TechnipFMC reports a $2 billion start to the year with first quarter results surpassing forecasts

TechnipFMC revenue crossed $2 billion in the first quarter of this year as strong operational execution helped it beat expectations. That represented an 18.9% increase year-on-year, surpassing the estimated figure of $1,984 million.

TechnipFMC achieved net income of $157.1 million, significantly exceeding a predicted $71.37 million and showing a 196.4% increase from the previous quarter. Earnings per share came in at $0.35 per diluted share, more than doubling the $0.16 forecast.

Adjusted EBITDA reached $252.6 million, with a margin improvement to 12.4%, reflecting operational efficiency and cost management.

Healthy direction

TechnipFMC shareholder distributions totalled $172 million, with expectations to grow more than 70% compared to 2023. The report included a gain of $75.2 million due to disposal of the company’s Measurement Solutions business. The company also announced three iEPCI awards, each providing first-of-its-kind technology solution. And it achieved an investment grade credit rating from S&P Global Ratings.

Continued success

Doug Pferdehirt, TechnipFMC’s Chair and CEO, praised a “strong performance” in a quarter he said further highlighted the company’s continued success in delivering on its commitments.

“We had a solid start to the year with total company inbound of $2.8 billion, driving sequential growth in backlog to $13.5 billion,” he said. “Orders were driven by robust subsea inbound of $2.4 billion, which represented a segment book-to-bill of 1.4. Importantly, a significant portion of Subsea inbound was driven by new technologies that will help unlock opportunities in both new and mature offshore basins.”

Innovations driving new business

Pferdehirt highlighted a “unique set of integrated awards” in the period, with three iEPCI projects representing pioneering solutions for the subsea industry. These were the Mero 3 HISEP project for Petrobras - the first to utilise subsea processing to capture CO2 directly from the well stream for injection back into the reservoir, all on the seafloor.

The Shell Sparta project, meanwhile, was TechnipFMC’s first iEPCI to employ a 20,000-psi production system in the Paleogene play, in the US Gulf of Mexico. “And finally, we were selected to deliver the first iEPCI encompassing an all-electric subsea system for carbon capture and storage from the Northern Endurance Partnership, a joint venture between bp, Equinor, and TotalEnergies,” explained Pferdehirt.

Rising to challenges

The CEO said each of the projects provided a solution to an industry challenge and “exemplifies our differentiated technology portfolio”. He added: “It is this unique combination of innovative technologies and integrated execution that is creating new market opportunities for our company.

“As demonstrated by our financial performance in the quarter, operational execution across the portfolio continues at a high level, driven in part by our heightened focus on project selectivity and the favorable impact it is having on the quality of orders in our backlog.”