Modec's Strong Quarterly Performance Driven by FPSO Projects

Japanese FPSO contractor Modec reported robust financial results for the first quarter of the year, driven by revenue and gross profit recognition from its construction activities. As the world's second-largest FPSO contractor, Modec is currently executing four major projects: Raia and Gato do Mato offshore Brazil, and Uaru and Hammerhead offshore Guyana.

Key Financial Highlights

The company achieved over $1 billion in revenue for the first quarter, marking a 23.4% increase compared to the same period in 2025. Operating profit rose 63.2% year-on-year to $122.7 million, while profit attributable to owners increased 78.2% to $99.1 million. Modec's order backlog stood at $17.9 billion, with approximately $5.7 billion attributed to FPSO engineering, procurement, construction, and installation contracts, and $12.2 billion for operations and maintenance contracts.

Market Demand and Stock Performance

Modec noted that demand for floating offshore oil and gas production facilities, particularly large-scale ultra-deepwater projects where it holds a competitive advantage, has remained strong. Reflecting this positive outlook, Modec's share price on the Tokyo Stock Exchange surged from approximately 4,890 yen ($31) a year ago to 12,165 yen ($77.10) currently.