Doug Pferdehirt, CEO of TechnipFMC, discusses the company’s growth as a result of key achievements in multiple subsea and onshore/offshore projects.
- Successful first year; strong operational performance across all segments.
- Full year subsea orders of US$5.1 billion increased 27% over the prior year.
- Onshore/offshore adjusted EBITDA margin guidance for 2018 raised to at least 10.5%, excluding charges and credits.
Total Company revenue in the fourth quarter was US$3,683 million. The Company reported a net loss of US$153.9 million, or US$0.33 per share.
The Company’s Board of Directors has authorised and declared a quarterly cash dividend of US$0.13 per ordinary share.
Doug Pferdehirt, CEO of TechnipFMC, stated, “Our full year operational performance is a result of our relentless focus on project execution and our commitment to delivering client success. Total Company adjusted EBITDA grew sequentially, driven by strong project execution and key milestone achievements on several projects in both subsea and onshore/offshore.”
“Full year subsea orders of US$5.1 billion increased 27% from the prior year, reflecting a book-to-bill approaching one. Total Company orders were US$3 billion in the quarter, and year-end backlog stands at US$13 billion.”
Pferdehirt continued, “In 2018, we expect to see another increase in subsea market activity, driven by major projects as well as a blend of small-to-mid size projects and service opportunities.
“In the North American surface market, we see increased activity in unconventional resources, driven by further improvement in rig count and increased frack intensity. In 2018, we believe that revenues for our North American business will begin to approach the levels we achieved at the cycle peak in 2014. We also expect international markets will return to growth in 2018, although at a more moderate pace than North America. The Middle East, Asia Pacific, and Europe are positioned for the strongest growth.”
Subsea reported fourth quarter revenue of US$1 292.2 million. Revenue continues to be negatively impacted by prior period declines in inbound orders related to the market downturn. Subsea reported operating profit of US$67.4 million; adjusted EBITDA was US$244.1 million with a margin of 18.9%.
Vessel utilisation rate for the fourth quarter was 65%, down from 70% in the third quarter and from 78% in the prior year.
Fourth quarter subsea highlights:
- Total Kaombo - the installation campaign for umbilicals, spools, and other subsea components continues, followed by hook-up of the FPSO.
- Shell Appomattox - subsea tree assembly and testing of industry’s first extreme high pressure / high temperature (15,000psi / 400°F) subsea production system is progressing well.
- Statoil Trestakk iEPCI™ - work on the subsea infrastructure is ongoing and preparations well underway for offshore installation campaign.
Onshore/offshore reported fourth quarter revenue of US$2 019.5 million. Revenue declined 2% from the prior-year quarter. Revenue was modestly lower as TechnipFMC neared completion of the first phase of Yamal LNG, largely offset by increased project activity in the Europe, Middle East, and Asia Pacific regions.
Onshore/offshore reported operating profit of US$257.2 million; adjusted EBITDA was US$294.5 million with a margin of 14.6%.
Fourth quarter onshore/offshore highlights:
- Yamal LNG - train 1 start-up successful with first cargo loaded in December 2017, with additional cargos achieved to date. Construction and commissioning of Trains 2 and 3 progressing with Train 2 start-up planned for the second half of 2018.
- SIBUR Zapsib 2 - engineering completed at the end of December, with most equipment already on site and construction activities ongoing.
- ENOC Jebel Ali Refinery Upgrade - mechanical as well as electrical and instrumentation subcontracts awarded. Mobilisation at site ramping up. Piping prefabrication campaign has begun.
- Shell Prelude FLNG - offshore commissioning campaign in progress.
Read the article online at: https://www.worldpipelines.com/business-news/22022018/technipfmc-announces-its-fourth-quarter-2017-results/