FMC Technologies, a U.S. based provider of subsea oil & gas production systems, reported a net income of $2.1 million for the second quarter of 2016. This is a drop when compared to the second quarter of 2015, when the company reported a net income of $108 million.
FMC Technologies’ revenue for the quarter fell to $1.15 billion, down from $1.7 billion in the corresponding quarter of 2015. FMC Technologies blamed the drop in revenue on lower activity.
Total inbound orders were $537.9 million, including $334.1 million in Subsea Technologies orders. Backlog for the Company was $3.4 billion, including Subsea Technologies backlog of $2.9 billion.
The company, which during the quarter announced it would merge with French Technip , recorded Subsea Technologies revenue of $854.2 million in the quarter, down 31 percent from the prior-year quarter.
“Subsea Technologies delivered solid operating margins as we continue to benefit from our execution momentum as well as the savings from our ongoing restructuring activities,” said John Gremp , Chairman and CEO of FMC Technologies. Gremp added, “The further deterioration in North America led to a significant impact to our Surface Technologies earnings.”
Gremp added: “Although the timing around the sanctioning of deepwater projects remains uncertain, we continue to focus our strategy on lowering the cost of deepwater development, and I am confident that our merger with Technip will allow us to further improve project economics.”