10-QPeriod: Q2 FY2024

TechnipFMC plc Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 25, 2024For Securities:FTI

Summary

TechnipFMC plc (FTI) reported a strong financial performance for the six months ended June 30, 2024, driven by significant revenue growth in its Subsea segment. Total revenue increased by 18.4% to $4.4 billion, with the Subsea segment showing a substantial 24.5% rise, reflecting higher order backlog and strong project execution. Net income attributable to TechnipFMC plc swung from a loss of $86.8 million in the prior year period to a profit of $343.6 million. This turnaround was bolstered by the $75.2 million gain on the disposal of the Measurement Solutions business and improved operational performance across segments. The company's order backlog reached a record $13.9 billion as of June 30, 2024, primarily driven by the Subsea segment's $12.9 billion backlog. This robust order book indicates strong future revenue potential. TechnipFMC also made significant progress in its energy transition initiatives, securing new energy orders and advancing its capabilities in carbon capture and storage and offshore renewables. The company's financial health is further supported by its investment-grade credit ratings and substantial liquidity, with $1.25 billion available under its revolving credit facility.

Financial Highlights

45 data points
Beta

Revenue

$2.33B

21.2% Gross Margin

Net Income

$186.50M

8.0% Net Margin

EPS (Diluted)

$0.42

Total Assets

$9.24B

Free Cash Flow

$180.10M

Financial Statements
Beta
Revenue$2.33B
Cost of Revenue$1.83B
Gross Profit$493.10M
R&D Expenses$15.20M
SG&A Expenses$174.90M
Operating Expenses$2.02B
Operating Income$308.30M
Net Income$186.50M
EPS (Basic)$0.43
EPS (Diluted)$0.42
Shares Outstanding (Basic)430.20M
Shares Outstanding (Diluted)440.10M

Key Highlights

  • 1Revenue increased by 18.4% to $4.4 billion for the six months ended June 30, 2024, driven by strong performance in the Subsea segment.
  • 2Net income attributable to TechnipFMC plc improved significantly, turning from a loss of $86.8 million in H1 2023 to a profit of $343.6 million in H1 2024, partly due to a gain from the sale of the Measurement Solutions business.
  • 3Total order backlog reached a record $13.9 billion as of June 30, 2024, with the Subsea segment's backlog alone standing at $12.9 billion, indicating robust future business.
  • 4The company achieved investment-grade credit ratings from S&P (BBB-) and Fitch (BBB-), enhancing its financial flexibility.
  • 5TechnipFMC is actively pursuing energy transition opportunities, with its New Energy business securing over $1 billion in inbound orders and progressing on carbon capture and storage (CCS) projects.
  • 6Cash flow from operating activities improved significantly, moving from negative $230.0 million in H1 2023 to positive $104.2 million in H1 2024.
  • 7The company repurchased $250.1 million of its ordinary shares in the first six months of 2024 under its $800 million authorization.

Frequently Asked Questions

Revenue growth was primarily driven by the Subsea segment, which saw a significant increase due to higher project backlog conversion, strong iEPCI (integrated Engineering, Procurement, Construction, and Installation) project execution, and increased installation and services activities. Growth was particularly strong in key regions like the United States, Angola, Brazil, and Australia. The Surface Technologies segment experienced a revenue decrease, largely due to the prior sale of the Measurement Solutions business and lower drilling activity in North America, though this was partially offset by growth in the Middle East.

TechnipFMC has shown a substantial improvement in profitability. Net income attributable to TechnipFMC plc turned from a loss of $86.8 million in the first six months of 2023 to a profit of $343.6 million in the same period of 2024. This turnaround was significantly influenced by a $75.2 million gain on the disposal of the Measurement Solutions business, coupled with improved operating profit in both the Subsea and Surface Technologies segments. The reduction in corporate expenses, particularly the absence of a large legal settlement charge from the prior year, also contributed to the improved net income.

The record order backlog of $13.9 billion as of June 30, 2024, with the Subsea segment holding $12.9 billion of this amount, signifies strong future revenue visibility and operational momentum. This substantial backlog, driven by key projects such as Petrobras Buzios 6 and Mero 3 HISEP®, provides a solid foundation for sustained financial performance and operational activity in the coming periods. It also reflects the company's successful bidding strategy and its market position in key offshore developments.

TechnipFMC is actively expanding its presence in the energy transition. The company's New Energy business has secured over $1 billion in inbound orders, two years ahead of schedule, and is progressing on critical projects. Notable achievements include the Mero 3 HISEP® project, which utilizes subsea processing for CO2 injection, and the first all-electric subsea iEPCI for carbon capture and storage (CCS) with the Northern Endurance Partnership. The company is also focusing on offshore floating renewables and hydrogen solutions, positioning itself as a key architect for offshore energy.