TechnipFMC Eyes Subsea Comeback, Nets $121M in Q3

TechnipFMC has reported third-quarter 2017 net income of $121 million and diluted earnings per share of $0.26.

Excluding charges and credits, adjusted diluted earnings per share were 39 cents.

Profit for the prior-year comparable period was $327 million on pro forma basis.

Total company operating profit for the third quarter 2017 was $358.2 million, with adjusted EBITDA at $536.2 million.

Revenues for the quarter were $4.1 billion, down close to 18 percent form $5 billion on a pro forma basis same time last year. Order intake was $3.2 billion, of which subsea division order intake was $980 million.

SUBSEA

Subsea generated third-quarter revenues of $1.5 billion, a decline from $2.4 billion in Q3 2016 on pro forma basis. TechnipFMC expects subsea full-year revenue of at least $6.1 billion.

Subsea delivered operating profit of $103 million. Adjusted EBITDA was $260.4 million, with EBITDA margins down to 17.6 percent, from 21.5 percent in the prior-year quarter.

Doug Pferdehirt, CEO of TechnipFMC, said, “We believe that most major subsea projects can move forward at today’s oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns. During the remaining months of this year and throughout 2018, we see the potential for additional major subsea awards, the strengthening of subsea services, and the growth of brownfield opportunities. Regardless of the timing of major subsea awards, we remain confident that this year’s order activity will exceed the level we achieved in 2016.

“We also expect our 2018 Subsea inbound to exceed 2017 levels, driven by the current momentum in project bid activity and an acceleration of integrated project awards. The market acceptance of our unique integrated subsea value proposition continues to accelerate. Our iFEED activity is robust, creating a set of proprietary project opportunities that could result in the direct award of iEPCI™ projects.”

Vessel utilization rate for the third quarter of 2017 was 70 percent, slightly up from 67 percent in the second quarter of 2017, but down from the prior-year rate of 86 percent.

At the end of the third quarter 2017, the company’s backlog was $13.9 billion, including subsea backlog of $6 billion.

The company confirmed quarterly dividend of 13 cents per share with payment date expected to be on after December 1, 2017.

Subsea World News Staff