Of course, there's a "but" here. FMC made it quite plain that it doesn't expect to sustain the subsea segment's margins in the back half of the year. Profitability was juiced by both a favorable project mix and the recovery of receivables that had previously been written off. The 15% operating margins seen this quarter are thus expected to slide back to the 12% to 13% range.
That non-recurring boost shouldn't detract from the bigger picture here. Demand for FMC's underwater wares is not getting decimated to anywhere near the degree of onshore services and equipment provided by the likes of Lufkin Industries or Nabors Industries
Of course, like National Oilwell Varco
Along with my favored offshore contract drillers Noble