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Jun 30, 2022
TechnipFMC Q2 2022 Earnings Report
TechnipFMC reported mixed results in Q2 2022, with increased revenue but a slight net income, while initiating shareholder distributions.
Key Takeaways
TechnipFMC announced Q2 2022 results, featuring a subsea inbound of $1.9 billion and expectations to approach $7 billion for the full year. The company reduced gross debt by $530 million and initiated shareholder distributions with a $400 million share repurchase authorization. Revenue increased to $1,717.2 million, with a net income of $2.1 million, or $0.00 per diluted share.
Subsea inbound orders reached $1.9 billion in the quarter.
Gross debt reduced by $530 million, reaching $1.5 billion.
Shareholder distributions initiated with a $400 million share repurchase authorization.
Full-year Subsea orders are expected to approach $7 billion.
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Revenue by Segment
Subsea Revenue
CapyFin.comSurface Technologies Revenue
CapyFin.com Forward Guidance
The company reaffirmed its full-year guidance for 2022 and remains confident that internal initiatives coupled with the strong market backdrop provide a clear path to achieve Subsea EBITDA of more than $1 billion by 2025.
Positive Outlook
- Full-year Subsea orders are expected to be up as much as 40% versus the prior year.
- Expects Subsea orders will approach $7 billion in 2022.
- Solid growth in North America sales and profitability in Surface Technologies.
- Continue to move pricing higher as needed to ensure an acceptable return on our investments.
- Reduction in gross debt in the period was another step forward in restoring our balance sheet to our targeted capital structure.
Challenges Ahead
- No updates were made to the previous guidance issued on February 23, 2022.
- All segment guidance assumes no further material degradation from COVID-19-related impacts.
- Unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort.
- Unpredictability of the individual components of the most directly comparable GAAP financial measure.
- Variability of items excluded from each such measure.