International rig count
As of August 31, 2016, the international rig count fell 18% over a year ago. The fall was less than the fall in the US rig count, which we looked at in the previous article. FMC Technologies (FTI), which generates the majority of its revenues from international operations, could see lower revenues if the international rig count falls.
FTI is 0.11% of the iShares Russell Mid-Cap (IWR). The energy sector makes up 6.2% of IWR.
Revenue from international operations
In 2015, FMC Technologies’ revenue share generated outside the United States rose 1%. Its international revenues rose to 70% of its total revenues in 2015 compared to 69% in 2014. By comparison, Halliburton’s (HAL) revenues from its international operations at the end of 2015 rose to ~58% of its total revenues compared to 46% a year ago.
Next, let’s take a look at FMC Technologies’ value drivers.