TechnipFMC marks 2021 as ‘breakthrough year’ as it gets $6.7B in inbound orders
TechnipFMC has gathered over $6.7 billion in inbound orders in the financial year 2021, a 33.4% increase from the $5 billion in 2020, according to the company’s latest results.
The company’s chair and CEO Doug Pferdehirt said that 2021 was a breakout year for TechnipFMc as the full-year adjusted EBITDA was $580 million with a margin of 9.1%, a 300 basis point improvement on the prior year.
TechnipFMC reported total revenue of $6,403.5 million for 2021, just a slight decrease from the $6,530.6 million in 2020.
In the fourth quarter of 2021, total company revenue was $1,523.3 million. Adjusted EBITDA, which excludes pre-tax charges and credits, was $130.3 million.
Subsea reported fourth-quarter revenue of $1,236.2 million, a decrease of 5.8% from the third quarter, said to be primarily due to reduced project activity in Africa and Australia and the seasonal impact on services activity, particularly in the North Sea.
The segment reported an operating profit of $8.5 million and an adjusted EBITDA of $123.6 million. Adjusted EBITDA decreased 15.6% when compared to the third quarter, due to reduced project activity and the seasonal decline in services.
Subsea orders in Q4 2021 were $1 billion and $5 billion for the full year
Surface Technologies reported fourth-quarter revenue of $287.1 million, an increase of 7.4% from the third quarter, said to be impacted by the higher activity both internationally and in North America.
The division reported operating profit of $8.8 million. Adjusted EBITDA was at $28.9 million, an increase of 1.8% when compared to the third quarter. Inbound orders for the quarter were $1,071.9 million, an increase of 328.9% sequentially, and $1.8 billion for the full year.
“We are confident that we have entered a multi-year upcycle for energy demand. TechnipFMC is well-positioned for this activity growth given our leadership in both subsea and the Middle East. Total company inbound orders grew an impressive 33 percent versus the prior year to $6.8 billion, with continued strength expected through at least 2025,” Pferdehirt said.
“Our Subsea Opportunity list has expanded to a record level of more than $20 billion, providing increased visibility into the middle of the decade. The growth in part reflects the continued robust front-end activity. Our early engagement and client partnerships support our view that subsea tree awards for the total industry are likely to exceed 350 in the current year – a level not seen since 2013.”
In 2022, TechnipFMC anticipates subsea inbound order growth of up to 30%, with iEPCI, direct awards and subsea services approaching 75% of orders.
The company announced at the beginning of January that following a comprehensive review of its strategic objectives, it would proceed with the voluntary delisting of its shares from Euronext Paris. The delisting was completed on 18 February.
“The inflection for the energy market is here. Since 2015, offshore economics have materially improved, and subsea cycle-times have become significantly shorter. This has resulted in new subsea investments coming much earlier in the cycle and more in parallel with U.S. land markets. We believe these changes are fundamental and sustainable as a result of new business models and technology pioneered by our company,” Pferdehirt concluded.