TechnipFMC observes revenue dip in Q2 2017 financial result

TechFMPTechnipFMC has announced financial result where it reported that although year on year revenues dip in the Q2 2017, the segment is operating profit and adjusted EBITDA improved from 2016

According to the financial result, the oil and gas company saw revenue dropped to US$3.8bn compared to US$4.9bn in 2016, a change of 22.5 per cent.

However, in spite of the low revenue, adjusted earnings before interest depreciation and amortisation increased, with adjusted EBITDA amounting to US$501mn in Q2 2017, compared to US$347mn in Q2 2016.

Commenting on the result, Douglas Pferdehirt, CEO of TechnipFMC, said, “Both subsea and onshore, offshore performed well above plan in the quarter. Our first half results give us even greater confidence that we will meet or exceed our 2017 financial objectives.”

“We just passed our six-month anniversary as a new company, and our merger integration efforts are delivering results. We remain confident in our ability to reach our synergy targets,” he added.

Pferdehirt commented, “Our subsea inbound orders accelerated to US$1.8bn in the quarter.”

Subsea reported Q2 revenue of US$1.7bn. Revenue was down 28 per cent from 2016, primarily due to a reduction in project activity within Europe and Africa, partially offset by increased project activity in Asia Pacific. Prior-year declines in inbound orders continue to impact near-term revenue.

Pferdehirt added, “During the quarter, we achieved a significant milestone on the Prelude FLNG project. The vessel sailed away from South Korea on 29 June 2017, and has just arrived in Australian waters. Building upon this milestone, our execution on the Coral FLNG project will benefit from the extensive capabilities we have developed.”

“The increase in major project FIDs and the acceleration of integrated FEED (iFEED) prospects during the first half of 2017 certainly adds confidence to our expectation for a step-up in Subsea orders for full year 2017.” Pferdehirt said, “While project economics continue to improve, the recent commodity price uncertainty could result in a slowing of the pace of the recovery.”

Recently, TechnipFMC awarded Italian ENI a major integrated contract for the Coral South FLNG project in offshore Mozambique.

The financial report also includes that the activity outside North America remain resilient. The Middle East and North Africa are showing the best near-term outlook, with strength on both land and shallow water.

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