- Subsea inbound orders of $2.8 billion; book-to-bill of
1.4x
- Total Company backlog reached new record of $13.9
billion
- Cash flow from operations of $231 million; free cash flow of
$180 million
- Full-year financial guidance increased to reflect strong
operational performance
TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today
reported second quarter 2024 results.
Summary Financial Results from
Continuing Operations
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions, except per share
amounts)
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-over- Year
Revenue
$2,325.6
$2,042.0
$1,972.2
13.9%
17.9%
Net income (loss)
$186.5
$157.1
$(87.2)
18.7%
n/m
Net income (loss) margin
8.0%
7.7%
(4.4%)
30 bps
n/m
Diluted earnings (loss) per
share
$0.42
$0.35
$(0.20)
20.0%
n/m
Adjusted EBITDA
$361.4
$252.6
$205.9
43.1%
75.5%
Adjusted EBITDA margin
15.5%
12.4%
10.4%
310 bps
510 bps
Adjusted net income
$188.9
$97.6
$44.8
93.5%
321.7%
Adjusted diluted earnings per
share
$0.43
$0.22
$0.10
95.5%
330.0%
Inbound orders
$3,092.2
$2,774.4
$4,447.3
11.5%
(30.5%)
Backlog
$13,898.8
$13,492.5
$13,278.6
3.0%
4.7%
n/m - not meaningful
Total Company revenue in the second quarter was $2,325.6
million. Net income attributable to TechnipFMC was $186.5 million,
or $0.42 per diluted share. These results included after-tax
charges and credits totaling $2.4 million of expense, or $0.01 per
share (Exhibit 6).
Adjusted net income was $188.9 million, or $0.43 per diluted
share (Exhibit 6).
Adjusted EBITDA, which excludes pre-tax charges and credits, was
$361.4 million; adjusted EBITDA margin was 15.5 percent (Exhibit
8).
Included in total Company results was a foreign exchange loss of
$17.7 million, or $17.8 million after-tax. When excluding the
after-tax impact of foreign exchange, net income was $204.3
million. Adjusted EBITDA, excluding foreign exchange, was $379.1
million (Exhibit 7).
Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Our
quarterly results reflect strong operational performance throughout
the Company. Revenue was $2.3 billion with adjusted EBITDA of $379
million when excluding foreign exchange impacts.”
“Results were particularly strong in Subsea, where operating
profit margin improved 480 basis points sequentially to 13.8
percent. Adjusted EBITDA margin improved 370 basis points
sequentially to 17.7 percent – a level of performance we expect to
continue in the third quarter. Given the strength of our execution,
we now expect Subsea adjusted EBITDA margin to exceed the high-end
of our guidance for the full year.”
Pferdehirt continued, “Subsea inbound orders were $2.8 billion,
representing a book-to-bill of 1.4. Partner collaboration and
longstanding relationships were key drivers of our success in the
quarter. Inbound included iEPCI™ projects for Woodside’s Xena Phase
3 and Energean’s Katlan development, both repeat clients of our
integrated model. We were also awarded over 100 kilometers of
flexible pipe from Petrobras, which is incremental to the volume
associated with our existing frame agreements.”
“Further expansion in Guyana also contributed significantly to
inbound with the award of the Whiptail project. This is the sixth
project sanctioned by ExxonMobil in the Stabroek Block in just
seven years. We are honored to have been awarded the subsea
production systems for all of these projects.”
Pferdehirt added, “Through our success in Guyana, we have
established a strong reputation for meeting the accelerated
schedule requirements of an emerging basin. Importantly, it is our
strategic commitment to the region and its people, collaboration
with our global and local partners, and innovative mindset that
have created a winning playbook for the development of our business
in Guyana. This formula will also be utilized in new frontiers,
including Suriname and Namibia.”
“At quarter end, total Company backlog was $13.9 billion, a
record level for TechnipFMC, with orders exceeding revenue in 10 of
the last 11 quarters. We are well positioned for Subsea orders to
approach $10 billion for the year, also giving us continued
confidence in achieving $30 billion in orders over the three-year
period ending 2025. We expect this activity will drive further
growth in backlog.”
“In Surface Technologies, we also demonstrated solid
performance. We are seeing tangible benefits from the targeted
actions taken to optimize our business in the Americas. In the
Middle East, the growth we anticipated is now occurring, allowing
us to further utilize our new in-country capacity.”
Pferdehirt concluded, “The strong financial performance in the
period clearly demonstrates the solid momentum we are experiencing
in our execution. Our success reflects the bold steps we took to
create a new business model that reshaped the subsea industry and
to deliver innovative technologies that further improve project
economics. These actions continue to provide sustainable
differentiation for TechnipFMC, driving results higher than what
could be achieved through a market recovery alone.”
“We are confident that our strong execution and competitive
differentiation, when combined with the proven success of our
subsea playbook, will allow us to capitalize on the expanding
opportunities that extend beyond the decade.”
Operational and Financial Highlights
Subsea
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions)
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-over- Year
Revenue
$2,009.1
$1,734.8
$1,618.4
15.8%
24.1%
Operating profit
$277.7
$156.6
$153.4
77.3%
81.0%
Operating profit margin
13.8%
9.0%
9.5%
480 bps
430 bps
Adjusted EBITDA
$356.5
$242.4
$233.8
47.1%
52.5%
Adjusted EBITDA margin
17.7%
14.0%
14.4%
370 bps
330 bps
Inbound orders
$2,838.0
$2,403.8
$4,114.5
18.1%
(31.0%)
Backlog1,2,3
$12,925.9
$12,455.5
$12,088.5
3.8%
6.9%
Estimated Consolidated Backlog
Scheduling
(In millions)
Jun. 30, 2024
2024 (6 months)
$3,086
2025
$4,460
2026 and beyond
$5,380
Total
$12,926
1 Backlog as of June 30, 2024 was
decreased by a foreign exchange impact of $358 million.
2 Backlog does not capture all revenue
potential for Subsea Services.
3 Backlog as of June 30, 2024 does not
include total Company non-consolidated backlog of $201 million.
Subsea reported second quarter revenue of $2,009.1 million, an
increase of 15.8 percent from the first quarter. The sequential
revenue improvement was largely driven by increased iEPCI™ project
activity in the North Sea and Gulf of Mexico. Services revenue also
increased primarily due to seasonal improvement.
Subsea reported an operating profit of $277.7 million, an
increase of 77.3 percent from the first quarter. Operating results
increased sequentially due to strong execution, improved earnings
mix from backlog, and higher project and services activity.
Operating profit margin increased 480 basis points to 13.8
percent.
Subsea reported adjusted EBITDA of $356.5 million, an increase
of 47.1 percent when compared to the first quarter. The factors
impacting operating profit also drove the sequential increase in
adjusted EBITDA. Adjusted EBITDA margin increased 370 basis points
to 17.7 percent.
Subsea inbound orders were $2.8 billion for the quarter.
Book-to-bill was 1.4x. The following awards were included in the
period:
- ExxonMobil Whiptail project (Guyana) Large* contract
award by ExxonMobil Guyana to supply subsea production systems for
the Whiptail project in Guyana’s Stabroek Block. TechnipFMC will
provide project management, engineering, and manufacturing to
deliver 48 subsea trees and associated tooling, as well as 12
manifolds and associated controls and tie-in equipment. Whiptail is
TechnipFMC’s most recent award from ExxonMobil Guyana, where the
Company has been awarded subsea production system contracts since
the first contract award in 2017 for Liza Phase 1. *A “large”
contract is between $500 million and $1 billion.
- Woodside Energy Xena Phase 3 iEPCI™ project (Australia)
Significant* integrated Engineering, Procurement, Construction, and
Installation (iEPCI™) contract by Woodside Energy to design,
manufacture, and install the subsea production system, flexible
pipe, and umbilicals for the Xena Infill well (XNA03) to support
ongoing production from the Pluto LNG Project. The award follows an
integrated front end engineering design (iFEED™) study. The project
will use the Company’s Subsea 2.0® production system. Xena Phase 3
will be tied back to existing subsea infrastructure previously
supplied by TechnipFMC. The contract is the latest call-off on the
framework agreement between Woodside Energy and TechnipFMC. *A
“significant” contract is between $75 million and $250
million.
- Energean Katlan iEPCI™ project (Israel) Large* iEPCI™
contract by Energean for its Katlan development in the
Mediterranean Sea. This is Energean’s first project to use
TechnipFMC’s configure-to-order Subsea 2.0® production systems. The
award follows an iFEED™ study by TechnipFMC, which optimized the
commercial and technological solution for the field. The contract
covers the design, manufacture, and installation of the production
systems, pipe, umbilicals, and subsea structures. The subsea
infrastructure will tie back to the Energean Power floating
production, storage, and offloading vessel (FPSO), which currently
serves the Karish and Karish North developments. TechnipFMC also
delivered fully integrated subsea solutions utilizing our iEPCI™
execution model for both of these developments. *A “large” contract
is between $500 million and $1 billion.
- Petrobras Flexible Pipe contract (Brazil) Substantial*
contract by Petrobras to supply flexible pipe for the pre-salt
fields offshore Brazil. The contract covers the design,
engineering, and manufacture of flexible pipe for water injection
and gas lift. *A “substantial” contract is between $250 million and
$500 million.
Surface Technologies
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions)
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-over- Year
Revenue
$316.5
$307.2
$353.8
3.0%
(10.5%)
Operating profit
$30.6
$103.4
$25.7
(70.4%)
19.1%
Operating profit margin
9.7%
33.7%
7.3%
(2,400 bps)
240 bps
Adjusted EBITDA
$46.0
$41.4
$46.9
11.1%
(1.9%)
Adjusted EBITDA margin
14.5%
13.5%
13.3%
100 bps
120 bps
Inbound orders
$254.2
$370.6
$332.8
(31.4%)
(23.6%)
Backlog
$972.9
$1,037.0
$1,190.1
(6.2%)
(18.3%)
Surface Technologies reported second quarter revenue of $316.5
million, an increase of 3 percent from the first quarter. The
sequential revenue improvement was primarily driven by increased
activity in the Middle East, largely offset by the absence of
revenue from the Measurement Solutions business disposed of in
March of 2024.
Surface Technologies reported operating profit of $30.6 million,
a decrease of 70.4 percent versus the first quarter. Operating
profit in the prior quarter benefited from a $75.2 million gain on
the disposal of the Measurement Solutions business. Excluding the
gain on the disposal, operating profit increased $2.4 million
sequentially. The increase was primarily due to higher volume in
the Middle East, largely offset by the absence of operating profit
from Measurement Solutions.
Surface Technologies reported adjusted EBITDA of $46 million.
Adjusted EBITDA increased 11.1 percent when compared to the first
quarter. The improvement was driven by higher volume in the Middle
East, largely offset by the absence of Measurement Solutions.
Adjusted EBITDA margin increased 100 basis points sequentially to
14.5 percent.
Inbound orders for the quarter were $254.2 million, a sequential
decrease of 31.4 percent. Backlog ended the period at $972.9
million.
Corporate and Other Items (three months ended June 30,
2024)
Corporate expense was $23.7 million.
Foreign exchange loss was $17.7 million.
Net interest expense was $21.4 million.
The provision for income taxes was $59.2 million.
Total depreciation and amortization was $92.1 million.
Cash provided by operating activities was $230.9 million.
Capital expenditures were $50.8 million. Free cash flow was $180.1
million (Exhibit 11).
During the quarter, the Company repurchased 3.9 million of its
ordinary shares for total consideration of $100 million. When
including a dividend payment of $21.5 million, total shareholder
distributions in the quarter were $121.5 million.
The Company ended the period with cash and cash equivalents of
$708.2 million; net debt decreased $66.8 million sequentially to
$260.2 million (Exhibit 10).
On June 27, 2024, Fitch Ratings assigned a first-time Long-Term
Issuer Default Rating of ‘BBB-’ with a Stable Outlook to the
Company and its subsidiary, FMC Technologies Inc. Fitch Ratings
also assigned ‘BBB-’ ratings to the Company’s revolving credit
facility and senior unsecured notes. This follows a rating upgrade
in early March by S&P Global Ratings, which elevated both the
issuer credit and the issue-level ratings on the Company’s senior
unsecured notes to investment grade (‘BBB-’).
With investment grade ratings from two credit rating agencies,
the Company will benefit from lower interest rates and fees and
eliminate all collateral requirements for its $1.25 billion
Revolving Credit Facility and $500 million Letter of Credit
Facility. Additionally, the Company will gain access to the
lower-cost investment grade bond market for future term debt
needs.
2024 Full-Year Financial Guidance1
The Company’s full-year financial guidance for 2024 can be found
in the table below. Updates to the previous guidance issued on
February 22, 2024 are as follows:
- Subsea revenue in a range of $7.6 - 7.8 billion, which
increased from the previous guidance range of $7.2 - 7.6
billion.
- Subsea adjusted EBITDA margin in a range of 16.5 - 17%, which
increased from the previous guidance range of 15.5 - 16.5%.
- Free cash flow in a range of $425 - 575 million, which
increased from the previous guidance range of $350 - 500
million.
Financial results prior to the completion of the sale of the
Measurement Solutions business, which was completed on March 11,
2024, are included in full-year guidance for Surface
Technologies.
2024 Guidance (As of July 25,
2024)
Subsea
Surface Technologies
Revenue in a range of $7.6 - 7.8
billion
Revenue in a range of $1.2 - 1.35
billion
Adjusted EBITDA margin in a range of 16.5
- 17%
Adjusted EBITDA margin in a range of 13 -
15%
TechnipFMC
Corporate expense, net $115 - 125
million
(includes depreciation and amortization of
~$3 million; excludes charges and credits)
Net interest expense $70 - 80
million
Tax provision, as reported $280 -
290 million
Capital expenditures approximately
$275 million
Free cash flow2 $425 - 575
million
(includes payment for legal settlement of
~$170 million)
1
Our guidance measures of adjusted EBITDA
margin, free cash flow and adjusted corporate expense, net are
non-GAAP financial measures. We are unable to provide a
reconciliation to comparable GAAP financial measures on a
forward-looking basis without unreasonable effort because of the
unpredictability of the individual components of the most directly
comparable GAAP financial measure and the variability of items
excluded from each such measure. Such information may have a
significant, and potentially unpredictable, impact on our future
financial results.
2
Free cash flow is calculated as cash flow
from operations less capital expenditures.
Teleconference
The Company will host a teleconference on Thursday, July 25,
2024 to discuss the second quarter 2024 financial results. The call
will begin at 1:30 p.m. London time (8:30 a.m. New York time).
Webcast access and an accompanying presentation can be found at
www.TechnipFMC.com.
An archived audio replay will be available after the event at
the same website address. In the event of a disruption of service
or technical difficulty during the call, information will be posted
on our website.
About TechnipFMC
TechnipFMC is a leading technology provider to the traditional
and new energy industries; delivering fully integrated projects,
products, and services.
With our proprietary technologies and comprehensive solutions,
we are transforming our clients’ project economics, helping them
unlock new possibilities to develop energy resources while reducing
carbon intensity and supporting their energy transition
ambitions.
Organized in two business segments — Subsea and Surface
Technologies — we will continue to advance the industry with our
pioneering integrated ecosystems (such as iEPCI™, iFEED™ and
iComplete™), technology leadership and digital innovation.
Each of our approximately 21,000 employees is driven by a
commitment to our clients’ success, and a culture of strong
execution, purposeful innovation, and challenging industry
conventions.
TechnipFMC uses its website as a channel of distribution of
material company information. To learn more about how we are
driving change in the industry, go to www.TechnipFMC.com and follow
us on X (formerly Twitter) @TechnipFMC.
This communication contains “forward-looking statements” as
defined in Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Forward-looking statements
usually relate to future events, market growth, and recovery,
growth of our New Energy business and anticipated revenues,
earnings, cash flows, or other aspects of our operations or
operating results. Forward-looking statements are often identified
by words such as “commit,” “guidance,” “confident,” “believe,”
“expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,”
“would,” “could,” “may,” “will,” “likely,” “predicated,”
“estimate,” “outlook,” and similar expressions, including the
negative thereof. The absence of these words, however, does not
mean that the statements are not forward-looking. These
forward-looking statements are based on our current expectations,
beliefs, and assumptions concerning future developments and
business conditions and their potential effect on us. While
management believes these forward-looking statements are reasonable
as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate. All of
our forward-looking statements involve risks and uncertainties
(some of which are significant or beyond our control) and
assumptions that could cause actual results to differ materially
from our historical experience and our present expectations or
projections, including unpredictable trends in the demand for and
price of oil and natural gas; competition and unanticipated changes
relating to competitive factors in our industry, including ongoing
industry consolidation; our inability to develop, implement, and
protect new technologies and services and intellectual property
related thereto, including new technologies and services for our
New Energy business; the cumulative loss of major contracts,
customers or alliances and unfavorable credit and commercial terms
of certain contracts; disruptions in the political, regulatory,
economic, and social conditions of the countries in which we
conduct business; the refusal of DTC to act as depository and
clearing agency for our shares; the impact of our existing and
future indebtedness and the restrictions on our operations by terms
of the agreements governing our existing indebtedness; the risks
caused by our acquisition and divestiture activities; additional
costs or risks from increasing scrutiny and expectations regarding
ESG matters; uncertainties related to our investments in New Energy
business; the risks caused by fixed-price contracts; our failure to
timely deliver our backlog; our reliance on subcontractors,
suppliers, and our joint venture partners; a failure or breach of
our IT infrastructure or that of our subcontractors, suppliers or
joint venture partners, including as a result of cyber-attacks;
risks of pirates and maritime conflicts endangering our maritime
employees and assets; any delays and cost overruns of new capital
asset construction projects for vessels and manufacturing
facilities; potential liabilities inherent in the industries in
which we operate or have operated; our failure to comply with
existing and future laws and regulations, including those related
to environmental protection, climate change, health and safety,
labor and employment, import/export controls, currency exchange,
bribery and corruption, taxation, privacy, data protection and data
security; the additional restrictions on dividend payouts or share
repurchases as an English public limited company; uninsured claims
and litigation against us; tax laws, treaties and regulations and
any unfavorable findings by relevant tax authorities; potential
departure of our key managers and employees; adverse seasonal,
weather, and other climatic conditions; unfavorable currency
exchange rates; risk in connection with our defined benefit pension
plan commitments; our inability to obtain sufficient bonding
capacity for certain contracts, and other risks as discussed in
Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K
for the fiscal year ended December 31, 2023 and our other reports
subsequently filed with the Securities and Exchange Commission.
We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any of our
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except to
the extent required by law.
Exhibit 1
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In millions, except per share
data, unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2024
2024
2023
2024
2023
Revenue
$
2,325.6
$
2,042.0
$
1,972.2
$
4,367.6
$
3,689.6
Costs and expenses
2,017.2
1,883.0
1,813.7
3,900.2
3,480.1
308.4
159.0
158.5
467.4
209.5
Other income (expense), net including
income from equity affiliates
(41.5
)
(10.9
)
(181.2
)
(52.4
)
(168.3
)
Gain on disposal of Measurement Solutions
business
—
75.2
—
75.2
—
Income (loss) before net interest expense
and income taxes
266.9
223.3
(22.7
)
490.2
41.2
Net interest expense
(21.4
)
(12.7
)
(30.3
)
(34.1
)
(49.0
)
Income (loss) before income taxes
245.5
210.6
(53.0
)
456.1
(7.8
)
Provision for income taxes
59.2
49.7
43.3
108.9
80.7
Net income (loss)
186.3
160.9
(96.3
)
347.2
(88.5
)
(Income) loss attributable to
non-controlling interests
0.2
(3.8
)
9.1
(3.6
)
1.7
Net income (loss) attributable to
TechnipFMC plc
$
186.5
$
157.1
$
(87.2
)
$
343.6
$
(86.8
)
Earnings (loss) per share attributable to
TechnipFMC plc
Basic
$
0.43
$
0.36
$
(0.20
)
$
0.80
$
(0.20
)
Diluted
$
0.42
$
0.35
$
(0.20
)
$
0.78
$
(0.20
)
Weighted average shares outstanding:
Basic
430.2
433.6
440.1
431.9
441.1
Diluted
440.1
446.3
440.1
443.2
441.1
Cash dividends declared per share
$
0.05
$
0.05
$
—
$
0.10
$
—
Exhibit 2
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions,
unaudited)
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
June 30,
2024
2024
2023
2024
2023
Segment
revenue
Subsea
$
2,009.1
$
1,734.8
$
1,618.4
$
3,743.9
$
3,006.0
Surface Technologies
316.5
307.2
353.8
623.7
683.6
Total segment revenue
$
2,325.6
$
2,042.0
$
1,972.2
$
4,367.6
$
3,689.6
Segment operating
profit
Subsea
$
277.7
$
156.6
$
153.4
$
434.3
$
220.2
Surface Technologies
30.6
103.4
25.7
134.0
48.1
Total segment operating profit
$
308.3
$
260.0
$
179.1
$
568.3
$
268.3
Corporate
items
Corporate expense(1)
$
(23.7
)
$
(32.2
)
$
(153.5
)
$
(55.9
)
$
(180.9
)
Net interest expense
(21.4
)
(12.7
)
(30.3
)
(34.1
)
(49.0
)
Foreign exchange losses
(17.7
)
(4.5
)
(48.3
)
(22.2
)
(46.2
)
Total corporate items
$
(62.8
)
$
(49.4
)
$
(232.1
)
$
(112.2
)
$
(276.1
)
Income (loss) before income taxes(2)
$
245.5
$
210.6
$
(53.0
)
$
456.1
$
(7.8
)
(1)
Corporate expense primarily includes
corporate staff expenses, share-based compensation expenses, and
other employee benefits. For the three and six months ended June
30, 2023, corporate expense includes the non-recurring legal
settlement charge of $126.5 million.
(2)
Includes amounts attributable to
non-controlling interests.
Exhibit 3
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions,
unaudited)
Three Months Ended
Six Months Ended
Inbound
Orders(1)
June 30,
March 31,
June 30,
June 30,
2024
2024
2023
2024
2023
Subsea
$
2,838.0
$
2,403.8
$
4,114.5
$
5,241.8
$
6,651.0
Surface Technologies
254.2
370.6
332.8
624.8
655.2
Total inbound orders
$
3,092.2
$
2,774.4
$
4,447.3
$
5,866.6
$
7,306.2
Order
Backlog(2)
June 30, 2024
March 31, 2024
June 30, 2023
Subsea
$
12,925.9
$
12,455.5
$
12,088.5
Surface Technologies
972.9
1,037.0
1,190.1
Total order backlog
$
13,898.8
$
13,492.5
$
13,278.6
(1)
Inbound orders represent the estimated
sales value of confirmed customer orders received during the
reporting period.
(2)
Order backlog is calculated as the
estimated sales value of unfilled, confirmed customer orders at the
reporting date.
Exhibit 4
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions,
unaudited)
June 30, 2024
December 31,
2023
Cash and cash equivalents
$
708.2
$
951.7
Trade receivables, net
1,163.2
1,138.1
Contract assets, net
1,118.6
1,010.1
Inventories, net
1,132.8
1,100.3
Other current assets
761.6
995.2
Total current assets
4,884.4
5,195.4
Property, plant and equipment, net
2,162.0
2,270.9
Intangible assets, net
559.4
601.6
Other assets
1,636.8
1,588.7
Total assets
$
9,242.6
$
9,656.6
Short-term debt and current portion of
long-term debt
$
321.6
$
153.8
Accounts payable, trade
1,446.2
1,355.8
Contract liabilities
1,401.7
1,485.8
Other current liabilities
1,283.7
1,473.2
Total current liabilities
4,453.2
4,468.6
Long-term debt, less current portion
646.8
913.5
Other liabilities
1,133.0
1,102.4
TechnipFMC plc stockholders’ equity
2,972.4
3,136.7
Non-controlling interests
37.2
35.4
Total liabilities and equity
$
9,242.6
$
9,656.6
Exhibit 5
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions,
unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2024
2023
Cash provided (required) by operating
activities
Net income (loss)
$
186.3
$
347.2
$
(88.5
)
Adjustments to reconcile income (loss) to
cash required by operating activities
Depreciation and amortization
92.1
191.6
190.0
Gain on disposal of Measurement Solutions
business
—
(75.2
)
—
Income from equity affiliates, net of
dividends received
(2.0
)
(3.4
)
(15.4
)
Other non-cash items, net
(37.0
)
(4.5
)
11.9
Working capital(1)
(82.3
)
(473.3
)
(286.8
)
Other non-current assets and liabilities,
net
73.8
121.8
(41.2
)
Cash provided (required) by operating
activities
230.9
104.2
(230.0
)
Cash provided (required) by investing
activities
Capital expenditures
(50.8
)
(102.8
)
(110.1
)
Proceeds from sale of Measurement
Solutions business
—
186.1
—
Other investing activities
1.6
3.8
30.7
Cash provided (required) by investing
activities
(49.2
)
87.1
(79.4
)
Cash required by financing activities
Net decrease in short-term debt
(38.0
)
(65.4
)
(26.1
)
Net increase in revolving credit
facility
—
—
50.0
Dividends paid
(21.5
)
(43.2
)
—
Share repurchases
(100.0
)
(250.1
)
(100.0
)
Payments related to taxes withheld on
share-based compensation
—
(49.7
)
(17.2
)
Other financing activities
(2.2
)
(9.5
)
(48.5
)
Cash required by financing activities
(161.7
)
(417.9
)
(141.8
)
Effect of changes in foreign exchange
rates on cash and cash equivalents
(8.6
)
(16.9
)
(20.7
)
Change in cash and cash equivalents
11.4
(243.5
)
(471.9
)
Cash and cash equivalents, beginning of
period
696.8
951.7
1,057.1
Cash and cash equivalents, end of
period
$
708.2
$
708.2
$
585.2
(1)
Working capital includes receivables,
payables, inventories and other current assets and liabilities.
Exhibit 6
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In
millions, except per share data, unaudited)
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the second
quarter 2024 Earnings Release also includes non-GAAP financial
measures (as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended) and describes performance on a
year-over-year or sequential basis. Net income attributable to
TechnipFMC plc, excluding charges and credits, as well as measures
derived from it (including Diluted EPS, excluding charges and
credits; Earnings before net interest expense, income taxes,
depreciation and amortization, excluding charges and credits
(“Adjusted EBITDA”); and Adjusted EBITDA, excluding foreign
exchange gains or losses, net; Adjusted EBITDA margin; Adjusted
EBITDA margin, excluding foreign exchange, net); Corporate expense,
excluding charges and credits; Foreign exchange, net and other,
excluding charges and credits; and net debt are non-GAAP financial
measures.
Non-GAAP adjustments are presented on a gross basis and the tax
impact of the non-GAAP adjustments is separately presented in the
applicable reconciliation table. Estimates of the tax effect of
each adjustment is calculated item by item, by reviewing the
relevant jurisdictional tax rate to the pretax non-GAAP amounts,
analyzing the nature of the item and/or the tax jurisdiction in
which the item has been recorded, the need of application of a
specific tax rate, history of non-GAAP taxable income positions
(i.e. net operating loss carryforwards) and concluding on the
valuation allowance positions.
Management believes that the exclusion of charges, credits and
foreign exchange impacts from these financial measures provides a
useful perspective on the Company’s underlying business results and
operating trends, and a means to evaluate TechnipFMC’s operations
and consolidated results of operations period-over-period. These
measures are also used by management as performance measures in
determining certain incentive compensation. The foregoing non-GAAP
financial measures should be considered by investors in addition
to, not as a substitute for or superior to, other measures of
financial performance prepared in accordance with GAAP. The
following is a reconciliation of the most comparable financial
measures under GAAP to the non-GAAP financial measures.
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss) attributable to
TechnipFMC plc
$
186.5
$
157.1
$
(87.2
)
$
343.6
$
(86.8
)
Charges and (credits):
Restructuring, impairment and other
charges
2.4
5.0
5.1
7.4
5.7
Gain on disposal of Measurement Solutions
business
—
(75.2
)
—
(75.2
)
—
Non-recurring legal settlement
charges*
—
—
126.5
—
126.5
Tax impact of the charges and (credits)
above
—
10.7
0.4
10.7
0.4
Adjusted net income attributable to
TechnipFMC plc
$
188.9
$
97.6
$
44.8
$
286.5
$
45.8
Weighted diluted average shares
outstanding
440.1
446.3
440.1
443.2
441.1
Reported earnings (loss) per share -
diluted
$
0.42
$
0.35
$
(0.20
)
$
0.78
$
(0.20
)
Adjusted earnings per share - diluted
$
0.43
$
0.22
$
0.10
$
0.65
$
0.10
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 15 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss) attributable to
TechnipFMC plc
$
186.5
$
157.1
$
(87.2
)
$
343.6
$
(86.8
)
Income (loss) attributable to
non-controlling interests
(0.2
)
3.8
(9.1
)
3.6
(1.7
)
Provision for income tax
59.2
49.7
43.3
108.9
80.7
Net interest expense
21.4
12.7
30.3
34.1
49.0
Depreciation and amortization
92.1
99.5
97.0
191.6
190.0
Restructuring, impairment and other
charges
2.4
5.0
5.1
7.4
5.7
Gain on disposal of Measurement Solutions
business
—
(75.2
)
—
(75.2
)
—
Non-recurring legal settlement
charges*
—
—
126.5
—
126.5
Adjusted EBITDA
$
361.4
$
252.6
$
205.9
$
614.0
$
363.4
Foreign exchange, net
17.7
4.5
48.3
22.2
46.2
Adjusted EBITDA, excluding foreign
exchange, net
$
379.1
$
257.1
$
254.2
$
636.2
$
409.6
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 15 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
June 30, 2024
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
2,009.1
$
316.5
$
—
$
—
$
2,325.6
Operating profit (loss), as reported
(pre-tax)
$
277.7
$
30.6
$
(23.7
)
$
(17.7
)
$
266.9
Charges and (credits):
Restructuring, impairment and other
charges
(0.2
)
2.6
—
—
2.4
Subtotal
(0.2
)
2.6
—
—
2.4
Depreciation and amortization
79.0
12.8
0.3
—
92.1
Adjusted EBITDA
$
356.5
$
46.0
$
(23.4
)
$
(17.7
)
$
361.4
Foreign exchange, net
—
—
—
17.7
17.7
Adjusted EBITDA, excluding foreign
exchange, net
$
356.5
$
46.0
$
(23.4
)
$
—
$
379.1
Operating profit margin, as reported
13.8
%
9.7
%
11.5
%
Adjusted EBITDA margin
17.7
%
14.5
%
15.5
%
Adjusted EBITDA margin, excluding foreign
exchange, net
17.7
%
14.5
%
16.3
%
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
March 31, 2024
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
1,734.8
$
307.2
$
—
$
—
$
2,042.0
Operating profit (loss), as reported
(pre-tax)
$
156.6
$
103.4
$
(32.2
)
$
(4.5
)
$
223.3
Charges and (credits):
Restructuring, impairment and other
charges
—
(0.2
)
5.2
—
5.0
Gain on disposal of Measurement Solutions
business
—
(75.2
)
—
—
(75.2
)
Subtotal
—
(75.4
)
5.2
—
(70.2
)
Depreciation and amortization
85.8
13.4
0.3
—
99.5
Adjusted EBITDA
$
242.4
$
41.4
$
(26.7
)
$
(4.5
)
$
252.6
Foreign exchange, net
—
—
—
4.5
4.5
Adjusted EBITDA, excluding foreign
exchange, net
$
242.4
$
41.4
$
(26.7
)
$
—
$
257.1
Operating profit margin, as reported
9.0
%
33.7
%
10.9
%
Adjusted EBITDA margin
14.0
%
13.5
%
12.4
%
Adjusted EBITDA margin, excluding foreign
exchange, net
14.0
%
13.5
%
12.6
%
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
June 30, 2023
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
1,618.4
$
353.8
$
—
$
—
$
1,972.2
Operating profit (loss), as reported
(pre-tax)
$
153.4
$
25.7
$
(153.5
)
$
(48.3
)
$
(22.7
)
Charges and (credits):
Restructuring and other charges
0.5
4.6
—
—
5.1
Non-recurring legal settlement
charges*
—
—
126.5
—
126.5
Subtotal
0.5
4.6
126.5
—
131.6
Depreciation and amortization
79.9
16.6
0.5
—
97.0
Adjusted EBITDA
$
233.8
$
46.9
$
(26.5
)
$
(48.3
)
$
205.9
Foreign exchange, net
—
—
—
48.3
48.3
Adjusted EBITDA, excluding foreign
exchange, net
$
233.8
$
46.9
$
(26.5
)
$
—
$
254.2
Operating profit margin, as reported
9.5
%
7.3
%
-1.2
%
Adjusted EBITDA margin
14.4
%
13.3
%
10.4
%
Adjusted EBITDA margin, excluding foreign
exchange, net
14.4
%
13.3
%
12.9
%
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 15 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Exhibit 9
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Six Months Ended
June 30, 2024
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
3,743.9
$
623.7
$
—
$
—
$
4,367.6
Operating profit (loss), as reported
(pre-tax)
$
434.3
$
134.0
$
(55.9
)
$
(22.2
)
$
490.2
Charges and (credits):
Restructuring, impairment and other
charges
(0.2
)
2.4
5.2
—
7.4
Gain on disposal of Measurement Solutions
business
—
(75.2
)
—
—
(75.2
)
Subtotal
(0.2
)
(72.8
)
5.2
—
(67.8
)
Depreciation and amortization
164.8
26.2
0.6
—
191.6
Adjusted EBITDA
$
598.9
$
87.4
$
(50.1
)
$
(22.2
)
$
614.0
Foreign exchange, net
—
—
—
22.2
22.2
Adjusted EBITDA, excluding foreign
exchange, net
$
598.9
$
87.4
$
(50.1
)
$
—
$
636.2
Operating profit margin, as reported
11.6
%
21.5
%
11.2
%
Adjusted EBITDA margin
16.0
%
14.0
%
14.1
%
Adjusted EBITDA margin, excluding foreign
exchange, net
16.0
%
14.0
%
14.6
%
Exhibit 9
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Six Months Ended
June 30, 2023
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
3,006.0
$
683.6
$
—
$
—
$
3,689.6
Operating profit (loss), as reported
(pre-tax)
$
220.2
$
48.1
$
(180.9
)
$
(46.2
)
$
41.2
Charges and (credits):
Restructuring and other charges
0.4
5.3
—
—
5.7
Non-recurring legal settlement
charges*
—
—
126.5
—
126.5
Subtotal
0.4
5.3
126.5
—
132.2
Depreciation and amortization
155.1
33.8
1.1
—
190.0
Adjusted EBITDA
$
375.7
$
87.2
$
(53.3
)
$
(46.2
)
$
363.4
Foreign exchange, net
—
—
—
46.2
46.2
Adjusted EBITDA, excluding foreign
exchange, net
$
375.7
$
87.2
$
(53.3
)
$
—
$
409.6
Operating profit margin, as reported
7.3
%
7.0
%
1.1
%
Adjusted EBITDA margin
12.5
%
12.8
%
9.8
%
Adjusted EBITDA margin, excluding foreign
exchange, net
12.5
%
12.8
%
11.1
%
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 15 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Exhibit 10
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
June 30, 2024
March 31, 2024
June 30, 2023
Cash and cash equivalents
$
708.2
$
696.8
$
585.2
Short-term debt and current portion of
long-term debt
(321.6
)
(136.6
)
(429.5
)
Long-term debt, less current portion
(646.8
)
(887.2
)
(999.7
)
Net debt
$
(260.2
)
$
(327.0
)
$
(844.0
)
Net (debt) cash is a non-GAAP financial measure reflecting cash
and cash equivalents, net of debt. Management uses this non-GAAP
financial measure to evaluate our capital structure and financial
leverage. We believe net debt, or net cash, is a meaningful
financial measure that may assist investors in understanding our
financial condition and recognizing underlying trends in our
capital structure. Net (debt) cash should not be considered an
alternative to, or more meaningful than, cash and cash equivalents
as determined in accordance with U.S. GAAP or as an indicator of
our operating performance or liquidity.
Exhibit 11
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2024
2023
Cash provided (required) by operating
activities
$
230.9
$
104.2
$
(230.0
)
Capital expenditures
(50.8
)
(102.8
)
(110.1
)
Free cash flow (deficit)
$
180.1
$
1.4
$
(340.1
)
Free cash flow (deficit), is a non-GAAP financial measure and is
defined as cash provided (required) by operating activities less
capital expenditures. Management uses this non-GAAP financial
measure to evaluate our financial condition. We believe free cash
flow (deficit) is a meaningful financial measure that may assist
investors in understanding our financial condition and results of
operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725007944/en/
Investor relations
Matt Seinsheimer Senior Vice President, Investor Relations and
Corporate Development Tel: +1 281 260 3665 Email: Matt
Seinsheimer
James Davis Director, Investor Relations Tel: +1 281 260 3665
Email: James Davis
Media relations
David Willis Senior Manager, Public Relations Tel: +44 7841
492988 Email: David Willis
TechnipFMC (NYSE:FTI)
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