Oil drilling equipment maker FMC Technologies Inc. (FTI) announced the receipt of a five-year contract from British major BP plc (BP). The global frame agreement calls for FMC Technologies to manufacture and supply subsea production systems and life-of-field services for their worldwide subsea development projects.

The order is part of FMC Technologies’ strong and longstanding relationship with BP. FMC Technologies has supported a number of BP’s projects in the world’s most active deepwater basins that include pioneering developments such as Thunder Horse in the Gulf of Mexico and Greater Plutonio offshore West Africa.

In a separate development, FMC Technologies recently announced a 2-for-1 stock split to be distributed in the form of a stock dividend. The split, which will double the company’s outstanding shares to 240 million, will take place March 31. FMC Technologies’ shares will begin trading on a post-split basis on April 1.

Houston, Texas-based FMC Technologies is a leading manufacturer and supplier of technology solutions for the energy industry. The company, which operates 25 manufacturing facilities in 15 countries, is engaged in the designing, producing and servicing technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions and marine loading systems for the oil and gas industry.

FMC Technologies shares currently retain a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.

The company has a diversified product portfolio, specialty service capabilities and proprietary technological expertise. Additional positives for FMC Technologies include a strong backlog position, growing international operations and a favorable outlook for subsea activity levels. However, the uncertain commodity price outlook and the soft global economy continue to weigh on the company. As such, we expect the growth potential of FMC Technologies to be restrained and see limited upside from current levels.

 
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