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TechnipFMC plc (FTI) Stock Rises 11.5% Despite Wider Q4 Loss
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TechnipFMC plc (FTI - Free Report) stock has gone up 11.5% since the fourth-quarter 2021 earnings announcement on Feb 23.
This stock performance can be attributed to a sequential increase in both cash flow from operations and free cash flow available. TechnipFMC’s stock rose despite the income from the Subsea unit and the Surface Technologies segment lagging the Zacks Consensus Estimate.
Behind the Earnings Headlines
TechnipFMC reported a fourth-quarter 2021 adjusted loss of 12 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. In the year-ago quarter, it had reported a loss of 6 cents. This underperformance was due to lower-than-anticipated earnings from both the Subsea and Surface Technologies segments.
Adjusted EBITDA from the Subsea unit totaled $123.6 million, falling short of the Zacks Consensus Estimate of $134 million, while the Surface Technologies unit’s profit came in at $28.9 million, lagging the Zacks Consensus Estimate of $33.3 million.
For the quarter ended Dec 31, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.52 billion missed the Zacks Consensus Estimate by 3.9% and also declined from the year-ago quarter’s $1.60 billion.
In the fourth quarter, FTI’s inbound orders increased 108.1% from the year-ago period’s level to $2.1 billion, reflecting strong revenue visibility.
Also, the company’s backlog was down. As of December end, TechnipFMC’s order backlog stood at $7.66 billion, improving about 5.1% from the 2020 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.24 billion, down 7.6% from the year-ago sales figure of $1.34 billion, due to reduced activities in the North Sea and Asia. However, adjusted EBITDA was reported at $123.6 million, reflecting an improvement of 6.1% from the year-ago quarter’s level, due to lower depreciation and amortization. Quarterly inbound orders jumped 45.3% to $1.03 billion, while the backlog fell 5%.
Surface Technologies: This smaller segment of the company recorded revenues of $287.1 million, up 9.5% year over year, primarily due to an increase in North American drilling and completion activity and increased revenues in North America. However, the unit’s adjusted EBITDA decreased 6.5% to $28.9 million due to costs associated with the new international manufacturing capacity. The segment’s inbound orders rose 256.9%, while the quarter-end backlog increased 172%.
In the reported quarter, TechnipFMC spent $60.5 million on capital programs. Cash provided by operations for the quarter came in at $483.5 million. As of Dec 31, the company had cash and cash equivalents of $1.33 billion and long-term debt of $1.73 billion with debt-to-capitalization of 33.7%.
2022 Outlook
TechnipFMC announced revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022. In 2022, it expects revenues from the Surface Technologies unit in the $1.15 -$1.30 billion band and an EBITDA margin in the range of 11%-12%.
This London-based oilfield services provider said that its free cash flow generation projection for 2022 is expected in the $100-$250 million band. The company guided toward an annual capital expenditure view of $230 million.
Houston, TX-based Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. As of the 2020 end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at the 2019 end.
Occidental Petroleum’s earnings for 2022 are expected to surge 81.2% year over year. OXY witnessed five upward revisions in the past 30 days. It beat the Zacks Consensus Estimate thrice in the last four quarters and missed the same once, with an earnings surprise of 13.7%, on average.
ConocoPhillips reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.27, beating the Zacks Consensus Estimate of $2.20. ConocoPhillips reported preliminary 2021 year-end proved reserves at 6.1 billion Boe.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP revised higher its expected 2022 return of capital to shareholders. The new guidance of $8 billion reflects an increase from the prior projection of $7 billion. The incremental returns to stockholders will be distributed through share repurchases and VROC tiers.
ExxonMobil reported fourth-quarter 2021 EPS of $2.05, excluding identified items, beating the Zacks Consensus Estimate of $1.96. At the end of the fourth quarter, ExxonMobil’s total cash and cash equivalents were $6.8 billion.
ExxonMobil is expected to see an earnings growth of 28.1% in 2022. XOM initiated share repurchases at the beginning of the March-end quarter of this year. The buybacks are associated with the repurchase plan announced earlier, representing the program of repurchasing up to $10 billion over the next 12 to 24 months.
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TechnipFMC plc (FTI) Stock Rises 11.5% Despite Wider Q4 Loss
TechnipFMC plc (FTI - Free Report) stock has gone up 11.5% since the fourth-quarter 2021 earnings announcement on Feb 23.
This stock performance can be attributed to a sequential increase in both cash flow from operations and free cash flow available. TechnipFMC’s stock rose despite the income from the Subsea unit and the Surface Technologies segment lagging the Zacks Consensus Estimate.
Behind the Earnings Headlines
TechnipFMC reported a fourth-quarter 2021 adjusted loss of 12 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. In the year-ago quarter, it had reported a loss of 6 cents. This underperformance was due to lower-than-anticipated earnings from both the Subsea and Surface Technologies segments.
Adjusted EBITDA from the Subsea unit totaled $123.6 million, falling short of the Zacks Consensus Estimate of $134 million, while the Surface Technologies unit’s profit came in at $28.9 million, lagging the Zacks Consensus Estimate of $33.3 million.
For the quarter ended Dec 31, this seabed-to-surface oilfield equipment and services provider’s revenues of $1.52 billion missed the Zacks Consensus Estimate by 3.9% and also declined from the year-ago quarter’s $1.60 billion.
In the fourth quarter, FTI’s inbound orders increased 108.1% from the year-ago period’s level to $2.1 billion, reflecting strong revenue visibility.
Also, the company’s backlog was down. As of December end, TechnipFMC’s order backlog stood at $7.66 billion, improving about 5.1% from the 2020 reading.
Segment Analysis
Subsea: Revenues in the quarter under review were $1.24 billion, down 7.6% from the year-ago sales figure of $1.34 billion, due to reduced activities in the North Sea and Asia. However, adjusted EBITDA was reported at $123.6 million, reflecting an improvement of 6.1% from the year-ago quarter’s level, due to lower depreciation and amortization. Quarterly inbound orders jumped 45.3% to $1.03 billion, while the backlog fell 5%.
Surface Technologies: This smaller segment of the company recorded revenues of $287.1 million, up 9.5% year over year, primarily due to an increase in North American drilling and completion activity and increased revenues in North America. However, the unit’s adjusted EBITDA decreased 6.5% to $28.9 million due to costs associated with the new international manufacturing capacity. The segment’s inbound orders rose 256.9%, while the quarter-end backlog increased 172%.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Financials
In the reported quarter, TechnipFMC spent $60.5 million on capital programs. Cash provided by operations for the quarter came in at $483.5 million. As of Dec 31, the company had cash and cash equivalents of $1.33 billion and long-term debt of $1.73 billion with debt-to-capitalization of 33.7%.
2022 Outlook
TechnipFMC announced revenue expectations from the Subsea unit in the $5.2-$5.6 billion range for 2022. In 2022, it expects revenues from the Surface Technologies unit in the $1.15 -$1.30 billion band and an EBITDA margin in the range of 11%-12%.
This London-based oilfield services provider said that its free cash flow generation projection for 2022 is expected in the $100-$250 million band. The company guided toward an annual capital expenditure view of $230 million.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy space are Occidental Petroleum (OXY - Free Report) , ConocoPhillips (COP - Free Report) and ExxonMobil Corporation (XOM - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Occidental Petroleum is an integrated oil and gas company with significant exploration and production exposure. As of the 2020 end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at the 2019 end.
Occidental Petroleum’s earnings for 2022 are expected to surge 81.2% year over year. OXY witnessed five upward revisions in the past 30 days. It beat the Zacks Consensus Estimate thrice in the last four quarters and missed the same once, with an earnings surprise of 13.7%, on average.
ConocoPhillips reported fourth-quarter 2021 adjusted earnings per share (EPS) of $2.27, beating the Zacks Consensus Estimate of $2.20. ConocoPhillips reported preliminary 2021 year-end proved reserves at 6.1 billion Boe.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP revised higher its expected 2022 return of capital to shareholders. The new guidance of $8 billion reflects an increase from the prior projection of $7 billion. The incremental returns to stockholders will be distributed through share repurchases and VROC tiers.
ExxonMobil reported fourth-quarter 2021 EPS of $2.05, excluding identified items, beating the Zacks Consensus Estimate of $1.96. At the end of the fourth quarter, ExxonMobil’s total cash and cash equivalents were $6.8 billion.
ExxonMobil is expected to see an earnings growth of 28.1% in 2022. XOM initiated share repurchases at the beginning of the March-end quarter of this year. The buybacks are associated with the repurchase plan announced earlier, representing the program of repurchasing up to $10 billion over the next 12 to 24 months.