Subsea Setback for TechnipFMC

TechnipFMC has reported fourth-quarter 2018 loss of $2.26 billion or $5 per diluted share.

The UK-based energy services giant booked total quarterly after-tax charges and credits of $2,22 billion, or $4.91 per diluted share.

Major part of these charges included asset impairments (of close to $1.7 billion) for goodwill and other fixed assets.

Adjusted net loss was $39 million, or 9 cents per diluted share. The net loss recorded same time last year was $154 million.

Charges also included a probable estimate of the aggregate settlement on potential violations of anti-corruption laws relating past projects.

“During the quarter, we progressed on outstanding investigations of historical projects and took a $280 million provision as a probable estimate for the aggregate settlement. We continue to cooperate with all authorities in order to conclude this matter,” said Doug Pferdehirt, CEO of TechnipFMC.

Revenues for the quarter were down close to 10 percent at $3.3 billion, form $3.7 billion in the prior-year comparable period.

Quarterly order intake was $2.92 billion, down from $2.99 billion – of which subsea division generated $880 million.

Subsea reported fourth quarter revenue of $1.23 billion, down 5 percent from the corresponding period in 2017. Subsea reported an operating loss of $1,73 billion with pre-tax charges of $1,8 billion.

For the full-year 2018 TechnipFMC booked net loss of $1.92 billion on revenue of $12.5 billion, against profit of $113 million on revenue of $15 billion.

At the end of the fourth quarter 2018, TechnipFMC backlog was $14.5 billion, including subsea backlog of $6 billion.

Subsea World News Staff