On July 25, 2024, TechnipFMC PLC (FTI, Financial) released its 8-K filing for the second quarter of 2024, showcasing a strong performance that surpassed analyst expectations. TechnipFMC, the largest pure-play offshore oilfield service provider, offers integrated deep-water offshore oil and gas development solutions, spanning subsea equipment, engineering, and construction services.
Financial Highlights
TechnipFMC reported total revenue of $2,325.6 million for Q2 2024, a 13.9% increase from the previous quarter and a 17.9% rise year-over-year. The company achieved a net income of $186.5 million, or $0.42 per diluted share, significantly outperforming the analyst estimate of $0.32 per share. Adjusted net income stood at $188.9 million, or $0.43 per diluted share, reflecting a 93.5% sequential increase.
Operational Performance
The Subsea segment was a major contributor to the company's success, with revenue reaching $2,009.1 million, up 15.8% sequentially and 24.1% year-over-year. The segment's operating profit surged by 77.3% from the previous quarter to $277.7 million, driven by strong execution and increased project activity in the North Sea and Gulf of Mexico. Subsea's adjusted EBITDA margin improved to 17.7%, a 370 basis point increase sequentially.
Key Metrics and Achievements
TechnipFMC's total company backlog reached a record $13.9 billion, with inbound orders totaling $3,092.2 million for the quarter. The company's book-to-bill ratio stood at 1.4x, indicating strong demand for its services. Cash flow from operations was $231 million, and free cash flow amounted to $180 million.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Change (QoQ) | Change (YoY) |
|---|---|---|---|---|---|
| Revenue ($M) | 2,325.6 | 2,042.0 | 1,972.2 | 13.9% | 17.9% |
| Net Income ($M) | 186.5 | 157.1 | (87.2) | 18.7% | n/m |
| Adjusted EBITDA ($M) | 361.4 | 252.6 | 205.9 | 43.1% | 75.5% |
| Adjusted Net Income ($M) | 188.9 | 97.6 | 44.8 | 93.5% | 321.7% |
Commentary and Outlook
"Our quarterly results reflect strong operational performance throughout the Company. Revenue was $2.3 billion with adjusted EBITDA of $379 million when excluding foreign exchange impacts," said Doug Pferdehirt, Chair and CEO of TechnipFMC.
Pferdehirt highlighted the company's success in securing significant contracts, including the ExxonMobil Whiptail project in Guyana and the Woodside Energy Xena Phase 3 iEPCIâ„¢ project in Australia. These awards underscore TechnipFMC's strategic commitment to expanding its presence in emerging basins and leveraging its integrated project execution model.
Financial Position and Guidance
TechnipFMC ended the quarter with cash and cash equivalents of $708.2 million and a net debt of $260.2 million. The company repurchased 3.9 million of its ordinary shares for $100 million and paid dividends totaling $21.5 million, reflecting its commitment to returning value to shareholders.
Looking ahead, TechnipFMC has increased its full-year financial guidance, projecting Subsea revenue in the range of $7.6 - 7.8 billion and Subsea adjusted EBITDA margin between 16.5% and 17%. Free cash flow is expected to be between $425 - 575 million, up from the previous guidance of $350 - 500 million.
TechnipFMC's strong Q2 2024 performance and positive outlook position the company well for continued growth in the offshore oilfield services sector. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from TechnipFMC PLC for further details.
