- Subsea inbound orders of $1.8 billion in the quarter; Subsea
backlog of $12.1 billion
- Cash flow from operations of $222 million; free cash flow of
$178 million
- Operating results for both segments now expected above
midpoint of full-year guidance
- Subsea inbound over the next five quarters to approach $11
billion
TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today
reported third quarter 2023 results.
Summary Financial Results from
Continuing Operations
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions, except per share
amounts)
Sep. 30,
2023
Jun. 30,
2023
Sep. 30,
2022
Sequential
Year-over-Year
Revenue
$2,056.9
$1,972.2
$1,733.0
4.3%
18.7%
Income (loss)
$90.0
$(87.2)
$5.0
n/m
1,700.0%
Income (loss) margin
4.4%
(4.4%)
0.3%
n/m
410 bps
Diluted earnings (loss) per
share
$0.20
$(0.20)
$0.01
n/m
1,900.0%
Adjusted EBITDA
$237.5
$205.9
$185.6
15.3%
28.0%
Adjusted EBITDA margin
11.5%
10.4%
10.7%
110 bps
80 bps
Adjusted income
$93.7
$44.0
$12.7
113.0%
637.8%
Adjusted diluted earnings per
share
$0.21
$0.10
$0.03
110.0%
600.0%
Inbound orders
$2,145.1
$4,447.3
$1,850.0
(51.8%)
16.0%
Backlog
$13,230.7
$13,278.6
$8,841.0
(0.4%)
49.7%
n/m - not meaningful
Total Company revenue in the third quarter was $2,056.9 million.
Income from continuing operations attributable to TechnipFMC was
$90 million. These results included after-tax charges and credits
totaling $3.7 million of expense, or $0.01 per share (Exhibit
6).
Adjusted income from continuing operations was $93.7 million, or
$0.21 per diluted share (Exhibit 6).
Adjusted EBITDA, which excludes pre-tax charges and credits, was
$237.5 million; adjusted EBITDA margin was 11.5 percent (Exhibit
8).
Included in total Company results was a foreign exchange loss of
$46.4 million, or $39.1 million after-tax. When excluding the
after-tax impact of foreign exchange of $39.1 million, income from
continuing operations was $129.1 million. Adjusted EBITDA,
excluding foreign exchange, was $283.9 million (Exhibit 8).
Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Subsea
inbound orders in the quarter came in strong at $1.8 billion.
Adjusted EBITDA improved sequentially for both Subsea and Surface
Technologies, exceeding the guidance we provided on our second
quarter call. This momentum is also driving our full-year
expectations higher.”
Pferdehirt continued, “In Subsea, we received significant orders
for flexible pipe in the period, including an award from Petrobras
for the pre-salt fields in Brazil, and our largest-ever flexibles
contract in the Gulf of Mexico for Woodside Energy’s Trion project.
As both pioneer and market leader of flexible pipe, we have the
unique ability to integrate this technology into our iEPCI™
offering, which greatly simplifies the field architecture. This
enables a further reduction in project cycle time, improving
economics and driving greater differentiation in our integrated
offering.”
“Beyond the flexibles activity, we also experienced an
exceptionally high level of unannounced project awards in the
quarter, which speaks to the ongoing strength of the market. In
Subsea Services, inbound was robust, driven by installation and
life of field activities. Given the continued strength in our
inbound, we are confident that Subsea orders will exceed $9 billion
for the full year. And if we extend the view to include our current
expectations for 2024, we now believe orders over the next five
quarters will approach $11 billion.”
Pferdehirt added, “The durability of this cycle is driven by an
expansion in the number of active basins and the number of
operators participating in those regions. Additionally, activity is
supported by a robust and strengthening FEED pipeline. This
provides us with extended visibility and confidence that subsea
opportunities will remain resilient beyond 2025, even before we
consider new frontiers that are likely to present themselves in the
second half of the decade.”
Pferdehirt concluded, “Our commercial and operational success
continues to drive improved financial results. The upward revisions
to our Subsea order outlook are fueled by high quality inbound,
driven by iEPCI™, Subsea Services and other direct awards, which we
now expect to represent more than 70 percent of segment orders in
the current year. More importantly, these results are further
strengthening the foundation for higher and more sustainable
performance in the years ahead.”
Operational and Financial Highlights
Subsea
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions)
Sep. 30,
2023
Jun. 30,
2023
Sep. 30,
2022
Sequential
Year-over-Year
Revenue
$1,708.3
$1,618.4
$1,415.0
5.6%
20.7%
Operating profit
$177.7
$153.4
$105.0
15.8%
69.2%
Operating profit margin
10.4%
9.5%
7.4%
90 bps
300 bps
Adjusted EBITDA
$257.8
$233.8
$183.8
10.3%
40.3%
Adjusted EBITDA margin
15.1%
14.4%
13.0%
70 bps
210 bps
Inbound orders
$1,828.0
$4,114.5
$1,400.8
(55.6%)
30.5%
Backlog1,2,3
$12,073.6
$12,088.5
$7,603.2
(0.1%)
58.8%
Estimated Consolidated Backlog
Scheduling
(In millions)
Sep. 30,
2023
2023 (3 months)
$1,146
2024
$4,475
2025 and beyond
$6,453
Total
$12,074
1 Backlog as of September 30, 2023 was
decreased by a foreign exchange impact of $154 million.
2 Backlog does not capture all revenue
potential for Subsea Services.
3 Backlog as of September 30, 2023 does
not include total Company non-consolidated backlog of $322
million.
Subsea reported third quarter revenue of $1,708.3 million, an
increase of 5.6 percent from the second quarter. The sequential
improvement was driven by mid-single-digit revenue growth in both
projects and services. The change in revenue was primarily driven
by an increase in Norway and Brazil, partially offset by a decrease
in West Africa.
Subsea reported an operating profit of $177.7 million, an
increase of 15.8 percent from the second quarter. Sequential
operating profit increased primarily due to higher volume and
favorable activity mix.
Subsea reported adjusted EBITDA of $257.8 million. Adjusted
EBITDA increased by 10.3 percent when compared to the second
quarter. The factors impacting operating profit also drove the
sequential increase in adjusted EBITDA. Adjusted EBITDA margin
increased 70 basis points to 15.1 percent.
Subsea inbound orders were $1.8 billion for the quarter.
Book-to-bill was 1.1x. The following awards were announced and
included in the period:
- TotalEnergies Girassol Life Extension Project (Angola)
Significant* contract awarded by TotalEnergies EP Angola and its
Block 17 Partners to install flexible pipe and associated subsea
structures for the Girassol Life Extension project (GIR LIFEX). The
Company was previously awarded the engineering, procurement, and
supply of subsea flowlines and connectors for GIR LIFEX last year.
*A “significant” contract is between $75 million and $250
million.
- Petrobras Flexible Pipe (Brazil) Significant* contract
to supply flexible pipe to Petrobras for the pre-salt fields
offshore Brazil. The Company will design, engineer, and manufacture
14 kilometers of gas injection riser pipe. TechnipFMC will also
supply associated services including packing and storage. *A
“significant” contract is between $75 million and $250
million.
- Woodside Energy Trion Project (Mexico) Contract awarded
by Woodside Energy to manufacture flexible pipe. The Company will
supply infield flowlines and jumpers for the Trion project in
deepwater Mexico.
The following awards were announced in the period and were
included in prior quarter results:
- Equinor Rosebank Development (United Kingdom) Large*
integrated Engineering, Procurement, Construction, and Installation
(iEPCI™) contract awarded by Equinor for its Rosebank project, west
of the Shetland Isles in the United Kingdom. The contract covers
the manufacture and installation of subsea production systems,
flexible and rigid pipe, and umbilicals, as well as connection to
the host facility. The project will use pre-qualified equipment,
which will accelerate the delivery schedule. Umbilicals, rigid
pipe, and the majority of the subsea production systems will be
designed, engineered and manufactured in-country using TechnipFMC’s
facilities and network of trusted local suppliers, then installed
by TechnipFMC. Together, these activities will contribute
significantly to value and job creation across the United Kingdom,
which was an important factor in Equinor’s selection of the Company
for this award. TechnipFMC has committed approximately $500 million
of the total award to local value creation. *A “large” contract is
between $500 million and $1 billion. This award was included in
inbound orders in the first quarter of 2023.
- Azule Energy Ndungu Project (Angola) Significant*
contract awarded by Azule Energy to supply flexible pipe for its
Ndungu project, offshore Angola. The Ndungu project will tie into
Block 15/06 West Hub, where TechnipFMC was recently awarded a
substantial flexible pipe contract. Through this extension, the
Company was able to provide an optimized solution that enables
Azule to maintain schedule and achieve efficiencies. *A
“significant” contract is between $75 million and $250 million.
This award was included in inbound orders in the second quarter of
2023.
Surface Technologies
Financial Highlights
Reconciliation of U.S. GAAP to non-GAAP
financial measures are provided in financial schedules.
Three Months Ended
Change
(In millions)
Sep. 30,
2023
Jun. 30,
2023
Sep. 30,
2022
Sequential
Year-over-Year
Revenue
$348.6
$353.8
$318.0
(1.5%)
9.6%
Operating profit
$33.3
$25.7
$19.0
29.6%
75.3%
Operating profit margin
9.6%
7.3%
6.0%
230 bps
360 bps
Adjusted EBITDA
$49.9
$46.9
$40.8
6.4%
22.3%
Adjusted EBITDA margin
14.3%
13.3%
12.8%
100 bps
150 bps
Inbound orders
$317.1
$332.8
$449.2
(4.7%)
(29.4%)
Backlog
$1,157.1
$1,190.1
$1,237.8
(2.8%)
(6.5%)
Surface Technologies reported third quarter revenue of $348.6
million, a decrease of 1.5 percent from the second quarter. The
modest decline was primarily driven by lower activity in North
America, where revenue decreased 8 percent sequentially. The
decline in North America was partially offset by higher
international revenue, which increased 4 percent.
Surface Technologies reported operating profit of $33.3 million,
an increase of 29.6 percent versus the second quarter, primarily
driven by higher international profitability. International
benefited from improved operational performance, particularly in
the Middle East. North America operating profit was largely
unchanged versus the prior quarter. Segment operating profit in the
period also benefited from $4 million of lower restructuring and
other charges.
Surface Technologies reported adjusted EBITDA of $49.9 million.
Adjusted EBITDA increased 6.4 percent when compared to the second
quarter. Adjusted EBITDA increased largely due to the improved
operational performance in the Middle East. North America adjusted
EBITDA was largely unchanged versus the prior quarter. Adjusted
EBITDA margin increased 100 basis points to 14.3 percent.
Inbound orders for the quarter were $317.1 million, a sequential
decrease of 4.7 percent. Backlog ended the period at $1,157.1
million.
Corporate and Other Items (three months ended September
30, 2023)
Corporate expense was $24.7 million. Excluding charges of $0.4
million, corporate expense was $24.3 million.
Foreign exchange loss was $46.4 million.
Net interest expense was $26.7 million.
The provision for income taxes was $19.5 million.
Total depreciation and amortization was $93.3 million.
Cash provided by operating activities from continuing operations
was $221.9 million. Capital expenditures were $43.6 million. Free
cash flow from continuing operations was $178.3 million (Exhibit
11).
In August, the Company completed the sale of the Apache II
pipelay vessel for net cash proceeds of $54.4 million.
The Company ended the period with cash and cash equivalents of
$690.9 million; net debt declined $194.1 million to $649.9 million
(Exhibit 10).
During the quarter, the Company repurchased 2.7 million of its
ordinary shares for total consideration of $50.1 million. When
including the dividend payment of $21.8 million, total shareholder
distributions in the quarter were $71.9 million. For the nine
months ended September 30, 2023, the Company’s total shareholder
distributions were $171.9 million.
2023 Full-Year Financial Guidance1
The Company’s full-year guidance for 2023 can be found in the
table below. No updates were made to the previous guidance that was
issued on February 23, 2023.
2023 Guidance (As of February
23, 2023)
Subsea
Surface Technologies
Revenue in a range of $5.9 - 6.3
billion
Revenue in a range of $1.3 - 1.45
billion
Adjusted EBITDA margin in a range of 12.5
- 13.5%
Adjusted EBITDA margin in a range of 12 -
14%
TechnipFMC
Corporate expense, net $100 - 110
million
(includes depreciation and amortization of
~$5 million; excludes charges and credits)
Net interest expense $100 - 110
million
Tax provision, as reported $155 -
165 million
Capital expenditures approximately
$250 million
Free cash flow2 $225 - 375
million
_______________________________ 1Our guidance measures of adjusted
EBITDA, adjusted EBITDA margin, free cash flow, and adjusted
corporate expense, net are non-GAAP financial measures. We are
unable to provide a reconciliation to comparable GAAP financial
measures on a forward-looking basis without unreasonable effort
because of the unpredictability of the individual components of the
most directly comparable GAAP financial measure and the variability
of items excluded from each such measure. Such information may have
a significant, and potentially unpredictable, impact on our future
financial results.
2 Free cash flow is calculated as cash
flow from operations less capital expenditures.
Teleconference
The Company will host a teleconference on Thursday, October 26,
2023 to discuss the third quarter 2023 financial results. The call
will begin at 1:30 p.m. London time (8:30 a.m. New York time).
Webcast access and an accompanying presentation can be found at
www.TechnipFMC.com.
An archived audio replay will be available after the event at
the same website address. In the event of a disruption of service
or technical difficulty during the call, information will be posted
on our website.
About TechnipFMC
TechnipFMC is a leading technology provider to the traditional
and new energy industries; delivering fully integrated projects,
products, and services.
With our proprietary technologies and comprehensive solutions,
we are transforming our clients’ project economics, helping them
unlock new possibilities to develop energy resources while reducing
carbon intensity and supporting their energy transition
ambitions.
Organized in two business segments — Subsea and Surface
Technologies — we will continue to advance the industry with our
pioneering integrated ecosystems (such as iEPCI™, iFEED™ and
iComplete™), technology leadership and digital innovation.
Each of our approximately 21,000 employees is driven by a
commitment to our clients’ success, and a culture of strong
execution, purposeful innovation, and challenging industry
conventions.
TechnipFMC uses its website as a channel of distribution of
material company information. To learn more about how we are
driving change in the industry, go to www.TechnipFMC.com and follow
us on X (formerly Twitter) @TechnipFMC.
This communication contains “forward-looking statements” as
defined in Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. Forward-looking statements
usually relate to future events, market growth and recovery,
earnings, cash flows, or other aspects of our operations or
operating results. Forward-looking statements are often identified
by words such as “commit,” “guidance,” “confident,” “believe,”
“expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,”
“would,” “could,” “may,” “will,” “likely,” “predicated,”
“estimate,” “outlook” and similar expressions, including the
negative thereof. The absence of these words, however, does not
mean that the statements are not forward-looking. These
forward-looking statements are based on our current expectations,
beliefs, and assumptions concerning future developments and
business conditions and their potential effect on us. While
management believes these forward-looking statements are reasonable
as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate. All of
our forward-looking statements involve risks and uncertainties
(some of which are significant or beyond our control) and
assumptions that could cause future results to differ materially
from our historical experience and our present expectations or
projections, including unpredictable trends in the demand for and
price of crude oil and natural gas; competition and unanticipated
changes relating to competitive factors in our industry, including
ongoing industry consolidation; the COVID-19 pandemic and any
resurgence thereof; our inability to develop, implement and protect
new technologies and services and intellectual property related
thereto, including new technologies and services for our New Energy
business; the cumulative loss of major contracts, customers or
alliances and unfavorable credit and commercial terms of certain
contracts; disruptions in the political, regulatory, economic and
social conditions of the countries in which we conduct business
including the impact of the Russia-Ukraine and Israel-Hamas wars;
the refusal of DTC to act as depository agency for our shares; the
impact of our existing and future indebtedness and the restrictions
on our operations by terms of the agreements governing our existing
indebtedness; the risks caused by our acquisition and divestiture
activities; additional costs or risks from increasing scrutiny and
expectations regarding ESG matters; uncertainties related to our
investments in New Energy business; the risks caused by fixed-price
contracts; our failure to timely deliver our backlog; our reliance
on subcontractors, suppliers and our joint venture partners; a
failure or breach of our IT infrastructure or that of our
subcontractors, suppliers or joint venture partners, including as a
result of cyber-attacks; risks of pirates endangering our maritime
employees and assets; any delays and cost overruns of new capital
asset construction projects for vessels and manufacturing
facilities; potential liabilities inherent in the industries in
which we operate or have operated; our failure to comply with
existing and future laws and regulations, including those related
to environmental protection, climate change, health and safety,
labor and employment, import/export controls, currency exchange,
bribery and corruption, taxation, privacy, data protection and data
security; the additional restrictions on dividend payouts or share
repurchases as an English public limited company; uninsured claims
and litigation against us; tax laws, treaties and regulations and
any unfavorable findings by relevant tax authorities; potential
departure of our key managers and employees; adverse seasonal and
weather conditions and unfavorable currency exchange rates; risk in
connection with our defined benefit pension plan commitments; and
our inability to obtain sufficient bonding capacity for certain
contracts, and other risks as discussed in Part I, Item 1A, “Risk
Factors” of our Annual Report on Form 10-K for the fiscal year
ended December 31, 2022 and our other reports subsequently filed
with the Securities and Exchange Commission.
We caution you not to place undue reliance on any
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any of our
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except to
the extent required by law.
Exhibit 1
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In millions, except per share
data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
2023
2023
2022
2023
2022
Revenue
$
2,056.9
$
1,972.2
$
1,733.0
$
5,746.5
$
5,006.0
Costs and expenses
1,896.1
1,813.7
1,652.2
5,376.2
4,837.8
160.8
158.5
80.8
370.3
168.2
Other income (expense), net
(20.9
)
(181.2
)
3.5
(189.2
)
57.0
Loss from investment in Technip
Energies
—
—
—
—
(27.7
)
Income (loss) before net interest expense
and income taxes
139.9
(22.7
)
84.3
181.1
197.5
Net interest expense
(26.7
)
(30.3
)
(30.9
)
(75.7
)
(92.5
)
Loss on early extinguishment of debt
—
—
—
—
(29.8
)
Income (loss) before income taxes
113.2
(53.0
)
53.4
105.4
75.2
Provision for income taxes
19.5
43.3
42.7
100.2
91.0
Income (loss) from continuing
operations
93.7
(96.3
)
10.7
5.2
(15.8
)
(Income) loss from continuing operations
attributable to non-controlling interests
(3.7
)
9.1
(5.7
)
(2.0
)
(19.4
)
Income (loss) from continuing operations
attributable to TechnipFMC plc
90.0
(87.2
)
5.0
3.2
(35.2
)
Loss from discontinued operations
—
—
(15.3
)
—
(34.7
)
Net income (loss) attributable to
TechnipFMC plc
$
90.0
$
(87.2
)
$
(10.3
)
$
3.2
$
(69.9
)
Earnings (loss) per share from continuing
operations
Basic
$
0.21
$
(0.20
)
$
0.01
$
0.01
$
(0.08
)
Diluted
$
0.20
$
(0.20
)
$
0.01
$
0.01
$
(0.08
)
Earnings (loss) per share from
discontinued operations
Basic and diluted
$
0.00
$
0.00
$
(0.03
)
$
0.00
$
(0.08
)
Earnings (loss) per share attributable to
TechnipFMC plc
Basic
$
0.21
$
(0.20
)
$
(0.02
)
$
0.01
$
(0.16
)
Diluted
$
0.20
$
(0.20
)
$
(0.02
)
$
0.01
$
(0.16
)
Weighted average shares outstanding:
Basic
436.9
440.1
450.1
439.7
451.1
Diluted
450.3
440.1
458.1
452.9
451.1
Cash dividends declared per share
$
0.05
$
—
$
—
$
0.05
$
—
Exhibit 2
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
2023
2023
2022
2023
2022
Segment
revenue
Subsea
$
1,708.3
$
1,618.4
$
1,415.0
$
4,714.3
$
4,118.7
Surface Technologies
348.6
353.8
318.0
1,032.2
887.3
Total segment revenue
$
2,056.9
$
1,972.2
$
1,733.0
$
5,746.5
$
5,006.0
Segment operating
profit
Subsea
$
177.7
$
153.4
$
105.0
$
397.9
$
256.1
Surface Technologies
33.3
25.7
19.0
81.4
32.7
Total segment operating profit
211.0
179.1
124.0
479.3
288.8
Corporate
items
Corporate expense(1)
$
(24.7
)
$
(153.5
)
$
(25.2
)
$
(205.6
)
$
(76.7
)
Net interest expense and loss on early
extinguishment of debt
(26.7
)
(30.3
)
(30.9
)
(75.7
)
(122.3
)
Loss from investment in Technip
Energies
—
—
—
—
(27.7
)
Foreign exchange gains (losses)
(46.4
)
(48.3
)
(14.5
)
(92.6
)
13.1
Total corporate items
(97.8
)
(232.1
)
(70.6
)
(373.9
)
(213.6
)
Income (loss) before income taxes(2)
$
113.2
$
(53.0
)
$
53.4
$
105.4
$
75.2
(1)
Corporate expense primarily includes the
non-recurring legal settlement charge, corporate staff expenses,
share-based compensation expenses, and other employee benefits.
(2)
Includes amounts attributable to
non-controlling interests.
Exhibit 3
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
BUSINESS
SEGMENT DATA
(In millions,
unaudited)
Three Months Ended
Nine Months Ended
Inbound Orders
(1)
September 30,
June 30,
September 30,
September 30,
2023
2023
2022
2023
2022
Subsea
$
1,828.0
$
4,114.5
$
1,400.8
$
8,479.0
$
5,222.4
Surface Technologies
317.1
332.8
449.2
972.3
1,014.2
Total inbound orders
$
2,145.1
$
4,447.3
$
1,850.0
$
9,451.3
$
6,236.6
Order Backlog
(2)
September 30, 2023
June 30, 2023
September 30, 2022
Subsea
$
12,073.6
$
12,088.5
$
7,603.2
Surface Technologies
1,157.1
1,190.1
1,237.8
Total order backlog
$
13,230.7
$
13,278.6
$
8,841.0
(1)
Inbound orders represent the estimated
sales value of confirmed customer orders received during the
reporting period.
(2)
Order backlog is calculated as the
estimated sales value of unfilled, confirmed customer orders at the
reporting date.
Exhibit 4
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
September 30,
2023
December 31,
2022
Cash and cash equivalents
$
690.9
$
1,057.1
Trade receivables, net
1,324.4
966.5
Contract assets, net
1,204.6
981.6
Inventories, net
1,158.5
1,039.7
Other current assets
916.9
943.8
Total current assets
5,295.3
4,988.7
Property, plant and equipment, net
2,240.0
2,354.9
Intangible assets, net
650.1
716.0
Other assets
1,338.9
1,384.7
Total assets
$
9,524.3
$
9,444.3
Short-term debt and current portion of
long-term debt
$
407.3
$
367.3
Accounts payable, trade
1,537.7
1,282.8
Contract liabilities
1,237.9
1,156.4
Other current liabilities
1,273.3
1,367.8
Total current liabilities
4,456.2
4,174.3
Long-term debt, less current portion
933.5
999.3
Other liabilities
1,024.6
994.0
TechnipFMC plc stockholders’ equity
3,068.2
3,240.2
Non-controlling interests
41.8
36.5
Total liabilities and equity
$
9,524.3
$
9,444.3
Exhibit 5
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions,
unaudited)
(In millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2023
2022
Cash provided (required) by operating
activities
Net income (loss)
$
93.7
$
5.2
$
(50.5
)
Net loss from discontinued operations
—
—
34.7
Adjustments to reconcile income (loss)
from continuing operations to cash provided (required) by operating
activities
Depreciation and amortization
93.3
283.3
284.4
Loss from investment in Technip
Energies
—
—
27.7
Income from equity affiliates, net of
dividends received
(20.5
)
(35.9
)
(23.1
)
Loss on early extinguishment of debt
—
—
29.8
Other non-cash items, net
20.2
32.1
79.9
Working capital(1)
40.1
(246.7
)
(623.0
)
Other non-current assets and liabilities,
net
(4.9
)
(46.1
)
25.8
Cash provided (required) by operating
activities
221.9
(8.1
)
(214.3
)
Cash provided (required) by investing
activities
Capital expenditures
(43.6
)
(153.7
)
(94.3
)
Proceeds from sales of assets
54.4
75.3
13.4
Proceeds from sale of investment in
Technip Energies
—
—
288.5
Other investing activities
5.1
14.9
5.7
Cash provided (required) by investing
activities
15.9
(63.5
)
213.3
Cash required by financing activities
Net decrease in short-term debt
(12.1
)
(38.2
)
(204.7
)
Cash settlement for derivative hedging
debt
—
(30.1
)
(64.4
)
Net change in revolving credit
facility
(50.0
)
—
150.0
Repayments of long-term debt
—
—
(451.7
)
Dividends paid
(21.8
)
(21.8
)
—
Share repurchases
(50.1
)
(150.1
)
(50.1
)
Other financing activities
(0.9
)
(36.5
)
(5.9
)
Cash required by financing
activities
(134.9
)
(276.7
)
(626.8
)
Effect of changes in foreign exchange
rates on cash and cash equivalents
2.8
(17.9
)
11.9
Change in cash and cash equivalents
105.7
(366.2
)
(615.9
)
Cash and cash equivalents, beginning of
period
585.2
1,057.1
1,327.4
Cash and cash equivalents, end of
period
$
690.9
$
690.9
$
711.5
(1)
Working capital includes receivables,
payables, inventories and other current assets and liabilities.
Exhibit 6
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the third
quarter 2023 Earnings Release also includes non-GAAP financial
measures (as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended) and describes performance on a
year-over-year or sequential basis. Income (loss) from continuing
operations attributable to TechnipFMC plc, excluding charges and
credits, as well as measures derived from it (including Diluted
EPS, excluding charges and credits; Income before net interest
expense and taxes, excluding charges and credits (“Adjusted
Operating profit”); Depreciation and amortization, excluding
charges and credits; Earnings before net interest expense, income
taxes, depreciation and amortization, excluding charges and credits
(“Adjusted EBITDA”); and Adjusted EBITDA, excluding foreign
exchange gains or losses, net; Adjusted EBITDA margin; Adjusted
EBITDA margin, excluding foreign exchange, net; Corporate expense,
excluding charges and credits; Foreign exchange, net and other,
excluding charges and credits; and net debt) are non-GAAP financial
measures.
Non-GAAP adjustments are presented on a gross basis and are not
net of tax. Estimates of the tax effect of each adjustment is
calculated item by item, applying the relevant jurisdiction tax
rate to the pretax amount, unless the nature of the item and/or the
tax jurisdiction in which the item has been recorded requires
application of a specific tax rate, tax treatment or valuation
allowance consideration, in which case the tax effect of such item
is estimated accordingly.
Management believes that the exclusion of charges, credits and
foreign exchange impacts from these financial measures provides a
useful perspective on the Company’s underlying business results and
operating trends, and a means to evaluate TechnipFMC's operations
and consolidated results of operations period-over-period. These
measures are also used by management as performance measures in
determining certain incentive compensation. The foregoing non-GAAP
financial measures should be considered by investors in addition
to, not as a substitute for or superior to, other measures of
financial performance prepared in accordance with GAAP. The
following is a reconciliation of the most comparable financial
measures under GAAP to the non-GAAP financial measures.
Three Months Ended
September 30, 2023
Income from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interests from continuing operations
Provision for income
taxes
Net interest expense
Income before net interest
expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
90.0
$
3.7
$
19.5
$
26.7
$
139.9
$
93.3
$
233.2
Charges and (credits):
Impairment
2.0
—
—
—
2.0
—
2.0
Restructuring and other charges
1.7
—
0.6
—
2.3
—
2.3
Adjusted financial measures
$
93.7
$
3.7
$
20.1
$
26.7
$
144.2
$
93.3
$
237.5
Diluted earnings per share from continuing
operations attributable to TechnipFMC plc, as reported
$
0.20
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
0.21
Exhibit 6
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
June 30, 2023
Income (loss) from continuing
operations attributable to TechnipFMC plc
Loss attributable to
non-controlling interests from continuing operations
Provision for income
taxes
Net interest expense
Income (loss) before net
interest expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
(87.2
)
$
(9.1
)
$
43.3
$
30.3
$
(22.7
)
$
97.0
$
74.3
Charges and (credits):
Restructuring and other charges
4.7
—
0.4
—
5.1
—
5.1
Non-recurring legal settlement charges
*
126.5
—
—
—
126.5
—
126.5
Adjusted financial measures
$
44.0
$
(9.1
)
$
43.7
$
30.3
$
108.9
$
97.0
$
205.9
Diluted loss per share from continuing
operations attributable to TechnipFMC plc, as reported
$
(0.20
)
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
0.10
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 13 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Three Months Ended
September 30, 2022
Income from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interests from continuing operations
Provision for income
taxes
Net interest expense and loss
on early extinguishment of debt
Income before net interest
expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
5.0
$
5.7
$
42.7
$
30.9
$
84.3
$
94.5
$
178.8
Charges and (credits):
Impairment
3.6
—
—
—
3.6
—
3.6
Restructuring and other charges
4.1
—
(0.9
)
—
3.2
—
3.2
Adjusted financial measures
$
12.7
$
5.7
$
41.8
$
30.9
$
91.1
$
94.5
$
185.6
Diluted earnings per share from continuing
operations attributable to TechnipFMC plc, as reported
$
0.01
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
0.03
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
In addition to financial results determined in accordance with
U.S. generally accepted accounting principles (GAAP), the third
quarter 2023 Earnings Release also includes non-GAAP financial
measures (as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended) and describes performance on a
year-over-year or sequential basis. Income (loss) from continuing
operations attributable to TechnipFMC plc, excluding charges and
credits, as well as measures derived from it (including diluted
income (loss) per share from continuing operations attributable to
TechnipFMC plc, excluding charges and credits); Income before net
interest expense and taxes, excluding charges and credits (Adjusted
Operating profit); Depreciation and amortization, excluding charges
and credits; Earnings before net interest expense, income taxes,
depreciation and amortization, excluding charges and credits
(Adjusted EBITDA and Adjusted EBITDA, excluding foreign exchange,
net); Adjusted EBITDA margin; Adjusted EBITDA margin, excluding
foreign exchange, net; Corporate expense, excluding charges and
credits; Foreign exchange, net and other, excluding charges and
credits; and net debt, or cash are non-GAAP financial measures.
Non-GAAP adjustments are presented on a gross basis and are not
net of tax. Estimates of the tax effect of each adjustment is
calculated item by item, applying the relevant jurisdiction tax
rate to the pretax amount, unless the nature of the item and/or the
tax jurisdiction in which the item has been recorded requires
application of a specific tax rate, tax treatment or valuation
allowance consideration, in which case the tax effect of such item
is estimated accordingly.
Management believes that the exclusion of charges, credits and
foreign exchange impacts from these financial measures provides a
useful perspective on the Company’s underlying business results and
operating trends, and a means to evaluate TechnipFMC's operations
and consolidated results of operations period-over-period. These
measures are also used by management as performance measures in
determining certain incentive compensation. The foregoing non-GAAP
financial measures should be considered by investors in addition
to, not as a substitute for or superior to, other measures of
financial performance prepared in accordance with GAAP. The
following is a reconciliation of the most comparable financial
measures under GAAP to the non-GAAP financial measures.
Nine Months Ended
September 30, 2023
Income from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interests from continuing operations
Provision for income
taxes
Net interest expense
Income before net interest
expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
3.2
$
2.0
$
100.2
$
75.7
$
181.1
$
283.3
$
464.4
Charges and (credits):
Impairment
2.0
—
—
—
2.0
—
2.0
Restructuring and other charges
7.0
—
1.0
—
8.0
—
8.0
Non-recurring legal settlement charges
*
126.5
—
—
126.5
—
126.5
Adjusted financial measures
$
138.7
$
2.0
$
101.2
$
75.7
$
317.6
$
283.3
$
600.9
Diluted earnings per share from continuing
operations attributable to TechnipFMC plc, as reported
$
0.01
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
0.31
*The non-recurring legal settlement
charges reflect the impact of the resolution of all outstanding
matters with the PNF (reference to Note 13 of the 10-Q). For
taxation purposes the charges are treated as a penalty and as such,
do not trigger tax charges or benefits.
Exhibit 7
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Nine Months Ended
September 30, 2022
Income (loss) from continuing
operations attributable to TechnipFMC plc
Income attributable to
non-controlling interests from continuing operations
Provision for income
taxes
Net interest expense and loss
on early extinguishment of debt
Income before net interest
expense and income taxes (Operating profit)
Depreciation and
amortization
Earnings before net interest
expense, income taxes, depreciation and amortization
(EBITDA)
TechnipFMC plc, as reported
$
(35.2
)
$
19.4
$
91.0
$
122.3
$
197.5
$
284.4
$
481.9
Charges and (credits):
Impairment
4.7
—
—
—
4.7
—
4.7
Restructuring and other charges
10.9
—
0.4
—
11.3
—
11.3
Loss from Investment in Technip Energies
**
27.7
—
—
—
27.7
—
27.7
Adjusted financial measures
$
8.1
$
19.4
$
91.4
$
122.3
$
241.2
$
284.4
$
525.6
Diluted loss per share from continuing
operations attributable to TechnipFMC plc, as reported
$
(0.08
)
Adjusted diluted earnings per share from
continuing operations attributable to TechnipFMC plc
$
0.02
**The charges reflect the net
mark-to-market valuation, on the Company’s investment in Technip
Energies and the gains and losses resulting from sale transactions
of the investment. Gains and losses of the sales were recorded in a
UK entity and treated as tax exempt with zero tax effect.
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
September 30, 2023
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
1,708.3
$
348.6
$
—
$
—
$
2,056.9
Operating profit (loss), as reported
(pre-tax)
$
177.7
$
33.3
$
(24.7
)
$
(46.4
)
$
139.9
Charges and (credits):
Impairment
1.6
—
0.4
—
2.0
Restructuring and other charges
1.7
0.6
—
—
2.3
Subtotal
3.3
0.6
0.4
—
4.3
Adjusted Operating profit (loss)
181.0
33.9
(24.3
)
(46.4
)
144.2
Depreciation and amortization
76.8
16.0
0.5
—
93.3
Adjusted EBITDA
$
257.8
$
49.9
$
(23.8
)
$
(46.4
)
$
237.5
Foreign exchange, net
0.0
0.0
0.0
46.4
46.4
Adjusted EBITDA, excluding foreign
exchange, net
$
257.8
$
49.9
$
(23.8
)
$
—
$
283.9
Operating profit margin, as reported
10.4
%
9.6
%
6.8
%
Adjusted Operating profit margin
10.6
%
9.7
%
7.0
%
Adjusted EBITDA margin
15.1
%
14.3
%
11.5
%
Adjusted EBITDA margin, excluding foreign
exchange, net
15.1
%
14.3
%
13.8
%
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
June 30, 2023
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
1,618.4
$
353.8
$
—
$
—
$
1,972.2
Operating profit (loss), as reported
(pre-tax)
$
153.4
$
25.7
$
(153.5
)
$
(48.3
)
$
(22.7
)
Charges and (credits):
Restructuring and other charges
0.5
4.6
—
—
5.1
Non recurring legal settlement charges
—
—
126.5
—
126.5
Subtotal
0.5
4.6
126.5
—
131.6
Adjusted Operating profit (loss)
153.9
30.3
(27.0
)
(48.3
)
108.9
Depreciation and amortization
79.9
16.6
0.5
—
97.0
Adjusted EBITDA
$
233.8
$
46.9
$
(26.5
)
$
(48.3
)
$
205.9
Foreign exchange, net
—
—
—
48.3
48.3
Adjusted EBITDA, excluding foreign
exchange, net
$
233.8
$
46.9
$
(26.5
)
$
—
$
254.2
Operating profit margin, as reported
9.5
%
7.3
%
-1.2
%
Adjusted Operating profit margin
9.5
%
8.6
%
5.5
%
Adjusted EBITDA margin
14.4
%
13.3
%
10.4
%
Adjusted EBITDA margin, excluding foreign
exchange, net
14.4
%
13.3
%
12.9
%
Exhibit 8
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended
September 30, 2022
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
1,415.0
$
318.0
$
—
$
—
$
1,733.0
Operating profit (loss), as reported
(pre-tax)
$
105.0
$
19.0
$
(25.2
)
$
(14.5
)
$
84.3
Charges and (credits):
Impairment
1.9
1.7
—
—
3.6
Restructuring and other charges
1.4
1.8
—
—
3.2
Subtotal
3.3
3.5
—
—
6.8
Adjusted Operating profit (loss)
108.3
22.5
(25.2
)
(14.5
)
91.1
Depreciation and amortization
75.5
18.3
0.7
—
94.5
Adjusted EBITDA
$
183.8
$
40.8
$
(24.5
)
$
(14.5
)
$
185.6
Foreign exchange, net
—
—
—
14.5
14.5
Adjusted EBITDA, excluding foreign
exchange, net
$
183.8
$
40.8
$
(24.5
)
$
—
$
200.1
Operating profit margin, as reported
7.4
%
6.0
%
4.9
%
Adjusted Operating profit margin
7.7
%
7.1
%
5.3
%
Adjusted EBITDA margin
13.0
%
12.8
%
10.7
%
Adjusted EBITDA margin, excluding foreign
exchange, net
13.0
%
12.8
%
11.5
%
Exhibit 9
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Nine Months Ended
September 30, 2023
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net
Total
Revenue
$
4,714.3
$
1,032.2
$
—
$
—
$
5,746.5
Operating profit (loss), as reported
(pre-tax)
$
397.9
$
81.4
$
(205.6
)
$
(92.6
)
$
181.1
Charges and (credits):
Impairment
1.6
—
0.4
—
2.0
Restructuring and other charges
2.1
5.9
—
—
8.0
Non-recurring legal settlement charges
—
—
126.5
—
126.5
Subtotal
3.7
5.9
126.9
—
136.5
Adjusted operating profit (loss)
401.6
87.3
(78.7
)
(92.6
)
317.6
Depreciation and amortization
231.9
49.8
1.6
—
283.3
Adjusted EBITDA
$
633.5
$
137.1
$
(77.1
)
$
(92.6
)
$
600.9
Foreign exchange, net
—
—
—
92.6
92.6
Adjusted EBITDA, excluding foreign
exchange, net
$
633.5
$
137.1
$
(77.1
)
$
—
$
693.5
Operating profit margin, as reported
8.4
%
7.9
%
3.2
%
Adjusted operating profit margin
8.5
%
8.5
%
5.5
%
Adjusted EBITDA margin
13.4
%
13.3
%
10.5
%
Adjusted EBITDA margin, excluding foreign
exchange, net
13.4
%
13.3
%
12.1
%
Exhibit 9
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Nine Months Ended
September 30, 2022
Subsea
Surface Technologies
Corporate Expense
Foreign Exchange, net and
Other
Total
Revenue
$
4,118.7
$
887.3
$
—
$
—
$
5,006.0
Operating loss, as reported (pre-tax)
$
256.1
$
32.7
$
(76.7
)
$
(14.6
)
$
197.5
Charges and (credits):
Impairment
1.9
2.8
—
—
4.7
Restructuring and other charges
0.6
7.7
3.0
—
11.3
Loss from investment in Technip
Energies
—
—
—
27.7
27.7
Subtotal
2.5
10.5
3.0
27.7
43.7
Adjusted operating profit (loss)
258.6
43.2
(73.7
)
13.1
241.2
Depreciation and amortization
230.2
52.0
2.2
—
284.4
Adjusted EBITDA
$
488.8
$
95.2
$
(71.5
)
$
13.1
$
525.6
Foreign exchange, net
—
—
—
(13.1
)
(13.1
)
Adjusted EBITDA, excluding foreign
exchange, net
$
488.8
$
95.2
$
(71.5
)
$
—
$
512.5
Operating profit margin, as reported
6.2
%
3.7
%
3.9
%
Adjusted operating profit margin
6.3
%
4.9
%
4.8
%
Adjusted EBITDA margin
11.9
%
10.7
%
10.5
%
Adjusted EBITDA margin, excluding foreign
exchange, net
11.9
%
10.7
%
10.2
%
Exhibit 10
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
September 30,
June 30,
September 30,
2023
2023
2022
Cash and cash equivalents
$
690.9
$
585.2
$
711.5
Short-term debt and current portion of
long-term debt
(407.3
)
(429.5
)
(231.9
)
Long-term debt, less current portion
(933.5
)
(999.7
)
(1,134.9
)
Net debt
$
(649.9
)
$
(844.0
)
$
(655.3
)
Net (debt) cash is a non-GAAP financial
measure reflecting cash and cash equivalents, net of debt.
Management uses this non-GAAP financial measure to evaluate our
capital structure and financial leverage. We believe net debt, or
net cash, is a meaningful financial measure that may assist
investors in understanding our financial condition and recognizing
underlying trends in our capital structure. Net (debt) cash should
not be considered an alternative to, or more meaningful than, cash
and cash equivalents as determined in accordance with U.S. GAAP or
as an indicator of our operating performance or liquidity.
Exhibit 11
TECHNIPFMC PLC AND CONSOLIDATED
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(In millions,
unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2023
2022
Cash provided (required) by operating
activities from continuing operations
$
221.9
$
(8.1
)
$
(214.3
)
Capital expenditures
(43.6
)
(153.7
)
(94.3
)
Free cash flow (deficit) from continuing
operations
$
178.3
$
(161.8
)
$
(308.6
)
Free cash flow (deficit) from continuing
operations, is a non-GAAP financial measure and is defined as cash
provided (required) by operating activities less capital
expenditures. Management uses this non-GAAP financial measure to
evaluate our financial condition. We believe from continuing
operations, free cash flow (deficit) from continuing operations is
a meaningful financial measure that may assist investors in
understanding our financial condition and results of
operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026822331/en/
Investor relations
Matt Seinsheimer Senior Vice President, Investor Relations and
Corporate Development Tel: +1 281 260 3665 Email: Matt
Seinsheimer
James Davis Director, Investor Relations Tel: +1 281 260 3665
Email: James Davis
Media relations
Catie Tuley Director, Public Relations Tel: +1 281 591 5405
Email: Catie Tuley
David Willis Senior Manager, Public Relations Tel: +44 7841
492988 Email: David Willis
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