Full year 2020

• Cash flow from operations of $657 million; free cash flow of $365 million
• All segments achieved financial guidance
• Total Company inbound orders of $10.1 billion; Subsea orders of $4 billion
• Resilient backlog of $21.4 billion; Subsea backlog of $6.9 billion

Fourth quarter 2020

• U.S. GAAP diluted loss per share was $0.09
• Includes total after-tax charges, net of credits, of $0.14 per diluted share
• Adjusted diluted earnings per share, excluding charges and credits, was $0.05
• Includes expense resulting from increased liability to joint venture partners of $0.12 per diluted share

LONDON & PARIS & HOUSTON--(BUSINESS WIRE)--Regulatory News:

TechnipFMC plc (NYSE: FTI) (Paris: FTI) today reported fourth quarter 2020 results.

Summary Financial Statements - Fourth Quarter 2020

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

Total Company revenue in the fourth quarter was $3,426.1 million. Net loss attributable to TechnipFMC plc was $39.3 million, or $0.09 per diluted share. These results included after-tax charges and credits totaling $62.7 million of expense, or $0.14 per diluted share. Adjusted net income was $23.4 million, or $0.05 per diluted share.

Adjusted results for the current period included all direct COVID-19 expenses and operational impacts related to the pandemic. Direct COVID-19 expenses were excluded from adjusted results in previous quarters in 2020.

Adjusted EBITDA, which excludes pre-tax charges and credits, was $300.8 million and included a foreign exchange loss of $2.6 million; adjusted EBITDA margin was 8.8 percent (Exhibit 10).

Full Year 2020 Results

Summary Financial Statements - Full Year 2020

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

Total Company revenue for the full year was $13,050.6 million. Net loss attributable to TechnipFMC plc was $3,287.6 million, or $7.33 per diluted share. These results included after-tax charges and credits totaling $3,376.9 million of expense, or $7.53 per diluted share. Adjusted net income was $89.3 million, or $0.20 per diluted share.

Adjusted EBITDA, which excludes pre-tax charges and credits, was $1,083.3 million and included a foreign exchange loss of $28.8 million; adjusted EBITDA margin was 8.3 percent (Exhibit 11).

Separation update

Throughout 2020, we continued our work to separate TechnipFMC into two industry-leading, pure-play companies, with the transaction now completed through the partial spin-off of Technip Energies on February 16, 2021.

TechnipFMC shareholders received, as a dividend, one share of Technip Energies N.V. common stock for every five shares of TechnipFMC common stock held at the close of business on the record date. Technip Energies is now an independent public company. Its ordinary shares are traded under the ticker symbol “TE” on the Euronext Paris Exchange and its Level 1 American Depositary Receipts (ADRs) trade over-the-counter in the U.S.

Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated, “Our success has always been the result of the tireless efforts and unwavering commitment of the women and men of TechnipFMC. Their accomplishments in 2020 were nothing short of exceptional given the hardship and difficulties that occurred across the globe.”

“Our efforts to address COVID-19 challenges have been recognized by our clients. Working together, we found solutions that helped mitigate many of the obstacles we faced and allowed projects to move forward safely. This collaboration allowed us to protect our backlog and remain focused on project execution, enabling us to deliver strong performance and achieve our financial guidance across all segments.”

Pferdehirt added, “Throughout 2020, we delivered several notable achievements with regard to our business transformation. We progressed on our plan to separate into two independent, industry-leading pure-play companies, completing the transaction on February 16 of this year. We achieved targeted cost savings of more than $350 million well ahead of schedule. We provided a comprehensive overview of our ESG efforts, including new initiatives to be realized through 2023 and a commitment to deliver a 50 percent reduction in Scope 1 and 2 equivalent emissions by 2030. And as part of our efforts to drive sustainable change, we introduced key elements of our digital transformation, including Subsea Studio™ and iComplete™, which will improve project economics, enhance performance and reduce emissions.”

Pferdehirt continued, “In Surface Technologies, we expect growth in international activity to drive full-year segment revenue higher in 2021. While we anticipate revenue in North America to be flat to down modestly, we expect strong customer adoption of our iComplete™ ecosystem to drive growth in our completions revenue. We remain levered to the more resilient international markets where we expect to source approximately 65 percent of our full year revenue.”

“In Subsea, our outlook reflects renewed operator confidence given the improved economic outlook, lower market volatility and higher oil price. For the current year, we anticipate Brazil will be the most active region of the world for new project orders, with growth also coming from the North Sea, Asia Pacific and Africa. We remain very confident that inbound orders for 2021 will exceed the $4 billion achieved in 2020. We are also experiencing a high level of front end activity, which should support a more sustainable deepwater recovery and our expectation for continued order growth in 2022.”

Pferdehirt added, “TechnipFMC is well-positioned for the Energy Transition, with significant offshore opportunities in Subsea including novel wind, wave energy, carbon storage and green hydrogen. Deep Purple™ is one such initiative, where we are leveraging our core capabilities: iEPCI™, proprietary technologies and partner alliances. Additionally, we see future opportunities driven by our investments in early phase projects and solutions that accelerate the role of our technologies in the Energy Transition as we continue to redefine offshore energy.”

Pferdehirt concluded, “We are excited to have embarked on our independent journey as a leading technology provider to both the traditional and new energy industries. We are well-positioned to benefit from the improved market outlook and remain focused on progressing our business transformation and ESG commitments to help our customers meet the world’s demand for energy.”

Operational and Financial Highlights - Fourth Quarter 2020

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

Subsea reported fourth quarter revenue of $1,338 million, a decrease of 10 percent from the prior year primarily driven by lower project activity in Norway and Brazil. The revenue decrease was partially offset by increased activity in the United States, Africa and Asia Pacific. Subsea services revenue was largely unchanged from the prior year quarter.

Subsea reported an operating loss of $9.5 million that included impairment, restructuring and other charges totaling $44.7 million. Operating results in the period were negatively impacted by the lower activity and COVID-19. Segment results in the prior year included net charges totaling $1,622.7 million, comprised largely of non-cash impairment charges.

Adjusted EBITDA was $116.5 million, with a margin of 8.7 percent. Adjusted EBITDA for the current period included all direct COVID-19 expenses (previously excluded from adjusted results) and operational impacts related to the pandemic.

Fourth Quarter Subsea Highlights

• Eni Merakes iEPCI™ (Indonesia)
  Successful completion of installation campaign.

• Energean Karish iEPCI™ (Israel)
  Completion of 90 kilometer hydrotest of sales pipeline and tie-in spool scope.

• Total Mozambique LNG (Mozambique)
  Completion of first subsea trees.

• Eni Coral South project (Mozambique)
  Moving to the offshore execution phase with mobilization of personnel in country.

Subsea inbound orders were $712.1 million for the quarter, resulting in a book-to-bill of 0.5. The following award was announced in the period:

• Equinor Breidablikk (Norway)
  Significant* engineering, procurement, construction and installation contract by Equinor for the Breidablikk Pipelay, including option for the subsea installation scope located in the area close to the Grane Field, North Sea. The Breidablikk project is a tie-back to the existing Grane platform. TechnipFMC’s scope includes provision of flexible jumpers and rigid pipelines as well as pipeline installation work.
  *A “significant” award ranges between $75 million and $250 million; this inbound order was included in the Company’s first half financial results.

Subsequent to the period, the following awards were announced and will be included in first quarter 2021 results:

• Energean North El Amriya and North Idku iEPCI™ Project (Egypt)
  Significant* integrated engineering, procurement, construction and installation (iEPCI™) contract from NIpetco and PetroAmriya, two Joint Ventures between Energean and Egyptian Natural Gas Holding Company (EGAS) and Egyptian General Petroleum Corporation (EGPC) for a subsea tieback located offshore Egypt on the North El Amriya and North Idku concession. TechnipFMC will design, manufacture, deliver and install subsea equipment including the subsea production system, subsea trees, production manifolds, umbilicals, flexible pipelines, jumpers and associated subsea and topside controls.
  *A “significant” award ranges between $75 million and $250 million.

• PETRONAS Carigali Limbayong Deepwater Development Project (Malaysia)
  Substantial* front-end engineering design, and integrated engineering, procurement, construction, installation and commissioning of subsea production system, umbilicals, risers and flowlines (iEPCI™) contract from PETRONAS Carigali, a subsidiary of PETRONAS for the Limbayong Deepwater Development Project. This contract covers the development of 10 deepwater wells and their tieback to the Limbayong Floating Production Storage and Offloading (FPSO) unit in Malaysia. TechnipFMC will design, manufacture, deliver and install subsea equipment including subsea trees, manifolds, umbilicals, flexible risers, flowlines, jumpers and other associated subsea hardware for the project. The iEPCI™ contract combines our integrated subsea solution with our Subsea 2.0™ products, demonstrating the added value of our unique and complete integrated offering.
  *A “substantial” award ranges between $250 million and $500 million.

• Energean Karish North iEPCI™ Development Project (Israel)
  Letter of award (LOA) by Energean Israel Limited for the development of the Karish North field, located offshore Israel. TechnipFMC will design, manufacture, deliver and install subsea equipment including the subsea production system, rigid flowlines and umbilicals as a tieback to the ‘Energean Power’ FPSO as well as the second gas export riser.

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

Technip Energies reported fourth quarter revenue of $1,825.8 million, largely unchanged versus the prior-year quarter. Revenue benefited from the continued ramp-up of Arctic LNG 2 and higher activity on projects in Africa and Asia Pacific, which nearly offset the decline in revenue from Yamal LNG and lower activity on projects in the Middle East and North America.

Technip Energies reported operating profit of $171.6 million that included restructuring, impairment and other charges totaling $14.8 million. Operating profit decreased 30 percent versus the prior-year quarter primarily due to a reduced contribution from Yamal LNG. Operating results continued to reflect strong project execution despite the challenging environment.

Adjusted EBITDA was $194 million, with a margin of 10.6 percent. Adjusted EBITDA for the current period included all direct COVID-19 expenses (previously excluded from adjusted results) and operational impacts related to the pandemic.

Fourth Quarter Technip Energies Highlights

• Arctic LNG 2 project (Russian Federation)
  Overall construction progress reached 30 percent by year-end.

• Neste Singapore expansion project (Singapore)
  Multiple heavy lifts performed, including a 700-ton reactor.

• Eni Coral South FLNG (Mozambique)
  Final topside modules installed on the hull in South Korea ahead of schedule.

• Bapco Modernization program (Bahrain)
  Series of heavy lift operations successfully completed, including units for water desalination, heavy crude conversion and catalyst reactors.

• ExxonMobil Beaumont Refinery (United States)
  The five crude and hydrotreater furnace modules safely arrived in country.

• Motor Oil Hellas Refinery (Greece)
  Start of construction of the new naptha complex at the Corinth refinery.

Technip Energies inbound orders were $3,192.1 million for the quarter, resulting in a book-to-bill of 1.7. The following awards were included in the period:

• Sempra LNG, IEnova and Total Energía Costa Azul LNG Facility (Mexico)
  Received a Notice to Proceed for a major* engineering, procurement, and construction (EPC) contract by Sempra LNG, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), and Total at their Energía Costa Azul LNG facility in Baja California, Mexico. The project will add a natural gas liquefaction facility with nameplate capacity of 3.25 million tons per annum (Mtpa) to the existing regasification terminal using a compact and high efficiency mid-scale LNG design. TechnipFMC has been involved in this project since 2017, including the delivery of the FEED.
  *A “major” award is over $1 billion.

• Assiut National Oil Processing Company Hydrocracking Complex (Egypt)
  Major* EPC contract with Assiut National Oil Processing Company for the construction of a new Hydrocracking Complex for the Assiut refinery in Egypt. The EPC contract covers new process units such as a Vacuum Distillation Unit, a Diesel Hydrocracking Unit, a Delayed Coker Unit, a Distillate Hydrotreating Unit as well as a Hydrogen Production Facility Unit using TechnipFMC’s proprietary steam reforming technology.
  *A “major” award is over $1 billion.

Subsequent to the period, the following award was announced:

• Qatar Petroleum North Field East Project (Qatar)
  Major* engineering, procurement, construction and commissioning contract to CTJV, a joint venture between Chiyoda Corporation and Technip Energies, by Qatar Petroleum for the onshore facilities of the North Field East Project. Award will cover the delivery of 4 mega trains, each with a capacity of 8 Mtpa of Liquefied Natural Gas (“LNG”), and associated utility facilities. It will include a large CO₂ Carbon Capture and Sequestration facility, leading to more than 25% reduction of Green House Gas emissions when compared to similar LNG facilities.
  *A “major” award is over $1 billion.

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are below and in financial schedules.

Surface Technologies reported fourth quarter revenue of $262.3 million, a decrease of 35.6 percent from the prior-year quarter. The decline was primarily driven by the sharp reduction in operator activity in North America while international revenue declined more modestly. Sequentially, revenue increased 16.2 percent, driven by an expanded services offering and strong international backlog conversion as well as increased drilling and completion activity in the United States.

Surface Technologies reported operating profit of $15.1 million. Operating profit decreased primarily due to lower activity in North America, partially offset by cost reduction actions. Sequentially, operating profit significantly improved driven by higher global activity and the benefit of cost reduction.

Adjusted EBITDA was $30.9 million, with a margin of 11.8 percent, and included a positive contribution from North America for both the quarter and full year. Adjusted EBITDA for the current period included all direct COVID-19 expenses (previously excluded from adjusted results) and operational impacts related to the pandemic.

Inbound orders for the quarter were $300.3 million, a decrease of 30.4 percent versus the prior-year quarter primarily due to the significant reduction in North America activity. Sequentially, inbound orders improved 44.8 percent, with international orders reaching the highest level of 2020. Backlog ended the period at $413.5 million. Given the short-cycle nature of the business, orders are generally converted into revenue within twelve months.

Fourth Quarter Surface Technologies Highlights

• iComplete™ (United States)
  Four full-scale iComplete™ ecosystem tender wins in three basins.

• BPX Energy and BPX Energy/Devon Energy joint venture (United States)
  Multi-year supply contract for wellheads and trees in Eagle Ford basin.

• AkerBP HOD B field re-development project (Norway)
  Contracted to supply wellheads, tree systems and controls.

Corporate and Other Items

Corporate expense in the quarter was $58.5 million. Excluding charges and credits totaling $13.1 million of expense, corporate expense was $45.4 million.

Foreign exchange losses in the quarter were $2.6 million.

Net interest expense was $54.5 million in the quarter, which included an increase in the liability payable to joint venture partners of $53.8 million.

The Company recorded a tax provision in the quarter of $75.5 million.

Total depreciation and amortization for the quarter was $111.7 million.

Cash flow from operations in the quarter was $554.8 million and $656.9 million for the full year.

Capital expenditures in the quarter were $41 million and $291.8 million for the full year.

Free cash flow was $513.8 million in the quarter and $365.1 million for the full year (Exhibit 13).

The Company ended the period with cash and cash equivalents of $4,807.8 million; net cash was $853.9 million.

2021 Full-Year Financial Guidance¹

The Company’s full-year guidance for 2021 can be found in the table below.

All segment guidance assumes no further material degradation from COVID-19-related impacts.

Guidance is based on continuing operations and thus excludes the impact of Technip Energies, which will be reported as discontinued operations.

¹Our guidance measures adjusted EBITDA margin, corporate expense, net, net interest expense and free cash flow are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

Teleconference

The Company will host a teleconference on Thursday, February 25, 2021 to discuss the fourth quarter 2020 financial results. The call will begin at 1 p.m. London time (8 a.m. New York time). Dial-in information and an accompanying presentation can be found at www.TechnipFMC.com.

Webcast access will also be available on our website prior to the start of the call. An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.

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About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energies industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

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