Energy, Automobile, EV, Renewable News | TechnipFMC Announces Third Quarter 2022 Results

TechnipFMC Announces Third Quarter 2022 Results

October 27, 2022

Surface Technologies reported third quarter revenue of $318 million, an increase of 5.1 percent from the second quarter. Revenue growth was strongest outside North America, with particular strength in the Middle East.

Subsea inbound of $1.4 billion supports full-year outlook for orders to approach $7 billion
Surface Technologies inbound of $449 million driven by Middle East; book-to-bill of 1.4
Cash provided by operating activities of $212 million; free cash flow of $181 million
Repurchased $50 million of ordinary shares following $400 million authorization in July

NEWCASTLE & HOUSTON, October 26, 2022 — TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today reported third quarter 2022 results.

Summary Financial Results from Continuing Operations

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

	Three Months Ended	Change
(In millions, except per share amounts)	Sep. 30,2022	Jun. 30,2022	Sep. 30,2021	Sequential	Year-over-Year
Revenue	$1,733.0	$1,717.2	$1,579.4	0.9%	9.7%
Income (loss)	$5.0	$2.1	$(40.6)	138.1%	n/m
Diluted earnings (loss) per share	$0.01	$0.00	$(0.09)	n/m	n/m

Adjusted EBITDA	$185.6	$186.5	$140.6	(0.5%)	32.0%
Adjusted EBITDA margin	10.7%	10.9%	8.9%	(20 bps)	180 bps
Adjusted income (loss)	$12.7	$8.4	$(25.0)	51.2%	n/m
Adjusted diluted earnings (loss) per share	$0.03	$0.02	$(0.06)	50.0%	n/m

Inbound orders	$1,850.0	$2,201.7	$1,365.9	(16.0%)	35.4%
Backlog	$8,841.0	$9,039.4	$7,002.4	(2.2%)	26.3%

n/m – not meaningful

Total Company revenue in the third quarter was $1,733 million. Income from continuing operations attributable to TechnipFMC was $5 million, or $0.01 per diluted share. These results included after-tax charges and credits totaling $7.7 million of expense, or $0.02 per share, which included the following (Exhibit 6):

Impairment and other charges of $3.6 million; and
Restructuring and other charges of $4.1 million.

Adjusted income from continuing operations was $12.7 million, or $0.03 per diluted share (Exhibit 6).

Adjusted EBITDA excludes pre-tax charges and credits. Adjusted EBITDA in the period also included a foreign exchange loss of $14.5 million. When excluding the foreign exchange loss, adjusted EBITDA was $200.1 million.

Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Third quarter results reflect continued momentum in financial performance. Total Company revenue of $1.7 billion was a solid achievement given the currency headwind experienced during the period. Adjusted EBITDA was $200 million with a margin of 11.5% when excluding foreign exchange loss. Subsea and Surface Technologies both achieved sequential improvement in adjusted EBITDA margin in the period.”

Pferdehirt added, “In Subsea, inbound was $1.4 billion, with year-to-date orders now totaling $5.2 billion, exceeding the level achieved in all of last year. Our Subsea Opportunities list remains at a record level. This strong project pipeline and the active dialogue with our large and expanded customer base give us continued confidence that our full-year Subsea orders will approach $7 billion, up as much as 40 percent versus the prior year. Extending the outlook into 2023, we believe orders over the next five quarters will be at least $9 billion.”

“In Surface Technologies, inbound increased sequentially by approximately 65% to $449 million, representing a book-to-bill of 1.4. The strong order activity benefited from the acceleration of orders from Aramco, which was a significant achievement in the period. A large portion of these awards will result in revenue in future periods, providing us with increased visibility for continued growth in our international revenue in 2023.”

Pferdehirt continued, “We continue to see the potential for strong growth in EBITDA, cash flow and financial returns, as evidenced by our stated objective to achieve more than $1 billion of Subsea EBITDA by 2025. Further demonstrating our confidence in this outlook, we announced a new $400 million share buyback program in July, which we quickly put into action with the repurchase of $50 million of our ordinary shares in the third quarter.”

Pferdehirt concluded, “The next leg of growth in oil and gas will be fueled by offshore and the Middle East. The bold steps we took more than five years ago to create TechnipFMC have resulted in a pure-play technology company that is uniquely levered to both of these markets. Our portfolio of innovative products, solutions and disruptive commercial models has further strengthened our leadership position, and we are now taking full advantage of the market growth that lies ahead.”