TechnipFMC posts smaller third quarter profit

first_imgOil and gas services company TechnipFMC has recorded a smaller profit and revenues for the third quarter 2017 compared to the prior-year period but the company is optimistic about the recovery in the subsea market. TechnipFMC’s net income for the third quarter 2017 was $121 million, a 63% decrease when compared to net income of $327 million in the third quarter 2016, according to its financial report on Wednesday.The merger between between Technip and FMC Technologies was completed in January 2017 and it is worth mentioning that all prior year quarter comparisons are to pro forma results for 2016 as if the merger had been completed on January 1, 2016.Total company revenue of $4.1 billion was down 17.8 percent from the same quarter in the prior year and revenues of $5.03 billion.Looking at the company’s business segments, the Subsea segment brought $1.5 billion in revenues, Onshore/Offshore brought $2.3 billion, and Surface Technologies segment contributed $354 million.Subsea revenues were down 37 percent from the prior year, primarily due to a reduction in project activity within Europe and Africa.Onshore/Offshore revenues declined 3.8 percent from the prior-year quarter due to the completion of several projects since the prior-year period, partially offset by increased activity in the Middle East region.Surface Technologies revenues increased 19.9 percent from the prior year quarter as a result of the robust increase in North American well completion activity, while international markets remained stable across our products and services portfolio.Doug Pferdehirt, CEO of TechnipFMC, stated: “Total inbound orders for the quarter were $2.5 billion, with Subsea at nearly $1 billion – reinforcing our conviction in the steady recovery of the subsea market. We believe that most major subsea projects can move forward at today’s oil prices, with delays in project sanctioning more a function of near-term price uncertainty than project returns.”Pferdehirt also expects the company’s 2018 Subsea inbound to exceed 2017 levels, driven by the current momentum in project bid activity and an acceleration of integrated project awards.Pferdehirt concluded, “As we look to 2018, we are managing revenue declines against the strategic investments needed to sustain our operational capabilities through the recovery. We see significant opportunities ahead, and these will be driven by internal initiatives as well as market fundamentals.”Offshore Energy Today Stafflast_img read more

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