TechnipFMC’s Subsea division has reported inbound orders of $1.5 billion in the first quarter of 2021, more than double compared to the fourth quarter of the prior year.
Subsea reported first-quarter revenue of $1.3 billion, an increase of 10.6 per cent from the same period in 2020, said to be largely driven by higher project and services activity.
The division saw an Adjusted EBITDA of $135 million, an almost 29 per cent increase compared to $105 million from the fourth quarter of the previous year.
In Q1 2021, the division’s operating profit was $37 million, an improvement said to be due to the significant reduction in non-cash impairment charges as well as cost reduction initiatives and increased installation activity.
“Our first quarter as a leading pure-play, technology and services provider to both traditional and new energy industries was an exceptional start. We delivered solid financial results in both Subsea and Surface Technologies, largely driven by strong operational execution,” said Doug Pferdehirt, Chairman and CEO of TechnipFMC.
“In Subsea, inbound orders more than doubled sequentially to $1.5 billion, with increased adoption of Subsea 2.0™ technologies. Integrated projects comprised nearly 40 percent of segment orders and included an award for Petronas’ first deepwater project, Limbayong, which will benefit from the seamless integration of both iEPCI™ and Subsea 2.0™.”
Total company revenue in the first quarter was $1.6 billion, a 3.1 per cent rise compared to Q4 2020. The Adjusted EBITDA was $165.2 million, a 107.3 per cent boost from the $79.9 million in the fourth quarter of the previous year.
According to Pferdehirt, TechnipFMC anticipates a Subsea outlook of more than $4 billion in inbound orders in 2021.
To remind, TechnipFMC and Technip Energies were separated into two independent, publicly-traded companies in February, with TechnipFMC moving forward in two business segments – Subsea and Surface Technologies.
Shortly after, Technip Energies agreed to buy €20 million equivalent of its own shares from TechnipFMC. After the acquisition, TechnipFMC’s stake in Technip Energies will be circa 31 per cent.