- Strong financial performance in both Subsea and Surface
Technologies
- Cash flow from continuing operations $182 million, free cash
flow $137 million
- Subsea inbound orders more than doubled sequentially to $1.5
billion
- New partnerships leverage subsea expertise for integrated
wind, wave energy
Regulatory News:
TechnipFMC plc (NYSE: FTI) (Paris: FTI) today reported first
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
(In millions, except per share
amounts)
March 31,
2021
March 31,
2020
Change
Revenue
$1,632.0
$1,582.6
3.1%
Income (loss)
$430.3
$(3,234.8)
n/m
Diluted earnings (loss) per
share
$0.95
$(7.23)
n/m
Adjusted EBITDA
$165.2
$79.7
107.3%
Adjusted EBITDA margin
10.1
%
5.0
%
510 bps
Adjusted income (loss)
$(14.5)
$(60.0)
n/m
Adjusted diluted earnings (loss) per
share
$(0.03)
$(0.13)
n/m
Inbound orders
$1,722.1
$1,538.4
11.9%
Backlog
$7,221.4
$8,195.5
(11.9%)
Total Company revenue in the first quarter was $1,632 million.
Income from continuing operations attributable to TechnipFMC plc
was $430.3 million, or $0.95 per diluted share. These results
included income from the Company’s equity investment in Technip
Energies of $470.1 million primarily related to a favorable change
in fair market value. After-tax charges and credits totaled $444.8
million of credit, or $0.99 per diluted share. Adjusted loss from
continuing operations was $14.5 million, or $0.03 per diluted share
(Exhibit 6).
Adjusted EBITDA, which excludes pre-tax charges and credits, was
$165.2 million; adjusted EBITDA margin was 10.1 percent (Exhibit
7). Included in adjusted EBITDA was a foreign exchange gain of
$28.1 million.
As previously announced, on February 16, 2021, the Company
completed the partial spin-off of Technip Energies to its
shareholders. Financial results for Technip Energies are reported
as discontinued operations.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, “Our
first quarter as a leading pure play, technology and services
provider to both traditional and new energy industries was an
exceptional start. Total Company adjusted EBITDA from continuing
operations was $165 million, with free cash flow of $137 million.
We delivered solid financial results in both Subsea and Surface
Technologies, largely driven by strong operational execution. We
also announced new strategic partnerships that will further
progress the development of material opportunities for TechnipFMC
in the energy transition.”
Pferdehirt added, “In Subsea, inbound orders more than doubled
sequentially to $1.5 billion, with increased adoption of Subsea
2.0™ technologies. Integrated projects comprised nearly 40 percent
of segment orders and included an award for Petronas’ first
deepwater project, Limbayong, which will benefit from the seamless
integration of both iEPCI™ and Subsea 2.0™. We also received a
contract for manifolds for the Petrobras Marlim and Voador fields,
which will utilize our all-electric robotic technology. Using
digital automation and control, we can replace traditional subsea
hydraulics, allowing for a more autonomous system that enables a
significantly reduced carbon footprint.”
“In Surface Technologies, our international revenue mix
continued to expand and represented nearly 70 percent of the
segment in the quarter, driven by strength in the Middle East,
North Sea and Asia Pacific. These markets demand higher
specification equipment, global services and local capabilities,
which are areas where we continue to further differentiate our
offering. We believe our unique capabilities will allow us to
extend our leadership positions in these more resilient
markets.”
Pferdehirt continued, “Client conversations remain constructive,
suggesting a further increase in activity. We see potential for a
global recovery that is more sustainable than previous cycles,
giving us confidence in our 2021 Subsea outlook of more than $4
billion in inbound orders and for continued growth in 2022. We
believe that integrated project awards have the potential to more
than double versus the prior year, and the combination of direct
project and service-related orders could represent 50 percent of
total inbound for the current year.”
Pferdehirt added, “We announced two strategic partnerships
focused on the generation of renewable energy. There is strong
market momentum towards offshore wind, with governments
increasingly focused on opening new areas for development. Our new
partnership with Magnora is pursuing offshore wind development
opportunities, and we are working separately with Bombora to
convert both wind and wave energy into renewable power. It is
estimated that nearly 80 percent of the world’s offshore wind
resources will come from deepwater where we will benefit from our
significant installed base, domain expertise and history of subsea
innovation.”
Pferdehirt concluded, “Our first quarter results provide us with
a very strong start to the year in support of our 2021 commitments.
Looking ahead, we expect robust and sustained activity across our
businesses, supported by improving market fundamentals and our
competitive differentiation. Importantly, we continue to leverage
our unique capabilities and technologies to strategically position
TechnipFMC for the development of new energy sources, using the
very same playbook that led to the successful transformation of our
Subsea business.”
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
(In millions)
March 31,
2021
March 31,
2020
Change
Revenue
$1,386.5
$1,253.1
10.6%
Operating profit (loss)
$37.0
$(2,750.7)
n/m
Adjusted EBITDA
$135.1
$104.8
28.9%
Adjusted EBITDA margin
9.7%
8.4%
130 bps
Inbound orders
$1,518.8
$1,172.1
29.6%
Backlog1,2,3
$6,857.1
$7,773.5
(11.8%)
Estimated Consolidated Backlog
Scheduling
(In millions)
March 31,
2021
2021
$2,954
2022
$2,534
2023 and beyond
$1,369
Total
$6,857
1 Backlog in the period was decreased by a
foreign exchange impact of $131.3 million.
2 Backlog does not capture all revenue
potential for Subsea Services.
3 Backlog does not include total Company
non-consolidated backlog of $612 million.
Subsea reported first quarter revenue of $1,386.5 million, an
increase of 10.6 percent from the prior year largely driven by
higher project and services activity.
Subsea reported an operating profit of $37 million that included
impairment, restructuring and other charges totaling $19.7 million.
Operating results improved versus the prior-year quarter primarily
due to the significant reduction in non-cash impairment charges as
well as cost reduction initiatives and increased installation
activity.
Adjusted EBITDA increased year-over-year due to cost reduction
initiatives and increased installation activity; adjusted EBITDA
margin improved 130 basis points to 9.7 percent.
Sequentially, Subsea revenue increased 3.6 percent, benefiting
from strong project execution from backlog. The geographic mix of
projects also mitigated the seasonal decline in services
activity.
Operating results improved sequentially driven by increased
manufacturing productivity which more than offset the impact of the
services activity decline.
Subsea inbound orders were $1,518.8 million for the quarter,
resulting in a book-to-bill of 1.1. The following awards were
included in the period:
- North El Amriya and North Idku iEPCI™ Project (Egypt)
Significant* integrated engineering, procurement, construction and
installation (iEPCI™) contract from NIpetco and PetroAmriya, two
Joint Ventures between Energean and Egyptian Natural Gas Holding
Company (EGAS) and Egyptian General Petroleum Corporation (EGPC)
for a subsea tieback located offshore Egypt on the North El Amriya
and North Idku concession. TechnipFMC will design, manufacture,
deliver and install subsea equipment including the subsea
production system, subsea trees, production manifolds, umbilicals,
flexible pipelines, jumpers and associated subsea and topside
controls. *A “significant” award ranges between $75 million and
$250 million.
- PETRONAS Carigali Limbayong Deepwater Development Project
(Malaysia) Substantial* contract for front-end engineering
design, and integrated engineering, procurement, construction,
installation and commissioning of subsea production system,
umbilicals, risers and flowlines (iEPCI™) by PETRONAS Carigali, a
subsidiary of PETRONAS, for the Limbayong Deepwater Development
Project. This contract covers the development of 10 deepwater wells
and their tieback to the Limbayong Floating Production Storage and
Offloading (FPSO) unit in Malaysia. TechnipFMC will design,
manufacture, deliver and install subsea equipment including subsea
trees, manifolds, umbilicals, flexible riser, flowlines, jumpers
and other associated subsea hardware for the project. The iEPCI™
contract combines our integrated subsea solution with our Subsea
2.0™ products, demonstrating the added value of our unique and
complete integrated offering. *A “substantial” award ranges between
$250 million and $500 million.
- Energean Karish North Development iEPCI™ Project
(Israel) Letter of Award (LOA) from Energean Israel Limited for
the development of the Karish North field, located offshore Israel.
TechnipFMC will design, manufacture, deliver and install subsea
equipment including the subsea production system, rigid flowlines
and umbilicals as a tieback to the ‘Energean Power’ FPSO as well as
the second gas export riser.
- Petrobras Marlim and Voador Project (Brazil)
Significant* contract from Petrobras for the Marlim and Voador
fields offshore Brazil. TechnipFMC will supply up to eight
manifolds for production and injection, utilizing the all-electric
Robotic Valve Controller (RVC). The contract also includes
associated tools, spares and services. The RVC is a unique robotic
technology that replaces traditional subsea hydraulics, as well as
thousands of mechanical parts, while providing real-time data and
analysis on system performance. This results in a manifold that is
smaller, less complex and less costly with a significantly reduced
carbon footprint. *A “significant” award ranges between $75 million
and $250 million.
- Santos Barossa Project (Australia) Significant* Notice
to Proceed for a subsea production system contract from Santos Ltd.
for the Barossa project, located 300 kilometers north of Darwin,
Australia. The contract scope covers the supply of subsea trees and
associated control systems, manifolds and wellheads, as well as
installation and commissioning support, which will help to extend
the life of the existing Darwin LNG facility. *A “significant”
award ranges between $75 million and $250 million.
Partnership and Alliance Highlights
- TechnipFMC and Magnora to Develop Floating Offshore Wind
Projects Formed a partnership with Magnora ASA (Magnora) to
jointly pursue floating offshore wind project development
opportunities under the name Magnora Offshore Wind. Magnora holds a
strategic position within the renewable energy sector as an owner
in offshore wind, onshore wind, and solar development projects.
When combined with TechnipFMC’s unique technologies, experience
delivering integrated EPCI (iEPCI™) projects and its novel Deep
Purple™ initiative to integrate wind and wave energy with offshore
green hydrogen, this partnership will enable Magnora Offshore Wind
to realize significant opportunities in the growing offshore
floating wind market.
- TechnipFMC and Bombora to Develop Floating Wave, Wind Power
Project Formed a strategic partnership with Bombora to develop
a floating wave and wind power project in support of a more
sustainable future. The relationship brings together TechnipFMC’s
unique technologies and experience delivering complex integrated
engineering, procurement, construction and installation (iEPCI™)
projects offshore with Bombora’s patented multi-megawatt mWave™
technology that converts wave energy into electricity. The
partnership will initially focus on TechnipFMC and Bombora’s
InSPIRE project. With engineering work initiated in November 2020,
the partnership is developing a hybrid system utilizing Bombora’s
mWave™ technology.
Surface Technologies
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP financial measures are
provided in financial schedules.
Three Months Ended
(In millions)
March 31,
2021
March 31,
2020
Change
Revenue
$245.5
$329.5
(25.5%)
Operating profit (loss)
$8.2
$(424.0)
n/m
Adjusted EBITDA
$26.9
$24.5
9.8%
Adjusted EBITDA margin
11.0%
7.4%
360 bps
Inbound orders
$203.3
$366.3
(44.5%)
Backlog
$364.3
$422.0
(13.7%)
Surface Technologies reported first quarter revenue of $245.5
million, a decrease of 25.5 percent from the prior-year quarter.
The decline was primarily driven by the sharp reduction in operator
activity in North America while international revenue was
resilient, declining low-single digits.
Surface Technologies reported operating profit of $8.2 million
that included restructuring, impairment and other charges totaling
$2.8 million. Operating results improved versus the prior-year
quarter primarily due to the significant reduction in non-cash
impairment charges as well as improved operational performance,
benefits from prior-year cost reduction initiatives and ongoing
cost control measures.
Adjusted EBITDA increased year-over-year due to improved
operational performance, benefits from prior-year cost reduction
initiatives and ongoing cost control measures; adjusted EBITDA
margin improved 360 basis points to 11 percent.
Sequentially, revenue decreased 6.4 percent largely due to
seasonal declines in customer activity and timing of backlog
conversion in international markets. International markets
accounted for nearly 70 percent of total segment revenue in the
quarter. Revenue in North America declined due in part to the
Company’s exit from certain underperforming markets, partially
offset by growth in the U.S. which benefited from further adoption
of the iComplete™ ecosystem.
Operating profit decreased sequentially primarily due to lower
volumes, partially offset by continued improvement in operational
performance and a lower cost structure.
Inbound orders for the quarter were $203.3 million, a decrease
of 44.5 percent versus the prior-year quarter primarily due to a
shift in timing of international orders to future periods. Backlog
ended the period at $364.3 million. Given the short-cycle nature of
the business, orders are generally converted into revenue within
twelve months.
Corporate and Other Items
Corporate expense in the quarter was $28.8 million. Excluding
charges and credits totaling $3 million of expense, corporate
expense was $25.8 million.
Foreign exchange gain in the quarter was $28.1 million.
The Company recognized income of $470.1 million from its equity
ownership in Technip Energies. The income was related to the change
in fair market value of the investment, which reflected the
difference between the book value at the time of separation and the
market value at the end of the period, as well as the discount
associated with shares sold during the quarter.
Net interest expense was $34.5 million in the quarter. The
Company also recorded a loss on the early extinguishment of debt of
$23.5 million.
The Company recorded a tax provision in the quarter of $24.5
million.
Total depreciation and amortization for the quarter was $95.2
million.
Cash flow from continuing operations in the quarter was $181.5
million.
Capital expenditures in the quarter were $44.2 million.
Free cash flow from continuing operations was $137.3 million in
the quarter (Exhibit 9).
The Company ended the period with cash and cash equivalents of
$752.8 million; net debt was $1,778.3 million.
During the quarter, the Company completed the transaction
contemplated by the Share Purchase Agreement with Bpifrance
Participations SA (“Bpifrance”) where Bpifrance purchased $100
million in Technip Energies shares from the Company’s retained
stake in Technip Energies. At the end of the period, the Company
held 82.3 million ordinary shares of Technip Energies.
Bpifrance had previously provided funding of $200 million for
the purchase of Technip Energies’ shares from TechnipFMC. As a
result of the revised level of investment, the Company refunded
$100 million to Bpifrance in the second quarter.
Also in the second quarter, the Company announced the sale of
26.8 million shares from its retained stake in Technip Energies for
proceeds of approximately $360 million. The sale further reduced
the Company’s ownership stake to 55.5 million shares, or
approximately 31 percent of Technip Energies’ outstanding
shares.
Discontinued operations
During the quarter, the Company completed the partial spin-off
of Technip Energies. Financial results for Technip Energies are
reported as discontinued operations.
For the three months ended March 31, 2021, the results of
discontinued operations on the Consolidated Statement of Income
include the historical results of Technip Energies prior to its
spin-off on February 16, 2021 as well as all separation-related
costs incurred for the transaction. The Company has accounted for
its investment in Technip Energies using the fair value method with
changes in the fair value recorded in its Consolidated Statement of
Income.
On February 16, 2021, all assets and liabilities of Technip
Energies were spun-off. There were no assets or liabilities
classified as discontinued operations on the Condensed Consolidated
Balance Sheet at the end of the period. The Company’s investment in
Technip Energies is reflected in current assets at market value as
of March 31, 2021.
2021 Full-Year Financial Guidance1
The Company’s full-year guidance for 2021 can be found in the
table below.
Guidance is based on continuing operations and thus excludes the
impact of Technip Energies, which is reported as discontinued
operations.
Updates to the Company’s full-year guidance for 2021 are as
follows:
- Tax provision, as reported, of $70 - 80 million; decreased from
the previous guidance of $110 - 120 million.
- Free cash flow of $120 - 220 million; increased from the
previous guidance of $50 - 150 million.
The guidance updates reflect a change to separation-related tax
items and costs, previously estimated to be $40 million and $30
million, respectively. The actual separation-related expenses
incurred were in-line with previous expectations and were reported
as part of discontinued operations in the first quarter.
All segment guidance assumes no further material degradation
from COVID-19-related impacts.
2021 Guidance *Updated April
27, 2021
Subsea
Surface Technologies
Revenue in a range of $5.0 - 5.4
billion
Revenue in a range of $1,050 - 1,250
million
EBITDA margin in a range of 10 - 11%
(excluding charges and credits)
EBITDA margin in a range of 8 - 11%
(excluding charges and credits)
TechnipFMC
Corporate expense, net $105 -115
million
(includes depreciation and amortization of
~$15 million)
Net interest expense $130 - 135
million
Tax provision, as reported* $70 -
80 million
Capital expenditures approximately
$250 million
Free cash flow* $120 - 220
million
1 Our guidance measures adjusted EBITDA margin, corporate
expense, net, net interest expense and free cash flow 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.
Teleconference
The Company will host a teleconference on Wednesday, April 28,
2021 to discuss the first quarter 2021 financial results. The call
will begin at 1 p.m. London time (8 a.m. New York time). Dial-in
information and an accompanying presentation can be found at
www.TechnipFMC.com.
Webcast access will also be available on our website prior to
the start of the call. 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 20,000 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 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. Words such as “guidance,”
“confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,”
“foresee,” “should,” “would,” “could,” “may,” “will,” “likely,”
“predicated,” “estimate,” “outlook” and similar expressions are
intended to identify forward-looking statements, which are
generally not historical in nature. Such forward-looking statements
involve significant risks, uncertainties and assumptions that could
cause actual results to differ materially from our historical
experience and our present expectations or projections, including
the following known material factors:
Risks related to Our Business and Industry
- demand for our products and services, which depends on oil and
gas industry activity and expenditure levels that are directly
affected by trends in demand for and price of crude oil and natural
gas;
- unanticipated changes relating to competitive factors in our
industry, including ongoing industry consolidation;
- our ability to develop, implement, and protect new technologies
and services, as well as our ability to protect and maintain
critical intellectual property assets;
- the cumulative loss of major contracts, customers, or
alliances;
- risks associated with the COVID-19 pandemic, the United
Kingdom’s withdrawal from the European Union, disruptions in the
political, regulatory, economic, and social conditions of the
countries in which we conduct business;
- risks associated with The Depository Trust Company and
Euroclear for clearance services for shares traded on the New York
Stock Exchange (the “NYSE”) and the Euronext Paris Stock Exchange,
respectively;
- our existing and future debt, which may limit cash flow
available to invest in the ongoing needs of our business and could
prevent us from fulfilling our obligations under our outstanding
debt;
- a downgrade in our debt rating, which could restrict our
ability to access the capital markets;
- risks related to our acquisition and divestiture
activities;
Risks related to Our Operations
- risks related to our fixed price contracts, such as cost
overruns;
- risks related to capital asset construction projects for
vessels and manufacturing facilities, such as delays and cost
overruns;
- our ability to timely deliver our backlog and its effect on our
future sales, profitability, and customer relationships;
- our reliance on subcontractors, suppliers and joint venture
partners in the performance of our contracts;
- failure of our information technology infrastructure, including
as a result of cyber-attacks, and actual or perceived failure to
comply with data security and privacy obligations;
- piracy risks for our maritime employees and assets;
Risks related to Legal Proceedings, Tax, and Regulatory
Matters
- potential liabilities arising out of the installation or use of
our products, which may not be covered by insurance or may be in
excess of policy limits, of for which expected recoveries may not
be realized;
- U.S. and international laws and regulations, including those
related to environmental protection and climate change, health and
safety, privacy, data protection and data security, labor and
employment, import/export controls, currency change, bribery and
corruption, and taxation, that may increase our costs, limit the
demand for our products and services or restrict our
operations;
- risks associated with being an English public limited company,
including the need to meet certain additional financial
requirements before we may declare dividends or repurchase shares
and shareholder approval of certain capital structure decisions,
which may limit our flexibility to manage our capital;
- the outcome of uninsured claims and litigation against us;
- risks associated with tax liabilities, changes in U.S. federal
or international tax laws or interpretations to which we are
subject; and
Risks related to the Spin-off and the Related
Transactions
- future liabilities related to the Spin-off (as defined herein)
or our inability to achieve some or all of the anticipated
benefits;
- risks associated with being a significant shareholder in
Technip Energies N.V. (“Technip Energies”), including potential
fluctuation in the value of our investment in Technip
Energies;
- General Risk Factors
- our ability to hire and/or retain the services of key managers
and employees;
- the potential impacts of seasonal and weather conditions;
- currency exchange rate fluctuations associated with our
international operations;
- such other risk factors as set forth in our filings with the
U.S. Securities and Exchange Commission and in our filings with the
Autorité des marchés financiers.
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
March 31,
2021
2020
Revenue
$
1,632.0
$
1,582.6
Costs and expenses
1,630.8
4,823.9
1.2
(3,241.3)
Other (expense) income, net
43.3
13.2
Income (loss) from investment in Technip
Energies
470.1
—
Income (loss) before net interest expense
and income taxes
514.6
(3,228.1)
Net interest expense
(34.5)
(23.0)
Loss on early extinguishment of debt
(23.5)
—
Income (loss) before income taxes
456.6
(3,251.1)
Provision (benefit) for income taxes
24.5
(23.2)
Income (loss) from continuing
operations
432.1
(3,227.9)
Income from continuing operations
attributable to non-controlling interests
(1.8)
(6.9)
Income (loss) from continuing operations
attributable to TechnipFMC plc
430.3
(3,234.8)
Income (loss) from discontinued
operations
(60.2)
(17.8)
Income from discontinued operations
attributable to non-controlling interests
(1.9)
(3.5)
Net Income (loss) attributable to
TechnipFMC plc
$
368.2
$
(3,256.1)
Earnings (loss) per share from continuing
operations
Basic
$
0.96
$
(7.23)
Diluted
$
0.95
$
(7.23)
Earnings (loss) per share from
discontinued operations
Basic and diluted
$
(0.14)
$
(0.05)
Earnings (loss) per share attributable to
TechnipFMC plc
Basic
$
0.82
$
(7.28)
Diluted
$
0.81
$
(7.28)
Weighted average shares outstanding:
Basic
449.7
447.5
Diluted
451.1
447.5
Cash dividends declared per share
$
—
$
0.13
Exhibit 2
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions)
(Unaudited)
Three Months Ended
March 31,
2021
2020
Revenue
Subsea
$
1,386.5
$
1,253.1
Surface Technologies
245.5
329.5
$
1,632.0
$
1,582.6
Income (loss) before income
taxes
Segment operating profit (loss)
Subsea
$
37.0
$
(2,750.7)
Surface Technologies
8.2
(424.0)
Total segment operating profit (loss)
45.2
(3,174.7)
Corporate items
Corporate expense (1)
(28.8)
(30.3)
Net interest expense
(58.0)
(23.0)
Income from investment in Technip
Energies
470.1
—
Foreign exchange gains (losses)
28.1
(23.1)
Total corporate items
411.4
(76.4)
Income (loss) before income taxes (2)
$
456.6
$
(3,251.1)
(1) Corporate expense primarily includes corporate staff
expenses, share-based compensation expenses, and other employee
benefits.
(2) Includes amounts attributable to non-controlling
interests.
Exhibit 3
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions,
unaudited)
Three Months Ended
Inbound Orders (1)
March 31,
2021
2020
Subsea
$
1,518.8
$
1,172.1
Surface Technologies
203.3
366.3
Total inbound orders
$
1,722.1
$
1,538.4
Order Backlog (2)
March 31,
2021
2020
Subsea
$
6,857.1
$
7,773.5
Surface Technologies
364.3
422.0
Total order backlog
$
7,221.4
$
8,195.5
(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)
March 31, 2021
December 31,
2020
Cash and cash equivalents
$
752.8
$
1,269.2
Trade receivables, net
1,046.4
987.1
Contract assets
1,008.7
934.1
Inventories, net
1,164.8
1,252.8
Other current assets
1,041.5
1,304.7
Investment in Technip Energies
1,249.0
—
Current assets of discontinued
operations
—
5,696.8
6,263.2
11,444.7
Property, plant and equipment, net
2,690.8
2,744.7
Intangible assets, net
832.7
851.3
Other assets
1,378.8
1,358.3
Non-current assets of discontinued
operations
—
3,293.6
Total assets
$
11,165.5
$
19,692.6
Short-term debt and current portion of
long-term debt
$
96.8
$
624.7
Accounts payable, trade
1,247.9
1,195.2
Contract liabilities
892.5
1,045.7
Other current liabilities
1,634.1
1,428.3
Current liabilities of discontinued
operations
—
6,121.3
3,871.3
10,415.2
Long-term debt, less current portion
2,434.3
2,835.5
Other liabilities
1,119.8
1,102.6
Non-current liabilities of discontinued
operations
—
1,081.3
Redeemable non-controlling interest
44.6
43.7
TechnipFMC plc stockholders’ equity
3,654.1
4,154.2
Non-controlling interests
41.4
40.4
Non-controlling interests of discontinued
operations
—
19.7
Total liabilities and equity
$
11,165.5
$
19,692.6
Exhibit 5
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions,
unaudited)
(In millions)
Three Months Ended March
31,
2021
2020
Cash provided (required) by operating
activities
Net income (loss) from continuing
operations
$
432.1
$
(3,227.9)
Adjustments to reconcile income (loss)
from continuing operations to cash provided (required) by operating
activities
Depreciation
71.1
78.4
Amortization
24.1
25.5
Impairments
18.8
3,188.0
Employee benefit plan and share-based
compensation costs
4.7
16.3
Deferred income tax benefit, net
(31.9)
(58.7)
Income from investment in Technip
Energies
(470.1)
—
Unrealized loss on derivative instruments
and foreign exchange
(5.5)
92.6
Income from equity affiliates, net of
dividends received
(7.7)
(22.1)
Loss on early extinguishment of debt
23.5
—
Other
(0.1)
(5.1)
Changes in operating assets and
liabilities, net of effects of acquisitions
Trade receivables, net and contract
assets
(165.6)
38.3
Inventories, net
66.0
(29.1)
Accounts payable, trade
84.8
(56.9)
Contract liabilities
(132.9)
50.3
Income taxes payable (receivable), net
165.3
43.4
Other current assets and liabilities,
net
100.7
(676.7)
Other noncurrent assets and liabilities,
net
4.2
103.9
Cash provided (required) by operating
activities from continuing operations
181.5
(439.8)
Cash provided by operating activities
from discontinued operations
66.3
467.7
Cash provided by operating
activities
247.8
27.9
Cash provided (required) by investing
activities
Capital expenditures
(44.2)
(75.5)
Proceeds from sale of debt securities
24.2
—
Cash received from divestiture
—
2.5
Proceeds from sale of assets
4.4
7.1
Proceed from sale of investment in Technip
Energies
100.0
—
Advances from BPI
100.0
—
Proceeds from repayment of advances to
joint venture
12.5
—
Other
—
1.9
Cash provided (required) by investing
activities from continuing operations
196.9
(64.0)
Cash required by investing activities
from discontinued operations
(4.5)
(9.5)
Cash provided (required) by investing
activities
192.4
(73.5)
Cash provided (required) by financing
activities
Net increase in short-term debt
6.2
73.6
Net decrease in commercial paper
(953.1)
(309.2)
Proceeds from revolving credit
facility
200.0
500.0
Proceeds from issuance of long-term
debt
1,000.0
—
Repayments of long-term debt
(1,065.8)
—
Payments for debt issuance costs
(53.5)
—
Payments related to taxes withheld on
share-based compensation
—
(3.2)
Cash paid for finance leases
(0.4)
—
Cash provided (required) by financing
activities from continuing operations
(866.6)
261.2
Cash provided (required) by financing
activities from discontinued operations
(79.1)
(458.2)
Cash required by financing
activities
(945.7)
(197.0)
Effect of changes in foreign exchange
rates on cash and cash equivalents
(10.9)
(9.7)
Decrease in cash and cash equivalents
(516.4)
(252.3)
Cash and cash equivalents, beginning of
period
1,269.2
1,188.0
Cash and cash equivalents, end of
period
$
752.8
$
935.7
Exhibit 6
TECHNIPFMC PLC AND
CONSOLIDATED SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (In millions, unaudited)
Charges and Credits
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the first
quarter 2021 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 basis against 2020 results and measures. Net income,
excluding charges and credits, as well as measures derived from it
(including Diluted EPS, excluding charges and credits; Income
before net interest expense and taxes, excluding charges and
credits ("Adjusted Operating profit"); Depreciation and
amortization, excluding charges and credits; Earnings before net
interest expense, income taxes, depreciation and amortization,
excluding charges and credits ("Adjusted EBITDA"); and net cash)
are non-GAAP financial measures. Management believes that the
exclusion of charges and credits from these financial measures
enables investors and management to more effectively evaluate
TechnipFMC's operations and consolidated results of operations
period-over-period, and to identify operating trends that could
otherwise be masked or misleading to both investors and management
by the excluded items. 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
March 31, 2021
Income (loss) from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interest from continuing operations
Provision (benefit) for income
taxes
Net interest expense and loss
on early extinguishment of debt
Income (loss) before net
interest expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
430.3
$
1.8
$
24.5
$
58.0
$
514.6
$
95.2
$
609.8
Charges and (credits):
Impairment and other charges
18.8
—
—
18.8
—
18.8
Restructuring and other charges
6.5
0.2
—
6.7
—
6.7
(Income) loss from investment in Technip
Energies
(470.1)
—
—
(470.1)
—
(470.1)
Adjusted financial measures
$
(14.5)
$
1.8
$
24.7
$
58.0
$
70.0
$
95.2
$
165.2
Diluted earnings (loss) per share from
continuing operations attributable to TechnipFMC plc, as
reported
$
0.95
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
(0.03)
Three Months Ended
March 31, 2020
Income (loss) from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interest from continuing operations
Provision (benefit) for income
taxes
Net interest expense
Income (loss) before net
interest expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
(3,234.8)
$
6.9
$
(23.2)
$
23.0
$
(3,228.1)
$
108.7
$
(3,119.4)
Charges and (credits):
Impairment and other charges
3,159.9
28.1
—
3,188.0
—
3,188.0
Restructuring and other charges
4.5
1.5
—
6.0
—
6.0
Direct COVID-19 expenses
3.9
1.2
—
5.1
—
5.1
Purchase price accounting adjustment
6.5
2.0
—
8.5
(8.5)
—
Adjusted financial measures
$
(60.0)
$
6.9
$
9.6
$
23.0
$
(20.5)
$
100.2
$
79.7
Diluted earnings (loss) per share from
continuing operations attributable to TechnipFMC plc, as
reported
$
(7.23)
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
(0.13)
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
March 31, 2021
Subsea
Surface Technologies
Corporate Expense
Foreign
Exchange, net
and Other
Total
Revenue
$
1,386.5
$
245.5
$
—
$
—
$
1,632.0
Operating profit (loss), as reported
(pre-tax)
$
37.0
$
8.2
$
(28.8)
$
498.2
$
514.6
Charges and (credits):
Impairment and other charges
15.7
0.1
3.0
—
18.8
Restructuring and other charges
4.0
2.7
—
—
6.7
(Income) loss from investment in Technip
Energies
—
—
—
(470.1)
(470.1)
Subtotal
19.7
2.8
3.0
(470.1)
(444.6)
Adjusted Operating profit (loss)
56.7
11.0
(25.8)
28.1
70.0
Depreciation and amortization
78.4
15.9
0.9
—
95.2
Adjusted EBITDA
$
135.1
$
26.9
$
(24.9)
$
28.1
$
165.2
Operating profit margin, as reported
2.7
%
3.3
%
31.5
%
Adjusted Operating profit margin
4.1
%
4.5
%
4.3
%
Adjusted EBITDA margin
9.7
%
11.0
%
10.1
%
Three Months Ended
March 31, 2020
Subsea
Surface
Technologies
Corporate Expense
Foreign
Exchange, net
Total
Revenue
$
1,253.1
$
329.5
$
—
$
—
$
1,582.6
Operating profit (loss), as reported
(pre-tax)
$
(2,750.7)
$
(424.0)
$
(30.3)
$
(23.1)
$
(3,228.1)
Charges and (credits):
Impairment and other charges
2,776.5
411.5
—
—
3,188.0
Restructuring and other charges*
(6.9)
11.8
1.1
—
6.0
Direct COVID-19 expenses
4.0
1.1
—
—
5.1
Purchase price accounting adjustments
8.5
—
—
—
8.5
Subtotal
2,782.1
424.4
1.1
—
3,207.6
Adjusted Operating profit (loss)
31.4
0.4
(29.2)
(23.1)
(20.5)
Adjusted Depreciation and amortization
73.4
24.1
2.7
—
100.2
Adjusted EBITDA
$
104.8
$
24.5
$
(26.5)
$
(23.1)
$
79.7
Operating profit margin, as reported
-219.5
%
-128.7
%
-204.0
%
Adjusted Operating profit margin
2.5
%
0.1
%
-1.3
%
Adjusted EBITDA margin
8.4
%
7.4
%
5.0
%
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
March 31, 2021
December 31,
2020
Cash and cash equivalents
$
752.8
$
1,269.2
Short-term debt and current portion of
long-term debt
(96.8)
(624.7)
Long-term debt, less current portion
(2,434.3)
(2,835.5)
Net debt
$
(1,778.3)
$
(2,191.0)
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 9
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
March 31,
March 31,
2021
2020
Cash provided (required) by continuing
operating activities
$
181.5
$
(439.8)
Capital expenditures
(44.2)
(75.5)
Free cash flow (deficit) from continuing
operations
$
137.3
$
(515.3)
Free cash flow, is a non-GAAP financial measure and is defined
as cash provided by operating activities less capital expenditures.
Management uses this non-GAAP financial measure to evaluate our
financial condition. We believe, free cash flow 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/20210427006042/en/
Investor relations Matt Seinsheimer Vice President
Investor Relations Tel: +1 281 260 3665 Email: Matt Seinsheimer
James Davis Senior Manager Investor Relations Tel: +1 281 260
3665 Email: James Davis
Media relations Nicola Cameron Vice President
Communications Tel: +44 383 742 297 Email: Nicola Cameron
Brooke Robertson Public Relations Director Tel: +1 281 591 4108
Email: Brooke Robertson
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