01—Abstract
Summary
Summary of the 10-K filed February 27, 2024. Cited figures are marked; the original filing is the authoritative source.
TechnipFMC plc (FTI) reported a strong year in 2023, with significant revenue growth driven by increased activity in its Subsea and Surface Technologies segments.
The company's Subsea segment saw a substantial increase in inbound orders and backlog, buoyed by record integrated project awards and a higher adoption of its Subsea 2.0 product platform. The Surface Technologies segment also experienced growth, particularly supported by international markets. The company demonstrated improved financial performance, highlighted by a significant increase in cash flow from operations and free cash flow, which more than doubled year-over-year.
TechnipFMC also initiated a quarterly cash dividend and announced a commitment to return over 60% of annual free cash flow to shareholders through 2025, signaling a focus on shareholder returns. Looking ahead, TechnipFMC anticipates continued market strength, with a strategic focus on offshore and Middle East markets, new technologies, and expanding subsea services. The company is also actively progressing its New Energy initiatives, with over $1 billiona in inbound orders for these areas, anticipating significant contributions from carbon transportation and storage, offshore floating renewables, and hydrogen solutions.
02—Key points
Key Highlights
- Revenue increased by 16.8% to $7.8 billion in 2023, driven by growth in both Subsea and Surface Technologies segments.
- Inbound orders improved significantly to $11.0 billion, a 36% increase year-over-year, with Subsea orders up 45%.
- Cash flow from operations increased by 96.8% to $693.0 million, and free cash flow more than doubled to $467.8 million.
- The company initiated a quarterly cash dividend and authorized an additional $400 million in share repurchases, increasing the total authorization to $800 million.
- Subsea backlog grew to over $12.2 billion, representing a 50% increase, indicating strong future revenue potential.
- TechnipFMC is actively investing in and progressing its New Energy business, with over $1 billion in inbound orders for these initiatives.
- The company resolved a significant legal matter with French authorities, with TechnipFMC responsible for a €179.45 million fine to be paid in installments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, TechnipFMC plc kept $0.01.
- Revenue$7.82B100.0%
- Cost of revenue−$6.54B83.6%
- Gross profit$1.28B16.4%
- Operating costs−$624.8M8.0%
- Operating income$658.2M8.4%
- Interest, other & tax−$602.0M7.7%
- Net income$56.2M0.7%
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 27, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $7.82B$6.70B | +16.8% |
| Cost of Revenue | $6.54B$5.79B | +12.9% |
| Gross Profit | $1.28B$907.10M | +41.4% |
| R&D Expenses | $69.00M$67.00M | +3.0% |
| SG&A Expenses | $675.90M$616.80M | +9.6% |
| Operating Expenses | $7.32B$6.50B | +12.5% |
| Operating Income | $658.20M$375.90M | +75.1% |
| Interest Expense | $122.20M$138.70M | −11.9% |
| Net Income | $56.20M-$107.20M | +152.4% |
| EPS (Basic) | $0.13$-0.24 | +154.2% |
| EPS (Diluted) | $0.12$-0.24 | +150.0% |
| Shares Outstanding (Basic) | 438.60M449.50M | −2.4% |
| Shares Outstanding (Diluted) | 452.30M449.50M | +0.6% |
05—Questions
Frequently Asked Questions
What was TechnipFMC's financial performance in 2023?
In 2023, TechnipFMC demonstrated strong financial performance with a 16.8% increase in revenue to $7.8 billion. Key highlights include a significant improvement in cash flow from operations to $693.0 million and a doubling of free cash flow to $467.8 million. The company also saw strong inbound orders totaling $11.0 billion.
How is TechnipFMC returning value to shareholders?
TechnipFMC initiated a quarterly cash dividend in 2023 and announced a commitment to return more than 60% of annual free cash flow to shareholders through at least 2025. The company also increased its share repurchase authorization to $800 million.
What are the key drivers for TechnipFMC's Subsea segment?
The Subsea segment experienced a 45% increase in inbound orders to $9.7 billion, driven by growth in both projects and services. Record integrated project awards, including their largest iEPCI™ contract ever, and increased adoption of the Subsea 2.0 product platform contributed significantly to this growth. The segment's backlog grew by 50% to over $12.2 billion.
What is TechnipFMC's strategy regarding the energy transition and new energy initiatives?
TechnipFMC is actively investing in and progressing its New Energy business, focusing on greenhouse gas removal, offshore floating renewables, and hydrogen solutions. The company has achieved over $1 billion in inbound orders for these initiatives, anticipating strong future contributions from carbon transportation and storage (iCTSTM) and other new energy projects. They see offshore as a key area for the energy transition.
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