TechnipFMC Books $2.4B Loss
TechnipFMC has reported fourth-quarter 2019 loss of $2.4 billion or $5.40 per diluted share.
The services major has seen the results affected by after-tax charges and credits totaling $2.43 billion of expense, or $5.43 per diluted share.
TechnipFMC warned the market on impairment impact prior to releasing its earnings results. Impairment and other charges were approximately $2,27 billion for goodwill and fixed assets.
Adjusted EPS for the quarter was 3 cents, against 9 cents loss in Q4 2018. Analysts projected adjusted earnings at 42 cents per share.
Revenues for the quarter were up 12 percent at $3.72 billion, form $3.32 billion in the prior-year comparable period.
TechnipFMC has secured quarterly order intake of $2.7 billion, down 7 percent from $2.9 billion in Q4 2018(subsea division generated $1.17 billion).
Subsea reported fourth quarter revenue of $1.5 billion, up close to 21 percent compared to the corresponding period in 2018. 2020 revenue guidance for subsea division is expected to be in a range of $6.2 – 6.5 billion.
Vessel utilization rate for the fourth quarter was 61 percent, down from 70 percent in the third quarter, and from 62 percent in the prior-year quarter.
At the end of the fourth quarter 2019, TechnipFMC backlog was $24.3 billion ($14.6 billion in Q4 2018), including subsea backlog of $8.5 billion.
For the full-year 2019 the company recognized net loss of $2.41 billion on revenue of $13.4 billion, against net loss of $1.92 billion on revenue of $12.5 billion in 2018. Adjusted earnings were down some 12 percent at $330 million.
Subsea orders in 2019 were up 54 percent.
Doug Pferdehirt, chairman and CEO of TechnipFMC, said that for the subsea market TechnipFMC “anticipates ongoing momentum in activity for small- to mid-sized brownfield projects and a continued healthy outlook for greenfield projects. Strength in project activity, as well as our expectation for double-digit revenue growth in Subsea Services, provides the framework for 2020 Subsea orders to approach the level achieved in 2019. However, this remains dependent on the timing of one or two major project awards.”
Subsea World News Staff