TechnipFMC (NYSE: FTI) reported Q1 EPS of ($0.03), $0.04 better than the analyst estimate of ($0.07). Revenue for the quarter came in at $1.63 billion versus the consensus estimate of $1.53 billion.

Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, “Our first quarter as a leading pure play, technology and services provider to both traditional and new energy industries was an exceptional start. Total Company adjusted EBITDA from continuing operations was $165 million, with free cash flow of $137 million. We delivered solid financial results in both Subsea and Surface Technologies, largely driven by strong operational execution. We also announced new strategic partnerships that will further progress the development of material opportunities for TechnipFMC in the energy transition.”

Pferdehirt added, “In Subsea, inbound orders more than doubled sequentially to $1.5 billion, with increased adoption of Subsea 2.0™ technologies. Integrated projects comprised nearly 40 percent of segment orders and included an award for Petronas’ first deepwater project, Limbayong, which will benefit from the seamless integration of both iEPCI™ and Subsea 2.0™. We also received a contract for manifolds for the Petrobras Marlim and Voador fields, which will utilize our all-electric robotic technology. Using digital automation and control, we can replace traditional subsea hydraulics, allowing for a more autonomous system that enables a significantly reduced carbon footprint.”

“In Surface Technologies, our international revenue mix continued to expand and represented nearly 70 percent of the segment in the quarter, driven by strength in the Middle East, North Sea and Asia Pacific. These markets demand higher specification equipment, global services and local capabilities, which are areas where we continue to further differentiate our offering. We believe our unique capabilities will allow us to extend our leadership positions in these more resilient markets.”

Pferdehirt continued, “Client conversations remain constructive, suggesting a further increase in activity. We see potential for a global recovery that is more sustainable than previous cycles, giving us confidence in our 2021 Subsea outlook of more than $4 billion in inbound orders and for continued growth in 2022. We believe that integrated project awards have the potential to more than double versus the prior year, and the combination of direct project and service-related orders could represent 50 percent of total inbound for the current year.”

Pferdehirt added, “We announced two strategic partnerships focused on the generation of renewable energy. There is strong market momentum towards offshore wind, with governments increasingly focused on opening new areas for development. Our new partnership with Magnora is pursuing offshore wind development opportunities, and we are working separately with Bombora to convert both wind and wave energy into renewable power. It is estimated that nearly 80 percent of the world’s offshore wind resources will come from deepwater where we will benefit from our significant installed base, domain expertise and history of subsea innovation.”

Pferdehirt concluded, “Our first quarter results provide us with a very strong start to the year in support of our 2021 commitments. Looking ahead, we expect robust and sustained activity across our businesses, supported by improving market fundamentals and our competitive differentiation. Importantly, we continue to leverage our unique capabilities and technologies to strategically position TechnipFMC for the development of new energy sources, using the very same playbook that led to the successful transformation of our Subsea business.”

2021 Full-Year Financial Guidance1

The Company’s full-year guidance for 2021 can be found in the table below.

Guidance is based on continuing operations and thus excludes the impact of Technip Energies, which is reported as discontinued operations.

Updates to the Company’s full-year guidance for 2021 are as follows:

• Tax provision, as reported, of $70 - 80 million; decreased from the previous guidance of $110 - 120 million.
• Free cash flow of $120 - 220 million; increased from the previous guidance of $50 - 150 million.

The guidance updates reflect a change to separation-related tax items and costs, previously estimated to be $40 million and $30 million, respectively. The actual separation-related expenses incurred were in-line with previous expectations and were reported as part of discontinued operations in the first quarter.

All segment guidance assumes no further material degradation from COVID-19-related impacts.

For earnings history and earnings-related data on TechnipFMC (FTI) click here.