FY EPS $4.91)
P/B 1.12, 1.5 ex-goodwill

Press Release

The Grant Prideco acquisition, which was completed on 21. of April is the main reason for the jump in the profits. As a long term buy NOV looks very attractive.

Subsea 7 Q4

Q4 Numbers

Revenue $583.6 million (+3.7%)

Net operating profit $73.3 million(-8.6%)

Pre-tax profit 91.0 million (+12.7%)

EPS(diluted) $0.38(+5.5%)

Balance Sheet on 31.12.2008

Assets
Current 892.0 million
Total $2,012 million (goodwill $98.5 million)

Liabilities
Current $648.7 million
Total $1,313 million

P/B, with today's market value(NOK 5.4 billion=$772 million) 1.11, 1.28 ex-goodwill.


P/E on 2008 earnings($1.74) 2.9

Backlog
Global backlog of $3.3 billion on 31.12.2008, which based 2008 revenues is ~17 month worth of revenue.

Outlook

"Whilst the market outlook will retain a degree of uncertainty for the medium term as a result of the current economic climate, there has been no dramatic deterioration in the subsea market sector. Current indications are that National Oil Companies and major operators are generally maintaining spending levels. The recent announcement from Petrobras advising of a projected increase in Exploration & Production spending over the next 5 years from USD 65 billion to USD 105 billion supports this view.
However, as expected, the anticipated spending of smaller operators has been reduced and, as a consequence, a number of development plans have been re-evaluated and deferred. This has particularly affected the UK Sector of the North Sea (Norway remaining stable) and the Gulf of Mexico where a number of tie-back projects have been postponed.
There are indications of decreases in costs throughout the supply chain and, in conjunction with this, the Company is focused on reducing its costs and improving efficiencies in order to remain competitive in the current market."

Report(.pdf)

Dril-Quip

Dril-Quip Inc. (NYSE:DRQ)

"Dril-Quip, Inc. is one of the world's leading manufacturers of precision-engineered offshore drilling and production equipment that is well suited for use in deepwater, harsh environments and severe service applications. The Company designs and manufactures subsea, surface and offshore rig equipment for use by oil and gas companies in offshore areas throughout the world. Dril-Quip also provides installation and reconditioning services as well as rental running tools for use with its products."

"At its world headquarters located in Houston, Texas, Dril-Quip provides in-house forging and heat-treating capabilities. The world headquarters operates one of the largest rough and finish machining facilities in the industry. Dril-Quip also maintains and operates regional headquarter offices and facilities that include full capabilities in Aberdeen, Scotland, Singapore and Macaé, Brazil."

Market Value: $956 million

P/E 8.86

P/B 1.6

Revenues 9M/08: $407.2 million 2007: $495.6 million(equipment sales 84%, services 16%) 2006: $442.7 million 2005: $221.6 million 2004: $221.6 million 2003: $219.5 million

Operating Income(millions) 9M/08: $108.3 2007: $138.4 2006: $122.4 2005: $49.2 2004: $18.3 2003: $14.5

Operating Margin: 9M/08: 26.6%, 2007: 27.9%, 2006: 27.6%, 2005: 22.2%, 2004: 8.3% , 2003: 6.6%


EPS 9M/08:$1.98 2007:$2.63 2006:$2.15 2005:$0.90 2004:$0.36

Balance Sheet on 30/09/2008

Assets
Current 552.6 million
Total $699.8 million

Liabilities
Current 98.4 million
Total 107.4 million

Backlog: 30/09/2008: $528 million,31/12/2007: $429 million, 30/09/2007: $457 million, 31/12/2006: $336 million

Major shareholders: Founders Larry E. Reimert 6.3%, Garry D. SMith 7.7%, J. Mike Walker 10.1%, Goldman Sachs Group 7.3%, Barclay Global Investors 5.14%


Competition (mcap): Cameron ($5.08 billion) P/E 8.37, P/B 2.1(ex-goodwill 3.1), FMC Tech.($3.7 billion)P/E 11, P/B 4.3, NOV P/E 5.66, P/B 1.12(ex-goodwill ~1.5) Aker Solutions($1.2 billion), VetcoGray & Hydril(both are part of GE)

-Dril-Quip manufactures: subsea wellheads, subsea productions trees(market share 4%), production and drilling risers, specialty connectors, mudline suspension systems

-"In 2007, the Company’s top 15 customers represented approximately 51% of total revenues, with no customer accounting for more than 10% of the Company’s total revenues"

-"The Company has substantial international operations, with approximately 66%, 65% and 69% of its revenues derived from foreign sales in 2005, 2006 and 2007, respectively"

-"The Company's manufacturing process is vertically integrated, producing inhouse,majority of its forging requirements and essentially all of its heat treatment, machining, fabrication, inspection, assembly and testing."

Notes: P/B seems low compared to most peers and the balance sheet looks solid. The Brazilian manufacturing operations may be major advantage in the future. The lack of a dividend is a minus, but most of its peers don't pay dividends.
A severe and prolonged global economic down term may slow down the growth offshore oil production, but the long term trend is clear and strong: offshore is the place where the remaining significant deposits are. DRQ could be one of the biggest beneficiaries of Brazil's pre-salt hydrocarbon discoveries.
DRQ's vertical integration has been a big plus in recent years when the demand for subsea equipment has outpaced supply, however if demand falls significantly those inhouse resources become underutilized and turn from an asset into a liability.
The operating margin is at an unsustainable level and will most likely fall in the range of 9 to 15 percent(the five year average for FMC Tech. is 12.12%). Revenue will most likely dip by 20 to 40% during next 18-24 months after which it'll resume on the path of growth and the 2008 level will be surpassed in 2011 at the latest.

FORECAST: Subsea spending to exceed US$80 billion