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Mar 31, 2020
TechnipFMC Q1 2020 Earnings Report
TechnipFMC reported a net loss and adjusted diluted loss per share, while implementing cost-saving measures and adjusting its dividend policy in response to market conditions.
Key Takeaways
TechnipFMC announced first quarter 2020 results, which included a net loss of $3,256.1 million, or $7.28 per diluted share. The company is implementing cost savings and adjusting its dividend policy. The company is targeting over $350 million in annualized cost savings. The company's backlog is $22 billion and cash and liquidity is $5.6 billion.
Backlog of $22 billion and $5.6 billion in cash and liquidity.
Cost savings target increased and will now exceed $350 million.
Executive salaries and Directors’ retainer reduced up to 30% through year-end.
Dividend distribution for 2020 reduced by 75% versus the prior year.
Revenue by Segment
Forward Guidance
TechnipFMC provided full-year guidance for 2020, with segment guidance assuming no further material degradation from COVID-19 impacts.
Positive Outlook
- Technip Energies revenue in a range of $6.3 - 6.8 billion.
- Technip Energies EBITDA margin at least 10% (excluding charges and credits).
- International market to represent ~60% of Surface Technologies revenue mix.
- Vertical integration and technology differentiation benefits internationally for Surface Technologies.
- Aggressive actions to North America cost base; expect Surface Technologies to be modestly profitable (excluding charges and credits).
Challenges Ahead
- Subsea inbound orders to be down as much as 50% versus 2019.
- Subsea $3.1 billion of backlog to be converted into revenue for remainder of the year
- Subsea Services revenue to be approximately $1 billion for the full year
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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