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Technip FMC boasting ‘strong operational performance’

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LNG Industry,

TechnipFMC plc has reported its Q2 2018 results.

Total company net income was US$105.7 million, or US$0.23 per diluted share. These results included after-tax charges and credits of US$26.1 million, or US$0.05 per diluted share as detailed in the financial schedules. Adjusted diluted earnings per share were US$0.28.

The following pre-tax items impacted the quarter and were not included in the company’s guidance:

  • US$24.3 million, or US$0.04 per diluted share, of foreign exchange losses included in corporate expense.
  • US$49.1 million, or US$0.11 per diluted share, of increased liability payable to joint venture partners included in interest expense.

Total company revenue was US$2.96 billion. Adjusted EBITDA, which excludes charges and credits, was US$377.2 million. Adjusted EBITDA margin was 12.7%.

Doug Pferdehirt, CEO of TechnipFMC, stated, “Our second quarter results reflect strong operational performance across all business segments. The strong sequential recovery in Surface Technologies margin serves as a good example of our execution focus.”

“Total company inbound orders in the quarter improved to US$4.2 billion – the largest quarterly inbound to date for our company. This was the second consecutive quarter in which inbound orders exceeded revenues. Total company backlog increased sequentially to US$14.9 billion. Onshore/Offshore delivered the strongest growth, with backlog increasing 30% since year-end to US$8.3 billion.”

“During the quarter, we successfully delivered the industry’s first full-cycle, integrated EPCI (iEPCI™) project for Shell’s Kaikias development. Our collaborative early engagement significantly simplified field architecture, further enabled by innovative Subsea 2.0™ technology. The single company project team delivered a fast-track installation that achieved production one year ahead of the initial schedule. With these outstanding results, our partner Shell believes Kaikias is the most competitive project in the US Gulf of Mexico.”

“Kaikias serves as just one example of the rapidly emerging trend towards subsea project integration and next generation technology adoption,” added Pferdehirt. “This approach represents a significant departure from ‘business as usual’ where distinct project scopes are bid independently; TechnipFMC is driving this new business model forward. We are demonstrating to the industry that savings in both cost and time increase as project integration moves higher. These savings increase substantially when combined with early engagement, integrated FEED (iFEED™), and the use of new technologies. As the only single-source provider with all these capabilities, we remain uniquely positioned to lead this market evolution.”

Pferdehirt concluded, “Our second quarter results provide a solid foundation to achieving our full-year financial objectives. Our future opportunities are driven by leverage to the three major energy investment themes of subsea, LNG, and unconventional resources.

  • In subsea, we are the industry’s only provider of fully-integrated solutions, with a differentiated suite of advanced technologies and cost-effective solutions.
  • In LNG, we are a clear market leader having delivered over 20% of global operating capacity, and we are currently executing several of the industry’s key projects and FEEDs.
  • And in unconventional resources, we have leading market positions in products and services that support ongoing efficiency gains for complex well completions.

Through our unique business model, differentiated technologies, and execution capability, we are best positioned to capitalise on the growth of subsea, LNG, and unconventional resources.”

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