Cameron Nets $600 Million Underwater Order

Oil drilling equipment manufacturer Cameron International (NYSE: CAM  ) has landed a big contract with Brazilian oil giant Petroleo Brasileiro (NYSE: PBR  ) (NYSE: PBR-A  ) -- 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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Related Tickers

8/20/2014 4:00 PM
CAM $72.93 Up +0.78 +1.08%
Cameron Internatio… CAPS Rating: ****
PBR $17.68 Up +0.22 +1.26%
Petroleo Brasileir… CAPS Rating: ***
PBR-A $18.84 Up +0.34 +1.84%
Petroleo Brasileir… CAPS Rating: ***

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