01—Abstract
Summary
Summary of the 10-K filed February 28, 2022. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Revenue 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.
- Operating 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).
- The 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.
- TechnipFMC 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.
- The 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.
- TechnipFMC is actively pursuing opportunities in the energy transition, focusing on greenhouse gas removal, offshore floating renewables, and hydrogen, through strategic partnerships and investments.
- The company anticipates a multi-year upcycle in energy demand and projects inbound order growth of up to 30% for Subsea in 2022.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 28, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $6.40B$6.53B | −1.9% |
| R&D Expenses | $78.40M$75.30M | +4.1% |
| SG&A Expenses | $644.90M$724.10M | −10.9% |
| Operating Expenses | $6.37B$10.04B | −36.5% |
| Operating Income | $183.40M-$3.24B | +105.7% |
| Interest Expense | $157.30M$134.10M | +17.3% |
| Net Income | $13.30M-$3.29B | +100.4% |
| EPS (Basic) | $0.03$-7.33 | +100.4% |
| EPS (Diluted) | $0.03$-7.33 | +100.4% |
| Shares Outstanding (Basic) | 450.50M448.70M | +0.4% |
| Shares Outstanding (Diluted) | 454.60M448.70M | +1.3% |
05—Questions
Frequently Asked Questions
What was TechnipFMC's financial performance in 2021?
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.
How did the separation of Technip Energies impact the company?
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.
What is TechnipFMC's outlook for the future, particularly regarding the energy transition?
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.
How is TechnipFMC managing its debt and liquidity?
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.
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