Modec Reports Robust Earnings Growth Amid Strong Project Execution

Modec ( (MDIKF) ) has released its Q3 earnings. Here is a breakdown of the information Modec presented to its investors.

Modec, Inc. is a Tokyo Stock Exchange-listed company specializing in the construction of floating production, storage, and offloading systems for the oil and gas industry, leveraging its expertise in large-scale ultra-deepwater projects. In its latest earnings report for the nine months ending September 30, 2024, Modec showcased a significant financial upturn, with revenue reaching approximately $2.99 billion, a 20.5% increase year-over-year. Operating profit surged by 189.2% to $255.5 million, while profit attributable to owners of the parent soared by 376.3% to $171.0 million, reflecting robust project execution and financial management. Key contributors to Modec’s impressive performance include the steady progress in FPSO construction projects, a substantial increase in trade and other receivables, and a favorable share of profit from investments. Additionally, the company reported a rise in both finance income and costs, with the latter impacted by valuation allowances on loans to affiliates. Looking ahead, Modec is set on a positive trajectory with a full-year revenue forecast of $4.3 billion and profit before tax expected to grow by 35.1%, underlining the company’s strong market position and anticipated continued demand for its offshore production solutions.