TechnipFMC (PAR:FTI) continues its profitable run, reporting steady revenue and a record subsea orderbook. It will now look to offshore and Middle East oil and gas projects to drive performance in the coming years.
Pre-tax profits for TechnipFMC reached $53.4 million – roughly double that of Q2 – while net income also rose accordingly to $5m, representing earnings per share of $0.01.
Revenue was flat on the last quarter, remaining at around $1.7bn. Excluding $14.5m in foreign exchange losses, the group’s adjusted EBITDA stood at $200 million.
It marks a continuing turnaround for the subsea-focused offshore services group, following last quarter’s announcement that saw it slash debt and launch a $400m share buyback programme.
Chairman and CEO Doug Pferdehirt confirmed Wednesday that $50m worth had been repurchased so far during Q3, or around 5.8 million ordinary shares.
He said the company’s results “reflect continued momentum in financial performance” and praised the company’s quarterly revenue figures in the face of a currency “headwind”.
The group’s subsea unit has already outperformed full-year 2021, with orders now totalling $5.2 billion. TechnipFMC pointed to key orders from TotalEnergies off Brazil, and the securing of a significant engineering and construction award for Shell’s Jackdaw project in the North Sea.
Meanwhile, it said installation work has continued off Guyana and Brazil.
Mr Pferdehirt added: “Our subsea opportunities list remains at a record level. This strong project pipeline and the active dialogue with our large and expanded customer base give us continued confidence that our full-year subsea orders will approach $7 billion, up as much as 40% versus the prior year.
“Extending the outlook into 2023, we believe orders over the next five quarters will be at least $9 billion.”
Mr Pferdehirt also to pointed to an “acceleration” of orders from Aramco for its surface division, which he said would continue to generate revenue into the future.
He continued: “We continue to see the potential for strong growth in EBITDA, cash flow and financial returns, as evidenced by our stated objective to achieve more than $1 billion of Subsea EBITDA by 2025.
Looking ahead he said the next phase of oil and gas sector growth would be driven by work offshore and in the Middle East.
“The bold steps we took more than five years ago to create TechnipFMC have resulted in a pure-play technology company that is uniquely levered to both of these markets,” he continued.
“Our portfolio of innovative products, solutions and disruptive commercial models has further strengthened our leadership position, and we are now taking full advantage of the market growth that lies ahead.”
Full-year guidance for subsea now stands at $5.2-5.6bn, while surface is forecast to meet $1.15-1.3bn.