10-QPeriod: Q1 FY2021

TechnipFMC plc Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 3, 2021For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a significant turnaround in its financial performance for the first quarter of 2021 compared to the same period in 2020. The company generated a net income of $368.2 million, a substantial improvement from the $3,256.1 million net loss in Q1 2020. This positive shift was largely driven by the successful spin-off of Technip Energies on February 16, 2021, which resulted in Technip Energies being presented as discontinued operations, and a significant gain of $470.1 million recognized from the fair value revaluation of the retained investment in Technip Energies. Total revenue saw a modest increase to $1,632.0 million in Q1 2021 from $1,582.6 million in Q1 2020. The Subsea segment experienced revenue growth, while the Surface Technologies segment saw a decline primarily due to reduced operator activity in North America. The company also significantly reduced its operating expenses, including a substantial decrease in impairment, restructuring, and other expenses from $3,199.1 million in Q1 2020 to $25.5 million in Q1 2021. TechnipFMC ended the quarter with a strong net cash position of $1,778.3 million, reflecting proactive debt management and improved operational cash flow.

Financial Highlights

48 data points
Beta

Revenue

$1.63B

Net Income

$368.20M

22.6% Net Margin

EPS (Diluted)

$0.81

Total Assets

$11.17B

Cash & Equivalents

$752.80M

Free Cash Flow

$203.60M

Financial Statements
Beta
Revenue$1.63B
R&D Expenses$16.50M
SG&A Expenses$147.60M
Operating Expenses$1.63B
Operating Income$45.20M
Interest Expense$38.60M
Net Income$368.20M
EPS (Basic)$0.82
EPS (Diluted)$0.81
Shares Outstanding (Basic)449.70M
Shares Outstanding (Diluted)451.10M

Key Highlights

  • 1Achieved a net income of $368.2 million in Q1 2021, a significant improvement from a net loss of $3,256.1 million in Q1 2020.
  • 2Completed the spin-off of Technip Energies on February 16, 2021, with Technip Energies presented as discontinued operations.
  • 3Recognized $470.1 million in income from the investment in Technip Energies, primarily due to a fair value revaluation gain and purchase price discount.
  • 4Total revenue increased by 3.1% to $1,632.0 million compared to $1,582.6 million in the prior year quarter.
  • 5Subsea segment revenue grew by 10.6% to $1,386.5 million, driven by increased project and services activity.
  • 6Impairment, restructuring, and other expenses decreased drastically from $3,199.1 million in Q1 2020 to $25.5 million in Q1 2021.
  • 7Ended the quarter with a net cash position of $1,778.3 million, demonstrating strong liquidity and financial flexibility.

Frequently Asked Questions

The spin-off of Technip Energies, completed on February 16, 2021, was a significant event. Technip Energies has been presented as discontinued operations in the financial statements. TechnipFMC also recognized a substantial income of $470.1 million in Q1 2021 related to its retained investment in Technip Energies, primarily due to a fair value revaluation gain and a purchase price discount from the sale of shares to Bpifrance Participations SA.

Total revenue increased by 3.1% to $1,632.0 million in Q1 2021 from $1,582.6 million in Q1 2020. The Subsea segment was the primary driver of this growth, with revenue increasing by 10.6% to $1,386.5 million, attributed to higher project and services activity. The Surface Technologies segment experienced a revenue decrease of 25.5% to $245.5 million, mainly due to reduced operator activity in North America.

The substantial improvement in net income was driven by several factors. The presentation of Technip Energies as discontinued operations removed its historical losses from the continuing operations. Additionally, TechnipFMC recognized a significant gain from its investment in Technip Energies. Most critically, the company drastically reduced its impairment, restructuring, and other expenses from $3,199.1 million in Q1 2020 to $25.5 million in Q1 2021, alongside ongoing cost reduction initiatives.

TechnipFMC ended the first quarter of 2021 with a strong net cash position of $1,778.3 million. This is a significant improvement from the net debt position in the prior year. The company's liquidity is supported by cash generated from operations and its $1.0 billion revolving credit facility.