Investors have turned on cautious on capex-sensitive energy service and engineering companies, and that has sent the shares of Technip (OTCQX:TKPPY)
down more than 10% over the past year. The concerns are not without
some basis, as several major projects were delayed in 2013 and major oil
and gas companies have issued modest capex growth guidance.
That Technip is in good company with offshore rivals like Saipem (OTCPK:SAPMY) and Subsea 7 (OTCPK:SUBCY), as well as onshore oil & gas engineering companies like McDermott (MDR),
is cold comfort. Although Technip has established a reputation as a
superior project and risk manager, weak guidance in late 2013 rattled
investor confidence and the shares are trading as if oil and gas capital
spending growth will be quite modest from here. It is likely true that
capex growth will be lower than the bulls expect, but it looks like the
bears have taken things a bit far with Technip.
Read the full article here:
The Beginning Of The End, Or The End Of The Beginning For Technip?
Showing posts with label McDermott. Show all posts
Showing posts with label McDermott. Show all posts
Thursday, March 6, 2014
Thursday, December 22, 2011
Investopedia: Shaw Has Value, But Needs A Spark
Value traps can drive investors to distraction; nothing is quite as frustrating as owning a quality company but seeing the market ignore its long-term virtues because of short-term challenges. Such could be said for Shaw Group (Nasdaq:SHAW). Although the construction of new nuclear plants looks like a non-starter, the company still has a key position in servicing existing plants, not to mention ongoing opportunities in markets like environmental remediation for utilities and more general industrial and manufacturing construction. The question for investors, though, is how much pain they can tolerate in the short run as capex spending seems to be stuck on pause.
A Decent Start to the Year
Shaw gave some encouragement to its shareholders on Wednesday morning with its earnings release. Revenue fell 2% from the year-ago level, but was in line with analyst expectation. Although the company picked up some business in the Mideast and Latin America, Asia and Europe were notably weaker. Within the segments, not a lot changed - the company's large power business saw revenue fall about 2%, while plant service and environmental/infrastructure traded off above-average and below-average growth.
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http://stocks.investopedia.
A Decent Start to the Year
Shaw gave some encouragement to its shareholders on Wednesday morning with its earnings release. Revenue fell 2% from the year-ago level, but was in line with analyst expectation. Although the company picked up some business in the Mideast and Latin America, Asia and Europe were notably weaker. Within the segments, not a lot changed - the company's large power business saw revenue fall about 2%, while plant service and environmental/infrastructure traded off above-average and below-average growth.
Please continue here:
http://stocks.investopedia.
Thursday, July 28, 2011
Investopedia: CB&I Harnessing Some Energy
These are bad days for large-scale construction, right? High debt and low tax revenue is hampering public works projects and manufacturing companies have little need to add capacity just yet. Likewise, construction activity in the leisure sector (hotels, casinos, and so on) has yet to pick up. On top of that, power generation is caught between those who hate the idea of more coal plants and those who really hate the idea of more nuclear plants.
Well, yes and no. Construction activity in those segments is indeed weak, but there is a notable exception - the oil and gas sector. And that is where CB&I (NYSE:CBI) (formerly known as Chicago Bridge & Iron) makes its bread and butter; building a wide range of facilities like storage tanks, processing plants, liquefaction facilities and terminals.
To read the full article, please click below:
http://stocks.investopedia.
Well, yes and no. Construction activity in those segments is indeed weak, but there is a notable exception - the oil and gas sector. And that is where CB&I (NYSE:CBI) (formerly known as Chicago Bridge & Iron) makes its bread and butter; building a wide range of facilities like storage tanks, processing plants, liquefaction facilities and terminals.
To read the full article, please click below:
http://stocks.investopedia.
Thursday, November 18, 2010
Jacobs Still Looking To Build That Ladder
It is really no surprise that large engineering and construction companies are reporting uninspiring trailing growth these days. Refineries, highways, and manufacturing plants do not get built overnight and the panic that spread through the markets in 2008 held up a lot of contracts because of economic and funding concerns. The question for companies like Jacobs Engineering (NYSE:JEC), then, is how quickly business can get back to normal.
A Sluggish End to a Tough Year
Jacobs ended its fiscal 2010 with something of a whimper. Revenue for the fourth quarter was down 8% on a year-over-year basis, while full-year revenue fell about 14% on a reported basis. That quarterly number was also about 8% shy of the average analyst guess, though, so there could be some risk of modest downward revisions (and all the attendant negative near-term momentum that can produce).
Please click below for the full piece:
http://stocks.investopedia.
A Sluggish End to a Tough Year
Jacobs ended its fiscal 2010 with something of a whimper. Revenue for the fourth quarter was down 8% on a year-over-year basis, while full-year revenue fell about 14% on a reported basis. That quarterly number was also about 8% shy of the average analyst guess, though, so there could be some risk of modest downward revisions (and all the attendant negative near-term momentum that can produce).
Please click below for the full piece:
http://stocks.investopedia.
Wednesday, November 10, 2010
McDermott's New Life
For McDermott (NYSE: MDR), it is now all about energy. With the completion of the Babcock and Wilcox (NYSE: BWC) spinoff at the end of July, McDermott is now an EPCI (engineering, procurement, construction, installation) company with a laser focus on the upstream energy market. In particular, the new company focuses on offshore projects in the Middle East and Asia. If Apache (NYSE: APA), Chevron (NYSE: CVX) or OMV want to build a new offshore installation (whether a production rig, subsea field or floating production system), they hire a company like McDermott to build it.
The First New Quarter In The Books
On the surface, this third quarter was not an auspicious beginning. Revenue dropped 28%, and operating income fell about 14%, though net income from continuing operations was actually up an encouraging 39%. Although there was weak order flow for the quarter, and the company's backlog declined on a sequential and year-over-year basis, McDermott has booked $1.2 billion in new orders for October.
Please follow the link to the full article:
http://stocks.investopedia.
The First New Quarter In The Books
On the surface, this third quarter was not an auspicious beginning. Revenue dropped 28%, and operating income fell about 14%, though net income from continuing operations was actually up an encouraging 39%. Although there was weak order flow for the quarter, and the company's backlog declined on a sequential and year-over-year basis, McDermott has booked $1.2 billion in new orders for October.
Please follow the link to the full article:
http://stocks.investopedia.
Wednesday, July 28, 2010
Has Fluor Built Its Foundation?
Last week, we heard from Nucor (NYSE:NUE) and Steel Dynamics (Nasdaq:STLD), and both companies were pretty cautious about business conditions in the second half of 2010. Since both companies are leveraged to commercial construction, that is relevant. The engineering and construction industry, though, looks as though it might be building a base and perhaps getting ready to rebound.
Analysts seem relatively confident that capital spending is going to resume in the energy market, mining projects continue to go forward, and there is a general assumption that we are seeing the worst in the government-funded infrastructure business (so it will start to get better).
Interestingly, Fluor's (NYSE:FLR) stock tracks those steelmakers relatively closely, so who should we believe? Are the engineering companies (and steel) simply building a base for a second half rally, or are we looking at a sluggish environment for the next six months?
To read the full column, please go to:
http://stocks.investopedia.
Analysts seem relatively confident that capital spending is going to resume in the energy market, mining projects continue to go forward, and there is a general assumption that we are seeing the worst in the government-funded infrastructure business (so it will start to get better).
Interestingly, Fluor's (NYSE:FLR) stock tracks those steelmakers relatively closely, so who should we believe? Are the engineering companies (and steel) simply building a base for a second half rally, or are we looking at a sluggish environment for the next six months?
To read the full column, please go to:
http://stocks.investopedia.
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