Japanese floater specialist MODEC has reported a significant strengthening of its financial and operational position, driven by robust demand in the floating offshore oil and gas production sector.

Financial Performance and Backlog Growth

MODEC's order backlog surged to $19.081 billion, a 47.4% increase from the end of 2024. This growth was fueled by new orders totaling $8.477 billion for the nine months ended 30 September, representing a massive 1327% increase compared to the same period last year. Revenues for the nine-month period reached $3.352 billion, up 11.9% year-on-year, attributed to the steady progress of FPSO construction projects. Operating profit grew 19.5% to $305.5 million, and the profit attributable to owners of the parent company saw a substantial 43.6% increase to $245.5 million.

Source of Firm Demand

The company attributes this strong performance to firm demand for floating offshore oil and gas production facilities, particularly for large-scale ultra-deepwater projects where it holds a competitive advantage. The market remains robust as oil companies continue to pursue deepwater oilfield development projects to maintain a stable energy supply, a trend that coexists with the global movement toward decarbonization.

Major New Contracts

The significant new orders include construction, operation, and maintenance contracts for two major projects. These are the floating production, storage and offloading (FPSO) vessel for Shell’s Gato do Mato field offshore Brazil, and a newbuild FPSO for ExxonMobil’s Hammerhead field located in the Stabroek block offshore Guyana.

Upward Revision of Full-Year Forecast

Based on the steady progress of its EPCI (Engineering, Procurement, Construction, and Installation) projects, the operating performance of its existing vessels, and higher interest income, MODEC has revised its full-year earnings forecast upwards. The company now expects the 2025 profit attributable to owners of the parent to be $350 million, which is $80 million (29.6%) higher than its previous forecast from mid-February. Revenues are now projected to be $4.4 billion, an 18.9% increase over the prior forecast and higher than the previous year's $4.186 billion. Forecasts for operating profit and profit before tax for the 12 months ending 31 December are also 7.3% and 19% higher, respectively, than earlier envisaged.

Financial Position

As of 30 September, the company's total assets were $4.508 billion, while its total liabilities stood at $3.123 billion.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Amanda Battersby. All rights to the original text and images remain with their respective rights holders.