Cameron Nets $600 Million Underwater Order
Mar 13th 2013 4:41PM
Updated Mar 13th 2013 4:46PM
Oil drilling equipment manufacturer Cameron International has landed a big contract with Brazilian oil giant Petroleo Brasileiro -- a $600 million contract to supply 47 subsea "trees" and associated equipment. Based on 2012 revenue, this single contact amounts to about 7% of a year's worth of business for Cameron.
Deliveries of the 47 units Cameron is selling are set to begin in 2014.
While the name is poetic, a subsea tree (a.k. a. a "Christmas tree") is actually a more functional piece of equipment. Affixed to an oil wellhead, it regulates the flow of gas and fluids injected into a well to help force oil out. Petrobras will be using its new trees in the Pre-Salt and Post-Salt offshore oil fields of Brazil.
Cameron shares closed Wednesday trading 0.2% after the announcement, ending at $65.59.
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