TechnipFMC reported third quarter 2019 results
Total Company revenue was $3,335.1 million. Net income was $21.8 million, or $0.05 per diluted share. These results included after-tax charges and credits totaling $32.6 million of expense, or $0.07 per diluted share.
Adjusted net income was $54.4 million, or $0.12 per diluted share.
Adjusted EBITDA, which excludes pre-tax charges and credits, was $379.2 million; adjusted EBITDA margin was 11.4 percent (Exhibit 9).
Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:
$53.2 million of foreign exchange losses included in corporate expense, or $0.09 per diluted share on an after-tax basis; and
$99.1 million of increased liability payable to joint venture partners included in interest expense, or $0.22 per diluted share on an after-tax basis.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated,
“In the third quarter, we announced a transformational move to create two diversified, pure-play market leaders. The separation will enable both companies to benefit from dedicated focus of management, resources and capital while highlighting the unique value proposition and differentiated investment appeal of each company. We believe strongly that providing independence for these two world-class, high-performing businesses will unlock further opportunities and create value for all stakeholders.”
Pferdehirt continued, “Subsea orders of $1.5 billion reflect continued strength in integrated project awards, increased services activity and the adoption of new technologies. We announced several new iEPCI™ projects, including the Pyxis project, the first call-off of our recently executed iEPCI™ frame agreement with Woodside. Subsea services activity continued to benefit from the industry’s largest installed base, and we remain on track for double-digit growth for the full year. In the quarter, we also received the industry’s first award of a 20K high-pressure, high-temperature system for LLOG’s Shenandoah project in the Gulf of Mexico.”
“Our strong Subsea order growth continues to be driven by our integrated commercial model. Inbound for the first nine months of the year was $6.8 billion, reflecting a book-to-bill of 1.7. We continue to believe that our order growth for the full year will exceed 50 percent – the highest annual growth rate in a decade. Our anticipated growth is more than double the expectation for the total subsea market.”
“Operating performance in our other segments reflected diverging trends. Surface Technologies’ operating margin weakened sequentially due to reduced activity and more competitive pricing in North America, offset in part by continued strength in international markets. Onshore/Offshore again posted robust operating results, benefiting from continued strength in execution on major projects.”
Pferdehirt added, “Five LNG projects over the past five months have either been sanctioned or moved closer to final investment decision in 2020, including the Arctic LNG 2 and Rovuma LNG projects that were awarded to TechnipFMC and our partners. Rovuma builds upon our first mover advantage and early investment in Mozambique, where we are already executing the floating LNG scope on the Coral project. The award also serves as further confirmation of our leadership in LNG and our strong capabilities in the delivery of remote projects.”
Pferdehirt concluded, “I want to recognize the dedication, commitment and demonstrated results of the women and men of TechnipFMC that have enabled us to take this next step to further reshape the industry. Thanks to their continued effort, we are making solid progress towards completing our planned separation in the first half of 2020.”
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