10-KPeriod: FY2021

TechnipFMC plc Annual Report, Year Ended Dec 31, 2021

Filed February 28, 2022For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a decrease in revenue for 2021 compared to 2020, primarily due to lower Subsea backlog, although Surface Technologies revenue saw an increase driven by activity in key international markets. The company successfully navigated a challenging market, marked by the separation of its Technip Energies business and a significant reduction in impairment charges, which led to an improvement in operating profit for both segments compared to the prior year. Looking ahead, TechnipFMC anticipates a multi-year upcycle for energy demand, projecting continued strength in inbound orders through at least 2025. The company is also strategically investing in the energy transition, focusing on greenhouse gas removal, offshore floating renewables, and hydrogen, leveraging its core expertise. Financially, TechnipFMC generated positive free cash flow in 2021, supported by disciplined capital expenditures and proceeds from the sale of its Technip Energies stake, reinforcing its commitment to a strong balance sheet and ample liquidity.

Financial Highlights

53 data points
Beta

Revenue

$6.40B

Net Income

$13.30M

0.2% Net Margin

EPS (Diluted)

$0.03

Total Assets

$10.02B

Cash & Equivalents

$1.33B

Free Cash Flow

$589.60M

Financial Statements
Beta
Revenue$6.40B
R&D Expenses$78.40M
SG&A Expenses$644.90M
Operating Expenses$6.37B
Operating Income$183.40M
Interest Expense$157.30M
Net Income$13.30M
EPS (Basic)$0.03
EPS (Diluted)$0.03
Shares Outstanding (Basic)450.50M
Shares Outstanding (Diluted)454.60M

Key Highlights

  • 1Revenue for 2021 decreased by 1.9% to $6,403.5 million, driven by a lower Subsea backlog, although Surface Technologies revenue increased by 1.4% to $1,074.4 million.
  • 2Operating profit improved significantly year-over-year for both segments due to reduced impairment charges and cost optimization efforts. Subsea operating profit turned positive at $141.4 million (vs. a loss of $2,815.5 million in 2020), and Surface Technologies operating profit was $42.0 million (vs. a loss of $429.3 million in 2020).
  • 3The company completed the separation of its Technip Energies business in February 2021 and sold a significant portion of its stake during the year, generating proceeds of $900.9 million.
  • 4TechnipFMC generated positive free cash flow of $523.3 million in 2021, compared to $516.3 million in 2020, with capital expenditures managed at $191.7 million.
  • 5The order backlog stood at $7,657.7 million as of December 31, 2021, an increase from $7,289.5 million in the prior year, with Subsea backlog at $6,533.0 million and Surface Technologies backlog at $1,124.7 million.
  • 6TechnipFMC is actively pursuing opportunities in the energy transition, focusing on greenhouse gas removal, offshore floating renewables, and hydrogen, through strategic partnerships and investments.
  • 7The company anticipates a multi-year upcycle in energy demand and projects inbound order growth of up to 30% for Subsea in 2022.

Frequently Asked Questions

In 2021, TechnipFMC reported total revenue of $6,403.5 million, a slight decrease from $6,530.6 million in 2020. The company achieved positive operating profits in both its Subsea ($141.4 million) and Surface Technologies ($42.0 million) segments, a significant improvement from the losses reported in 2020. TechnipFMC also generated $523.3 million in free cash flow.

TechnipFMC completed the spin-off of its Technip Energies business in February 2021. This strategic move allowed TechnipFMC to focus on its core Subsea and Surface Technologies segments. The company also realized significant proceeds from the sale of its stake in Technip Energies during the year, which contributed to its liquidity and financial flexibility.

TechnipFMC is optimistic about the energy market, anticipating a multi-year upcycle and strong inbound order growth. The company is also strategically positioning itself for the energy transition, investing in areas like carbon capture and storage, offshore floating renewables, and hydrogen. This diversification leverages its existing expertise in subsea and surface technologies.

The company demonstrated strong liquidity in 2021, generating positive free cash flow and managing its capital expenditures effectively. TechnipFMC also executed refinancing transactions in connection with the spin-off, including issuing new senior notes and repaying existing debt, aiming to maintain a robust balance sheet and access to capital markets.