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Mar 31, 2022
TechnipFMC Q1 2022 Earnings Report
TechnipFMC reported mixed results due to challenges in the global supply chain, but saw strong inbound orders and backlog growth.
Key Takeaways
TechnipFMC's Q1 2022 results showed a revenue of $1.56 billion and a loss of $42.3 million. Despite challenges in the global supply chain, the company experienced strong inbound orders, particularly in the Subsea segment, leading to backlog growth. The company is targeting debt reduction in the second quarter.
Subsea inbound orders reached $1.9 billion, resulting in a book-to-bill ratio of 1.5.
Cash and cash equivalents stood at $1.2 billion.
The company completed the sale of its remaining stake in Technip Energies in April.
TechnipFMC is targeting a gross debt reduction of up to $400 million in the second quarter.
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Revenue by Segment
Subsea Revenue
CapyFin.comSurface Technologies Revenue
CapyFin.com Forward Guidance
TechnipFMC reaffirmed its full-year 2022 financial guidance, which was initially issued on February 23, 2022. The guidance assumes no further material degradation from COVID-19 related impacts. All segment guidance is based on continuing operations and excludes the impact of Technip Energies.
Positive Outlook
- Subsea revenue is expected to be in the range of $5.2 - 5.6 billion.
- Subsea EBITDA margin is projected to be in the range of 11 - 12% (excluding charges and credits).
- Surface Technologies revenue is anticipated to be in the range of $1,150 - 1,300 million.
- Surface Technologies EBITDA margin is expected to be in the range of 11 - 13% (excluding charges and credits).
- The company expects free cash flow to be in the range of $100 - 250 million.
Challenges Ahead
- Corporate expense, net is projected to be $100 - 110 million (including depreciation and amortization of ~$5 million).
- Net interest expense is estimated to be $105 - 115 million.
- The tax provision, as reported, is expected to be $100 - 110 million.
- Capital expenditures are anticipated to be approximately $230 million.
- Guidance excludes the impact of Technip Energies, which is reported as discontinued operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income