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Cameron Signs $600M Subsea Deal with Petrobras

14 March 2013

Cameron International Corp. (NYSE: CAM) said it has received an order for subsea equipment worth $600 million from longtime customer Petrobras in Brazil.

The contract calls for the supply of 47 subsea trees and associated equipment, Houston-based Cameron said in a statement. The deliveries for the equipment, destined for Pre-Salt and Post-Salt areas offshore Brazil, will begin in 2014.

"This order will be supported by the expansion of our manufacturing capabilities in Brazil, completed this quarter," said Jack Moore, Cameron chairman, president and CEO, in the statement.

In a note to investors Wednesday regarding the deal, Houston-based Tudor, Pickering Holt & Co. said the agreement "strengthens our confidence in this long-term (earnings) growth story and stock remains one of our 2013 favorites."

Closer to home, the oilfield services company recently signed a long-term lease at 8 West Centre, CORE Real Estate LLC's new 227,000-square-foot office development on West Sam Houston Parkway. Cameron's deal is the second-largest lease signed for the building.

In January, Cameron reported record earnings for the fourth quarter of 2012, with net income increasing 120 percent from the year-earlier period.