Summary
TechnipFMC plc (FTI) reported total revenue of $3.34 billion for the third quarter of 2019, an increase of 6.1% compared to the same period last year, driven by increased project activity across its segments, particularly Subsea and Onshore/Offshore. Despite revenue growth, the company recorded a net loss of $119.1 million attributable to TechnipFMC plc for the quarter, largely due to a significant $125.1 million vessel impairment charge in the Subsea segment and increased corporate expenses. For the first nine months of 2019, revenue grew by 4.9% to $9.68 billion, but the net loss attributable to TechnipFMC plc was $1.2 million, compared to a net income of $337.7 million in the prior year period. The company announced plans to spin off its Onshore/Offshore segment, loading systems, and process automation businesses into a new entity, Technip Energies, expected in the first half of 2020. This strategic move aims to create two focused, independent companies to better serve their respective markets. Financially, the company ended the quarter with $4.5 billion in cash and cash equivalents. Operating activities provided $289.4 million in cash for the nine months ended September 30, 2019, a significant improvement from the cash used in the prior year period. TechnipFMC's order backlog stood strong at $24.1 billion as of September 30, 2019, indicating significant future revenue potential, with substantial increases noted in both Subsea and Onshore/Offshore segments.
Financial Highlights
51 data points| Revenue | $3.34B |
| R&D Expenses | $40.60M |
| SG&A Expenses | $298.10M |
| Operating Expenses | $3.22B |
| Operating Income | $211.10M |
| Net Income | -$119.10M |
| EPS (Basic) | $-0.27 |
| EPS (Diluted) | $-0.27 |
| Shares Outstanding (Basic) | 446.90M |
| Shares Outstanding (Diluted) | 446.90M |
Key Highlights
- 1Total revenue for Q3 2019 increased by 6.1% to $3.34 billion compared to Q3 2018, driven by higher project activity in Subsea and Onshore/Offshore segments.
- 2The company reported a net loss of $119.1 million for Q3 2019, a significant decrease from a net income of $136.9 million in Q3 2018, primarily due to a $125.1 million vessel impairment charge and increased corporate expenses.
- 3For the nine months ended September 30, 2019, revenue rose by 4.9% to $9.68 billion, but net income attributable to TechnipFMC plc fell to a loss of $1.2 million from a profit of $337.7 million in the prior year period.
- 4TechnipFMC announced its intention to spin off its Onshore/Offshore segment, along with loading systems and process automation businesses, into a new company named Technip Energies, expected in H1 2020.
- 5The company's order backlog remained robust at $24.1 billion as of September 30, 2019, with substantial increases in the Subsea and Onshore/Offshore segments.
- 6Cash provided by operating activities for the first nine months of 2019 was $289.4 million, a substantial improvement from the $344.7 million used in the same period of 2018.
- 7The company recorded $140.3 million in impairment, restructuring, and other expenses for Q3 2019, including a $125.1 million vessel impairment charge in the Subsea segment.