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TechnipFMC’s JV Bags Long-Term Charter and Services Contracts from Petrobras
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TechnipFMC’s JV Bags Long-Term Charter and Services Contracts from Petrobras

Petrobras Brasileiro SA (PBR) has awarded significant, long-term charter and services contracts to the U.K.-based TechnipFMC PLC (FTI) and its joint venture (JV) partner, DOF Subsea, for pipelay support vessels — Skandi Niteroi and Skandi Vitória. TechnipFMC provides complete project life cycle services to the energy industry.

DOFCON Navegação Ltda, a 50/50 JV between TechnipFMC and DOF Subsea, will own the Brazilian-built and flagged vessels. Each contract spans three years and comes with an option to extend. (See TechnipFMC stock chart on TipRanks)

The vessels are expected to begin operations by February 2022 with Skandi Vitória operating in shallow and deep water, and Skandi Niteroi mostly in shallow water. Both vessels will carry out subsea installation and decommissioning work.

The President of Subsea at TechnipFMC, Jonathan Landes, said, “Our vessels serve as an important component of the strong flexible pipe ecosystem we have in Brazil. We are proud to extend our multi-decade relationship with Petrobras through these long-term contracts, which are built on close collaboration and our client’s trust in our ability to safely and efficiently deliver quality.”

Last month, Kepler Capital analyst Magnus Olsvik maintained a Hold rating on FTI with a price target of $8.14 (22.8% upside potential). The analyst expects the company to report a loss of $0.37 in the third quarter.

Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 3 Holds. The average TechnipFMC price target of $10.01 implies 51% upside potential. Shares of the company have lost 21.3% over the past six months.

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