TechnipFMC plc reports first quarter 2022 results
Total Company revenue in the first quarter was $1,555.8 million. Loss from continuing operations attributable to TechnipFMC was $42.3 million, or $0.09 per diluted share. These results included after-tax charges and credits totaling $29.3 million of expense, or $0.06 per share, which included the following (Exhibit 6):
Impairment, restructuring and other charges of $0.8 million; and
Loss from equity investment in Technip Energies of $28.5 million.
Adjusted loss from continuing operations was $13 million, or $0.03 per diluted share (Exhibit 6).
Adjusted EBITDA, which excludes pre-tax charges and credits, was $153.5 million; adjusted EBITDA margin was 9.9 percent (Exhibit 7). Included in adjusted EBITDA was a foreign exchange gain of $28.4 million.
Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Looking at the first quarter, total Company revenue was $1.6 billion, with adjusted EBITDA of $154 million. Total Company inbound orders were $2.2 billion, driving sequential growth in backlog. With cash and cash equivalents totaling $1.2 billion and our confidence that we will generate strong free cash flow in the second half of the year, we are taking aggressive steps to further reduce debt in the second quarter. This is another important milestone on our path to shareholder distributions.”
Pferdehirt continued, “In Subsea, inbound orders of $1.9 billion increased more than 80 percent when compared to the fourth quarter, resulting in a book-to-bill of 1.5. We announced two awards in the period, including our first iEPCI™ project with Wintershall Dea for the Maria field. The breadth of operators and regional diversification was particularly notable in the quarter, with projects from more than 30 clients across all major offshore basins. We continue to anticipate Subsea order growth of up to 30 percent in 2022, with iEPCI™, direct awards and Subsea services together approaching 75 percent of total inbound.”
“Surface Technologies inbound orders were $291 million, with a book-to-bill above 1.0, driven by strength in the U.S. market. North American sales and profitability grew sequentially, driven by increased drilling and completion activity and an improved pricing environment. Outside of North America, we are investing in new manufacturing capacity in Saudi Arabia to support the strong Middle East outlook. We are now undergoing final production testing and expect final certification of the facility by the end of the second quarter, at which time we anticipate an acceleration of orders in-country. We remain confident in meeting our full-year expectations.”
Pferdehirt added, “First quarter results demonstrated our ability to effectively navigate the ongoing challenges facing the global supply chain. While not immune to the market dislocations, we have taken many strategic actions over the last several years that have mitigated the near-term effects on our Company. Our internal efforts to drive simplification, standardization and industrialization are also transforming our supply chain.”
Pferdehirt concluded, “We are in the midst of a multi-year upcycle for oil and gas investment. Our Subsea Opportunity List highlights this very robust market outlook, representing an opportunity set of larger projects that totals more than $20 billion in potential industry awards over the next 24 months. In the current environment, we are also experiencing improvements in pricing and contractual arrangements that more appropriately balance the terms and conditions needed to support this growth.”
Operational and Financial Highlights
Subsea
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.
| Three Months Ended | Change | ||||
| (In millions) | Mar. 31,2022 | Dec. 31,2021 | Mar. 31,2021 | Sequential | Year-over-Year |
| Revenue | $1,289.1 | $1,236.2 | $1,386.5 | 4.3% | (7.0%) |
| Operating profit | $54.0 | $8.5 | $37.0 | 535.3% | 45.9% |
| Adjusted EBITDA | $129.0 | $123.6 | $135.1 | 4.4% | (4.5%) |
| Adjusted EBITDA margin | 10.0% | 10.0% | 9.7% | 0 bps | 30 bps |
| Inbound orders | $1,893.6 | $1,034.8 | $1,518.8 | 83.0% | 24.7% |
| Backlog1,2,3 | $7,741.3 | $6,533.0 | $6,857.1 | 18.5% | 12.9% |
| Estimated Consolidated Backlog Scheduling(In millions) | Mar. 31,2022 |
| 2022 (9 months) | $2,933 |
| 2023 | $2,880 |
| 2024 and beyond | $1,928 |
| Total | $7,741 |
| 1 Backlog in the period was increased by a foreign exchange impact of $596 million. | |
| 2 Backlog does not capture all revenue potential for Subsea Services. | |
| 3 Backlog does not include total Company non-consolidated backlog of $550 million. |
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