TechnipFMC: Record Orders, Backlog in Q2

By Bate Felix
Thursday, July 25, 2019

Franco-American oil services company TechnipFMC received a record volume of orders in the second quarter, pushing its backlog of projects to a peak thanks to new liquefied natural gas projects, it said on Wednesday.

The records could signal a rebound for the company created by a 2016 merger of France's Technip and U.S. rival FMC Technologies to weather the oil price crash that had forced their oil major clients to slash budgets and shelve projects.

"We achieved record inbound orders in the quarter, with total company orders reaching $11.2 billion," Doug Pferdehirt, chairman and CEO of TechnipFMC, said in a statement.

Onshore/offshore inbound orders of $8.1 billion was also a new record for the business segment and the total backlog for projects for the company increased more than 75 percent since year-end to $25.8 billion.

Pferdehirt said TechnipFMC was benefiting from the new wave of liquefied natural gas (LNG) projects. The company on Tuesday won a $7.6 billion contract from Russia's Novatek for the Arctic LNG-2 project in western Siberia.

"The LNG market growth continues to be underpinned by the structural shift towards natural gas as an energy transition fuel, helping to meet the increasing demand for energy while lowering greenhouse gases," Pferdehirt said.

TechnipFMC said its subsea division was also seeing strong growth and had won most contracts in the sector, worth around $3 billion, since the start of the year including Anadarko's Golfinho $1 billion development in Mozambique.

"The unprecedented level of order activity demonstrates that we are winning," Pferdehirt said, adding that TechnipFMC's strong second-quarter results and growth in backlog showed the company would achieve its increased full-year guidance.

The company said revenue came in at $3.434 billion, while net income was $97 million, or $0.21 per diluted share in the quarter.

TechnipFMC raised its guidance for revenue from the subsea division to $5.6 billion - $5.8 billion, from the previous range of $5.4 billion - $5.7 billion. It increased onshore/offshore EBITDA margin to at least 16.5% from the previous guidance of at least 14%.


(Reporting by Bate Felix; Editing by Cynthia Osterman)

Categories: Technology Contracts Finance LNG Engineering Subsea Industry News Activity Natural Gas

Related Stories

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Scarborough FPU's Topsides and Hull Come Together in Major Engineering Feat (Video)

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

‘Ultra-Mega’ Offshore Deal for L&T at QatarEnergy LNG’s North Field Gas Scheme

Woodside Inks Long-Term LNG Supply Deal with China Resources

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

McDermott Concludes Work at PTTEP’s Kikeh Gas Field Off Malaysia

Current News

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

BW Opal FPSO Vessel set for Work off Australia

Keyfield Ventures into Indonesia’s Oil and Gas Market with New Partner

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com