TechnipFMC Posts $2,4B Loss in 4Q

Image credit: TechnipFMC
Image credit: TechnipFMC

Oilfield services giant TechnipFMC reported a net loss of $2,4 billion in the third quarter on after tax-charges. 

TechnipFMC said Thursday that result included impairment and other charges and provisions for goodwill and fixed assets totaling $2,429.1 million of expense, totaling $2,268.6 million for goodwill and fixed assets. Adjusted for these charges net income was $15.1 million.

Fourth-quarter revenue rose to $3,7 billion, up from $3,3 billion in the fourth quarter of 2019.

Inbound order for the quarter dipped to $2,7 billion, around seven percent lower versus last year’s 4Q order of $2,9 billion.

However, for the full year, inbound orders soared 58,8% percent, reaching $22,7 billion, up from $14,3 billion in 2018.

Doug Pferdehirt, Chairman and CEO of TechnipFMC, said: "We achieved an unprecedented level of inbound in 2019, including over 50 percent order growth in Subsea. With this success, our backlog now stands at $24 billion, an increase of 67 percent versus 2018. Backlog grew across all segments, with Onshore/Offshore increasing almost 90 percent when compared to the prior year."

“Turning to the subsea market, we anticipate ongoing momentum in activity for small- to mid-sized brownfield projects and a continued healthy outlook for greenfield projects. Strength in project activity, as well as our expectation for double-digit revenue growth in Subsea Services, provides the framework for 2020 Subsea orders to approach the level achieved in 2019. However, this remains dependent on the timing of one or two major project awards.”

“For our Onshore/Offshore business, we remain confident that additional LNG projects will be sanctioned in the near-to-intermediate-term despite current weakness in the commodity price. The growth outlook for long-term demand requires this additional capacity. Beyond LNG, we continue to selectively pursue refining, petrochemical, and biofuel project opportunities.”

In Surface Technologies, we anticipate double-digit revenue growth outside North America in 2020, following growth of more than 15 percent in 2019. We expect North American activity to decline 10 percent versus 2019, which assumes improvement in drilling and completions activity in the second half of the year.”

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