Press release | October 20 2021 TechnipFMC Announces Third Quarter 2021 Results
Subsea inbound orders of $1.1 billion in the quarter, $3.9 billion for first nine months
Cash flow from operations of $135.9 million; free cash flow of $88.6 million
Cash and cash equivalents increased to $1.0 billion; net debt reduced by $401 million
NEWCASTLE & HOUSTON, October 20, 2021 - TechnipFMC plc (NYSE: FTI) (Paris: FTI) today reported third quarter 2021 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)
Sep. 30,
2021
Jun. 30,
2021
Sep. 30,
2020
Sequential
Year-over-Year
Revenue
$1,579.4
$1,668.8
$1,727.5
(5.4%)
(8.6%)
Income (loss)
($40.6)
($174.7)
($64.7)
n/m
n/m
Diluted earnings (loss) per share
$(0.09)
$(0.39)
$(0.14)
n/m
n/m
Adjusted EBITDA
$140.6
$144.3
$121.1
(2.6%)
16.1%
Adjusted EBITDA margin
8.9
%
8.6
%
7.0
%
30 bps
190 bps
Adjusted income (loss)
$(25.0)
$(26.0)
$(19.7)
n/m
n/m
Adjusted diluted earnings (loss) per share
$(0.06)
$(0.06)
$(0.04)
n/m
n/m
Inbound orders
$1,365.9
$1,559.5
$1,814.6
(12.4%)
(24.7%)
Backlog
$7,002.4
$7,312.0
$7,586.9
(4.2%)
(7.7%)
Total Company revenue in the third quarter was $1,579.4 million. Loss from continuing operations attributable to TechnipFMC was $40.6 million, or $0.09 per diluted share. These results included after-tax charges and (credits) totaling $15.6 million of expense, or $0.03 per share, which included the following (Exhibit 6):
Impairment and other charges of $38 million;
Restructuring and other charges of $6.1 million; and
Income from equity investment in Technip Energies of ($28.5) million.
Adjusted loss from continuing operations was $25.0 million, or $0.06 per diluted share (Exhibit 6). Included in adjusted loss from continuing operations was a loss on early extinguishment of debt of $16 million.
Adjusted EBITDA, which excludes pre-tax charges and credits, was $140.6 million; adjusted EBITDA margin was 8.9 percent (Exhibit 8). Included in adjusted EBITDA was a foreign exchange loss of $6.2 million.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, Third quarter results reflect continued strength in operational performance and further support our confidence in achieving full-year financial guidance. We also made progress on our commitments to strengthen our balance sheet and exit our ownership in Technip Energies. With the completion of our most recent sale, we have now sold just over 75% of our original stake in Technip Energies, a portion of which was used to reduce our outstanding debt by $185 million in the quarter.
Pferdehirt added, In Subsea, inbound orders were $1.1 billion, bringing the year-to-date segment total to $3.9 billion. The strength of our inbound was driven by direct awards, subsea services, alliance partners and several long-term vessel charters. We continue to forecast order growth through 2022, which is supported by the fourth consecutive quarter of increased project value in our Subsea Opportunity list.
In Surface Technologies, inbound orders were $250 million for the quarter. We expect a significant increase in international order activity in the fourth quarter, driven by several multi-year awards.
Pferdehirt continued, Subsea inbound growth throughout 2021 partly reflects the momentum we are seeing in Brazil - an important region for TechnipFMC where we have been present for over five decades. During the quarter, we signed three long-term vessel charter contracts with Petrobras. These awards are a leading indicator of the strong demand for flexible pipe in the Brazilian market, where we believe volumes will exceed 700 kilometers per annum over the next three years.
In 2018, we created a strategic alliance and made a minority investment in Magma Global, a leader in advanced composite technologies. With the ongoing success of this technology alliance, we were pleased to announce we acquired the remaining 75% interest in Magma Global earlier this month. By combining their proprietary technologies with our flexible pipe, we are advancing the development and qualification of a hybrid flexible pipe solution for use in the Brazilian pre-salt fields.
Pferdehirt added, We were also pleased to announce a long-term strategic alliance with Talos Energy to develop and deliver solutions for carbon capture and storage, or CCS. The alliance is an important step for both companies, combining Talos's offshore operational strength and sub-surface expertise with our long history in subsea engineering, system integration and automation and control. Additionally, we believe that composite technologies from Magma will be a critical enabler to the carbon transportation system. Cultivated through a shared vision to responsibly deliver CCS solutions that will help to reduce the global carbon footprint, this innovative partnership will accelerate offshore CCS adoption with reliable, specialized systems. This type of collaboration, innovation and integration will position TechnipFMC to be a leading provider in carbon transportation and storage.
Pferdehirt concluded, Our results reflect a continuation of the strong operational performance that we demonstrated over the first half of the year. Subsea orders have nearly matched the $4 billion inbound in all of 2020, and we remain on track to achieve solid double-digit growth. The acquisition of Magma and our strategic alliance with Talos Energy serve as tangible progress and further demonstrate the impactful role we will play in the energy transition.
Operational and Financial Highlights Subsea Financial Highlights Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.
