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Dec 31, 2019
TechnipFMC Q4 2019 Earnings Report
TechnipFMC reported mixed Q4 2019 results with revenue increase but a net loss, offset by adjusted earnings per share
Key Takeaways
TechnipFMC's Q4 2019 results revealed a revenue increase of 12.2% year-over-year, reaching $3,726.8 million. However, the company reported a net loss of $2,414 million, or $5.40 per diluted share, including after-tax charges and credits of $2,429.1 million. Adjusted net income was $15.1 million, or $0.03 per diluted share.
Subsea orders increased by 54% versus 2018.
Onshore/Offshore orders increased by 76% versus 2018.
Total Company backlog increased by 67% versus 2018, reaching $24.3 billion.
Adjusted diluted earnings per share, excluding charges and credits, was $0.03.
TechnipFMC
TechnipFMC
TechnipFMC Revenue by Segment
Revenue by Segment
Subsea Revenue
CapyFin.comSurface Technologies Revenue
CapyFin.com Forward Guidance
TechnipFMC provided financial guidance for 2020, including revenue ranges and EBITDA margin expectations for its Subsea, Onshore/Offshore, and Surface Technologies segments.
Positive Outlook
- Anticipate ongoing momentum in activity for small- to mid-sized brownfield projects and a continued healthy outlook for greenfield projects in the subsea market.
- Expect double-digit revenue growth in Subsea Services.
- Confident that additional LNG projects will be sanctioned in the near-to-intermediate-term.
- Anticipate double-digit revenue growth outside North America in Surface Technologies.
- Significant growth in backlog across all segments validates strategy and provides confidence in outlook.
Challenges Ahead
- Subsea orders remains dependent on the timing of one or two major project awards.
- Current weakness in the commodity price.
- Expect North American activity to decline 10 percent versus 2019 in Surface Technologies.
- The quarterly tax rate was impacted by the non-deductible impairment charges recorded in the quarter.
- Vessel utilization rate for the fourth quarter was 61 percent, down from 70 percent in the third quarter and 62 percent in the prior-year quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income