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How US Rig Counts Could Affect FMC Technologies in 3Q16

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Sep. 5 2016, Updated 2:04 p.m. ET

FMC Technologies’s US revenues

In 2015, FMC Technologies’s (FTI) revenue share from the US came down. In 2015, FTI’s US revenue share decreased to 30% compared to 31% in 2014. During the same period, FTI’s aggregate revenues fell by 20%. In comparison, CARBO Ceramics’s (CRR) fiscal 2015 revenues fell by 57% over fiscal 2014.

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US rig count

In 2Q16, the US rig count fell by 51% over 2Q15. The US rig count reached its multiyear high in September 2014. Since then, it has dropped by 74% through August 26, 2016.

From June 30 through the week ended August 26, the US rig count gained 16% to close at 489. A higher rig count can increase FTI’s revenues and earnings in 3Q16.

Next, we’ll discuss FTI’s revenues from its International Operations segment and its international rig count.

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