TechnipFMC posts higher profit despite lower revenues

Oilfield services provider TechnipFMC has recorded an increase in its third quarter profit despite lower revenues as its orders exceeded revenues for the fourth consecutive quarter.

In its 3Q 2018 report on Wednesday TechnipFMC said that total company revenue was $3.1 billion, a 24.1% decrease when compared to the last year’s quarter and revenues of $4.1 billion.

The company’s net income was $136.9 million, an increase of 13.1% compared to the same period last year and net income of $121 million. These results included after-tax charges and credits of $2.9 million.

Inbound orders rose to $3.6 billion from $2.5 billion in 3Q 2017 with subsea orders exceeding revenue for the fourth consecutive quarter.

The company’s backlog increased year-over-year in all segments totaling $15.2 billion, compared to $13.9 billion in the last year’s quarter.

Doug Pferdehirt, CEO of TechnipFMC, stated: “Total company orders once again exceeded revenues, supporting a return to year-over-year growth in backlog. Total company backlog of $15.2 billion increased 9 percent when compared to the prior-year quarter, with growth occurring in all business segments.”

Pferdehirt concluded, “The outlook for our three growth pillars – subsea, unconventionals, and LNG – remains favorable.

“In Subsea, the recovery that began nearly two years ago continues. Our Subsea book-to-bill has exceeded 1.0 in five of the last six quarters. Final Investment Decisions (FIDs) for large projects continue to increase, supported by considerable improvement in project economics and operator cash flows. The continued increase in FEED activity further supports our favorable outlook.”

TechnipFMC also updated its full-year guidance for 2018. Onshore/Offshore revenue is expected to be in a range of $5.8 – 6.1 billion, an increase from the previous guidance range of $5.6 – 5.9 billion.

Onshore/Offshore EBITDA margin of at least 13%, excluding charges and credits, increased from the previous guidance of at least 12%.

Surface Technologies EBITDA margin of at least 16% (excluding charges and credits), reduced from the previous guidance of at least 17.5%.

Offshore Energy Today Staff