MODEC first-half earnings climb as FPSO construction and O&M activity advance
MODEC reported first-half 2026 revenue of $2.45 billion and adjusted EBITDA of $297 million as work advanced on the Hammerhead, Gato do Mato, Raia and Uaru FPSOs. The company retained its full-year guidance while highlighting a $25 billion backlog, Gato do Mato’s forward-hull completion and the restart of FPSO Baobab Ivoirien.
MODEC’s first-half 2026 revenue increased 18% year on year to $2.45 billion, while adjusted EBITDA rose 65% to $297 million and net income climbed 54% to $224 million. The company attributed the improvement primarily to higher EPCI and O&M earnings, including increased construction revenue from the Hammerhead and Gato do Mato FPSOs.
The EPCI backlog stood at $4.6 billion at the end of the period, with steady progress reported across Hammerhead, Gato do Mato, Raia and Uaru. MODEC said Gato do Mato’s forward hull section was completed at Sumitomo Heavy Industries’ Yokosuka shipyard and moved from Japan to China in June for integration with the aft section. The project is using a multi-yard construction strategy intended to increase fabrication flexibility and yard capacity.
MODEC also reported that FPSO Baobab Ivoirien restarted production on June 4 following life-extension and refurbishment work in Dubai. CNR International acquired the former MV10 from MODEC in February 2025, ending the charter, while MODEC retained an O&M role currently scheduled through December 2026. Separately, the Pyrenees Venture O&M contract was extended by one year to 2027, and decommissioning of MV18 was completed in May.
O&M backlog was $11.8 billion, with an average remaining duration of 14.4 years, while charter backlog totaled $8.5 billion. Together, these contributed to a total company backlog of $25 billion, down 7% from year-end 2025 as existing work progressed.
MODEC reiterated its 2026 guidance of $4.6 billion in revenue, $450 million in EBITDA and $370 million in net income. It also outlined technology initiatives with Eld Energy on an FPSO-focused solid oxide fuel cell and carbon-capture system, and through affiliate Shape Digital with Halliburton on integrated asset-performance management.