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TechnipFMC plc (FTI - Free Report) reported fourth-quarter 2023 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 12 cents. The bottom line also improved from the year-ago quarter’s reported loss per share of 5 cents. The improvement can be attributed to better-than-expected performance in the Subsea and Surface Technologies segments.
Revenues of $2.1 billion beat the Zacks Consensus Estimate by 9.9%. The top line also increased from the year-ago quarter’s reported figure of $1.7 billion. This was primarily due to a higher revenue contribution from the aforementioned segments.
FTI’s fourth-quarter inbound orders decreased 16.9% from the year-ago period’s level to $1.5 billion. The company’s backlog rose during the same time frame. As of December-end, TechnipFMC’s order backlog totaled $13.2 billion, up about 41.5% from that recorded a year ago.
On Feb 20, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Mar 19. The payout, which remained flat quarter over quarter, will be made on Apr 3.
In the reported quarter, the company repurchased 2.7 million of its common shares for a total of $55 million. Total shareholder distributions were $76.7 million, including a $21.7 million dividend.
Subsea: Revenues from this segment totaled $1.72 billion, up 28.4% from the year-ago quarter’s level of $1.34 billion. The figure also beat our projection of $1.45 billion.The increase in revenues was primarily due to increased project activity in the Gulf of Mexico, Asia Pacific and Africa.
Adjusted EBITDA amounted to $225.5 million, up about 61% from the year-ago quarter’s level. The figure also surpassed our estimate of $190.5 million. Inbound orders declined 16.2% year over year to $1.27 billion. The backlog rose 49.6% during the same time frame.
Surface Technologies: This segment recorded revenues of $357.2 million, up 1.5% year over year. The figure also beat our projection of $351.3 million.
The unit’s adjusted EBITDA increased 18.2% to $52.5 million. The figure also exceeded our estimate of $46 million. The segment’s inbound orders fell 19.9% year over year. The quarter-end backlog decreased 12.7% during the same time frame.
Financials
TechnipFMC reported $1.94 million in costs and expenses, up 16.4% from the year-ago quarter’s level of $1.67 million.
During the reported quarter, the company spent $71.5 million on capital programs. Free cash flow amounted to $629.6 million, while operating cash flow totaled $701.1 million.
As of Dec 31, it had cash and cash equivalents worth $951.7 million and long-term debt of $913.5 million, with a debt-to-capitalization of 22.6%.
2024 Outlook
TechnipFMC expects revenues from the Subsea unit in the $7.2-$7.6 billion range. It also anticipates revenues for the Surface Technologies unit between $1.2 billion and $1.35 billion. The adjusted EBITDA margin is anticipated in the 15.5-16.5% range for the Subsea segment, and the same for the Surface Technologies segment between 13% and 15%.
The company expects free cash flow generation in the band of $350-$500 million for 2024. It also expects annual capital expenditure of $275 million and net interest expense of $70-$80 million for the year. TechnipFMC anticipates net corporate expenses to be in the range of $115-$125 million, including depreciation and amortization of $3 million, net interest expense of $70-$80 million, and tax provisions of $280-$290 million.
Subsea 7 is valued at $4.09 billion. The company currently pays a dividend of 38 cents per share, or 2.85%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $50.15 billion. The company currently pays a dividend of $1.26 per share, or 8.46%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Murphy USA is valued at around $8.6 billion. In the past year, its shares have risen 55.3%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.
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TechnipFMC (FTI) Q4 Earnings Beat, Revenues Rise Y/Y
TechnipFMC plc (FTI - Free Report) reported fourth-quarter 2023 adjusted earnings of 14 cents per share, which beat the Zacks Consensus Estimate of 12 cents. The bottom line also improved from the year-ago quarter’s reported loss per share of 5 cents. The improvement can be attributed to better-than-expected performance in the Subsea and Surface Technologies segments.
Revenues of $2.1 billion beat the Zacks Consensus Estimate by 9.9%. The top line also increased from the year-ago quarter’s reported figure of $1.7 billion. This was primarily due to a higher revenue contribution from the aforementioned segments.
FTI’s fourth-quarter inbound orders decreased 16.9% from the year-ago period’s level to $1.5 billion. The company’s backlog rose during the same time frame. As of December-end, TechnipFMC’s order backlog totaled $13.2 billion, up about 41.5% from that recorded a year ago.
On Feb 20, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Mar 19. The payout, which remained flat quarter over quarter, will be made on Apr 3.
In the reported quarter, the company repurchased 2.7 million of its common shares for a total of $55 million. Total shareholder distributions were $76.7 million, including a $21.7 million dividend.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Segmental Analysis
Subsea: Revenues from this segment totaled $1.72 billion, up 28.4% from the year-ago quarter’s level of $1.34 billion. The figure also beat our projection of $1.45 billion.The increase in revenues was primarily due to increased project activity in the Gulf of Mexico, Asia Pacific and Africa.
Adjusted EBITDA amounted to $225.5 million, up about 61% from the year-ago quarter’s level. The figure also surpassed our estimate of $190.5 million. Inbound orders declined 16.2% year over year to $1.27 billion. The backlog rose 49.6% during the same time frame.
Surface Technologies: This segment recorded revenues of $357.2 million, up 1.5% year over year. The figure also beat our projection of $351.3 million.
The unit’s adjusted EBITDA increased 18.2% to $52.5 million. The figure also exceeded our estimate of $46 million. The segment’s inbound orders fell 19.9% year over year. The quarter-end backlog decreased 12.7% during the same time frame.
Financials
TechnipFMC reported $1.94 million in costs and expenses, up 16.4% from the year-ago quarter’s level of $1.67 million.
During the reported quarter, the company spent $71.5 million on capital programs. Free cash flow amounted to $629.6 million, while operating cash flow totaled $701.1 million.
As of Dec 31, it had cash and cash equivalents worth $951.7 million and long-term debt of $913.5 million, with a debt-to-capitalization of 22.6%.
2024 Outlook
TechnipFMC expects revenues from the Subsea unit in the $7.2-$7.6 billion range. It also anticipates revenues for the Surface Technologies unit between $1.2 billion and $1.35 billion. The adjusted EBITDA margin is anticipated in the 15.5-16.5% range for the Subsea segment, and the same for the Surface Technologies segment between 13% and 15%.
The company expects free cash flow generation in the band of $350-$500 million for 2024. It also expects annual capital expenditure of $275 million and net interest expense of $70-$80 million for the year. TechnipFMC anticipates net corporate expenses to be in the range of $115-$125 million, including depreciation and amortization of $3 million, net interest expense of $70-$80 million, and tax provisions of $280-$290 million.
Zacks Rank and Key Picks
Currently, FTIcarries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , Energy Transfer LP (ET - Free Report) and Murphy USA Inc. (MUSA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 is valued at $4.09 billion. The company currently pays a dividend of 38 cents per share, or 2.85%, on an annual basis.
SUBCY offers offshore project services for the energy industry, specializing in subsea field development, covering project management, design, engineering, procurement, fabrication, survey, installation and commissioning of seabed production facilities.
Energy Transfer is valued at $50.15 billion. The company currently pays a dividend of $1.26 per share, or 8.46%, on an annual basis.
ET is an independent energy company, principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Murphy USA is valued at around $8.6 billion. In the past year, its shares have risen 55.3%.
MUSA is involved in the marketing of retail motor fuel products and convenience merchandise, operating retail stores under the brands Murphy USA, Murphy Express and QuickChek.