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Jun 30, 2020
TechnipFMC Q2 2020 Earnings Report
TechnipFMC reported strong execution in a challenging environment, maintained a resilient backlog, and demonstrated increased net liquidity.
Key Takeaways
TechnipFMC announced second quarter 2020 results, highlighting strong execution amidst a challenging environment. The company's resilient backlog stood at $20.6 billion, with $14.9 billion scheduled for 2021 and beyond. Net liquidity increased sequentially by $1.2 billion to $6.8 billion. The company is on track to deliver targeted cost savings exceeding $350 million by year-end and has updated financial guidance for all segments, while also initiating a free cash flow outlook.
Strong execution despite the challenging environment in the quarter
Resilient backlog of $20.6 billion; $14.9 billion scheduled for 2021 and beyond
Net liquidity of $6.8 billion, an increase of $1.2 billion sequentially
On track to deliver targeted cost savings that exceed $350 million by year-end
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Revenue by Segment
Subsea Revenue
CapyFin.comSurface Technologies Revenue
CapyFin.com Forward Guidance
TechnipFMC has increased visibility and confidence in their full-year guidance for all business segments, supported by the acceleration of business transformation initiatives.
Positive Outlook
- Subsea revenue in a range of $5.3 - 5.6 billion
- Subsea EBITDA margin at least 8.5% (excluding charges and credits)
- Technip Energies revenue in a range of $6.3 - 6.8 billion
- Technip Energies EBITDA margin at least 10% (excluding charges and credits)
- Surface Technologies revenue in a range of $950 - 1,150 million
Challenges Ahead
- Corporate expense, net $130 - 150 million
- Net interest expense $80 - 90 million (excluding the impact of revaluation of partners’ mandatorily redeemable financial liability)
- Tax provision, as reported $80 - 90 million
- Capital expenditures approximately $300 million
- Free cash flow $0 - 150 million (cash flow from operations less capital expenditures)
Revenue & Expenses
Visualization of income flow from segment revenue to net income