TechnipFMC’s chief executive today said its third quarter results reinforced its “conviction in the steady recovery of the subsea market”.
The service firm reported a third quarter net income of $121million.
Doug Pferdehirt, CEO of TechnipFMC, said: “Our third quarter results demonstrated another solid operational performance in all segments. We continued to deliver strong project execution in our Onshore/Offshore and Subsea segments, as we achieved several key milestones. Our Surface Technologies segment benefited from increased activity in the North American market, primarily driven by higher demand for our well completion services.”
“Total inbound orders for the quarter were $2.5 billion, with Subsea at nearly $1 billion – reinforcing our conviction in the steady recovery of the subsea market. We believe that most major subsea projects can move forward at today’s oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns. During the remaining months of this year and throughout 2018, we see the potential for additional major subsea awards, the strengthening of subsea services, and the growth of brownfield opportunities. Regardless of the timing of major subsea awards, we remain confident that this year’s order activity will exceed the level we achieved in 2016.”
The firm expects 2018 to exceed 2017 in subsea work, “driven by the current momentum in project bid activity and an acceleration of integrated project awards”.
Mr Pferdehirt said:“To extend our differentiation and further improve project economics, we are increasing our investment in the development of next generation subsea systems and integrated technologies. We also announced an agreement to acquire Plexus’ exploration-drilling products and services business, extending our Surface Technologies offering. In addition, the Board authorized a $0.13 dividend for the quarter, and we have now implemented our share repurchase program, clearly demonstrating our commitment to shareholder distributions.”
The firm is also pursuing $5billion worth of downstream projects.
added: “As we look to 2018, we are managing revenue declines against the strategic investments needed to sustain our operational capabilities through the recovery. We see significant opportunities ahead, and these will be driven by internal initiatives as well as market fundamentals. We will generate further integration savings and operational efficiencies. We will continue to deliver real, differentiated and sustainable change through integrated business models that can transform the markets we serve and generate benefits for our customers and our company.”
TechnipFMC expects onshore/offshore revenue to total $7.7billion, an increase on the previous guidance of $7.3billion. It expects surface technologies to record $1.3billion in revenue, slightly down the previous guidance of $1.4billion.