Seabed-to-surface oilfield equipment and services provider
TechnipFMC plc ( FTI Quick Quote FTI - Free Report) reported first-quarter 2021 adjusted loss per share of 3 cents, narrower than the Zacks Consensus Estimate of 10 cents and the year-ago loss of 13 cents. The outperformance can be primarily attributed to higher-than-anticipated profits from the Subsea segment – the major contributor to the company’s top and bottom line. Precisely, adjusted EBITDA from the unit totaled $135.1 million, ahead of the Zacks Consensus Estimate of $115 million. Overall, TechnipFMC reported adjusted EBITDA of $165.2 million, surging 107.3% year over year, while adjusted EBITDA margin also more than doubled to 10.1%. Moreover, for the quarter ended Mar 31, the company’s revenues of $1.6 billion beat the Zacks Consensus Estimate by 9.2% and increased 3.1% from a year ago. In the first quarter, TechnipFMC’s inbound orders rose by 11.9% from the year-ago period to $1.7 billion – a signal of improving revenue visibility. But the company’s backlog was down. As of March-end, TechnipFMC’s order backlog stood at $7.2 billion, deteriorating by 11.9% from 2020. Financials
In the reported quarter, TechnipFMC spent $44.2 million on capital programs. Meanwhile, cash flow from operations for the quarter came in at $181.5 million. As of Mar 31, the company had cash and cash equivalents of $752.8 million and long-term debt of $2.4 billion with a debt-to-capitalization of 40%.
2021 Outlook & Guidance
Looking ahead, TechnipFMC expects a robust global recovery, which would be more sustainable than the earlier cycles. Based on this encouraging outlook, the company sees full-year subsea inbound orders in excess of $4 billion, with growth continuing into 2022.
TechnipFMC still expects revenues from the Subsea and Surface Technologies units to be $5-$5.4 billion and $1.05-$1.25 billion, respectively. Further, this London-based oilfield services provider expects to generate free cash flows in the $120-$220 million range in 2021, up from the previous guidance of $50-$150 million. Finally, the company reiterated its annual capital expenditure view of $250 million. Zacks Rank & Stock Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold).
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