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TechnipFMC (FTI) Splits Into Two Discrete Publicly-Traded Entities

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TechnipFMC Plc (FTI - Free Report) announced the closing of its spin-off transaction to split its activities into two independent publicly traded companies — TechnipFMC and Technip Energies.

Per the plan, the company has been separated into two distinct entities, TechnipFMC, a fully integrated technology and service provider, and Technip Energies, which will oversee the engineering and construction activities. Notably, the spinoff (Technip Energies) will trade under the symbol TE on the Euronext Paris Exchange.

In August 2019, the company announced plans to spin off its engineering and construction activities into a separate entity, and transform itself into a technology-focused equipment provider for the energy industry. However, the plan was delayed as a result of the coronavirus-induced oil price plunge and the global financial crisis.

The company recommenced the separation process in January, expecting that the two entities could greatly benefit from the diverse and increasing market opportunities. TechnipFMC believed that the dissociation will provide the two businesses with specific customer bases, and allow them to focus on management, resources and capital.

Technip Energies is now recognized as a leader in liquefied natural gas, hydrogen and ethylene. Moreover, it engages in core areas of development, which includes sustainable chemistry and carbon dioxide management. Importantly, about half of the outstanding shares of Technip Energies will be owned by TechnipFMC shareholders on a pro-rata basis.

Notably, the segregation would enable both companies to progress independently within their sectors and allow them to deliver significant shareholder value.

Company profile

TechnipFMC is a leading manufacturer and supplier of products, services and fully-integrated technology solutions for the energy industry. It operates through three business segments — Subsea, Surface Technologies and Technip Energies.

Zacks Rank & Stocks to Consider

TechnipFMC currently carries a Zack Rank #4 (Sell).

Some better-ranked players in the energy space are Royal Dutch Shell Plc  and Imperial Oil Limited (IMO - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Diamondback Energy, Inc. (FANG - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shell’s earnings for 2021 are expected to rise 17.4% year over year.

Imperial Oil’s earnings for 2021 are anticipated to increase 15.8% year over year.

Diamondback’s earnings for 2021 are expected to surge 78% year over year.

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