Could the Rig Count Affect FMC Technologies in 2Q16?



Revenue by geography

In 2015, FMC Technologies’ (FTI) US revenue share was marginally smaller than it was the year prior. In 2015, FTI’s US revenue decreased to 30% of its total revenues, compared with 31% in 2014. From 2011 to 2014, FTI’s US revenue share increased. In comparison, Nabors Industries’ (NBR) US revenue in 2015 was 47%.

FTI is 0.4% of the iShares MSCI KLD 400 Social ETF (DSI). The energy sector makes up 6.2% of DSI.

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US rig count

In 2015, the US rig count fell by 62%, while the international rig count fell by only 17%. From March 31 to June 30, the US rig count declined further by 9%, while the international rig count decreased by 3%. The lower rig count is expected to drag down FTI’s revenues and earnings in fiscal 2Q16. Next, we’ll discuss FMC Technologies’ value drivers.


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