MODEC is a world leader in floating production, storage, and offloading (FPSO) systems for the oil and gas industry. Its primary clients are government-affiliated and private oil and gas development companies overseas. The company has regional offices in Angola, Australia, Brazil, Senegal, Belgium, Ghana, Ivory Coast, Indonesia, Mexico, Nigeria, Singapore, Thailand, United States and Vietnam, positioning it to serve major offshore production basins worldwide.
Cyborg Score Rationale
MODEC is a global market leader in specialized FPSO and floating platform solutions with a 50+ year track record, diversified international client base, and recurring revenue from long-term charter and operations contracts. However, the company's exposure to commodity oil and gas prices and project-based EPCI revenue create cyclical earnings volatility.
Top Insights
FPSO solutions are crucial for developing marginal or remote oil and gas fields where conventional fixed platforms are uneconomical or impractical.
To reduce long-term financial burdens, MODEC establishes affiliated companies for each project and develops businesses in joint ventures with partners.
MODEC holds 51% of the shares in SOFEC, Inc and 20% of the shares in NATCO Japan Co., Ltd.
The company provides after-sales services, such as parts supply and engineering support, for FPSOs and other facilities it builds, as well as management and operational support to affiliates and joint ventures.
Named Competitors
SBM Offshore — Offshore floating production and storage systems
BW Offshore — Design, supply, and operation of floating production systems
Knutsen NYK Offshore Tankers — Floating storage and offloading systems and FPSO operations
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