COVID-19 effects delay TechnipFMC split

LNG engineer TechnipFMC has put its planned split into TechnipFMC and Technip Energies on hold.

The company said in its update that the market conditions have changed materially due to the COVID-19 pandemic, the sharp decline in commodity prices, and the heightened volatility in global equity markets.

The impacts of these events have created a market environment that is not currently conducive to the company’s planned separation, the statement reads.

The company reiterates that the strategic rationale for the separation remains unchanged. The company is committed to the transaction and continues its preparations to ensure that the two companies are ready for separation when the markets sufficiently recover.

The separation was expected to be completed in the first half of 2020.