TechnipFMC plc (FTI) Bundle
A Brief History of TechnipFMC
Company Formation and Early Years
TechnipFMC was formed through the merger of Technip and FMC Technologies in January 2017. This strategic merger aimed to enhance operational efficiencies and expand the company's capabilities in subsea and surface technologies for the oil and gas industry.
Financial Performance Overview (2024)
As of September 30, 2024, TechnipFMC reported a significant increase in its financial performance compared to the previous year. The company generated total revenue of $6,716.0 million for the nine months ended September 30, 2024, compared to $5,746.5 million for the same period in 2023, marking a 16.9% increase.
Revenue Breakdown
The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Subsea | $5,772.0 | 22.4% |
| Surface Technologies | $944.0 | -8.5% |
Net Income and Earnings
Net income for the nine months ending September 30, 2024, was reported at $625.6 million, a substantial increase from $5.2 million in the same period of 2023. The net income attributable to TechnipFMC plc was $618.2 million, highlighting a significant turnaround in profitability.
Order Backlog
As of September 30, 2024, TechnipFMC reported a total order backlog of $14.7 billion, indicating strong future revenue potential. The backlog is categorized as follows:
| Year | Subsea (in millions) | Surface Technologies (in millions) | Total (in millions) |
|---|---|---|---|
| 2024 | $1,547.1 | $230.2 | $1,777.3 |
| 2025 | $5,479.9 | $370.0 | $5,849.9 |
| Thereafter | $6,705.1 | $366.6 | $7,071.7 |
Market Trends and Strategic Developments
In 2024, TechnipFMC benefitted from increased global energy demand and significant upstream spending. The company's subsea revenue saw a notable increase driven by higher installation activities and unique commercial offerings in key markets, including Angola, the United States, and Australia.
Stockholder Equity and Share Repurchase
As of September 30, 2024, total stockholders' equity for TechnipFMC was reported at $3,299.2 million, reflecting an increase from $3,172.1 million as of the prior year. The company has been actively repurchasing shares, with $330.1 million repurchased in the nine months ended September 30, 2024.
Dividends
TechnipFMC declared a quarterly cash dividend of $0.05 per share in 2024, which was paid out in March, June, and September. The total cash dividends paid during the nine months ended September 30, 2024, amounted to $64.7 million.
A Who Owns TechnipFMC plc (FTI)
Ownership Structure
As of 2024, TechnipFMC plc (FTI) has a diverse ownership structure consisting of institutional investors, retail shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 9.8% |
| The Vanguard Group, Inc. | 8.5% |
| State Street Corporation | 5.1% |
| Wellington Management Company, LLP | 4.2% |
| Invesco Ltd. | 3.7% |
| Other Institutional Investors | 58.7% |
| Retail Investors | 9.0% |
| Company Executives and Board Members | 1.0% |
Recent Shareholder Changes
In 2024, TechnipFMC announced a share repurchase program that allows for the repurchase of up to $1.2 billion of its outstanding shares, reflecting a proactive approach to enhancing shareholder value. By September 30, 2024, the company had repurchased shares worth $330.1 million under this program.
Stock Performance
As of September 30, 2024, TechnipFMC's stock price was approximately $26.77, showing an increase from previous quarters. The company has seen a significant rise in its stock value due to improved financial performance and operational efficiency.
Dividends and Financial Returns
TechnipFMC declared a quarterly cash dividend of $0.05 per share on October 23, 2024, payable on December 4, 2024. This dividend reflects an annualized yield of approximately 0.20% based on the current stock price.
Institutional Ownership Trends
The table below provides a summary of the institutional ownership trends over the past year:
| Quarter | Institutional Ownership Percentage |
|---|---|
| Q1 2024 | 76.2% |
| Q2 2024 | 75.9% |
| Q3 2024 | 75.3% |
Executive Ownership
As of September 30, 2024, executives and board members of TechnipFMC held approximately 1.0% of the total outstanding shares. This reflects a commitment to aligning management interests with those of shareholders.
Conclusion
The ownership structure of TechnipFMC plc indicates significant institutional investor participation, with major firms holding substantial stakes. The company's ongoing share repurchase program and dividend distribution further enhance its attractiveness to current and potential investors.
TechnipFMC plc (FTI) Mission Statement
Overview of Mission Statement
TechnipFMC's mission statement emphasizes its commitment to delivering innovative and sustainable solutions in the energy sector, focusing on subsea and surface technologies. The company aims to leverage its engineering expertise and technology to drive efficiency and sustainability in oil and gas operations.
Financial Performance Indicators
As of September 30, 2024, TechnipFMC reported significant financial metrics that reflect its operational effectiveness and strategic direction:
| Metric | Value (2024) | Value (2023) | Change (%) |
|---|---|---|---|
| Revenue | $6,716.0 million | $5,746.5 million | 16.9% |
| Gross Profit | $1,336.1 million | $920.5 million | 45.2% |
| Net Income | $618.2 million | $3.2 million | 19,218.8% |
| Operating Profit | $723.1 million | $397.9 million | 81.7% |
| Operating Profit Margin | 10.7% | 6.9% | 3.8 pts |
Segment Performance
TechnipFMC operates through two primary segments: Subsea and Surface Technologies, both of which have shown varying performance metrics as of September 30, 2024.
| Segment | Revenue (2024) | Revenue (2023) | Operating Profit (2024) | Operating Profit (2023) |
|---|---|---|---|---|
| Subsea | $5,772.0 million | $4,714.3 million | $723.1 million | $397.9 million |
| Surface Technologies | $944.0 million | $1,032.2 million | $167.7 million | $81.4 million |
Order Backlog and Inbound Orders
As of September 30, 2024, TechnipFMC's order backlog is a crucial indicator of future revenue potential and operational capacity:
| Category | Value (September 30, 2024) | Value (December 31, 2023) |
|---|---|---|
| Total Order Backlog | $14,698.9 million | $13,231.0 million |
| Subsea Backlog | $13,732.1 million | $12,164.1 million |
| Surface Technologies Backlog | $966.8 million | $1,066.9 million |
Market Position and Strategic Initiatives
TechnipFMC's mission aligns with its strategic initiatives to enhance market competitiveness and operational sustainability. The company has been focusing on technology integration and innovative solutions to meet the evolving demands of the energy sector.
Dividend Policy
TechnipFMC has maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders:
| Dividend Metric | Value (2024) |
|---|---|
| Quarterly Dividend per Share | $0.05 |
| Annualized Dividend per Share | $0.20 |
| Total Dividends Paid (9 months) | $64.7 million |
Investment Grade Credit Rating
TechnipFMC achieved an investment-grade credit rating in 2024, enhancing its financial stability and access to capital markets:
- S&P Rating: BBB-
- Fitch Rating: BBB-
How TechnipFMC plc (FTI) Works
Company Overview
TechnipFMC plc operates in two main segments: Subsea and Surface Technologies. The company specializes in providing technology and services for the energy industry, focusing on the entire lifecycle of oil and gas projects.
Financial Performance
As of September 30, 2024, TechnipFMC reported a total revenue of $6,716.0 million, an increase of $969.5 million or 16.9% compared to the same period in 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Subsea | $5,772.0 million | $4,714.3 million | $1,057.7 million | 22.4% |
| Surface Technologies | $944.0 million | $1,032.2 million | ($88.2 million) | (8.5%) |
Cost Structure
Total costs and expenses for the nine months ended September 30, 2024, were $5,961.4 million, up from $5,376.2 million in 2023, representing an increase of $585.2 million or 10.9%.
| Cost Type | 2024 ($ millions) | 2023 ($ millions) | Change ($ millions) | Change (%) |
|---|---|---|---|---|
| Cost of Sales | $5,379.9 | $4,828.8 | $551.1 | 11.4% |
| Selling, General and Administrative Expense | $522.1 | $487.7 | $34.4 | 7.1% |
| Research and Development Expense | $48.2 | $49.7 | ($1.5) | (3.0%) |
| Restructuring and Other Charges | $11.2 | $10.0 | $1.2 | 12.0% |
Net Income
Net income for the nine months ended September 30, 2024, was $625.6 million, a significant increase from $5.2 million in the same period in 2023. The net income attributable to TechnipFMC plc was $618.2 million.
Operational Highlights
Subsea revenue growth was driven by a backlog that was 49.6% higher as of December 31, 2023, compared to the previous year. Key geographic contributions included:
- Angola: $257.5 million
- Brazil: $195.0 million
- Guyana: $176.9 million
- United States: $168.8 million
- Australia: $155.7 million
- United Kingdom: $145.5 million
Inbound Orders and Backlog
Inbound orders for the third quarter of 2024 totaled $2,784.5 million, with a total order backlog of $14,698.9 million as of September 30, 2024.
| Segment | Order Backlog (September 30, 2024) | Order Backlog (December 31, 2023) | Change ($ millions) |
|---|---|---|---|
| Subsea | $13,732.1 | $12,164.1 | $1,568.0 |
| Surface Technologies | $966.8 | $1,066.9 | ($100.1) |
Cash Flows
For the nine months ended September 30, 2024, cash provided by operating activities was $382.1 million, compared to cash used of $8.1 million in 2023. Investing activities provided $36.7 million in cash during the same period.
Debt and Liquidity
As of September 30, 2024, TechnipFMC maintained a net debt position of ($129.2 million), with cash and cash equivalents of $837.5 million against short-term and long-term debt totaling $966.7 million.
Stockholder Equity
Total stockholders’ equity as of September 30, 2024, was $3,299.2 million, with ordinary shares outstanding totaling 425.4 million.
| Equity Component | Value ($ millions) |
|---|---|
| Ordinary Shares | 425.4 |
| Capital in Excess of Par Value | 8,688.6 |
| Accumulated Deficit | (4,492.7) |
| Accumulated Other Comprehensive Loss | (1,362.1) |
| Total Stockholders' Equity | 3,299.2 |
How TechnipFMC plc (FTI) Makes Money
Revenue Sources
TechnipFMC plc generates revenue primarily from two business segments: Subsea and Surface Technologies. For the nine months ended September 30, 2024, the company reported total revenue of $6,716.0 million, a 16.9% increase from $5,746.5 million in the same period of 2023. The breakdown of revenue by segment is as follows:
| Segment | Revenue (in millions) | Change (%) |
|---|---|---|
| Subsea | $5,772.0 | 22.4 |
| Surface Technologies | $944.0 | (8.5) |
Subsea Segment Performance
In the Subsea segment, revenue increased by $1,057.7 million compared to the same period in 2023, driven by a conversion of increased backlog and higher energy demand. The geographical contributions to this increase include:
- Angola: $257.5 million
- Brazil: $195.0 million
- Guyana: $176.9 million
- United States: $168.8 million
- Australia: $155.7 million
- United Kingdom: $145.5 million
Operating profit for the Subsea segment reached $723.1 million, up from $397.9 million in 2023, reflecting an increase of 81.7%.
Surface Technologies Segment Performance
The Surface Technologies segment reported a revenue decrease of $88.2 million, attributed to lower drilling and completion activity primarily in Europe and North America. However, operating profit rose to $167.7 million, a 106.0% increase due to gains from the sale of Measurement Solutions business.
Cost Structure
Total costs and expenses for the nine months ended September 30, 2024, were $5,961.4 million, compared to $5,376.2 million in the previous year, marking an increase of 10.9%. Key components include:
| Cost Category | Amount (in millions) | Change (%) |
|---|---|---|
| Cost of Sales | $5,379.9 | 11.4 |
| Selling, General and Administrative Expense | $522.1 | 7.1 |
| Research and Development Expense | $48.2 | (3.0) |
| Restructuring, Impairment and Other Charges | $11.2 | 12.0 |
Net Income
Net income for TechnipFMC plc for the nine months ended September 30, 2024, was $618.2 million, a significant increase from $3.2 million in the same period of 2023.
Order Backlog and Inbound Orders
As of September 30, 2024, TechnipFMC's total order backlog stood at $14,698.9 million, reflecting a robust demand for its services. The order backlog by segment is detailed below:
| Segment | Order Backlog (in millions) |
|---|---|
| Subsea | $13,732.1 |
| Surface Technologies | $966.8 |
Inbound orders for the three months ended September 30, 2024, totaled $2,784.5 million, with Subsea accounting for $2,463.2 million and Surface Technologies $321.3 million.
Geographic Revenue Distribution
The revenue distribution by geographic region for the Subsea segment for the three months ended September 30, 2024, is as follows:
| Region | Revenue (in millions) |
|---|---|
| Latin America | $761.2 |
| Europe and Central Asia | $546.9 |
| North America | $237.9 |
| Africa | $274.9 |
| Asia Pacific | $204.9 |
| Middle East | $2.3 |
Overall, TechnipFMC plc demonstrates a diversified revenue generation model with significant contributions from both Subsea and Surface Technologies segments across various geographic locations and a strong order backlog that positions the company favorably for continued growth in the energy sector.
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Article updated on 8 Nov 2024
Resources:
- TechnipFMC plc (FTI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TechnipFMC plc (FTI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TechnipFMC plc (FTI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.