Technip FMC saw year on year revenues dip in the second quarter of 2017 but the newly merged firm remains “relentless” on cost reduction for customers.
The oil and has services firm saw revenue dropped to $3.8billion compared to last years $4.9billion, a change of 22.5%.
However depsite this lower revenue, adjusted earnings before interest depreciation and amortization increased.
Adjusted EBITDA amounted to $501million in Q2 2017, comapred to $347million in the same period last year.
French firm Technip and US company FMC formally merged at the beginning of the year.
Doug Pferdehirt, CEO of TechnipFMC said: “Our first half results give us even greater confidence that we will meet or exceed our 2017 financial objectives.
“We just passed our six-month anniversary as a new company, and our merger integration efforts are delivering results. We remain confident in our ability to reach our synergy targets.
“In addition, we are accelerating the development of unique technologies, as well as, identifying additional integrated offerings across our broad portfolio.”
“Our Subsea inbound orders accelerated to $1.8 billion in the quarter.
“During the period, we were awarded a contract for the delivery of subsea production equipment for ExxonMobil’s Liza project in Guyana, incorporating new technology that allowed us to meet a fast-tracked delivery schedule.
“We also were awarded an important subsea package for ENI’s Coral South floating LNG (FLNG) project in Mozambique. The subsea package was part of an integrated contract with the project’s FLNG scope that will be executed through our Onshore/Offshore segment.”
Pferdehirt added: “During the quarter, we achieved a significant milestone on the Prelude FLNG project. The vessel sailed away from South Korea on June 29th and has just arrived in Australian waters. Building upon this milestone, our execution on the Coral FLNG project will benefit from the extensive capabilities we have developed.”
“We remain relentless in our focus to deliver significant cost reductions for our clients that can be achieved through our integrated approach (iEPCI™). Our first iEPCI™ contract for Statoil’s Trestakk project is progressing well, and we were pleased to again be selected by Statoil in the second quarter to fully integrate the Visund Nord development.”
“The increase in major project FIDs and the acceleration of integrated FEED (iFEED™) prospects during the first half of 2017 certainly adds confidence to our expectation for a step-up in Subsea orders for full year 2017.” Pferdehirt added, “While project economics continue to improve, the recent commodity price uncertainty could result in a slowing of the pace of the recovery.”
Pferdehirt concluded, “These solid operational results and our strong balance sheet enable us to continue to focus on shareholder returns.
“Last quarter, we announced the authorization of a share repurchase program of up to $500 million which we intend to complete no later than the end of 2018. Additionally, the Company’s Board of Directors reaffirmed its commitment to declare a quarterly dividend following the third quarter 2017 results.
“We believe this combination of share repurchase and quarterly dividends demonstrates our commitment to improving shareholder returns.”