TechnipFMC has recorded revenues of $3,143.8m in the third quarter, a decline of 24.1% compared to the same period last year. The company reported a net income of $136.9m, up 13.1%. Adjusted EBITDA, which excludes charges and credits, was $430.5m, down 19.7% on the same period in 2017.
Doug Pferdehirt, CEO of TechnipFMC, stated: “Our third quarter results illustrate the benefit of structural cost savings and strong project delivery. This was most notable within Onshore/Offshore, where execution on key projects such as Yamal LNG has remained robust, leading to further improvement in adjusted EBITDA margin. Subsea continued to display strong operational performance. Surface Technologies results increased modestly versus the prior year despite softening completions activity in North America.”
Total company orders once again exceeded revenues, supporting a return to year-over-year growth in backlog. “Total company backlog of $15.2bn increased 9 percent when compared to the prior-year quarter, with growth occurring in all business segments,” said Doug.
He continued: “During the quarter, we successfully delivered Train 2 of the Yamal LNG project, approximately six months ahead of schedule. LNG volume shipped to date now exceeds 5 million metric tonnes, a result achieved due to the project’s accelerated delivery. Construction and commissioning of Train 3 is progressing well and is on track for another early delivery.”
Doug concluded: “LNG remains one of the fastest growing markets in the oil and gas sector. Demand growth suggests a new wave of LNG projects will need to be sanctioned in 2019 and beyond. Our 50+ years of experience has resulted in the delivery of over 20 percent of the world’s operating capacity. We are well-positioned for this growth opportunity.”
Onshore/Offshore reported third quarter revenue of $1,532.5m. Revenue declined 33.6 percent from the prior-year quarter as we moved closer to completion on major projects, primarily Yamal LNG. The anticipated revenue decline was moderately offset by strong growth in our process technologies business.
Onshore/Offshore reported operating profit of $243.4m. Despite lower revenue, operating profit increased 17.9 percent versus the prior-year quarter. Operating results benefited from several factors in the quarter, including a bonus on Yamal LNG due to provisional acceptance of Train 2, a financial gain on the sale of an offshore yard, a reduction in restructuring and other severance charges, and strong project execution.
Onshore/Offshore reported adjusted EBITDA of $227.3m, which reflected a 7.1 percent decline versus the prior-year quarter despite a revenue decline of 33.6 percent for the same period. Partially offsetting the negative impact of the anticipated revenue decline were the bonus on Yamal LNG and strong project execution. Adjusted EBITDA margin increased 423 basis points from the prior-year results to 14.8 percent.
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26th October 2018
