TechnipFMC Earnings Soar

TechnipFMC plc saw its net earnings jump to $157.1 million for the first quarter of 2024 from $0.4 million for the first quarter of 2023 and $53 million for the prior quarter.

The company said in its quarterly financial report that revenue totaled $2.04 billion, 18.9 percent above the figure posted for the corresponding quarter a year prior. Revenue was 1.7 percent below the $2.08 billion reported for the last quarter of 2023.

“We had a solid start to the year with total company inbound of $2.8 billion, driving sequential growth in backlog to $13.5 billion. Orders were driven by robust Subsea inbound of $2.4 billion, which represented a segment book-to-bill of 1.4. Importantly, a significant portion of Subsea inbound was driven by new technologies that will help unlock opportunities in both new and mature offshore basins”, Doug Pferdehirt, Chair and CEO of TechnipFMC, said.

TechnipFMC said its subsea division generated a first-quarter revenue of $1.73 billion, an increase of 0.8 percent from the fourth quarter of 2023. Higher project activity in Brazil and the Gulf of Mexico was largely offset by lower activity in the North Sea and Asia Pacific as well as typical offshore seasonality, it said.

“We had the privilege of announcing a unique set of integrated awards in the period, with three iEPCI projects all representing first-of-its-kind solutions for the subsea industry. The Mero 3 HISEP project was our first iEPCI for Petrobras and the first to utilize subsea processing to capture CO2 directly from the well stream for injection back into the reservoir, all on the seafloor. The Shell Sparta project was our first iEPCI to employ a 20,000-psi production system in the Paleogene play in the U.S. Gulf of Mexico. And finally, we were selected to deliver the first iEPCI encompassing an all-electric subsea system for carbon capture and storage from the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies”, he added.

Furthermore, the company completed the sale of Measurement Solutions in March. Proceeds from the sale enabled the company to repurchase $150 million of shares in the first quarter. “With this acceleration in share repurchases, we now expect total shareholder distributions in 2024 to grow at least 70 percent when compared to 2023”, Pferdehirt said.

Meanwhile TechnipFMC’s surface technologies business registered a first-quarter revenue of  $307.2 million, a decrease of 14 percent from the fourth quarter. According to the company, revenue decreased due to the Measurement Solutions disposal before the end of the quarter, lower activity in North America and portfolio optimization in Latin America.

TechnipFMC said its guidance remains unchanged for the year, with subsea revenue expected to land in a range of  $7.2 billion to $7.6 billion. For the surface technologies division, revenue is expected to be in the range of $1.2 billion to $1.35 billion.

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