FMC Technologies and Technip Shareholders to Vote On Merger in December

Baker Hughes

Houston-based FMC Technologies said this week that Technip and FMC’s respective shareholders will vote on Dec. 5 to approve or deny the companies’ plan to merge. Earlier in May both companies announced their intentions to combine into a new firm, TechnipFMC, which will be valued at about $13 billion.

Despite the ongoing downturn, FMC Technologies has managed to improve profitability by increasing efficiency and reducing costs. FMC recorded $1.1 billion in revenue for the 3Q16 with an adjusted EPS of $0.35, beating the Zacks consensus estimate of $0.23 per share.

“The strong performance resulted from solid project execution, combined with the benefits of our cost reduction actions that continued in the quarter,” Doug Pferdehirt, President and CEO, said in a statement. “We have used this downturn as a catalyst to make fundamental changes to our business model that will continue to provide sustainable benefits.”

Some of these cost reductions come from the continuing process of laying off employees. The company cut 1,000 jobs in the third quarter and made it clear that more were to come in the future. The elimination of jobs is unfortunate but effective, as evidenced by the company’s impressive profitability.

Various other methods to improve profitability seem to have been effective as well, but, as FMC Technologies has learned, pushing employees to reach certain profit thresholds can lead to the company being implicated in undesirable issues.

In a push to improve the financial standing of the energy infrastructure business segment, controllers Jeffrey Favret and business unit controller Steven Croft enlisted unapproved accounting methods in order to produce a skewed financial position. An SEC announcement made on Oct. 20 detailed that FMC Technologies would be fined $2.5 million for overstating the departments pre-tax operating profits by $800,000.

The two controllers involved in the accounting mishap have since been let go, and FMC Technologies, without admitting or denying the claim, consented to pay the fine.

Author Profile
Digital Content Manager
Pipeline
Expo


Oil and Gas Acquisition Market 2017 Outlook


O&G Training and Education


US Geological Survey Discovers Largest US Continuous Oil and Gas Deposit in Texas


Foothills Exploration, Magna Team Up on Labokay Prospect


Louisiana Oil and Gas Companies Optimistic about Trump Policies


Oklahoma Oil and Gas Industry Sees ‘Slow but Steady Improvement’


Oil Recession Wipes Out Billions in Wages


Swift Energy Sells Remaining Louisiana Assets


OPEC Agrees to First Oil Production Cut in Eight Years


Letter from the Publisher (January-February 2017)


Panhandle Oil and Gas Sees 4Q16 Uptick After ‘Difficult Year’


Oilman Cartoon – January/February 2017


Natural Gas Production, Storage, Exports On Record Pace


ExxonMobil Reexamines Value of its Oil Reserves


Four Louisiana-Based Oil and Gas Startups Supported by The Idea Village


Oklahoma AG Nominated as Director of EPA


Safety Programs vs. Training Programs


Oilman is Partnering with the Following Events


Wildcatters and Dreams of Being a Texas Oilman, 1928


America Needs: Energy Education!


Oklahoma Ranks Top Among Regions for Oil and Gas Investment


FMC Technologies and Technip Shareholders to Vote On Merger in December


Energy Scene with Jason Spiess


Texas Railroad Commissioner Sitton Joins Research Consortium on Seismicity


Innovative Wastewater Management Processes Gain Traction


Trump Selects Exxon CEO for Secretary of State


Gulf Coast States May Receive Extra Offshore Oil and Gas Royalties


Gulf Tech Receives Full Certification as a SEMS Audit Service Provider


GE-Baker Hughes Merger to Create Second Largest Oilfield Services Provider


Wildcatters and Dreams of Being a Texas Oilman, 1928

E-Fuels
ADIPEC