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TechnipFMC (FTI) Q3 Earnings call transcript Oct 24, 2024

Daily EarningsMonday, Oct 28, 2024 8:25 pm ET

1min read

FTI -- PBR --

In TechnipFMC's third quarter earnings call, the company showcased its resilience and strategic prowess, highlighted by solid execution and a robust outlook for the future. Matt Seinsheimer, Senior Vice President, Investor Relations and Corporate Development, led the call, cautioning listeners about forward-looking statements and the company's financial health.

Strong Performance and a Robust Outlook

Douglas Pferdehirt, TechnipFMC's Chair and Chief Executive Officer, provided a comprehensive overview of the company's performance. The company's revenue for the third quarter was $2.3 billion, with adjusted EBITDA of $389 million, marking a significant improvement over the previous quarter. This strong performance was underpinned by the company's relentless focus on industrialization, standardization, and integrated business models.

Looking ahead, TechnipFMC remains confident in the sustainability of the market backdrop, particularly for Subsea, with a record backlog of $14.7 billion. The company is anticipating a record $25 billion of orders over the next two years, underpinned by its unique iEPCI offering and technology leadership. This outlook is further bolstered by the company's extensive experience in Brazil, where it recently secured awards for subsea production systems and flexibles from Petrobras.

Strategic Investments and Future Prospects

TechnipFMC's strategic investments, such as the new state-of-the-art facility in Saudi Arabia, are expected to contribute significantly to the company's growth. The company's focus on iEPCI, Subsea 2.0, and integrated projects is expected to drive higher margins and accelerate time to first oil for its clients. This strategy is particularly relevant in the context of the evolving offshore drilling market, where efficiency and reduced cycle times are becoming increasingly important.

Investor Confidence and Shareholder Distributions

TechnipFMC's strong financial performance has been reflected in its shareholder distributions, with an increase in the distribution target for 2024 and a new $1 billion share repurchase authorization. This reflects the company's commitment to creating value for its shareholders and its confidence in the future growth prospects of the business.

Conclusion

In conclusion, TechnipFMC's third quarter earnings call painted a picture of a company that is strategically positioned for growth, underpinned by its focus on industrialization, technology leadership, and client relationships. The company's solid execution, record backlog, and confident outlook for the future are encouraging signs for investors and stakeholders. As TechnipFMC continues to navigate the evolving market dynamics, its ability to adapt and innovate will be key to its success.

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