10-QPeriod: Q2 FY2021

TechnipFMC plc Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 29, 2021For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a net loss of $167.0 million, or $0.37 per share, for the three months ended June 30, 2021. This compares to a net income of $11.7 million, or $0.03 per share, in the same period last year. While revenue saw a modest increase to $1,668.8 million from $1,620.2 million year-over-year, higher costs and a significant loss on the investment in Technip Energies contributed to the quarterly loss. The company's strategic spin-off of Technip Energies in February 2021 significantly altered its financial reporting, with Technip Energies' historical results now presented as discontinued operations. The six-month period ended June 30, 2021, showed a net income of $201.2 million compared to a net loss of $3,244.4 million in the prior year. This improvement is largely attributable to the reclassification of Technip Energies as discontinued operations and a gain from the investment in Technip Energies. The company's core operations in Subsea and Surface Technologies showed mixed performance, with Subsea revenue increasing and Surface Technologies revenue decreasing year-over-year for the six-month period. The company ended the quarter with a solid order backlog of $7,312.0 million.

Financial Highlights

49 data points
Beta

Revenue

$1.67B

Net Income

-$167.00M

-10.0% Net Margin

EPS (Diluted)

$-0.37

Total Assets

$10.73B

Cash & Equivalents

$854.90M

Free Cash Flow

-$125.60M

Financial Statements
Beta
Revenue$1.67B
R&D Expenses$19.20M
SG&A Expenses$172.60M
Operating Expenses$1.64B
Operating Income$85.30M
Interest Expense$37.90M
Net Income-$167.00M
EPS (Basic)$-0.37
EPS (Diluted)$-0.37
Shares Outstanding (Basic)450.60M
Shares Outstanding (Diluted)450.60M

Key Highlights

  • 1Revenue for the three months ended June 30, 2021, increased by 3.0% to $1,668.8 million compared to $1,620.2 million in the prior year.
  • 2A net loss of $167.0 million was reported for the three months ended June 30, 2021, a significant decrease from a net income of $11.7 million in the same period of 2020.
  • 3The six-month period ending June 30, 2021, resulted in a net income of $201.2 million, a substantial improvement from a net loss of $3,244.4 million in the comparable period of 2020, largely due to the Technip Energies spin-off.
  • 4The company reported an order backlog of $7,312.0 million as of June 30, 2021, indicating future revenue potential.
  • 5Impairment, restructuring, and other expenses decreased significantly to $2.0 million for the three months ended June 30, 2021, from $103.6 million in the prior year, reflecting improved operational performance.
  • 6The company generated $95.6 million in operating cash flow from continuing operations for the six months ended June 30, 2021, a substantial improvement from a negative cash flow of $(415.6) million in the prior year.
  • 7The investment in Technip Energies resulted in a $146.8 million loss for the three-month period and a $323.3 million gain for the six-month period, reflecting fair value adjustments and share sales.

Frequently Asked Questions

The substantial improvement from a net loss of $3,244.4 million to a net income of $201.2 million for the six months ended June 30, 2021, is largely due to the spin-off of Technip Energies in February 2021. The historical results of Technip Energies are now classified as discontinued operations, and the company recognized a significant gain from the fair value revaluation and sale of its investment in Technip Energies during the period. This effectively removed large prior-year charges related to Technip Energies and added gains in the current period.

The spin-off of Technip Energies on February 16, 2021, led to a strategic shift. Consequently, TechnipFMC has presented the historical financial results of Technip Energies as 'discontinued operations' in its condensed consolidated statements of income, balance sheets, and cash flows. This means the 'continuing operations' reflect only the ongoing business of TechnipFMC post-spin-off.

As of June 30, 2021, TechnipFMC reported a net cash position of $1,623.0 million (cash and cash equivalents less debt). The company refinanced its debt in connection with the spin-off, establishing a $1.0 billion senior secured revolving credit facility. As of the reporting date, there was $927.1 million in available borrowing capacity under this facility, indicating strong liquidity.

TechnipFMC maintained a robust order backlog of $7,312.0 million as of June 30, 2021, slightly up from $7,289.5 million at the end of 2020. The Subsea segment holds the vast majority of this backlog ($6,951.6 million). The company expects to recognize approximately 30.2% of this backlog through 2021 and the remainder thereafter. This substantial backlog suggests a stable revenue outlook for the coming periods, particularly in the Subsea segment.