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TechnipFMC plc (FTI - Free Report) recently strengthened its balance sheet by amending its total unsecured credit facility of worth $2.5 billion. The company also signed an Amendment and Restatement Agreement to its €500 million senior unsecured revolving Euro credit facility agreement. These amendments authorise the company to include $3.2 billion of goodwill for the calculation of consolidated net value.
The amendments to its credit facilities will enhance financial flexibility substantially to tide over these difficult times.
Over the past few months, the oil and gas industry has been in disarray, thanks to the coronavirus pandemic that ripped most sectors apart until now. Global fuel demand is visibly suppressed in the aftermath of large-scale travel embargo imposed globally. As a result, the outlook for all industries in the energy sector business remains drab.
Despite the sickly economic condition, TechnipFMC maintains a strong financial position. By the end of the first quarter of 2020, the company had $4.9 billion in cash and cash equivalents.
Recently, the company lowered its dividend by 75% on an annualized basis to 13 cents per share due to the coronavirus pandemic, which caused a crude price crash. TechnipFMC’s trimmed payout will reduce its yearly cash outgo for 2020 by $175 million from the 2019-level. It further plans to pay out its 2021 dividend in quarterly instalments starting April next year.
Additionally, the company announced a revised compensation through the year-end including a 30% salary cut for the chairman and CEO, a 30% reduction in the board of directors’ retainer and a 20% decrease in the salaries of the executive leadership team.
This London-based entity slashed its 2020 capex guidance by 30% from the past projection due to the sudden oil price slump induced by the coronavirus pandemic. The company now anticipates shelling out $300 million as capital expenditures.
It now chalked out a plan of action to determine additional savings of more than $220 million to cover all business segments and support functions. Total annualized savings are now estimated to exceed $350 million.
Brief on the Company
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions to the energy industry. The company, which was formed by the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically sophisticated systems and products for subsea, onshore/offshore, and surface projects.
Shares of TechnipFMC have lost 60.4% in the year-to-date period compared with the industry’s 29.2% decline.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
TechnipFMC Amends $2.5B Credit Facility & EUR 500M Facility
TechnipFMC plc (FTI - Free Report) recently strengthened its balance sheet by amending its total unsecured credit facility of worth $2.5 billion. The company also signed an Amendment and Restatement Agreement to its €500 million senior unsecured revolving Euro credit facility agreement. These amendments authorise the company to include $3.2 billion of goodwill for the calculation of consolidated net value.
The amendments to its credit facilities will enhance financial flexibility substantially to tide over these difficult times.
Over the past few months, the oil and gas industry has been in disarray, thanks to the coronavirus pandemic that ripped most sectors apart until now. Global fuel demand is visibly suppressed in the aftermath of large-scale travel embargo imposed globally. As a result, the outlook for all industries in the energy sector business remains drab.
Despite the sickly economic condition, TechnipFMC maintains a strong financial position. By the end of the first quarter of 2020, the company had $4.9 billion in cash and cash equivalents.
Recently, the company lowered its dividend by 75% on an annualized basis to 13 cents per share due to the coronavirus pandemic, which caused a crude price crash. TechnipFMC’s trimmed payout will reduce its yearly cash outgo for 2020 by $175 million from the 2019-level. It further plans to pay out its 2021 dividend in quarterly instalments starting April next year.
Additionally, the company announced a revised compensation through the year-end including a 30% salary cut for the chairman and CEO, a 30% reduction in the board of directors’ retainer and a 20% decrease in the salaries of the executive leadership team.
This London-based entity slashed its 2020 capex guidance by 30% from the past projection due to the sudden oil price slump induced by the coronavirus pandemic. The company now anticipates shelling out $300 million as capital expenditures.
It now chalked out a plan of action to determine additional savings of more than $220 million to cover all business segments and support functions. Total annualized savings are now estimated to exceed $350 million.
Brief on the Company
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions to the energy industry. The company, which was formed by the January 2017 merger between Technip and FMC Technologies, is engaged in designing, producing and servicing technologically sophisticated systems and products for subsea, onshore/offshore, and surface projects.
Shares of TechnipFMC have lost 60.4% in the year-to-date period compared with the industry’s 29.2% decline.
Zacks Rank & Key Picks
TechnipFMC currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Oceaneering International Inc (OII - Free Report) , Gulfport Energy Corporation (GPOR - Free Report) and Chesapeake Energy Corporation (CHK - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>