Cameron Nets $600 Million Underwater Order
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.
The article Cameron Nets $600 Million Underwater Order originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Petroleo Brasileiro (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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