Summary
TechnipFMC plc, following its merger in early 2017, presented its 2017 annual report highlighting its position as a global leader in the subsea, onshore/offshore, and surface industries. The company offers a comprehensive portfolio of solutions for oil and gas production and transformation, from discrete products to integrated solutions, with a focus on enhancing project lifecycles and client economics through technology and innovation. Despite a challenging market environment due to lower oil prices, the company has implemented cost reduction and restructuring initiatives to align operations with anticipated activity levels. The report also disclosed material weaknesses in internal controls over financial reporting, specifically related to foreign exchange adjustments, IT general controls, and period-end financial reporting processes in certain regions, with remediation plans underway. The company's strategy centers on early involvement in project design (iFEED), integrated project delivery (iEPCI™), innovation, and superior project execution. Key developments in 2017 included the launch of the Subsea 2.0 product suite, designed to reduce equipment size and complexity, and continued investment in technology to address evolving market needs. The company anticipates an increase in subsea market activity in 2018, driven by a blend of project sizes and service opportunities. While facing competitive pricing, particularly in international markets for Surface Technologies, TechnipFMC aims to leverage its integrated business model and technological differentiation to drive profitable and sustainable growth.
Financial Highlights
59 data points| Revenue | $15.06B |
| Cost of Revenue | $2.40B |
| Gross Profit | $12.65B |
| R&D Expenses | $212.90M |
| SG&A Expenses | $1.06B |
| Operating Expenses | $14.09B |
| Operating Income | $1.35B |
| Interest Expense | $456.00M |
| Net Income | $113.30M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 466.70M |
| Shares Outstanding (Diluted) | 448.00M |
Key Highlights
- 1TechnipFMC plc was formed in January 2017 through the merger of Technip S.A. and FMC Technologies, creating a global leader in the energy services sector.
- 2The company operates across three main segments: Subsea, Onshore/Offshore, and Surface Technologies, offering a wide range of products and services for the oil and gas industry.
- 3In 2017, the company focused on cost reduction and restructuring initiatives to adapt to the challenging oil and gas market environment.
- 4TechnipFMC launched its 'Subsea 2.0' technology portfolio in late 2017, aiming to significantly reduce the size, weight, and part count of subsea equipment.
- 5The company reported material weaknesses in its internal control over financial reporting, specifically concerning foreign exchange adjustments, IT general controls, and period-end financial reporting processes in certain regions.
- 6Despite a revenue decrease compared to pro forma 2016 figures, the company saw an improvement in its gross profit margin in 2017.
- 7The company's order backlog stood at $12.98 billion at the end of 2017, with a significant increase in Subsea orders compared to the previous year.