TechnipFMC Swings to Loss Despite Subsea Order Boost
TechnipFMC has reported fourth-quarter 2017 net loss of $154 million or 33 cents per diluted share.
One of the industry majors has booked quarterly after-tax charges and credits of close to $245 million or 53 cents per share. This came down to adjusted earnings of 20 cents per share during Q4 2017.
Revenues for the quarter were $3.7 billion, down close to 16 percent form $4.4 billion on a pro forma basis same time in 2016. Order intake was $3 billion, of which subsea division order intake was $1.7 billion.
“Full year subsea orders of $5.1 billion increased 27 percent from the prior year, reflecting a book-to-bill approaching one. In subsea, we recorded $1.7 billion in orders for the quarter; this included our 6th, and first major, iEPCI award for the VNG Norge Fenja project in Norway.
“In 2018, we expect to see another increase in subsea market activity, driven by major projects as well as a blend of small-to-mid size projects and service opportunities. We remain confident that our inbound orders will grow year-over-year and that as much as 25 percent of these orders will come from iEPCI in 2018,” said Doug Pferdehirt, CEO of TechnipFMC.
Nevertheless, the order increase in subsea units has not met with the revenues yet. Subsea reported fourth quarter revenue of $1.3 billion, down 36 percent from the prior year (pro forma), primarily due to a reduction in project activity. Subsea operating profit was $67 million.
Adjusted company operating profit for Q4 2017 was $573 million, up 9 per cent from Q4 2016.
At the end of the fourth quarter 2017, the company’s backlog was $13 billion, including subsea backlog of $6.2 billion.
The company confirmed quarterly dividend of 13 cents per share with payment date expected to be on after April 4, 2018.
For the full year 2017, TechnipFMC generated net income of $113 million of 24 cents per share on revenue of $15 billion, against profit of $378 million on revenue of $19 billion on pro forma basis.
Subsea World News Staff