10-QPeriod: Q3 FY2022

TechnipFMC plc Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 28, 2022For Securities:FTI

Summary

TechnipFMC plc (FTI) reported total revenue of $1.73 billion for the third quarter of 2022, an increase of 9.7% compared to the prior year period, driven by growth in both its Subsea and Surface Technologies segments. The Subsea segment saw revenue increase by 7.8% due to higher activity in Brazil, while Surface Technologies revenue grew by 19.0% primarily due to increased operator activity in North America. Despite the revenue growth, the company reported a net loss attributable to TechnipFMC plc of $10.3 million for the quarter, compared to a loss of $32.2 million in the prior year. This was influenced by a significant increase in provision for income taxes and a $15.3 million loss from discontinued operations. However, excluding discontinued operations and other items, income from continuing operations attributable to TechnipFMC plc was $5.0 million, a significant improvement from a loss of $40.6 million in Q3 2021, demonstrating operational recovery. The company ended the quarter with a strong order backlog of $8.84 billion, signaling positive future revenue potential.

Financial Highlights

49 data points
Beta

Revenue

$1.73B

Net Income

-$10.30M

-0.6% Net Margin

EPS (Diluted)

$-0.02

Total Assets

$9.06B

Cash & Equivalents

$711.50M

Free Cash Flow

$181.10M

Financial Statements
Beta
Revenue$1.73B
R&D Expenses$19.00M
SG&A Expenses$151.90M
Operating Expenses$1.65B
Operating Income$124.00M
Interest Expense$35.10M
Net Income-$10.30M
EPS (Basic)$-0.02
EPS (Diluted)$-0.02
Shares Outstanding (Basic)450.10M
Shares Outstanding (Diluted)458.10M

Key Highlights

  • 1Total revenue increased by 9.7% to $1.73 billion in Q3 2022, driven by both Subsea and Surface Technologies segments.
  • 2Subsea revenue rose 7.8% driven by increased activity in Brazil, while Surface Technologies revenue increased 19.0% due to North American activity.
  • 3The company reported a net loss attributable to TechnipFMC plc of $10.3 million for the quarter, an improvement from the $32.2 million loss in Q3 2021.
  • 4Income from continuing operations attributable to TechnipFMC plc was $5.0 million, a substantial turnaround from a loss of $40.6 million in the prior year's quarter.
  • 5Significant increase in provision for income taxes (80.0% effective rate) impacted profitability.
  • 6Order backlog remained strong at $8.84 billion as of September 30, 2022, up from $7.66 billion at the end of 2021.
  • 7Cash and cash equivalents decreased to $711.5 million from $1.33 billion at the end of 2021, with operating cash flow from continuing operations being negative for the nine-month period.

Frequently Asked Questions

TechnipFMC reported total revenue of $1.73 billion for the third quarter of 2022, an increase of 9.7% year-over-year. While the company incurred a net loss of $10.3 million attributable to TechnipFMC plc, its income from continuing operations attributable to TechnipFMC plc was $5.0 million, a significant improvement from a loss in the prior year's quarter. This performance was driven by increased activity in both the Subsea and Surface Technologies segments.

The Subsea segment's revenue increased by 7.8% to $1.42 billion, primarily due to higher activity in Brazil. The Surface Technologies segment saw revenue grow by 19.0% to $318 million, largely driven by increased operator activity in North America.

TechnipFMC ended the third quarter with a robust order backlog of $8.84 billion, up from $7.66 billion at the end of 2021. The Subsea segment backlog significantly increased, reflecting strong demand for offshore projects. This substantial backlog provides visibility for future revenue and indicates continued business momentum.

Despite revenue growth, profitability was impacted by several factors. A significant increase in the provision for income taxes resulted in an effective tax rate of 80.0% for the quarter. Additionally, the company recorded a loss from discontinued operations and experienced foreign exchange headwinds. However, the improvement in income from continuing operations indicates underlying operational strength.