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TechnipFMC (FTI) Q4 Earnings Miss, Revenues Top Estimates

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TechnipFMCplc’s (FTI - Free Report) fourth-quarter 2020 adjusted earnings of 5 cents per share missed the Zacks Consensus Estimate of 21 cents. This underperformance was primarily caused by weak revenue contribution from the company’s Subsea and Surface Technologies units.

However, the bottom line surged 66.6% from the year-earlier quarter's adjusted earnings of 3 cents owing to better-than-expected profit from the Technip Energies segment. Also, adjusted EBITDA of $194 million from the segment outperformed the Zacks Consensus Estimate of $176 million.

In the quarter ended Dec 31, the company’s revenues of $3.43 billion surpassed the Zacks Consensus Estimate of $3.34 billion. However, the top line declined from the year-ago quarter’s $3.73 million.

In the fourth quarter, this seabed-to-surface oilfield equipment and services provider’s inbound orders improved 54.7% from the year-ago period to $4.20 billion.

However, the company’s backlog deteriorated in the same period. The metric was $21.4 billion, declining 11.8% from the year-ago quarter.

Last month, TechnipFMC 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) has started trading under the symbol TE on the Euronext Paris Exchange in February.

Subsea: Revenues in the quarter under review were $1.34 billion, down 10% from the year-ago sales figure of $1.49 billion owing tolower project activity in Norway and Brazil. Moreover, adjusted EBITDA of $116.5 million decreased 37%, attributable to coronavirus-induced unfavorable execution of activity. Quarterly inbound orders and backlog decreased 39.3% and 18.9%, respectively, in the quarter under review.

Technip Energies: Revenues of $1.83 billion inched down 0.4% from the prior-year quarter, due to lower revenue from Yamal LNG and weak activity on projects in the Middle East and North America. In the fourth quarter, this unit reported $194 million as adjusted EBITDA, down from $259.7 million in the prior-year quarter.

Inbound orders skyrocketed 186.4% to $3.2 billion while the segment’s backlog dropped 7.8% year over year to $14.1 billion at the end of the quarter.

Surface Technologies: This is the company’s smallest segment that recorded revenues of $262.3 million, down 35.6% year over year,primarily due to slowdown in North American completions activity as well as drop in international revenue. Adjusted EBITDA tanked 44.7% to $30.9 million due to lower completions-based activity in North America. The segment’s inbound orders and backlog fell 30.4% and 12.6%, respectively, in the quarter under review.

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc Price, Consensus and EPS Surprise

TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote


In the reported quarter, TechnipFMC spent $291.8 million. As of Dec 31, the company had cash and cash equivalents worth $4.81 billion and a long-term debt of $3.32 billion with total debt-to-total capital of 44.4%.

2021 Guidance

TechnipFMC provided the full-year outlook for its operating segments (excluding Technip Energies that will be reported as discontinued operations). The company expects revenues from the Subsea and Surface Technologies units to be $5-$5.4 billion and $1,050-$1,250 million, respectively.

Further, this London-based company expects to generate free cash flows in the $50-$150 million range in 2021. The company now anticipates shelling out $250 million as capital expenditures.

Zacks Rank & Stocks to Consider

TechnipFMC has a Zacks Rank #4 (Sell), currently.

Some better-ranked players in the energy space are Matador Resources Company (MTDR - Free Report) , PDC Energy, Inc. (PDCE - Free Report) and Denbury Inc. (DEN - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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