UK-based TechnipFMC has reported fourth-quarter 2020 loss of $39 million or 9 cent per diluted share against $2.4 billion loss same time last year.
Adjusted diluted earnings per share was 5 cents, with analysts projecting some 20 cents.
Revenue for the quarter was down from Q4 2019 some eight per cent at $3.32 billion and relatively flat sequentially.
TechnipFMC has secured quarterly order intake of $4.2 billion, up 55 per cent from $2.7 billion in Q4 2019.
Subsea division reported fourth quarter revenue of $1.34 billion, down 10 per cent compared to the corresponding period in 2019.
Revenue drop in project activity was specifically most significant in Norway and Brazil.
Subsea reported an operating loss of $9.5 million that included impairment, restructuring and also other charges totaling $44.7 million. Operating results in the period were negatively impacted by the lower activity and COVID-19.
Subsea inbound orders were $712 million for the quarter, resulting in a book-to-bill of 0.5.
2021 revenue guidance for subsea division is in a range of $5 – 5.4 billion. EBITDA margin is up to 11 per cent.
Doug Pferdehirt, chairman and CEO of TechnipFMC, stated:
“In Subsea, our outlook reflects renewed operator confidence given the improved economic outlook, lower market volatility and higher oil price. For the current year, we anticipate Brazil will be the most active region of the world for new project orders, with growth also coming from the North Sea, Asia Pacific and Africa.
“We remain very confident that inbound orders for 2021 will exceed the $4 billion achieved in 2020. We are also experiencing a high level of front end activity, which should support a more sustainable deepwater recovery and our expectation for continued order growth in 2022.”
Technip Energies reported fourth quarter revenue of $1.82 billion, largely unchanged versus the prior-year quarter. Revenue benefited from the continued ramp-up of Arctic LNG 2 and higher activity on projects in Africa and Asia Pacific.
Technip Energies reported operating profit of $171.6 million that included restructuring, impairment and other charges totaling $14.8 million. Operating profit decreased 30 percent versus the prior-year quarter primarily due to a reduced contribution from Yamal LNG.
Full Year 2020
For the twelve months of 2020 TechnipFMC booked loss of $3.28 billion, against loss of $2.4 billion in 2019.
Revenue in the full year 2020 was down close to three per cent at $13.05 billion, versus $13.4 billion in 2019.
At the end of Q4 2020, TechnipFMC backlog was $21.4 billion ($24.3 billion in Q4 2019), including subsea backlog of $6.87 billion.
Finally, the company ended the period with cash and cash equivalents of $4.8 billion; net cash was $854 million.
Pferdehirt also said that TechnipFMC is well-positioned for the energy transition, with significant offshore opportunities in Subsea including novel wind, wave energy, carbon storage and green hydrogen.
“Deep Purple is one such initiative, where we are leveraging our core capabilities: iEPCI, proprietary technologies and partner alliances. Additionally, we see future opportunities driven by our investments in early phase projects and solutions that accelerate the role of our technologies in the Energy Transition as we continue to redefine offshore energy.”