TechnipFMC reports Q3 adjusted EPS 21c, consensus 19c

Reports Q3 revenue $2.06B, consensus $1.98B. Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Subsea inbound orders in the quarter came in strong at $1.8 billion. Adjusted EBITDA improved sequentially for both Subsea and Surface Technologies, exceeding the guidance we provided on our second quarter call. This momentum is also driving our full-year expectations higher.” Pferdehirt continued, “In Subsea, we received significant orders for flexible pipe in the period, including an award from Petrobras for the pre-salt fields in Brazil, and our largest-ever flexibles contract in the Gulf of Mexico for Woodside Energy’s Trion project. As both pioneer and market leader of flexible pipe, we have the unique ability to integrate this technology into our iEPCI(TM) offering, which greatly simplifies the field architecture. This enables a further reduction in project cycle time, improving economics and driving greater differentiation in our integrated offering. Beyond the flexibles activity, we also experienced an exceptionally high level of unannounced project awards in the quarter, which speaks to the ongoing strength of the market. In Subsea Services, inbound was robust, driven by installation and life of field activities. Given the continued strength in our inbound, we are confident that Subsea orders will exceed $9 billion for the full year. And if we extend the view to include our current expectations for 2024, we now believe orders over the next five quarters will approach $11 billion.” Pferdehirt added, “The durability of this cycle is driven by an expansion in the number of active basins and the number of operators participating in those regions. Additionally, activity is supported by a robust and strengthening FEED pipeline. This provides us with extended visibility and confidence that subsea opportunities will remain resilient beyond 2025, even before we consider new frontiers that are likely to present themselves in the second half of the decade.” Pferdehirt concluded, “Our commercial and operational success continues to drive improved financial results. The upward revisions to our Subsea order outlook are fueled by high quality inbound, driven by iEPCI(TM), Subsea Services and other direct awards, which we now expect to represent more than 70 percent of segment orders in the current year. More importantly, these results are further strengthening the foundation for higher and more sustainable performance in the years ahead.”