UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2023~~March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____ .

Commission File Number: 001-37983

TechnipFMC plc

(Exact name of registrant as specified in its charter)


United Kingdom			98-1283037
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)




One Subsea Lane
Houston, Texas
United States of America			77044
(Address of principal executive offices)			(Zip Code)

+1 281-591-4000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Ordinary shares, $1.00 par value per share

FTI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class						~~Outstandin~~gOutstanding at ~~October 23, 2023~~April 24, 2024
Ordinary shares, $1.00 par value per share						~~435,460,168~~430,973,995

TABLE OF CONTENTS


			Page
PART I — Financial Information			4
Item 1. Financial Statements (Unaudited)			4
Condensed Consolidated Statements of Income			4
Condensed Consolidated Statements of Comprehensive Income			5
Condensed Consolidated Balance Sheets			6
Condensed Consolidated Statements of Cash Flows			7
Condensed Consolidated Statements of Changes in Stockholders’ Equity			98
Notes to Condensed Consolidated Financial Statements			109
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			3027
Business Outlook			3027
Consolidated Results of Operations			3429
Segment Results of Operations			3730
Inbound Orders and Order Backlog			3831
Liquidity and Capital Resources			3832
Critical Accounting Estimates			4134
Other Matters			4134
Item 3. Quantitative and Qualitative Disclosures About Market Risk			4235
Item 4. Controls and Procedures			4235
PART II — Other Information			4336
Item 1. Legal Proceedings			4336
Item 1A. Risk Factors			4336
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			4336
Item 3. Defaults Upon Senior Securities			4336
Item 4. Mine Safety Disclosures			4336
Item 5. Other Information			4337
Item 6. Exhibits			4437
Signatures			4538

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of TechnipFMC plc (the “Company,” “we,” “us,” or “our”) contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements usually relate to future events, market growth and recovery, growth of our new energies business and anticipated revenues, earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often identified by the words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.

All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those contemplated in the forward-looking statements include those set forth in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022~~2023 and Part II, Item 1A “Risk Factors” and elsewhere ofin this Quarterly Report on Form 10-Q, including unpredictable trends in the demand for and price of ~~crude~~ oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; ~~the COVID-19 pandemic and any resurgence thereof;~~ our inability to develop, implement and protect new technologies and services and intellectual property related thereto, including new technologies and services for our New Energy business; the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC to act as depository and clearing agency for our shares; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; additional costs or risks from increasing scrutiny and expectations regarding ESG matters; uncertainties related to our investments in New Energy business; the risks caused by fixed-price contracts; our failure to timely deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; risks of pirates and maritime conflicts endangering our maritime employees and assets; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with existing and future laws and regulations, including those related to environmental protection, climate change, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; potential departure of our key managers and employees; adverse seasonal, weather, and ~~weather conditions and~~other climatic conditions; unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; and our inability to obtain sufficient bonding capacity for certain contracts. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,											March 31,
(In millions, except per share data)	(In millions, except per share data)	2023			2022		2023		2022		(In millions, except per share data)		2024				2023
Revenue	Revenue
Service revenue
Service revenue
Service revenue	Service revenue	$	1,180.7		$	902.0	$	3,098.2	$	2,773.6
Product revenue	Product revenue	793.1			778.6		2,447.0		2,074.9
Lease revenue	Lease revenue	83.1			52.4		201.3		157.5
Total revenue	Total revenue	2,056.9			1,733.0		5,746.5		5,006.0

Costs and expenses	Costs and expenses
Costs and expenses
Costs and expenses
Cost of service revenue
Cost of service revenue
Cost of service revenue	Cost of service revenue	916.6			684.1		2,589.1		2,288.5
Cost of product revenue	Cost of product revenue	716.4			753.5		2,096.7		1,914.5
Cost of lease revenue	Cost of lease revenue	57.5			36.8		143.0		120.0
Selling, general and administrative expense	Selling, general and administrative expense	183.8			151.9		487.7		454.6
Research and development expense	Research and development expense	17.5			19.0		49.7		45.1
Impairment, restructuring and other expenses		4.3			6.9		10.0		15.1
Restructuring, impairment and other charges
Total costs and expenses	Total costs and expenses	1,896.1			1,652.2		5,376.2		4,837.8

Other income (expense), net (Note 13)		(41.5)			(10.3)		(225.1)		33.5
Income from equity affiliates (Note 9)		20.6			13.8		35.9		23.5
Loss from investment in Technip Energies		—			—		—		(27.7)
Other income (expense), net
Other income (expense), net
Other income (expense), net
Gain on disposal of Measurement Solutions business (Note 3)
Income from equity affiliates (Note 10)
Income before net interest expense and income taxes	Income before net interest expense and income taxes	139.9			84.3		181.1		197.5
Interest income	Interest income	4.0			4.2		16.4		12.2
Interest expense	Interest expense	(30.7)			(35.1)		(92.1)		(104.7)
Loss on early extinguishment of debt		—			—		—		(29.8)
Income before income taxes	Income before income taxes	113.2			53.4		105.4		75.2
Provision for income taxes (Note 14)		19.5			42.7		100.2		91.0
Income (loss) from continuing operations		93.7			10.7		5.2		(15.8)
(Income) from continuing operations attributable to non-controlling interests		(3.7)			(5.7)		(2.0)		(19.4)
Income (loss) from continuing operations attributable to TechnipFMC plc		90.0			5.0		3.2		(35.2)
Loss from discontinued operations		—			(15.3)		—		(34.7)
Provision for income taxes (Note 16)
Net income
Net income attributable to non-controlling interests

Net income (loss) attributable to TechnipFMC plc		$	90.0		$	(10.3)	$	3.2	$	(69.9)
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc

Earnings (loss) per share from continuing operations attributable to TechnipFMC plc
Earnings per share attributable to TechnipFMC plc
Earnings per share attributable to TechnipFMC plc
Earnings per share attributable to TechnipFMC plc
Basic
Basic
Basic	Basic	$	0.21		$	0.01	$	0.01	$	(0.08)
Diluted	Diluted	$	0.20		$	0.01	$	0.01	$	(0.08)

Loss per share from discontinued operations attributable to TechnipFMC plc
Basic and diluted		$	0.00		$	(0.03)	$	0.00	$	(0.08)

Total earnings (loss) per share attributable to TechnipFMC plc
Weighted average shares outstanding (Note 6)
Weighted average shares outstanding (Note 6)
Weighted average shares outstanding (Note 6)
Basic
Basic
Basic	Basic	$	0.21		$	(0.02)	$	0.01	$	(0.16)		433.6		442.1			442.1
Diluted	Diluted	$	0.20		$	(0.02)	$	0.01	$	(0.16)	Diluted		446.3			455.0		455.0

Weighted average shares outstanding (Note 5)
Basic		436.9			450.1		439.7		451.1
Diluted		450.3			458.1		452.9		451.1

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended Nine Months Ended
September 30, September 30,
(In millions) 2023 2022 2023 2022
Net income (loss) attributable to TechnipFMC plc $ 90.0 $ (10.3) $ 3.2 $ (69.9)
(Income) from continuing operations attributable to non-controlling interests (3.7) (5.7) (2.0) (19.4)
Net income (loss) attributable to TechnipFMC plc, including non-controlling interests 93.7 (4.6) 5.2 (50.5)
Foreign currency translation adjustments(a)
(50.5) (100.0) (0.6) (104.3)
Net gains (losses) on hedging instruments
Net gains (losses) arising during the period 5.6 (33.4) (19.3) (92.0)
Reclassification adjustment for net (gains) losses included in net income (loss) (12.4) 6.7 (3.8) 18.5
Net losses on hedging instruments(b)
(6.8) (26.7) (23.1) (73.5)
Pension and other post-retirement benefits
Net gains (losses) arising during the period 0.5 (1.5) 0.7 (3.0)
Reclassification adjustment for amortization of prior service cost included in net income (loss) 0.1 0.1 0.2 0.3
Reclassification adjustment for amortization of net actuarial loss included in net income (loss) 2.2 2.9 6.6 8.9
Net pension and other post-retirement benefits(c)
2.8 1.5 7.5 6.2
Other comprehensive loss, net of tax (54.5) (125.2) (16.2) (171.6)
Comprehensive income (loss) 39.2 (129.8) (11.0) (222.1)
Comprehensive (income) attributable to non-controlling interest (10.7) (2.9) (5.8) (12.2)
Comprehensive income (loss) attributable to TechnipFMC plc $ 28.5 $ (132.7) $ (16.8) $ (234.3)


	Three Months Ended
	March 31,
(In millions)		2024		2023
Net income attributable to TechnipFMC plc		$	157.1	$	0.4
Net income attributable to non-controlling interests		(3.8)		(7.4)

Net income attributable to TechnipFMC plc, including non-controlling interests		160.9		7.8

Foreign currency translation adjustments
Net unrealized gains (losses) arising during the period		(62.7)		15.9
Reclassification adjustment for net losses (gains) included in net income		10.5		(0.1)
Foreign currency translation adjustments(a)		(52.2)		15.8

Net losses on hedging instruments
Net losses arising during the period		(34.4)		(6.1)
Reclassification adjustment for net (gains) losses included in net income		(3.1)		1.6
Net losses on hedging instruments(b)		(37.5)		(4.5)

Pension and other post-retirement benefits
Net gains (losses) arising during the period		4.1		(2.0)
Reclassification adjustment for amortization of prior service cost included in net income		0.1		0.1
Reclassification adjustment for amortization of net actuarial loss included in net income		3.1		2.2
Reclassification adjustment for net gain included in net income		(2.3)		—
Net pension and other post-retirement benefits(c)		5.0		0.3
Other comprehensive income (loss), net of tax		(84.7)		11.6
Comprehensive income		76.2		19.4
Comprehensive (income) attributable to non-controlling interest		(3.9)		(5.4)
Comprehensive income attributable to TechnipFMC plc		$	72.3	$	14.0

(a)Net of income tax of nil for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022.~~2023.

(b)Net of income tax benefit (expense) of ~~$11.4~~$6.6 million and ~~$8.1~~$(4.6) million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and $0.4 million and $8.2 million for the nine months ended September 30, 2023 and 2022,~~ respectively.

(c)Net of income tax benefit (expense) ~~benefit~~ of ~~$(0.5)~~$1.0 million and ~~$(2.9)~~$(1.0) million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and $1.5 million and $(6.0) million for the nine months ended September 30, 2023 and 2022,~~ respectively.

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(In millions, except par value data)	(In millions, except par value data)	September 30, 2023		December 31, 2022		(In millions, except par value data)	March 31, 2024	December 31, 2023
Assets	Assets
Cash and cash equivalents	Cash and cash equivalents	$	690.9	$	1,057.1
Trade receivables, net of allowances of $35.7 in 2023 and $34.1 in 2022		1,324.4		966.5
Contract assets, net of allowances of $1.6 in 2023 and $1.1 in 2022		1,204.6		981.6
Inventories, net (Note 7)		1,158.5		1,039.7
Derivative financial instruments (Note 15)		139.9		282.7
Cash and cash equivalents
Cash and cash equivalents
Trade receivables, net of allowances of $33.2 in 2024 and $34.4 in 2023
Contract assets, net of allowances of $1.3 in 2024 and $1.4 in 2023
Inventories, net (Note 8)
Derivative financial instruments (Note 17)
Income taxes receivable	Income taxes receivable	119.8		125.3
Advances paid to suppliers	Advances paid to suppliers	80.0		80.8
Other current assets (Note 8)		577.2		455.0
Measurements Solutions business classified as assets held for sale (Note 3)
Other current assets (Note 9)
Total current assets	Total current assets	5,295.3		4,988.7
Investments in equity affiliates (Note 9)		280.0		325.0
Property, plant and equipment, net of accumulated depreciation of $2,639.1 in 2023 and $2,255.5 in 2022		2,240.0		2,354.9
Investments in equity affiliates (Note 10)
Property, plant and equipment, net of accumulated depreciation of $2,562.5 in 2024 and $2,496.5 in 2023
Operating lease right-of-use assets	Operating lease right-of-use assets	759.0		801.9
Finance lease right-of-use assets	Finance lease right-of-use assets	60.5		51.6
Intangible assets, net of accumulated amortization of $729.3 in 2023 and $663.8 in 2022		650.1		716.0
Intangible assets, net of accumulated amortization of $744.8 in 2024 and $725.3 in 2023
Deferred income taxes	Deferred income taxes	85.3		72.5
Derivative financial instruments (Note 15)		12.7		7.2
Derivative financial instruments (Note 17)
Other assets	Other assets	141.4		126.5
Total assets	Total assets	$	9,524.3	$	9,444.3

Liabilities and equity	Liabilities and equity
Short-term debt and current portion of long-term debt (Note 11)		$	407.3	$	367.3
Liabilities and equity
Liabilities and equity
Short-term debt and current portion of long-term debt (Note 12)
Short-term debt and current portion of long-term debt (Note 12)
Short-term debt and current portion of long-term debt (Note 12)
Operating lease liabilities	Operating lease liabilities	135.1		136.1
Finance lease liabilities	Finance lease liabilities	3.5		51.9
Accounts payable, trade	Accounts payable, trade	1,537.7		1,282.8
Contract liabilities	Contract liabilities	1,237.9		1,156.4

Derivative financial instruments (Note 15)		188.2		346.6
Accrued payroll
Derivative financial instruments (Note 17)
Income taxes payable	Income taxes payable	127.9		96.7
Other current liabilities (Note 8)		818.6		736.5
Measurements Solutions business classified as liabilities held for sale (Note 3)
Other current liabilities (Note 9)
Total current liabilities	Total current liabilities	4,456.2		4,174.3
Long-term debt, less current portion (Note 11)		933.5		999.3
Long-term debt, less current portion (Note 12)
Operating lease liabilities, less current portion	Operating lease liabilities, less current portion	688.9		735.7
Financing lease liabilities, less current portion	Financing lease liabilities, less current portion	60.6		1.4
Deferred income taxes	Deferred income taxes	47.3		55.5
Accrued pension and other post-retirement benefits, less current portion	Accrued pension and other post-retirement benefits, less current portion	54.4		59.7
Derivative financial instruments (Note 15)		25.6		3.6
Derivative financial instruments (Note 17)
Other liabilities	Other liabilities	147.8		138.1
Total liabilities	Total liabilities	6,414.3		6,167.6
Commitments and contingent liabilities (Note 13)
Stockholders’ equity (Note 12)
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2023 and 2022; 435.5 shares and 442.2 shares issued and outstanding in 2023 and 2022, respectively		435.5		442.2
Commitments and contingent liabilities (Note 15)						Commitments and contingent liabilities (Note 15)
Stockholders’ equity (Note 13)
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2024 and 2023; 430.9 shares and 432.9 shares issued and outstanding in 2024 and 2023, respectively
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2024 and 2023; 430.9 shares and 432.9 shares issued and outstanding in 2024 and 2023, respectively
Ordinary shares, $1.00 par value; 618.3 shares authorized in 2024 and 2023; 430.9 shares and 432.9 shares issued and outstanding in 2024 and 2023, respectively
Capital in excess of par value of ordinary shares	Capital in excess of par value of ordinary shares	8,979.9		9,109.7
Accumulated deficit	Accumulated deficit	(5,025.5)		(5,010.0)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(1,321.7)		(1,301.7)
Total TechnipFMC plc stockholders’ equity	Total TechnipFMC plc stockholders’ equity	3,068.2		3,240.2
Non-controlling interests	Non-controlling interests	41.8		36.5
Total equity	Total equity	3,110.0		3,276.7
Total liabilities and equity	Total liabilities and equity	$	9,524.3	$	9,444.3

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


	Three Months Ended March 31,								Three Months Ended March 31,
(In millions)	(In millions)	Nine Months Ended September 30,				(In millions)	2024	2023
		2023		2022
Cash provided (required) by operating activities
Net income (loss)		$	5.2	$	(50.5)
Net loss from discontinued operations		—		34.7
Adjustments to reconcile income (loss) from continuing operations to cash provided (required) by operating activities
Cash required by operating activities
Net income
Net income
Net income
Adjustments to reconcile income to cash required by operating activities
Depreciation and amortization
Depreciation and amortization
Depreciation and amortization	Depreciation and amortization	283.3		284.4

Loss from investment in Technip Energies		—		27.7

Income from equity affiliates, net of dividends received	Income from equity affiliates, net of dividends received	(35.9)		(23.1)
Loss on early extinguishment of debt		—		29.8

Income from equity affiliates, net of dividends received

Income from equity affiliates, net of dividends received
Gain on disposal of Measurement Solutions business

Other non-cash items, net
Other non-cash items, net
Other non-cash items, net	Other non-cash items, net	32.1		79.9
Changes in operating assets and liabilities, net of effects of acquisitions	Changes in operating assets and liabilities, net of effects of acquisitions
Trade receivables, net and Contract assets, net
Trade receivables, net and Contract assets, net
Trade receivables, net and Contract assets, net	Trade receivables, net and Contract assets, net	(587.6)		(375.1)
Inventories, net	Inventories, net	(112.9)		(27.4)
Accounts payable, trade	Accounts payable, trade	275.7		134.7
Contract liabilities	Contract liabilities	89.4		(242.7)
Income taxes payable, net	Income taxes payable, net	46.0		(19.0)
Other current assets and liabilities, net	Other current assets and liabilities, net	42.7		(93.5)
Other non-current assets and liabilities, net	Other non-current assets and liabilities, net	(46.1)		25.8

Cash required by operating activities	Cash required by operating activities	(8.1)		(214.3)

Cash provided (required) by investing activities	Cash provided (required) by investing activities
Cash provided (required) by investing activities
Cash provided (required) by investing activities
Capital expenditures	Capital expenditures	(153.7)		(94.3)
Proceeds from sales of assets		75.3		13.4
Proceeds from sale of investment in Technip Energies		—		288.5
Capital expenditures
Capital expenditures

Proceeds from sale of Measurement Solutions business
Proceeds from sale of Measurement Solutions business
Proceeds from sale of Measurement Solutions business

Other investing activities	Other investing activities	14.9		5.7

Other investing activities
Other investing activities
Cash provided (required) by investing activities	Cash provided (required) by investing activities	(63.5)		213.3

Cash required by financing activities	Cash required by financing activities
Cash required by financing activities
Cash required by financing activities
Net decrease in short-term debt	Net decrease in short-term debt	(38.2)		(204.7)
Cash settlement for derivative hedging debt		(30.1)		(64.4)
Net increase in revolving credit facility		—		150.0

Repayments of long-term debt		—		(451.7)
Share repurchases		(150.1)		(50.1)
Dividends paid		(21.8)		—
Net decrease in short-term debt
Net decrease in short-term debt

Share repurchases

Share repurchases

Share repurchases
Dividends paid

Payments related to taxes withheld on share-based compensation
Payments related to taxes withheld on share-based compensation
Payments related to taxes withheld on share-based compensation

Other financing activities	Other financing activities	(36.5)		(5.9)

Other financing activities

Other financing activities
Cash required by financing activities	Cash required by financing activities	(276.7)		(626.8)
Effect of changes in foreign exchange rates on cash and cash equivalents	Effect of changes in foreign exchange rates on cash and cash equivalents	(17.9)		11.9
Change in cash and cash equivalents	Change in cash and cash equivalents	(366.2)		(615.9)
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	1,057.1		1,327.4
Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	690.9	$	711.5

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2024 and 2023 ~~and 2022~~

(In millions) Ordinary Shares Capital in Excess of Par Value of Ordinary Shares Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Total Stockholders’ Equity
Balance as of June 30, 2022 $ 452.2 $ 9,178.2 $ (4,964.0) $ (1,347.0) $ 25.0 $ 3,344.4
Net income (loss) — — (10.3) — 5.7 (4.6)
Other comprehensive loss — — — (122.4) (2.8) (125.2)
Share-based compensation — 9.9 — — — 9.9
Shares repurchased and cancelled (5.8) (44.3) — — — (50.1)
Other — — 0.4 — (0.5) (0.1)
Balance as of September 30, 2022 $ 446.4 $ 9,143.8 $ (4,973.9) $ (1,469.4) $ 27.4 $ 3,174.3
Balance as of June 30, 2023 $ 438.1 $ 9,018.1 $ (5,096.4) $ (1,260.2) $ 31.6 $ 3,131.2
Net income — — 90.0 — 3.7 93.7
Other comprehensive income (loss) — — — (61.5) 7.0 (54.5)
Issuance of ordinary shares, net of shares withheld for tax 0.1 0.1 — — — 0.2
Share-based compensation — 9.1 — — — 9.1
Shares repurchased and cancelled (2.7) (47.4) — — — (50.1)
Dividends declared and paid — — (21.8) — — (21.8)
Other — — 2.7 — (0.5) 2.2
Balance as of September 30, 2023 $ 435.5 $ 8,979.9 $ (5,025.5) $ (1,321.7) $ 41.8 $ 3,110.0

~~TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES~~

~~CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)~~

~~NINE MONTHS ENDED SEPTEMBER 30, 2023 and 2022~~


(In millions)	(In millions)	Ordinary Shares		Capital in Excess of Par Value of Ordinary Shares		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Non-controlling Interest		Total Stockholders’ Equity		(In millions)	Ordinary Shares	Capital in Excess of Par Value of Ordinary Shares	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interest	Total Stockholders’ Equity
Balance as of December 31, 2021		$	450.7	$	9,160.8	$	(4,903.8)	$	(1,305.0)	$	15.7	$	3,418.4

Net income (loss)		—		—		(69.9)		—		19.4		(50.5)
Other comprehensive loss		—		—		—		(164.4)		(7.2)		(171.6)
Issuance of ordinary shares		1.5		(1.6)		—		—		—		(0.1)
Balance as of December 31, 2022
Net income
Other comprehensive income (loss)
Issuance of ordinary shares, net of shares withheld for tax
Share-based compensation	Share-based compensation	—		28.9		—		—		—		28.9

Shares repurchased and cancelled	Shares repurchased and cancelled	(5.8)		(44.3)		—		—		—		(50.1)
Other	Other	—		—		(0.2)		—		(0.5)		(0.7)
Balance as of September 30, 2022		$	446.4	$	9,143.8	$	(4,973.9)	$	(1,469.4)	$	27.4	$	3,174.3
Balance as of March 31, 2023

Balance as of December 31, 2022		$	442.2	$	9,109.7	$	(5,010.0)	$	(1,301.7)	$	36.5	$	3,276.7

Balance as of December 31, 2023
Balance as of December 31, 2023
Balance as of December 31, 2023
Net income	Net income	—		—		3.2		—		2.0		5.2
Other comprehensive income (loss)	Other comprehensive income (loss)	—		—		—		(20.0)		3.8		(16.2)
Issuance of ordinary shares, net of shares withheld for tax	Issuance of ordinary shares, net of shares withheld for tax	2.9		(20.0)		—		—		—		(17.1)
Share-based compensation	Share-based compensation	—		30.7		—		—		—		30.7
Shares repurchased and cancelled	Shares repurchased and cancelled	(9.6)		(140.5)		—		—		—		(150.1)
Dividends declared and paid	Dividends declared and paid	—		—		(21.8)		—		—		(21.8)
Other	Other	—		—		3.1		—		(0.5)		2.6
Balance as of September 30, 2023		$	435.5	$	8,979.9	$	(5,025.5)	$	(1,321.7)	$	41.8	$	3,110.0
Balance as of March 31, 2024

The accompanying notes are an integral part of the condensed consolidated financial statements.

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed consolidated financial statements of TechnipFMC plc and its consolidated subsidiaries (“TechnipFMC,” the “Company,” “we,” “us,” or “our”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) pertaining to interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, ~~2022.~~

2023.

Our accounting policies are in accordance with GAAP. The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from our estimates.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments necessary for a fair statement of our financial condition and operating results as of and for the periods presented. Revenue, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these condensed consolidated financial statements may not be representative of the results that may be expected for the year ending December 31, ~~2023.~~

2024.

Certain prior-year amounts have been reclassified to conform to the current year’s presentation.

NOTE 2. NEW ACCOUNTING STANDARDS

Recently Adopted Accounting Standards under GAAP

In ~~September 2022,~~November 2023, the Financial Accounting Standards Board ~~(the “FASB”~~(“the FASB”) issued ASU ~~No. 2022-04, "Disclosure of Supplier Finance Program Obligations,"~~2023-07, “Improvements to Reportable Segment Disclosures,” which is intended to enhance the transparency surrounding the use of supplier finance programs. Supplier finance programs may also be referred to as reverse factoring, payables finance, or structured payables arrangements. The amendments require a buyer that uses supplier finance programs to make annualrequires incremental disclosures about a public entity’s reportable segments but does not change the ~~program’s key terms,~~definition of a segment or the ~~balance sheet presentation~~guidance for determining reportable segments. The new guidance requires disclosure of significant segment expenses that are (1) regularly provided to (or easily computed from information regularly provided to) the chief operating decision maker and (2) included in the reported measure of segment profit or loss. The new standard also allows companies to disclose multiple measures of segment profit or loss if those measures are used to assess performance and allocate resources. The new guidance is effective for fiscal years beginning after December 31, 2024, and for interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this standard on the related ~~amounts, the confirmed amount outstanding at the end of the period and associated roll forward information.~~disclosures.

Recently Issued Accounting Standards under GAAP

In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which requires significant additional disclosures about income taxes, primarily focused on the disclosure of income taxes paid and the rate reconciliation table. The new guidance will be applied prospectively (with retrospective application permitted) and is effective in the 2025 annual period and in 2026 for interim periods, with early adoption permitted. We ~~adopted~~are currently evaluating the impact of this standard ason the related disclosures.

On March 6, 2024, the SEC issued their final rule “The Enhancement and Standardization of ~~January 1, 2023. We facilitate a supply chain finance program (“SCF”) that is administered by a third-party financial institution which allows qualifying suppliers~~Climate-Related Disclosures for Investors” designed to ~~sell their receivables from the Company~~enhance public company disclosures related to the ~~SCF bank. These participating suppliers negotiate their outstanding receivable directly with~~risks and impacts of climate-related matters. The final rule includes disclosures relating to climate-related risks and risk management as well as the ~~SCF bank.~~board and management’s governance of such risks. In addition, the rule includes requirements to disclose the financial effects of severe weather events and other natural conditions in the audited financial statements. On April 4, 2024, the SEC stayed its climate disclosure rule to “facilitate the orderly judicial resolution” of pending legal challenges. We are ~~not a party to those agreements and~~currently evaluating the ~~terms~~impact of this rule on our payment obligations are not impacted by a supplier’s participation in the SCF. We agree to pay the SCF bank based on the original invoice amounts and maturity dates as consistent with our other Accounts payables.disclosures.

All outstanding amounts related to suppliers participating in the SCF are recorded within Accounts payable, trade in our condensed consolidated balance sheets, and the associated payments are included in operating activities within our condensed consolidated statements of cash flows. As of September 30, 2023 and December 31, 2022, the amounts due to suppliers participating in the SCF and included in Accounts payable were approximately $135.9 million and $101.8 million, respectively.

~~We consider the applicability and impact of all ASUs.~~

We assessed ASUs not listed above and determined that they either were not applicable or were not expected to have a material impact on our financial statements.

NOTE 3. DISPOSAL OF MEASUREMENT SOLUTIONS BUSINESS AND OTHER TRANSACTIONS

Disposal of Measurement Solutions business

In November 2023, TechnipFMC announced an agreement to sell the Company’s Measurement Solutions business (the “MSB”) for $205 million in cash, subject to customary adjustments at the closing of the transaction. As part of the Surface Technologies segment, MSB encompasses terminal management solutions and metering products and systems and includes engineering and manufacturing locations in North America and Europe.

We recorded transaction costs associated with the sale of $5.2 million during each of the three months ended March 31, 2024 and December 31, 2023. These transaction costs are included within impairment, restructuring and other expenses in our condensed consolidated statement of income.

On March 11, 2024, we completed the sale of equity interests and assets of MSB for cash proceeds of $186.1 million and recognized a gain on disposal of $75.2 million. The purchase consideration was adjusted for various working capital balances and assumed liabilities as of the transaction closing date.

FMC Technologies (UK) Pension Plan Buy-In

In February 2024, one of the U.K. pension plans entered into a buy-in contract for its pensioners. Under the buy-in contract terms, the responsibility to pay pension benefits still rests with the plan and the obligation is still recorded by the Company.

NOTE 4. REVENUE

The majority of our revenue is from long-term contracts associated with designing and manufacturing products and systems and providing services to customers involved in the exploration and production of ~~crude~~ oil and natural gas.

Disaggregation of Revenue

Revenues are disaggregated by geographic location and contract types.

The following tables present total revenue by geography for each reportable segment for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:

Reportable Segments
Three Months Ended
September 30, 2023 September 30, 2022
(In millions) Subsea Surface Technologies Subsea Surface Technologies
Latin America $ 653.1 $ 29.8 $ 411.7 $ 30.1
Europe and Central Asia 520.0 54.8 395.0 42.1
North America 269.2 137.5 205.1 146.2
Africa 187.6 15.2 216.5 7.6
Asia Pacific 77.1 23.5 162.7 26.4
Middle East 1.3 87.8 24.0 65.6
Total revenue $ 1,708.3 $ 348.6 $ 1,415.0 $ 318.0


		Reportable segments
		Nine Months Ended
		September 30, 2023				September 30, 2022
	Reportable segments														Reportable segments
	Three Months Ended														Three Months Ended
	March 31, 2024												March 31, 2024			March 31, 2023
(In millions)	(In millions)	Subsea		Surface Technologies		Subsea		Surface Technologies		(In millions)	Subsea	Surface Technologies		Subsea			Surface Technologies
Latin America	Latin America	$	1,652.4	$	90.5	$	1,069.0	$	78.9
Europe and Central Asia	Europe and Central Asia	1,419.0		150.0		1,154.6		121.6
North America	North America	771.3		433.8		582.3		406.9
Africa	Africa	614.2		35.9		653.3		25.7
Asia Pacific	Asia Pacific	208.8		58.9		586.3		70.6
Middle East	Middle East	48.6		263.1		73.2		183.6
Total revenue	Total revenue	$	4,714.3	$	1,032.2	$	4,118.7	$	887.3

1110

The following tables present total revenue by contract type for each reportable segment for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:

Reportable Segments
Three Months Ended
September 30, 2023 September 30, 2022
(In millions) Subsea Surface Technologies Subsea Surface Technologies
Services $ 1,126.0 $ 54.7 $ 845.0 $ 57.0
Products 542.6 250.5 556.0 222.6
Lease 39.7 43.4 14.0 38.4
Total revenue $ 1,708.3 $ 348.6 $ 1,415.0 $ 318.0


		Reportable segments
		Nine Months Ended
		September 30, 2023				September 30, 2022
	Reportable segments														Reportable segments
	Three Months Ended														Three Months Ended
	March 31, 2024												March 31, 2024			March 31, 2023
(In millions)	(In millions)	Subsea		Surface Technologies		Subsea		Surface Technologies		(In millions)	Subsea	Surface Technologies		Subsea			Surface Technologies
Services	Services	$	2,937.5	$	160.7	$	2,611.0	$	162.6
Products	Products	1,711.7		735.3		1,463.4		611.5
Lease	Lease	65.1		136.2		44.3		113.2
Total revenue	Total revenue	$	4,714.3	$	1,032.2	$	4,118.7	$	887.3

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts (contract assets), and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) on the condensed consolidated balance sheets. Any expected contract losses are recorded in the period in which they become probable.

Contract Assets - Contract assets include unbilled amounts typically resulting from sales under long-term contracts when revenue is recognized over time and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Costs and estimated earnings in excess of billings on uncompleted contracts are generally classified as current.

Contract Liabilities - We sometimes receive advances or deposits from our customers, before revenue is recognized, resulting in contract liabilities.

The following table provides information about net contract assets (liabilities) as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022:~~2023:

(In millions) September 30,
2023 December 31,
2022 $ change % change
Contract assets $ 1,204.6 $ 981.6 $ 223.0 22.7
Contract liabilities (1,237.9) (1,156.4) (81.5) (7.0)
Net contract assets (liabilities) $ (33.3) $ (174.8) $ 141.5 80.9

~~The~~ ~~increase~~ ~~in our contract assets from December 31, 2022 to September 30, 2023 was due to the timing of project milestones. The~~ ~~increase~~ ~~in our contract liabilities was driven from an overall portfolio and client mix enabling an acceleration of cash payments in advance.~~


(In millions)	March 31, 2024		December 31, 2023
Contract assets	$	1,062.7	$	1,010.1
Contract liabilities	(1,331.6)		(1,485.8)
Net contract liabilities	$	(268.9)	$	(475.7)

In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. Any subsequent revenue we recognize increases the contract asset balance. Revenue recognized for the three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ that was included in the contract liabilities balance as of December 31, ~~2022 and 2021 was $90.3 million and $256.0 million, respectively, and $592.9 million and $471.7 million for the nine months ended September 30,~~ 2023 and 2022 was $479.6 million and $347.7 million, respectively.

In addition, net revenue recognized from our performance obligations satisfied or partially satisfied in previous periods had a favorable impact of $0.6 million and unfavorable impact of $(2.6) million for the three months ended March 31, 2024 and 2023, respectively. One project was materially and favorably impacted for the three months ended March 31, 2024 by $23.5 million as result of improved performance in the delivery and was offset by individually immaterial net negative impacts of $22.9 million. For the three months ended March 31, 2023, there were no projects with individually material impacts.

1211

~~Net revenue recognized from our performance obligations satisfied in prior periods had unfavorable impact of $8.8 million and favorable impact of $97.2 million for the~~ ~~three months ended September 30, 2023~~ ~~and 2022, respectively, from~~ ~~changes in the estimate of the stage of completion that impacted revenue.~~ ~~For the nine months ended September 30, 2023 and 2022, we had unfavorable impact of $12.5 million and favorable impact of $119.2 million, respectively, from~~ ~~changes in the estimate of the stage of completion that impacted revenue.~~

Transaction Price Allocated to the Remaining Unsatisfied Performance Obligations

Remaining unsatisfied performance obligations (“RUPO” or “order backlog”) represent the transaction price for products and services for which we have a material right, but work has not been performed. ~~Transaction~~The transaction price of the order backlog includes the base transaction price, variable consideration and changes in transaction price. The order backlog table does not include contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The transaction price of order backlog related to unfilled, confirmed customer orders is estimated at each reporting ~~date~~.date. As of ~~September 30, 2023,~~March 31, 2024, the aggregate amount of the transaction price allocated to order backlog was ~~$13.2~~$13.5 billion. TechnipFMC expects to recognize revenue on approximately ~~11.2%~~35.1% of the order backlog through ~~2023~~2024 and ~~88.8%~~64.9% thereafter.

The following table details the order backlog for each business segment as of ~~September 30, 2023:~~March 31, 2024:


(In millions)	(In millions)	2023		2024		Thereafter		(In millions)	2024	2025	Thereafter
Subsea	Subsea	$	1,146.0	$	4,475.0	$	6,452.6
Surface Technologies	Surface Technologies	340.4		261.1		555.6
Total order backlog	Total order backlog	$	1,486.4	$	4,736.1	$	7,008.2

NOTE 4.5. BUSINESS SEGMENTS

Management’s determination of our reporting segments was made on the basis of our strategic priorities within each segment and the differences in the products and services we provide, which corresponds to the manner in which our Chair and Chief Executive Officer, as our chief operating decision maker, reviews and evaluates operating performance ~~to make decisions about resources to be allocated to the segment.~~and allocates resources. We operate under two reporting segments, Subsea and Surface Technologies:

•Subsea - designs and manufactures products and systems, performs engineering, procurement and project management, and provides services used by oil and gas companies involved in offshore exploration and production of ~~crude~~ oil and natural gas.

•Surface Technologies - designs and manufactures products and systems and provides services used by oil and gas companies involved in land and shallow water exploration and production of ~~crude~~ oil and natural gas; designs, manufactures and supplies technologically advanced high-pressure valves and fittings for oilfield service companies; and also provides flowback and well testing services.

The decline in total assets of $567.9 million is mainly attributable to the sale of MSB within the Surface Technologies segment of $152.1 million of assets held for sale. Other changes are mainly related to decline in cash of $254.9 million within the corporate assets and the remaining $160.9 million changes in working capital, and foreign exchange within both the Subsea and Surface Technologies segments.

Segment operating profit is defined as total segment revenue less segment operating expenses. Income (loss) from equity method investments is included in ~~computing~~ segment operating profit. The following items have been excluded in computing segment operating profit: ~~non-recurring legal settlement charges,~~ corporate staff expense, foreign exchange gains (losses), ~~loss from investment in Technip Energies,~~ net interest income (expense) associated with corporate debt facilities and income taxes.

1312

Segment revenue and segment operating profit were as follows:


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(In millions)	(In millions)	2023			2022		2023		2022		(In millions)	2024		2023
Segment revenue	Segment revenue
Subsea
Subsea
Subsea	Subsea	$	1,708.3		$	1,415.0	$	4,714.3	$	4,118.7
Surface Technologies	Surface Technologies	348.6			318.0		1,032.2		887.3
Total segment revenue	Total segment revenue	$	2,056.9		$	1,733.0	$	5,746.5	$	5,006.0

Segment operating profit	Segment operating profit
Segment operating profit
Segment operating profit
Subsea	Subsea	$	177.7		$	105.0	$	397.9	$	256.1
Surface Technologies		33.3			19.0		81.4		32.7
Subsea
Subsea
Surface Technologies(c)
Total segment operating profit	Total segment operating profit	$	211.0		$	124.0	$	479.3	$	288.8

Corporate items	Corporate items
Corporate expense(a)		(24.7)			(25.2)		(205.6)		(76.7)
Corporate items
Corporate items
Corporate expense(a)
Corporate expense(a)
Corporate expense(a)
Net interest expense	Net interest expense	(26.7)			(30.9)		(75.7)		(92.5)
Loss on early extinguishment of debt		—			—		—		(29.8)
Loss from investment in Technip Energies		—			—		—		(27.7)
Foreign exchange gains (losses)	Foreign exchange gains (losses)	(46.4)			(14.5)		(92.6)		13.1
Total corporate items	Total corporate items	(97.8)			(70.6)		(373.9)		(213.6)
Income (loss) before income taxes(b)		$	113.2		$	53.4	$	105.4	$	75.2
Income before income taxes(b)

(a)Corporate expense primarily includes ~~a non-recurring legal settlement charge for the nine months ended September 30, 2023,~~ corporate staff expenses, share-based compensation expenses, and other employee benefits.

(b)Includes amounts attributable to non-controlling interests.

(c)Includes gain on disposal of MSB, see Note 3 for additional details.

NOTE 5.6. EARNINGS ~~(LOSS)~~ PER SHARE

A reconciliation of the number of shares used for the basic and diluted earnings ~~(loss)~~ per share calculation was as follows:


					Three Months Ended
					Three Months Ended
					Three Months Ended
				March 31,									March 31,
(In millions, except per share data)											(In millions, except per share data)	2024		2023
		Three Months Ended					Nine Months Ended
		September 30,					September 30,
(In millions, except per share data)		2023			2022		2023		2022
Income (loss) from continuing operations attributable to TechnipFMC plc		$	90.0		$	5.0	$	3.2	$	(35.2)
Loss from discontinued operations attributable to TechnipFMC plc		—			(15.3)		—		(34.7)
Net income (loss) attributable to TechnipFMC plc		$	90.0		$	(10.3)	$	3.2	$	(69.9)
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc

Weighted average number of shares outstanding	Weighted average number of shares outstanding	436.9			450.1		439.7		451.1

Weighted average number of shares outstanding

Weighted average number of shares outstanding
Dilutive effect of restricted stock units	Dilutive effect of restricted stock units	5.3			5.4		5.6		—

Dilutive effect of stock options
Dilutive effect of performance shares	Dilutive effect of performance shares	8.1			2.6		7.6		—

Total shares and dilutive securities	Total shares and dilutive securities	450.3			458.1		452.9		451.1

Basic and diluted earnings (loss) per share attributable to TechnipFMC plc:
Earnings (loss) per share from continuing operations attributable to TechnipFMC plc
Basic and diluted earnings per share attributable to TechnipFMC plc:
Basic and diluted earnings per share attributable to TechnipFMC plc:
Basic and diluted earnings per share attributable to TechnipFMC plc:
Earnings per share attributable to TechnipFMC plc
Earnings per share attributable to TechnipFMC plc
Earnings per share attributable to TechnipFMC plc
Basic
Basic
Basic	Basic	$	0.21		$	0.01	$	0.01	$	(0.08)
Diluted	Diluted	$	0.20		$	0.01	$	0.01	$	(0.08)

Loss per share from discontinued operations attributable to TechnipFMC plc
Basic and diluted		$	0.00		$	(0.03)	$	0.00	$	(0.08)

Total earnings (loss) per share attributable to TechnipFMC plc
Basic		$	0.21		$	(0.02)	$	0.01	$	(0.16)
Diluted		$	0.20		$	(0.02)	$	0.01	$	(0.16)

~~For the nine months ended September 30, 2022, we incurred a loss from continuing operations; therefore, the impact of 6.6 million shares was anti-dilutive.~~

Weighted average shares of the following share-based compensation awards were excluded from the calculation of diluted weighted average number of shares, where the assumed proceeds exceed the average market price from the calculation of diluted weighted average number of shares, because their effect would be anti-dilutive:


		Three Months Ended			Nine Months Ended
		September 30,			September 30,
(millions of shares)		2023		2022	2023	2022
				Three Months Ended
				Three Months Ended
				Three Months Ended
			March 31,						March 31,
(Millions of shares)							(Millions of shares)	2024		2023
Share option awards	Share option awards	0.8		1.6	1.4	1.6

Restricted share units
Performance shares
Total	Total	0.8		1.6	1.4	1.6

NOTE 6.7. RECEIVABLES

We manage our receivables portfolios using published default risk as a key credit quality indicator for our loans and receivables. Our loans ~~receivables~~receivable and other are related to ~~dividends receivable,~~ sales of long-lived assets or businesses, loans to related parties for capital expenditure purposes, or security deposits for lease arrangements.

We manage our held-to-maturity debt securities using published credit ratings as a key credit quality indicator as our held-to-maturity debt securities consist of government bonds.

The table below summarizes the amortized cost basis of financial assets by years of origination and credit quality.

September 30, 2023

December 31, 2022

March 31, 2024

December 31, 2023

(In millions)

Credit rating

Year of origination

Balance

Credit rating

Year of origination

Balance

(In millions)

Credit rating

Year of origination

Balance

Credit rating

Year of origination

Balance

Loans receivables and other

Moody’s rating A3 - Ba2

2020-2023

139.4

Moody’s rating Aa3 -Ba2

2020-2022

51.0

Debt securities at amortized cost

Moody’s rating B3

2021

1.4

Moody’s rating B3

2021

16.2

Total financial assets

140.8

67.2

Credit Losses

ToFor contract assets and trade receivables, we have elected to calculate an expected credit loss ~~for contract assets and trade receivables, we~~based on loss rates from historical data. We develop loss-rate statistics on the basis of the amount written-off over the life of the financial assets and contract assets and adjust these historical credit loss trends for forward-looking factors specific to the debtors and the economic environment to determine lifetime expected losses.

For loans receivable and other and held-to-maturity debt securities at amortized cost, we evaluate whether these securities are considered to have low credit risk at the reporting date using available, reasonable and supportable information.

The table below shows the roll forward of allowance for credit losses as of ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ respectively.

Balance as of September 30, 2023
(In millions) Trade receivables Contract assets Loans receivable and other Held-to-maturity debt securities
Allowance for credit losses at December 31, 2022 $ 34.2 $ 1.1 $ 0.3 $ 0.2
Current period provision (release) for expected credit losses 2.1 0.5 0.1 (0.2)
Recoveries (0.6) — — —
Allowance for credit losses at September 30, 2023 $ 35.7 $ 1.6 $ 0.4 $ —


	Balance as of March 31, 2024
(In millions)	Trade receivables		Contract assets		Loans receivable and other
Allowance for credit losses at December 31, 2023	$	34.4	$	1.4	$	2.3
Current period provision (release) for expected credit losses	(1.2)		(0.1)		7.3


Allowance for credit losses at March 31, 2024	$	33.2	$	1.3	$	9.6


		Balance as of September 30, 2022
		Balance as of March 31, 2023
		Balance as of March 31, 2023
		Balance as of March 31, 2023
(In millions)	(In millions)	Trade receivables		Contract assets		Loans receivable and other		Held-to-maturity debt securities
Allowance for credit losses at December 31, 2021		$	38.1	$	1.1	$	0.6	$	2.7
Allowance for credit losses at December 31, 2022
Allowance for credit losses at December 31, 2022
Allowance for credit losses at December 31, 2022
Current period provision (release) for expected credit losses
Current period provision (release) for expected credit losses
Current period provision (release) for expected credit losses	Current period provision (release) for expected credit losses	—		0.1		(0.1)		(1.5)

Recoveries	Recoveries	(2.2)		—		—		—
Allowance for credit losses at September 30, 2022		$	35.9	$	1.2	$	0.5	$	1.2

Recoveries

Recoveries
Allowance for credit losses at March 31, 2023
Allowance for credit losses at March 31, 2023
Allowance for credit losses at March 31, 2023

Trade receivables are due in one year or less. We do not have any financial assets that are past due or are on non-accrual status.

NOTE 7.8. INVENTORIES

Inventories consisted of the following:


(In millions)	(In millions)	September 30, 2023		December 31, 2022		(In millions)	March 31, 2024	December 31, 2023
Raw materials	Raw materials	$	413.8	$	317.4
Work in process	Work in process	167.6		152.0
Finished goods	Finished goods	577.1		570.3

Inventories, net	Inventories, net	$	1,158.5	$	1,039.7

Inventories, net

Inventories, net

NOTE 8.9. OTHER CURRENT ASSETS & OTHER CURRENT LIABILITIES

Other current assets consisted of the following:


(In millions)	(In millions)	September 30, 2023		December 31, 2022		(In millions)	March 31, 2024	December 31, 2023
Value-added tax receivables	Value-added tax receivables	$	195.0	$	185.6
Prepaid expenses
Withholding tax and other receivables	Withholding tax and other receivables	139.0		137.8
Prepaid expenses		98.5		61.9

Current financial assets at amortized cost	Current financial assets at amortized cost	91.8		12.4
Assets held for sale		2.6		18.6

Current financial assets at amortized cost

Current financial assets at amortized cost

Held-to-maturity investments
Held-to-maturity investments
Held-to-maturity investments	Held-to-maturity investments	1.3		15.1
Other	Other	49.0		23.6
Total other current assets	Total other current assets	$	577.2	$	455.0

Other current liabilities consisted of the following:


(In millions)	(In millions)	September 30, 2023		December 31, 2022		(In millions)	March 31, 2024	December 31, 2023
Legal settlement liability(a)
Social security liability
Value-added tax and other taxes payable
Warranty accruals and project contingencies
Legal provisions
Compensation accrual	Compensation accrual	$	259.4	$	246.4
Legal settlement liability(a)		164.0		—
Value-added tax and other taxes payable		79.0		65.3
Social security liability		58.9		70.9
Legal provisions		57.0		116.7
Warranty accruals and project contingencies		56.6		87.6
Provisions	Provisions	7.9		9.1
Current portion of accrued pension and other post-retirement benefits	Current portion of accrued pension and other post-retirement benefits	4.5		2.5
Other accrued liabilities	Other accrued liabilities	131.3		138.0
Total other current liabilities	Total other current liabilities	$	818.6	$	736.5

(a)See ~~Note 13~~N ote 1 5 for additional details.

NOTE 9.10. INVESTMENTS

Our income from equity affiliates is included in our Subsea segment. During the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023, our income from equity affiliates was $~~20.6~~1.4 million and ~~$35.9~~$14.2 million, respectively. ~~Our income from equity affiliates during the three and nine months ended September 30, 2022 was $13.8 million and $23.5 million, respectively.~~

Our major equity method ~~investments are~~investment is as follows:

Dofcon Brasil AS is an affiliated company in the form of a joint venture between TechnipFMC and DOF Subsea (“DOF”) and was founded in 2006. The joint venture is composed of three legal entities: Dofcon Brasil AS, ~~is a holding company, which owns and controls TechDof~~Techdof Brasil AS and Dofcon Navegacao Ltda. Dofcon Brasil AS is the joint venture holding company and is owned 50% by DOF and 50% by TechnipFMC. Dofcon Brasil AS owns 100% of both Dofcon Navegacao Ltda and Techdof Brasil AS. All joint venture entities are collectively referred to as “Dofcon.” Dofcon provides Pipe-Laying Support Vessels ~~(PLSVs)~~ for work in oil and natural gas fields offshore Brazil. Dofcon is considered a ~~VIE~~variable interest entity (“VIE”) because it does not have sufficient equity to finance its activities without additional subordinated financial support from other parties. We are not the primary beneficiary of the VIE. As such, we have accounted for our 50% investment using the equity method of accounting with results reported in our Subsea segment.

In June 2023, Dofcon Brasil AS declared a $170.0 million ~~divid~~dividend to its joint venture partners. The dividend receivable was recorded within other current assets on our consolidated balance sheets until December 2023 when t~~end. TechnipFMC’s~~ he joint venture partners agreed and signed the agreement to convert their outstanding dividend receivable into a long-term loan receivable from Dofcon. As a result of this conversion, we converted our 50% share of this dividend receivable into a long-term loan receivable that has a due date of June 26, 2028 and is included in other ~~current~~ assets on our condensed consolidated balance sheets as of ~~September 30, 2023.~~

March 31, 2024 and December 31, 2023

Dofcon Navegacao Ltda and Techdof ~~two 50%-50% legal entities owned in partnership with DOF Group~~Brasil AS have debts related to loans on ~~its~~their vessels. During 2022, DOF ASA, the parent company of DOF Subsea, underwent a bankruptcy process that triggered cross default provisions in the credit facilities of certain joint ventures associated with the parent company guarantees provided by itself and its wholly owned subsidiary DOF Subsea. During March 2023, DOF ASA completed the process of restructuring (unrelated and outside of the joint venture), and DOF Services AS is the new holding company of DOF Group. The lenders made no claims under the guarantees, and the acceleration clauses within the debt instruments were not enforceable as Dofcon and Techdof obtained waivers or consents from the lenders. Dofcon and Techdof continue to service the credit facilities as per the terms of the agreements. As a result of the restructure within DOF Group, the cross default provisions ceased to exist and therefore waivers and consents are no longer required. Accordingly, TechnipFMC has not recognized a liability related to its guarantees. TechnipFMC and DOF provide guarantees for the debts and our share of the guarantees was ~~$397.3~~$367.0 million as of ~~September 30, 2023.~~March 31, 2024.

TechDof Brasil AS owns and operates the Skandi Buzios vessel. During June 2023, a fire occurred onboard the vessel alongside Porto do Açu in Brazil. The fire was brought under control after efforts by the crew and local authorities, and no serious injuries were sustained. TechDof Brasil AS and TechnipFMC have cooperated in the investigation of the fire and its cause, and in the process to get the vessel back in operations. Repairs on the vessel ~~are expected to start~~started during the fourth quarter of ~~2023.~~2023 and are progressing according to plan. The ~~time~~vessel is scheduled to be back in operation during the second half of 2024. We

did not record an impairment on the ~~repairs is dependent on various factors and the vessel will not be on-hire before 2024. As a result~~carrying value of ~~the incident, the Company~~our investment as we did not note any impairment indicators ~~which~~from the incident that were other than ~~temporary, and thus no impairment has been recorded on the carrying value of our investment.~~temporary.

~~Investment in Technip Energies~~

~~During 2022, we fully divested our remaining ownership in Technip Energies.~~

For the nine months ended September 30, 2022, we recognized a $27.7 million loss related to our investment in Technip Energies. The amounts recognized include purchase price discounts on the sales of shares and fair value revaluation gains (losses) of our investment.

NOTE ~~10.~~11. RELATED PARTY TRANSACTIONS

Receivables, payables, revenues and expenses, which are included in our condensed consolidated financial statements for all transactions with related parties, were not material as of and for the three months ended March 31, 2024 and the comparable periods of the prior year. Related parties are defined as entities related to our directors, officers, and main shareholders as well as the partners of our consolidated joint ~~ventures, were~~ventures.

Loan receivables as ~~follows.~~

~~Accounts receivable due from related parties consisted~~ of ~~the following:~~

(In millions) September 30,
2023 December 31, 2022
Dofcon $ 8.8 $ 16.6
Others 1.1 1.3
Total accounts receivable $ 9.9 $ 17.9

~~As of September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~ ~~we did not have material accounts payable~~ ~~outstanding with our related parties.~~

~~Revenue from related parties consisted~~2023 include $85.0 million to Dofcon, for which interest income of $1.8 million has been recorded during the ~~following amounts:~~

Three Months Ended Nine Months Ended
September 30, September 30,
(In millions) 2023 2022 2023 2022
Dofcon $ 0.5 $ 1.6 $ 6.4 $ 7.0
Others 1.2 3.6 5.2 6.6
Total revenue $ 1.7 $ 5.2 $ 11.6 $ 13.6

~~Expenses associated with related parties consisted of~~three months ended March 31, 2024 and nil for the ~~following amounts:~~

Three Months Ended Nine Months Ended
September 30, September 30,
(In millions) 2023 2022 2023 2022
Dofcon $ 6.8 $ 6.3 $ 20.1 $ 12.4
Others 1.7 7.9 15.3 26.0
Total expenses $ 8.5 $ 14.2 $ 35.4 $ 38.4
three months ended March 31, 2023.

NOTE ~~11.~~12. DEBT

Overview

Long-term debt consisted of the following:


(In millions)	(In millions)	September 30, 2023		December 31, 2022		(In millions)	March 31, 2024	December 31, 2023

3.15% 2013 Private placement notes due 2023		270.1		272.2
5.75% 2020 Private placement notes due 2025		211.9		213.5
5.75% 2020 Private Placement Notes due 2025
5.75% 2020 Private Placement Notes due 2025
5.75% 2020 Private Placement Notes due 2025
6.50% Senior notes due 2026	6.50% Senior notes due 2026	202.9		202.9
4.00% 2012 Private placement notes due 2027		79.5		80.1
4.00% 2012 Private placement notes due 2032		106.0		106.7
3.75% 2013 Private placement notes due 2033		106.0		106.7
4.00% 2012 Private Placement Notes due 2027
4.00% 2012 Private Placement Notes due 2032
3.75% 2013 Private Placement Notes due 2033
Bank borrowings and other	Bank borrowings and other	372.8		394.9
Unamortized debt issuance costs and discounts	Unamortized debt issuance costs and discounts	(8.4)		(10.4)
Total debt	Total debt	1,340.8		1,366.6
Less: current borrowings	Less: current borrowings	407.3		367.3
Long-term debt	Long-term debt	$	933.5	$	999.3

Credit Facilities and Debt

Revolving Credit Facility - On February 16, 2021, we entered into a credit agreement, which provided for a $1.0 billion three-year senior secured multi-currency ~~Revolving Credit Facility,~~revolving credit facility, including a $450.0 million letter of credit ~~sub-facility.~~sub-facility (the “Revolving Credit Facility”). We incurred $34.8 million of debt issuance costs in connection with the Revolving Credit Facility. These debt issuance costs are deferred and are included in other assets in our condensed consolidated balance sheets. The deferred debt issuance costs are amortized to interest expense over the term of the Revolving Credit Facility.

On April 24, 2023, we entered into a fifth amendment (the “Amendment No. 5”) to the Revolving Credit Facility (as amended, the “Credit Agreement”)~~, dated~~ ~~February 16, 2021,~~, which ~~increases~~increased the commitments available to the Company to $1.25 billion and ~~extends~~extended the term to five years from the date of the Amendment No. 5. The Credit Agreement also provides for a $250.0 million letter of credit sub-facility.

We incurred $16.7 million of debt issuance costs in connection with the Amendment No. 5. These debt issuance costs are deferred and are included in other assets in our condensed consolidated balance sheets. The deferred debt issuance costs are amortized to interest expense over the term of the Credit Agreement.

Availability of borrowings under the Credit Agreement is reduced by the outstanding letters of credit issued against the facility. As of ~~September 30, 2023,~~March 31, 2024, there were ~~$54.2 million~~no letters ~~letters~~ of credit outstanding, and our availability under the Credit Agreement was ~~$1,195.8~~$1,250.0 million.

Borrowings under the Credit Agreement bear interest at the following rates, plus an applicable margin, depending on currency:

•U.S. dollar-denominated loans bear interest, at the Company’s option, at a base rate or an adjusted rate linked to the Secured Overnight Financing Rate (“Adjusted Term SOFR”);

•British pound-denominated loans bear interest on an adjusted rate linked to the British pound interbank offered rate; and

•Euro-denominated loans bear interest on an adjusted rate linked to the Euro interbank offered rate.

The applicable margin for borrowings under the Credit Agreement ranges from 2.50% to 3.50% for Term Benchmark (as defined in the Credit Agreement) loans and 1.50% to 2.50% for base rate loans, depending on a total leverage ratio. In case of upgrade to Baa3/BBB- by two out of three rating agencies, the rates for Term Benchmark loans and for base rate loans would decrease by 100 basis points. The Credit Agreement is subject to customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants.

Letter of Credit Facility - On April 24, 2023, the Company entered into a new $500 million five-year senior secured performance letters of credit facility (the “Performance LC Credit Agreement”). The commitments under the Performance LC Credit Agreement may be increased to $1.0 billion, subject to the satisfaction of certain customary conditions precedent. The Performance LC Credit Agreement permits the Company and its subsidiaries to have access to performance letters of credit denominated in a variety of currencies to support the contracting activities with counterparties that require or request a performance or similar guarantee. It contains substantially the same customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants as the Credit Agreement and benefits from the same guarantees and security as the Credit Agreement on a pari passu basis.

Upon the occurrence of an Investment Grade Debt Rating (as defined in the Credit Agreement) by any two of three Rating Agencies (as defined in the Credit Agreement) and the satisfaction of certain other conditions precedent, the collateral securing the Credit Agreement and the Performance LC Credit Agreement and the guarantees provided by certain subsidiaries of the Company shall be automatically released ~~(“fall-away”)~~ and certain negative covenants will no longer apply to the Company.

2021 Notes - On January 29, 2021, we issued $1.0 billion of 6.50% senior notes due 2026 (the ~~“202~~1“2021 Notes”). The interest on the 2021 Notes is paid semi-annually on February 1 and August 1 of each year, beginning on August 1, 2021. The 2021 Notes are senior unsecured obligations and are guaranteed on a senior unsecured basis by substantially all of our wholly owned U.S. subsidiaries and non-U.S. subsidiaries in Brazil, the Netherlands, Norway, Singapore and the United Kingdom. We incurred $25.7 million of debt issuance costs in connection with issuance of the 2021 Notes. These debt issuance costs are deferred and are included in long-term debt in our condensed consolidated balance sheets. The deferred debt issuance costs are amortized to interest expense over the term of the 2021 Notes, which approximates the effective interest method.

As of ~~September 30, 2023, we were~~March 31, 2024, TechnipFMC was in compliance with all debt covenants.

Bank borrowings - Include term loans issued in connection with financing for certain of our vessels and amounts outstanding under our foreign committed credit lines.

Foreign committed credit - We have committed credit lines at many of our international subsidiaries for immaterial amounts. We utilize these facilities for asset financing and to provide a more efficient daily source of liquidity. The effective interest rates depend upon the local national market.

NOTE ~~12.~~13. STOCKHOLDERS’ EQUITY

On July 26, 2023, the Company announced that its Board of Directors authorized ~~and declared~~the initiation of a quarterly cash dividend of $0.05 per share. ~~The cash dividend of $0.05 per share was paid on September 6, 2023, to shareholders of record as of the close of business on the New York Stock Exchange on August 22, 2023.~~The Company intends to pay dividends on a quarterly basis, and this dividend represents $0.20 per share on an annualized basis. ~~Cash dividends~~The cash dividend paid during the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 was ~~$21.8~~$21.7 million.

As an English public limited company, we are required under U.K. law to have available “distributable reserves” to conduct share repurchases or pay dividends to shareholders. Distributable reserves are a statutory requirement and are not linked to a GAAP reported amount (e.g., retained earnings). The declaration and payment of dividends require the authorization of our Board of Directors, provided that such dividends on issued share capital may be paid only out of our “distributable reserves” on our statutory balance sheet. Therefore, we are not permitted to pay dividends out of share capital, which includes share premium.

In July 2022, the Board of Directors authorized the repurchase of up to $400.0 million of our outstanding ordinary shares under our share repurchase program.On July 26, 2023, the Board of Directors authorized additional share repurchase of up to $400.0 ~~million. Together with the existing program,~~million, and the Company’s total share repurchase authorization was increased to $800.0 million of our outstanding ordinary shares under our share repurchase program. Pursuant to this share repurchase program, we repurchased ~~$50.1~~$150.1 million of ordinary shares during the three months ended ~~September 30, 2023.~~March 31, 2024. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of ~~$250.3~~$455.4 million of ordinary shares through September 30, 2023. Based upon the remaining repurchase authority of $549.7 million and the closing stock price as of September 30, 2023, approximately 27.0 million ordinary shares could be subject to repurchase.March 31, 2024. All repurchased shares were immediately cancelled.

Accumulated other comprehensive income (loss) for three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ consisted of the following:

(In millions) Foreign Currency
Translation Hedging Defined Pension
and Other
Post-Retirement
Benefits Accumulated Other
Comprehensive
Loss Attributable to
TechnipFMC plc Accumulated Other
Comprehensive
Loss Attributable
to Non-Controlling Interest
June 30, 2023 $ (1,124.6) $ (33.4) $ (102.2) $ (1,260.2) $ (13.0)
Other comprehensive income (loss) before reclassifications, net of tax (57.6) 5.7 0.5 (51.4) 7.0
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax — (12.4) 2.3 (10.1) —
Other comprehensive income (loss), net of tax (57.6) (6.7) 2.8 (61.5) 7.0
September 30, 2023 $ (1,182.2) $ (40.1) $ (99.4) $ (1,321.7) $ (6.0)
June 30, 2022 $ (1,158.3) $ (64.1) $ (124.6) $ (1,347.0) $ (10.1)
Other comprehensive loss before reclassifications, net of tax (97.2) (33.4) (1.5) (132.1) (2.8)
Reclassification adjustment for net losses included in net income, net of tax — 6.7 3.0 9.7 —
Other comprehensive income (loss), net of tax (97.2) (26.7) 1.5 (122.4) (2.8)
September 30, 2022 $ (1,255.5) $ (90.8) $ (123.1) $ (1,469.4) $ (12.9)


(In millions)	(In millions)	Foreign Currency Translation		Hedging		Defined Pension and Other Post-Retirement Benefits		Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc		Accumulated Other Comprehensive Loss Attributable to Non-Controlling Interest		(In millions)	Foreign Currency Translation	Hedging	Defined Pension and Other Post-Retirement Benefits	Accumulated Other Comprehensive Loss Attributable to TechnipFMC plc	Accumulated Other Comprehensive Loss Attributable to Non-Controlling Interest
December 31, 2022	December 31, 2022	$	(1,177.7)	$	(17.1)	$	(106.9)	$	(1,301.7)	$	(9.8)
Other comprehensive income (loss) before reclassifications, net of tax	Other comprehensive income (loss) before reclassifications, net of tax	(4.4)		(19.2)		0.7		(22.9)		3.8
Reclassification adjustment for net (gains) losses included in net income (loss), net of tax	Reclassification adjustment for net (gains) losses included in net income (loss), net of tax	(0.1)		(3.8)		6.8		2.9		—
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	(4.5)		(23.0)		7.5		(20.0)		3.8
September 30, 2023		(1,182.2)		(40.1)		(99.4)		(1,321.7)		(6.0)
March 31, 2023

December 31, 2021		$	(1,158.4)	$	(17.3)	$	(129.3)	$	(1,305.0)	$	(5.7)
Other comprehensive loss before reclassifications, net of tax		(97.1)		(92.0)		(3.0)		(192.1)		(7.2)
Reclassification adjustment for net losses included in net income (loss), net of tax		—		18.5		9.2		27.7		—
December 31, 2023
December 31, 2023
December 31, 2023
Other comprehensive income (loss) before reclassifications, net of tax
Reclassification adjustment for net (gains) losses included in net income, net of tax
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	(97.1)		(73.5)		6.2		(164.4)		(7.2)
September 30, 2022		(1,255.5)		(90.8)		(123.1)		(1,469.4)		(12.9)
March 31, 2024

2119

Reclassifications out of accumulated other comprehensive income (loss) consisted of the following:


		Three Months Ended					Nine Months Ended
		September 30,					September 30,
				Three Months Ended
				Three Months Ended
				Three Months Ended
				March 31,
				March 31,
				March 31,
(In millions)
(In millions)
(In millions)	(In millions)	2023		2022			2023		2022
Details about Accumulated Other Comprehensive Income (loss) Components	Details about Accumulated Other Comprehensive Income (loss) Components	Amount Reclassified out of Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Condensed Consolidated Statements of Income
Details about Accumulated Other Comprehensive Income (loss) Components
Details about Accumulated Other Comprehensive Income (loss) Components														Amount Reclassified out of Accumulated Other Comprehensive Income (Loss)									Affected Line Item in the Condensed Consolidated Statements of Income

Release of CTA loss
Release of CTA loss
Release of CTA loss														(10.5)				—						Other income (expense), net
						$
Gains (losses) on hedging instruments
Gains (losses) on hedging instruments
Gains (losses) on hedging instruments	Gains (losses) on hedging instruments
Foreign exchange contracts	Foreign exchange contracts	$	(0.5)	$	(1.4)		$	(9.0)	$	(1.9)	Revenue
Foreign exchange contracts
Foreign exchange contracts														$	0.9			$	(1.7)					Revenue
						0.6															0.6					3.5		Cost of sales
		21.7		(5.6)			22.4		(12.6)		Cost of sales
		(0.1)		—			(0.2)		(0.3)		Selling, general and administrative expense
		(2.1)		(2.2)			(6.5)		(11.1)		Other income (expense), net
		19.0		(9.2)			6.7		(25.9)		Income (loss) before income taxes
		6.6		(2.5)			2.9		(7.4)		Provision for income taxes
		$	12.4	$	(6.7)		$	3.8	$	(18.5)	Net income (loss)
							2.8
							2.8
							2.8						(4.1)				Other income (expense), net
						4.3															4.3					(2.3)		Income (loss) before income taxes
						1.2															1.2					(0.7)		Provision for income taxes
						$														$	3.1				$	(1.6)	Net income (loss)
Pension and other post-retirement benefits	Pension and other post-retirement benefits
Amortization of prior service credit (cost)	Amortization of prior service credit (cost)	$	(0.1)	$	(0.1)		$	(0.2)	$	(0.3)	Other income (expense), net (a)
Amortization of prior service credit (cost)
Amortization of prior service credit (cost)														$	(0.1)			$	(0.1)					Other income (expense), net(a)
Amortization of net actuarial loss	Amortization of net actuarial loss	(2.7)		(5.8)			(5.1)		(14.9)		Other income (expense), net (a)	Amortization of net actuarial loss		(2.1)		(3.2)			(3.2)			Other income (expense), net(a)				Other income (expense), net(a)
		(2.8)		(5.9)			(5.3)		(15.2)		Income (loss) before income taxes
		(0.5)		(2.9)			1.5		(6.0)		Provision for income taxes
		$	(2.3)	$	(3.0)		$	(6.8)	$	(9.2)	Net income (loss)
Reclassification adjustment for net gain included in net income												Reclassification adjustment for net gain included in net income		2.3				—						Other income (expense), net(a)
						0.1															0.1					(3.3)		Income (loss) before income taxes
						1.0															1.0					(1.0)		Provision for income taxes
						$														$	(0.9)				$	(2.3)	Net income (loss)

(a)These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

NOTE 14. SUPPLIER FINANCE PROGRAM OBLIGATIONS

We facilitate a supply chain finance program (“SCF”) that is administered by a third-party financial institution, which allows qualifying suppliers to sell their receivables from the Company to the SCF bank. These participating suppliers negotiate their outstanding receivable(s) directly with the SCF bank. We are not a party to those agreements and the terms of our payment obligations are not impacted by a supplier’s participation in the SCF. We agree to pay the SCF bank based on the original invoice amounts and maturity dates as consistent with our other Accounts payables.

All outstanding amounts related to suppliers participating in the SCF are recorded within Accounts payable, trade in our condensed consolidated balance sheets, and the associated payments are included in operating activities within our condensed consolidated statements of cash flows. As of March 31, 2024 and December 31, 2023, the amounts due to suppliers participating in the SCF were $135.3 million and $132.9 million, respectively.

NOTE ~~13.~~15. COMMITMENTS AND CONTINGENT LIABILITIES

Contingent liabilities associated with guarantees - In the ordinary course of business, we enter into standby letters of credit, performance bonds, surety bonds and other guarantees with financial institutions for the benefit of our customers, vendors and other parties. The majority of these financial instruments expire within five years. Management does not expect any of these financial instruments to result in losses that would have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows.

Guarantees made by our consolidated subsidiaries consisted of the following:


(In millions)	(In millions)	September 30, 2023		December 31, 2022		(In millions)	March 31, 2024	December 31, 2023
Financial guarantees (a)	Financial guarantees (a)	$	185.3	$	170.2
Performance guarantees (b)	Performance guarantees (b)	1,793.3		1,458.2
Maximum potential undiscounted payments	Maximum potential undiscounted payments	$	1,978.6	$	1,628.4

(a)Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability or an equity security of the guaranteed party. These tend to be drawn down only if there is a failure to fulfill our financial obligations.

(b)Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a non-financial obligating agreement. Events that trigger payment are performance-related, such as failure to ship a product or provide a service.

We believe the ultimate resolution of our known contingencies will not materially adversely affect our condensedconsolidated financial position, results of operations, or cash flows.

Contingent liabilities associated with legal and tax matters - We are involved in various pending or potential legal and tax actions or disputes in the ordinary course of our business. These actions and disputes can involve our agents, suppliers, clients and venture partners, and can include claims related to payment of fees, service quality and ownership arrangements, including certain put or call options. We are unable to predict the ultimate outcome of these actions because of their inherent uncertainty. However, we believe that the most probable, ultimate resolution of these matters will not have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows.

~~On March 28, 2016, FMC Technologies received~~The Company has resolved an ~~inquiry from the U.S. Department of Justice (“DOJ”) related to the DOJ's~~anti-corruption investigation of whether certain services Unaoil S.A.M. provided to its clients, including FMC Technologies, violated the U.S. Foreign Corrupt Practices Act (“FCPA”). On March 29, 2016, Technip S.A. also received an inquiry from the DOJ related to Unaoil. We cooperated with the DOJ's investigations and, with regard to FMC Technologies, a related investigation by ~~the SEC.~~

In late 2016, Technip S.A. was contacted by the DOJ regarding its investigation of offshore platform projects awarded between 2003 and 2007, performed in Brazil by a joint venture company in which Technip S.A. was a minority participant, and also raised with the DOJ certain other projects performed by Technip S.A. subsidiaries in Brazil between 2002 and 2013. The DOJ also inquired about projects in Ghana and Equatorial Guinea that were awarded to Technip S.A. subsidiaries in 2008 and 2009, respectively. We cooperated with the DOJ in its investigation into potential violations of the FCPA in connection with these projects. We contacted and cooperated with the Brazilian authorities (Federal Prosecution Service (“MPF”), the Comptroller General of Brazil (“CGU”) and the Attorney General of Brazil (“AGU”)) with their investigation concerning the projects in Brazil and also contacted and cooperated with French authorities (the Parquet National Financier (“PNF”)) ~~with their investigation about these matters.~~

On June 25, 2019, we announced a global resolution to pay a total of $301.3 million to the DOJ, the SEC, the MPF and the CGU/AGU to resolve these anti-corruption investigations. We were not required to have a monitor and, instead, provided reports on our anti-corruption program to the Brazilian and U.S. authorities for ~~two~~ ~~and three years, respectively.~~

As part of this resolution, we entered into a three-year Deferred Prosecution Agreement (“DPA”) with the DOJ related to charges of conspiracy to violate the FCPA related to conduct in Brazil and with Unaoil. In addition, Technip USA, Inc., a U.S. subsidiary, pled guilty to 1 count of conspiracy to violate the FCPA related to conduct in Brazil. We also provided the DOJ reports on our anti-corruption program during the term of the DPA.

In Brazil, on June 25, 2019, our subsidiaries Technip Brasil - Engenharia, Instalações E Apoio Marítimo Ltda. and Flexibrás Tubos Flexíveis Ltda. entered into leniency agreements with both the MPF and the CGU/AGU. We made, as part of those agreements, certain enhancements to the compliance programs in Brazil during the two-year self-reporting period, which aligned with our commitment to cooperation and transparency with the compliance community in Brazil and globally.

In September 2019, the SEC approved our previously disclosed agreement in principle with the SEC Staff and issued an Administrative Order, pursuant to which we paid the SEC $5.1 million, which was included in the global resolution of $301.3 million.

On December 8, 2022, the Company received notice of the official release from all obligations and charges by CGU, having successfully completed all of the self-reporting requirements in the leniency agreements and the case was closed. On December 27, 2022, the DOJ filed a Motion to Dismiss the charges against TechnipFMC related to conspiracy to violate the FCPA, noting to the Court that the Company had fully met and completed all of its obligations under the DPA. The Dismissal Order was signed by the Court on January 4, 2023, thereby closing the case. All obligations to regulatory authorities related to the enforcement matters in the United States and Brazil have been completed and the Company has been unconditionally released by both jurisdictions.

. On June 22, 2023, the Company, through its subsidiary Technip UK Limited, along with Technip Energies SAS, a subsidiary of Technip Energies NV, reached a resolution with the PNF of all outstanding matters, including its investigations into historical projects in Equatorial Guinea, Ghana, and Angola. The resolution took the form of a convention judiciaire d'interet public (“CJIP”), which does not involve any admission of liability or guilt.

Under the terms of the CJIP, Technip UK and Technip Energies France will pay a public interest fine of €154.8 million and €54.1 million, respectively, for a total of €208.9 million. Under the companies’ separation agreements, TechnipFMC is responsible for €179.45 million to be paid in installments through July 2024, and Technip Energies is responsible for the remaining €29.45 million. During the three-months ended June 30, 2023, we recorded aan incremental liability of $126.5 ~~million liability incremental to our existing provision.~~million. After making a scheduled installment ~~payment~~payments of €24.7 million and €51.6 million on July 13, 2023 and January 15, 2024, respectively, we have an outstanding balance ~~after foreign exchange impact,~~ of ~~$164.0~~€103.2 million that is translated to $111.5 million and is recorded in other current liabilities in our condensed consolidated balance ~~sheet~~sheets as of ~~September 30, 2023.~~

March 31, 2024.

TechnipFMC fully cooperated with the PNF and was not required to retain a monitor. The CJIP received final approval by the President of the Tribunal Judiciaire of Paris at a hearing on June 28, 2023.

Contingent liabilities associated with liquidated damages - Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a conforming claim under these provisions. These contracts define the conditions under which our customers may make claims against us for liquidated damages. Based upon the evaluation of our performance and other commercial and legal analysis, management believes we have appropriately recognized probable liquidated damages ~~at September 30, 2023~~as of March 31, 2024 and December 31, ~~2022,~~2023, and that the ultimate resolution of such matters will not materially affect our condensed consolidated financial position, results of operations or cash flows.

NOTE ~~14.~~16. INCOME TAXES

Our provision for income taxes for the three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ reflected effective tax rates of ~~17.2%~~23.6% and ~~80.0%~~82.7%, respectively. The ~~year-over-year~~ change in the effective tax rate was ~~primarily related~~largely due to ~~losses in jurisdictions with a full valuation allowance and a~~the change in geographical profit mix year over ~~year.~~

~~Our provision for income taxes for the nine months ended September 30, 2023 and 2022 reflected effective~~year, tax ~~rates of 95.1% and 121.0%, respectively. The year-over-year change in the effective tax rate was primarily~~adjustments related to ~~losses~~the reassessment of prior year tax accruals and changes in ~~jurisdictions with a full~~ valuation ~~allowance, a change in other discrete adjustments and in geographical profit mix year over year.~~allowances on some of our deferred tax assets.

Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom.

NOTE ~~15.~~17. DERIVATIVE FINANCIAL INSTRUMENTS

For purposes of mitigating the effect of changes in exchange rates, we hold derivative financial instruments to hedge the risks of certain identifiable and anticipated transactions and recorded assets and liabilities in our condensed consolidated balance sheets. The types of risks hedged are those relating to the variability of future earnings and cash flows caused by movements in foreign currency exchange rates. Our policy is to hold derivatives only for the purpose of hedging risks associated with anticipated foreign currency purchases and sales created in the normal course of business, and not for speculative purposes.

Generally, we enter into hedging relationships such that changes in the fair values or cash flows of the transactions being hedged are expected to be offset by corresponding changes in the fair value of the derivatives. For derivative instruments that qualify as a cash flow hedge, the effective portion of the gain or loss of the derivative, which does not include the time value component of a forward currency rate, is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, any change in the fair value of those instruments is reflected in earnings in the period such change occurs. ~~Cash flows related to derivatives designated as cash flow and fair value hedges are classified consistently with the cash flows of the associated hedged item.~~

We hold the following types of derivative instruments:

Foreign exchange rate forward contracts - The purpose of these instruments is to hedge the risk of changes in future cash flows of anticipated purchase or sale commitments denominated in foreign currencies and recorded assets and liabilities in our condensed consolidated balance sheets. As of ~~September 30, 2023,~~March 31, 2024, we held the following material net positions:


		Net Notional Amount Bought (Sold)
	Net Notional Amount Bought (Sold)				Net Notional Amount Bought (Sold)
(In millions)	(In millions)		USD Equivalent	(In millions)		USD Equivalent
Euro	Euro	1,472.6	1,560.2
Norwegian krone	Norwegian krone	4,250.1	400.0
Brazilian real
Australian dollar	Australian dollar	349.0	226.2
Brazilian real		1,061.8	212.1
Singapore dollar
Malaysian ringgit
Czech koruna
Swedish krona
Canadian dollar
Indian rupee
Polish zloty
Indonesian rupiah	Indonesian rupiah	2,006,373.6	129.6
Singapore dollar		84.1	61.6
Canadian dollar		66.3	49.3
Czech koruna		372.1	16.2
Malaysian ringgit		64.7	13.8
Indian rupee		1,111.5	13.4
Swedish krona		114.1	10.5
British pound	British pound	(48.0)	(58.8)
U.S. dollar	U.S. dollar	(2,711.1)	(2,711.1)

Foreign exchange rate instruments embedded in purchase and sale contracts - The purpose of these instruments is to match offsetting currency payments and receipts for particular projects or comply with government restrictions on the currency used to purchase goods in certain countries. As of ~~September 30, 2023,~~March 31, 2024, our portfolio of these instruments included the following material net positions:

Net Notional Amount
Bought (Sold)

(In millions)

USD Equivalent

(In millions)

USD Equivalent

Brazilian real

28.4

5.7

Norwegian krone

3.3

0.3

Euro

(16.9)

(17.9)

U.S. dollar

12.9

Fair value amounts for all outstanding derivative instruments have been determined using available market information and commonly accepted valuation methodologies. See Note 1618 for further details. Accordingly, the estimates presented may not be indicative of the amounts we would realize in a current market exchange and may not be indicative of the gains or losses we may ultimately incur when these contracts are settled.

The following table presents the location and fair value amounts of derivative instruments reported in the condensed consolidated balance sheets:


		September 30, 2023				December 31, 2022
	March 31, 2024												March 31, 2024		December 31, 2023
(In millions)	(In millions)	Assets		Liabilities		Assets		Liabilities		(In millions)	Assets	Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments	Derivatives designated as hedging instruments
Foreign exchange contracts	Foreign exchange contracts
Foreign exchange contracts
Foreign exchange contracts
Current - Derivative financial instruments
Current - Derivative financial instruments
Current - Derivative financial instruments	Current - Derivative financial instruments	$	123.1	$	164.5	$	254.8	$	332.5
Long-term - Derivative financial instruments	Long-term - Derivative financial instruments	12.6		25.6		7.2		3.6
Total derivatives designated as hedging instruments	Total derivatives designated as hedging instruments	135.7		190.1		262.0		336.1
Derivatives not designated as hedging instruments	Derivatives not designated as hedging instruments
Foreign exchange contracts	Foreign exchange contracts
Foreign exchange contracts
Foreign exchange contracts
Current - Derivative financial instruments
Current - Derivative financial instruments
Current - Derivative financial instruments	Current - Derivative financial instruments	16.8		23.7		27.9		14.1
Long-term - Derivative financial instruments	Long-term - Derivative financial instruments	0.1		—		—		—
Total derivatives not designated as hedging instruments	Total derivatives not designated as hedging instruments	16.9		23.7		27.9		14.1
Total derivatives	Total derivatives	$	152.6	$	213.8	$	289.9	$	350.2

Cash flow hedges of forecasted transactions, net of tax, which qualify for hedge accounting, resulted in accumulated other comprehensive loss of ~~$41.6~~$16.8 million and accumulated other comprehensive income of ~~$18.5~~$19.5 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively. We expect to transfer an approximate ~~$2.3~~$4.8 million ~~loss~~gain from accumulated OCI to earnings during the next 12 months when the anticipated transactions actually occur. All anticipated transactions currently being hedged are expected to occur by the second half of ~~2026.~~2027.

The following table presents the gains (losses) recognized in other comprehensive income related to derivative instruments designated as cash flow hedges:

Gain (Loss) Recognized in OCI
Three Months Ended Nine Months Ended September 30,
(In millions) 2023 2022 2023 2022
Foreign exchange contracts $ 1.4 $ (43.9) $ (16.3) $ (107.6)


		Gain (Loss) Recognized in OCI
	Three Months Ended March 31,
(In millions)		2024		2023
Foreign exchange contracts		$	(39.8)	$	(2.4)

2623

The following table represents the effect of cash flow hedge accounting in the condensed consolidated statements of income for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:


(In millions)	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
Total amount of income (expense) presented in the condensed consolidated statements of income associated with hedges and derivatives	Revenue		Cost of sales		Other income (expense), net		Revenue		Cost of sales		Other income (expense), net
Cash Flow hedge gain (loss) recognized in income
Foreign Exchange Contracts
Amounts reclassified from accumulated OCI to income (loss)	$	0.9	$	0.6	$	2.8	$	(1.7)	$	3.5	$	(4.1)
Amounts excluded from effectiveness testing	7.0		4.9		(4.9)		1.7		(8.4)		40.1
Total cash flow hedge gain (loss) recognized in income	7.9		5.5		(2.1)		—		(4.9)		36.0

Gain (loss) recognized in income on derivatives not designated as hedging instruments	0.2		—		(21.4)		(0.1)		0.3		8.8
Total(a)	$	8.1	$	5.5	$	(23.5)	$	(0.1)	$	(4.6)	$	44.8

(a)

(In millions) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling,
general
and
administrative
expense Other income (expense), net Revenue Cost of sales Selling,
general
and
administrative
expense Other income (expense), net
Amounts reclassified from accumulated OCI to income (loss) $ (0.6) $ 21.7 $ (0.1) $ (1.6) $ (1.4) $ (5.6) $ — $ (2.2)
Amounts excluded from effectiveness testing 6.5 (6.8) (0.4) (8.5) 5.2 (4.8) (0.1) (11.7)
Total cash flow hedge gain (loss) recognized in income 5.9 14.9 (0.5) (10.1) 3.8 (10.4) (0.1) (13.9)
Total hedge gain (loss) recognized in income $ 5.9 $ 14.9 $ (0.5) $ (10.1) $ 3.8 $ (10.4) $ (0.1) $ (13.9)
Loss recognized in income on derivatives not designated as hedging instruments — (0.5) — (29.6) 0.1 0.6 — (22.0)
Total $ 5.9 $ 14.4 $ (0.5) $ (39.7) $ 3.9 $ (9.8) $ (0.1) $ (35.9)

(In millions) Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives Revenue Cost of sales Selling,
general
and
administrative
expense Other income (expense), net Revenue Cost of sales Selling,
general
and
administrative
expense Other income (expense), net
Amounts reclassified from accumulated OCI to income (loss) $ (9.0) $ 22.4 $ (0.2) $ (6.0) $ (1.9) $ (12.6) $ (0.3) $ (11.1)
Amounts excluded from effectiveness testing 15.1 (27.4) (1.0) 69.8 8.2 (8.6) 0.4 (31.3)
Total cash flow hedge gain (loss) recognized in income 6.1 (5.0) (1.2) 63.8 6.3 (21.2) 0.1 (42.4)
Total hedge gain (loss) recognized in income 6.1 (5.0) (1.2) 63.8 6.3 (21.2) 0.1 (42.4)
Gain (loss) recognized in income on derivatives not designated as hedging instruments (0.1) (0.8) — (33.1) — (0.8) — (8.0)
Total $ 6.0 $ (5.8) $ (1.2) $ 30.7 $ 6.3 $ (22.0) $ 0.1 $ (50.4)
The total effect of cash flow hedge accounting on selling, general and administrative expense is not material for the three months ended March 31, 2024 and 2023.

Balance Sheet Offsetting - We execute derivative contracts with counterparties that consent to a master netting agreement, which permits net settlement of the gross derivative assets against gross derivative liabilities. Each instrument is accounted for individually and assets and liabilities are not offset. As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, we had no collateralized derivative contracts. The following tables present both gross ~~information~~ and net information of recognized derivative instruments:


		September 30, 2023						December 31, 2022
	March 31, 2024																March 31, 2024				December 31, 2023
(In millions)	(In millions)	Gross Amount Recognized		Gross Amounts Not Offset, Permitted Under Master Netting Agreements		Net Amount		Gross Amount Recognized		Gross Amounts Not Offset, Permitted Under Master Netting Agreements		Net Amount		(In millions)	Gross Amount Recognized	Gross Amounts Not Offset, Permitted Under Master Netting Agreements		Net Amount	Gross Amount Recognized	Gross Amounts Not Offset, Permitted Under Master Netting Agreements		Net Amount
Derivative assets	Derivative assets	$	152.6	$	(98.5)	$	54.1	$	289.9	$	(142.5)	$	147.4
Derivative liabilities	Derivative liabilities	$	213.8	$	(98.5)	$	115.3	$	350.2	$	(142.5)	$	207.7

2724

NOTE ~~16.~~18. FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis were as follows:

September 30, 2023 December 31, 2022
(In millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets
Investments
Equity securities 22.1 22.1 — — 19.8 19.8 — —
Money market and stable value funds 2.0 — 1.6 — 1.9 — 1.5 —
Held-to-maturity debt securities 1.3 — 1.3 — 16.0 — 16.0 —
Derivative financial instruments
Foreign exchange contracts 152.6 — 152.6 — 289.9 — 289.9 —
Total assets $ 178.0 $ 22.1 $ 155.5 $ — $ 327.6 $ 19.8 $ 307.4 $ —
Liabilities
Derivative financial instruments
Foreign exchange contracts 213.8 — 213.8 — 350.2 — 350.2 —
Total liabilities $ 213.8 $ — $ 213.8 $ — $ 350.2 $ — $ 350.2 $ —


	March 31, 2024								December 31, 2023
(In millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets
Investments
Equity securities	$	26.6	$	26.6	$	—	$	—	$	24.3	$	24.3	$	—	$	—
Money market and stable value funds	2.3		—		1.9		—		2.1		—		1.7		—
Derivative financial instruments
Foreign exchange contracts	137.8		—		137.8		—		213.8		—		213.8		—
Total assets	$	166.7	$	26.6	$	139.7	$	—	$	240.2	$	24.3	$	215.5	$	—
Liabilities
Derivative financial instruments
Foreign exchange contracts	199.7		—		199.7		—		204.7		—		204.7		—
Total liabilities	$	199.7	$	—	$	199.7	$	—	$	204.7	$	—	$	204.7	$	—

Equity securities - The fair value measurement of our traded securities is based on quoted prices that we have the ability to access in public markets.

Money market and stable value funds - These funds are valued at the net asset value of the shares held at the end of the quarter, which is based on the fair value of the underlying investments using information reported by our investment advisor at quarter-end. These funds include fixed income and other investments measured at fair value. Certain investments that are measured at fair value using net asset value per share (or its equivalent) have not been classified in the fair value hierarchy.

Held-to-maturity debt securities - ~~Held-to-maturity debt securities~~These investments consist of government ~~bonds. These investments~~bonds and are stated at amortized cost, which approximates fair value.

Derivative financial instruments - We use the income approach as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used. Our credit spread, and the credit spread of other counterparties not publicly available, are approximated by using the spread of similar companies in the same industry, of similar size and with the same credit rating.

We currently have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position. See Note 1517 for further details.

Other fair value disclosures

The carrying amounts of cash and cash equivalents, trade receivables, accounts payable, short-term debt, debt associated with our bank borrowings, credit facilities, as well as amounts included in other current assets and other current liabilities that meet the definition of financial instruments, approximate fair value.

Fair value of debt - We use a market approach to determine the fair value of our fixed-rate debt using observable market data, which results in a Level 2 fair value measurement. The estimated fair value of our private placement notes and senior ~~notes~~notes was ~~$912.8~~$670.9 million ~~and $916.3~~and $683.4 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively.

2825

Credit risk - By their nature, financial instruments involve risk, including credit risk, for non-performance by counterparties. Financial instruments that potentially subject us to credit risk primarily consist of trade receivables and derivative contracts. We manage the credit risk on financial instruments by transacting only with what management believes are financially secure counterparties, requiring credit approvals and credit limits and monitoring counterparties’ financial condition. Our maximum exposure to credit loss in the event of non-performance by the counterparty is limited to the amount drawn and outstanding on the financial instrument. Allowances for losses on trade receivables are established based on collectability assessments. We mitigate credit risk on derivative contracts by executing contracts only with counterparties that consent to a master netting agreement, which permits the net settlement of gross derivative assets against gross derivative liabilities.

~~NOTE 17. DISCONTINUED OPERATIONS~~

On February 16, 2021, we completed our separation of the Technip Energies business segment. The transaction was structured as a spin-off (the “Spin-off”), which occurred by way of a pro rata dividend (the “Distribution”) to our shareholders of 50.1% of the outstanding shares in Technip Energies N.V. Each of our shareholders received one ordinary share of Technip Energies N.V. for every five ordinary shares of TechnipFMC held at 5:00 p.m., Eastern Standard Time, on the record date, February 17, 2021.

In connection with the Spin-off, TechnipFMC and Technip Energies entered into a separation and distribution agreement, as well as various other agreements, including, among others, a tax matters agreement, an employee matters agreement, a transition services agreement and certain agreements relating to intellectual property. These agreements provide for the allocation between TechnipFMC and Technip Energies of assets, employees, taxes, liabilities and obligations attributable to periods prior to, at and after the Spin-off.

For both the three and nine months ended September 30, 2022, we recorded $15.8 million in expense from discontinued operations due to a change in estimate of liabilities recognized in connection with the Spin-off. Also for the three and nine months ended September 30, 2022, we recorded $(0.5) million and $18.9 million, respectively, in income tax (benefit) expense from discontinued operations related to a change in estimate in the French tax group.

NOTE ~~18.~~19. SUBSEQUENT EVENTS

On ~~October 24, 2023,~~April 23, 2024, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on ~~December 6, 2023~~June 5, 2024 to shareholders onof record as of the close of business on the New York Stock Exchange on ~~November~~May 21, ~~2023.~~2024. The ex-dividend date is ~~November~~May 20, ~~2023.~~2024.

2926

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

BUSINESS OUTLOOK

Overall Outlook –- The global economy ~~is forecast~~remains resilient despite multiple headwinds, including aggressive monetary tightening undertaken to ~~grow in 2023. Increased lending~~curb high inflation. Inflation has eased, but interest rates byremain elevated and central banks ~~aimed at slowing inflation~~remain diligent in their efforts to balance price stability and ~~reduced availability of credit related to regional banking concerns have increased the risk of a mild recession in some economies. Still, higher global gross domestic product (GDP) in aggregate is~~economic growth. These actions are anticipated to support continued growth in energy demand ~~this year.~~

Oil prices continue to be supported by regional geopolitical tensions and the industry’s more disciplined capital spend. This is evident for OPEC+ countries who are focused on realizing a price that supports both economic growth and energy investment, as seen by production cuts that are expected to remain in ~~place through the end of~~ 2024. An extended period of underinvestment has contributed to a current supply deficit that has resulted in increased upstream spending, lending support to a constructive view on the longer-term outlook for oil prices.

With long-term energy demand also forecast to increase, the ~~conflict~~conflicts in Ukraine ~~has~~and Israel have further highlighted the need for greater energy security across the globe. As a result, the energy industry has accelerated its efforts to address the essential need for hydrocarbons today to ensure the continuity of affordable energy while also playing an essential role in the energy transition.

~~We are~~The price of oil has been supported by regional geopolitical tensions and the industry’s more disciplined capital spend, particularly for OPEC+ countries focused on production levels that support both economic growth and energy investment. This includes Aramco’s recent decision to forego an expansion in its production capacity above the ~~midst~~current level of 12 million barrels per day (“MMBD”). An extended period of underinvestment also contributed to a ~~multi-year growth cycle~~supply deficit that has required increased upstream spending, lending support to a constructive view on the longer-term outlook for ~~energy demand. We believe that investment in new sources of~~ oil and natural gas ~~production~~prices.

We see continued strength ahead, driven by the resiliency and durability of the current market. The demand for energy will ~~increase over~~continue to grow. However, we believe the ~~intermediate-term, fueled~~market’s evolution will differ from the past, driven by ~~an expansion of activity~~three major trends. First, a shift in ~~international markets –~~capital flows, which we believe will largely be directed to the offshore and ~~the~~ Middle ~~East. Investment~~East markets. Second, an increased role for new technologies to drive further innovation and market expansion, particularly in the ~~Middle East occurs in both~~ offshore market. And third, an expanded role for subsea services, driven by the needs of growing and ~~surface environments, with capital spending expected~~aging infrastructure. These trends allow TechnipFMC to ~~accelerate in support~~leverage our full suite of ~~longer-term production targets. TechnipFMC has leading positions in many of these international markets~~integrated solutions, differentiated technologies, and ~~is uniquely positioned to take full advantage of this growth opportunity. We~~the industry’s most comprehensive subsea services offering.

While we are confident that conventional resources will remain ~~an important~~a large part of the energy mix for an extended ~~period.~~

Weperiod, we are also committed to the energy ~~transition, where~~transition. Here, we believe that offshore will play a meaningful role in the transition to renewable energy resources and reduction of carbon emissions. We are making real progress through our three main pillars of greenhouse gas removal, offshore floating renewables and ~~hydrogen.~~hydrogen solutions. We have also been successful in building on our partnerships and alliances to further position ourselves as the leading architect for offshore energy.

Our leadership in subsea processing, technology innovation, and integrated solutions was recognized earlier this year with the award of the Mero 3 HISEP® project, which is the first iEPCI™ (“iEPCI”) contract ever awarded by Petrobras. The significance of this project for the subsea industry cannot be overstated. This will be the first project to use subsea processing to capture CO2 rich dense gases directly from the well stream for injection back into the reservoir, with all of the infrastructure residing on the seafloor.

In addition to reducing greenhouse gas emission intensity, HISEP® technologies will increase production capacity by debottlenecking the gas processing plant that currently resides on the floating production storage and offloading unit (“FPSO”). By moving the gas processing entirely to the seafloor, future FPSO and topside designs can be further simplified, driving significant improvement in project economics. With this award, our New Energy business has now achieved more than $1 billion of inbound orders – nearly two years earlier than previously anticipated.

More recently, we were selected to deliver the first all-electric subsea iEPCI for carbon capture and storage from the Northern Endurance Partnership (“NEP”). The partnership, which is a joint venture between bp, Equinor, and TotalEnergies, is building CO2 transportation and storage infrastructure for carbon capture projects in the U.K.’s East Coast Cluster. Our all-electric solution will collect and feed the pressurized gas into an aquifer for permanent storage. The NEP project demonstrates our ability to leverage our unique combination of innovative technologies and integrated execution as we continue to further refine our positioning and mature our offering, particularly in carbon transportation and storage.

Subsea -– Innovative approaches to subsea projects, like our iEPCI solution, have improved project economics through more efficient design and ~~many offshore discoveries can be developed economically well below today’s crude oil prices. We believe deepwater development is likely to remain a significant part~~installation of ~~many of our customers’ portfolios.~~the entire subsea field architecture. Our integrated commercial

~~Offshore economics have materially improved,~~model, iEPCI, brought together the complementary work scopes of the subsea production system (“SPS”) with the subsea umbilicals, risers, and flowlines (“SURF”) and installation vessels. iEPCI created a new market and helped expand the deepwater opportunity set for our clients and has grown to represent nearly one-third of the addressable subsea cycle-times have become significantly shorter. This has resulted in new subsea investments coming much earlier in the cycle and more in parallel with U.S. land markets. We believe these changes are fundamental and sustainable as a result of new business models and technology pioneered by our Company.market.

As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle ~~times. The industrialization~~times and further reduce costs. An example of this is Subsea 2.0TM, our pre-engineered configurable product offering. This technology provides simplification of unique project ~~business through the introduction of~~requirements by leveraging a configure-to-order (“CTO”) ~~is another way we are driving real change in our industry~~model that further improves the economics of our customers’ projects while driving greater efficiencies for TechnipFMC.

With CTO, we have designed an ~~environment, a~~architecture, process, a culture, and tools that are scalable and, more importantly, are transformational to the future of our Company. Our customers require a product platform that provides them with choices that meet their unique and evolving needs, but also provides them with the significant speed, cost and efficiency benefits that come with product and process standardization.company. CTO has allowed us to redefine our sourcing strategy and transform our manufacturing flow, resulting in up to 25% lower product cost and a shortened 12-month delivery time for subsea production equipment – savings that are both real and sustainable. This has paved the way for other products to adopt a similar operating model, enabling an enterprise-wide way of working.

~~We continue to drive further adoption of our Subsea 2.0~~TM ~~configurable product platform, with Equinor and ExxonMobil both utilizing Subsea 2.0~~TM ~~for~~Given the ~~first time~~significant improvement in ~~the second quarter. In the same period, we also signed a 20-year frame agreement with Chevron to provide Subsea 2.0~~TM ~~production systems for gas field developments offshore Australia. As evidenced by the addition of these three new adopters, more clients are recognizing the benefits of our CTO product portfolio.~~

~~We continue to experience increased operator confidence in advancing subsea activity in response to both improved~~ project economics, many offshore discoveries can be developed economically well below today’s oil prices. We believe these changes are fundamental and ~~concerns regarding the security~~sustainable as a result of ~~energy supply. Crude is currently priced above $80 per barrel~~new business models and ~~is projected to stay at or above this level in the intermediate term, supported in part~~technology pioneered by ~~the extension of OPEC+ production cuts through the end of next year.~~

The pipeline of front-end engineering and design studies continues to expand. More projects in advanced stages are moving towards final investment decision, resulting in a robust set of large subsea projects that we anticipate could be sanctioned over the next 24 months. The average project size has also risen due to an increased number of large, greenfield opportunities in Brazil, Guyana and Africa. We also expect increased tie-back activity, with growth from these smaller projects to come primarily from the North Sea, Gulf of Mexico and West Africa – all regions in which we have a strong presence and are well-positioned due to our ~~extensive installed base.~~

company.

There is also exploration activity occurring in new offshore frontiers. ~~Recent oil and gas~~In Suriname, five major discoveries have been ~~announced by~~made through the successful appraisal of two oilfields, with confirmed combined recoverable resources of approximately 700 million barrels of oil. In Namibia, there has also been a major discovery with multiple operators ~~in basins near countries such as Suriname, Namibia and Colombia, and we~~beginning their drilling campaigns. We believe additional countries will become producers of deepwater resources during this decade. ~~These examples demonstrate the strength~~

Offshore development is likely to remain a significant part of ~~the current investment cycle and support~~many of our ~~view that investment in conventional~~customers’ portfolios. We estimate over 35 MMBD of new oil production will be required by 2040 to meet future energy ~~resources will continue.~~demand, including approximately 10 MMBD of new deepwater production.

~~The Company’s order momentum continued in the third quarter, with year-to-date~~Our Subsea inbound orders grew to $9.7 billion in 2023, an increase of ~~$8.5~~45% versus the prior year. The robust inbound benefited from a record level of iEPCI projects, and when including all other direct awards and Subsea Services, the combination represented more than 70% of total segment orders. This growth in orders also drove a 50% increase in Subsea backlog to over $12.2 billion, ~~exceeding~~with high quality inbound supportive of further improvement in our ~~total orders in all of 2022. We now~~financial returns. Looking ahead, we continue to believe that Subsea inbound orders will ~~exceed $9~~reach $30 billion ~~for~~over the full year, an increase of at least 34% year-over-year. Growth in the current year is expected to be driven by a significant increase in iEPCI awards, which represented approximately 50% of Subsea inbound orders year-to-date. We also anticipate growth in Subsea Services revenue to $1.3 billion, supported by the continued expansion in our installed base. When taken together, we expect direct awards, iEPCI and Subsea Services to represent more than 70% of ~~inbound orders in 2023.~~

three-year period ending 2025.

Surface Technologies ~~– Our performance typically is driven by variations~~- International markets comprise a significant portion of segment revenue, representing 59% of the total in ~~global drilling activity, creating a dynamic environment. Operating results can be further impacted by stimulation activity and the completions intensity of shale applications in North America.~~

~~In the third quarter, operating profit in North America benefited from strategic actions taken in prior quarters that helped offset lower revenue in the period.~~2023. We continue to ~~progress well on~~benefit from our ~~E-Mission solution for onshore production facilities. The digital offering uses proprietary process automation~~exposure to ~~provide~~ the ~~industry’s only real-time monitoring~~North Sea, Asia Pacific, and ~~control system that both reduces methane flaring by up to 50% and maximizes oil production.~~

~~International markets represented approximately 61% of total segment revenue in~~ the ~~third quarter. Our backlog provides us with visibility for international growth in 2023.~~Middle East. TechnipFMC’s unique capabilities in these markets, which demand higher specification equipment, global services, and local content, provide a platform for us to extend our leadership positions.

Drilling activity in international markets is less cyclical than in North America as most activities are undertaken by national oil companies ~~which~~that tend to maintain a longer-term view that exhibits less variability in capital spend. We ~~continue to benefit from~~experienced a continued ramp up in production at our ~~exposure to the Middle East, the North Sea and Asia Pacific.~~

~~We continue to execute~~Saudi Arabia facility, as well as successful execution on our ~~multi-year~~10-year framework agreement with Abu Dhabi National Oil ~~Company~~Company.

The shift to renewable energy resources will take time. During this transition, we believe that natural gas will provide ~~wellheads, trees~~a bridge between current conventional energy supply and ~~associated services. We have also added new manufacturing capabilities in Saudi Arabia, where the country~~future renewable energy supply. The transition is expected to ~~increase its sustainable oil capacity and significantly expand its~~drive growth in the surface market, led by large natural gas production over the next decade. Our new facility also supports our commitment to develop a diverse and capable workforce as part of Aramco’s In-Kingdom Total Value Add Program and Saudi Vision 2030. The Middle East remains one of our largest market opportunitiesprojects in the ~~current decade.~~Middle East. We also expect North America to play an important role in meeting increased natural gas demand due in part to sanctions placed upon Russian supply.

3128

CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2024 AND 2023 ~~AND 2022~~


		Three Months Ended
		September 30,				Change
	Three Months Ended
		March 31,
		March 31,
		March 31,										Change
(In millions, except %)	(In millions, except %)	2023		2022		$		%	(In millions, except %)	2024	2023		$	%
Revenue	Revenue	$	2,056.9	$	1,733.0	$	323.9	18.7

Costs and expenses	Costs and expenses
Costs and expenses
Costs and expenses
Cost of sales
Cost of sales
Cost of sales	Cost of sales	1,690.5		1,474.4		216.1		14.7
Selling, general and administrative expense	Selling, general and administrative expense	183.8		151.9		31.9		21.0
Research and development expense	Research and development expense	17.5		19.0		(1.5)		(7.9)
Impairment, restructuring and other expenses		4.3		6.9		(2.6)		(37.7)
Restructuring, impairment and other charges
Total costs and expenses	Total costs and expenses	1,896.1		1,652.2		243.9		14.8

Other income (expense), net	Other income (expense), net	(41.5)		(10.3)		(31.2)		(302.9)
Other income (expense), net
Other income (expense), net
Gain on disposal of Measurement Solutions business
Income from equity affiliates	Income from equity affiliates	20.6		13.8		6.8		49.3
Net interest expense	Net interest expense	(26.7)		(30.9)		4.2		13.6
Income before income taxes	Income before income taxes	113.2		53.4		59.8		112.0
Provision for income taxes	Provision for income taxes	19.5		42.7		(23.2)		(54.3)
Income from continuing operations		93.7		10.7		83.0		775.7
(Income) from continuing operations attributable to non-controlling interests		(3.7)		(5.7)		2.0		35.1
Income (loss) from continuing operations attributable to TechnipFMC plc		90.0		5.0		85.0		1,700.0
Loss from discontinued operations		—		(15.3)		15.3		100.0
Net income
Net income attributable to non-controlling interests

Net Income (loss) attributable to TechnipFMC plc		$	90.0	$	(10.3)	$	100.3	973.8
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc
Net income attributable to TechnipFMC plc

Revenue

Revenue increased ~~$323.9~~by $324.6 million during the three months ended ~~September 30, 2023,~~March 31, 2024, compared to the same period in ~~2022.~~2023. Subsea revenue increased by ~~$293.3~~$347.2 million,, ~~primarily~~ driven by a ~~24.5%~~conversion of increased backlog, which was 49.6% higher ~~backlog~~ as of December 31, ~~2021, than~~2023, when compared to December 31, 2022, ~~converting into an~~ ~~increase~~particularly in ~~project revenues over~~Brazil, Guyana, Angola, and the ~~period.~~ United States from higher installation activities, sales of subsea production equipment and supply of flexible pipe. Surface Technologies revenue ~~increased~~decreased by ~~$30.6~~$22.6 million, ~~out~~compared to the same period in 2023 and was driven by the sale of ~~which $22.2 million is due~~MSB prior to ~~increased~~the end of the quarter and lower activity in ~~the Middle East.~~North America driven by lower levels of drilling and completion activity.

Gross Profit

Gross profit (revenue less cost of sales) increased to ~~$366.9~~$341.4 million ~~during the three months ended September 30, 2023,~~in 2024 compared to ~~$256.0~~$220.9 million in the prior-year period. Subsea gross profit increased year over year by $94.7 million, of which $42.0 million is due to volume increase and $52.7 million in favorable activity mix. Surface Technologies gross profit increased year-over-year by $13.1 million, of which $9.4 million due to North America’s improved operational performance and $6.4 million due to higher Middle East activity.

~~Selling, General and Administrative Expense~~

~~Selling, general and administrative expense increased $31.9 million year-over-year, in support of increased business activities in both segments.~~

~~Impairment, Restructuring and Other Expenses~~

We incurred $4.3 million of impairment, restructuring and other expenses during the three months ended September 30, 2023, of which $1.9 million was impairment of equipment and right-of-use assets and $1.8 million restructuring costs from the closure of a site in Mexico. During the three months ended September 30, 2022, we incurred $3.6 million impairment and $3.3 million restructuring expenses mainly associated with impairment of assets and exiting our operations in Canada and Russia.

~~Other Income (Expense), Net~~

Other income (expense), net, includes gains and losses associated with the remeasurement of net cash positions, gains and losses on sales of property, plant and equipment and non-operating gains and losses. The $31.2 million year-over-year increase in net expense is driven by the impact of net foreign exchange losses in the quarter.

~~Income (Loss) from Equity Affiliates~~

For the three months ended September 30, 2023 and 2022, we recorded income from equity method affiliates of $20.6 million and $13.8 million, respectively, resulting from an increase in operational activity of our joint ventures.

~~Net Interest Expense~~

Net interest expense of $26.7 million decreased by $4.2 million in the three months ended September 30, 2023, compared to the same period in 2022, due to movement in outstanding debt and fluctuation in interest rates.

~~Provision for Income Taxes~~

~~Our provision for income taxes for the~~ ~~three months ended September 30, 2023 and 2022~~ ~~reflected effective tax rates of~~ 17.2% and 80.0%, respectively. The year-over-year change in the effective tax rate was primarily related to losses in jurisdictions with a full valuation allowance and a change in geographical profit mix year over year.

~~Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than those of the United Kingdom.~~

~~CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC~~

~~NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022~~

Nine Months Ended
September 30, Change
(In millions, except %) 2023 2022 $ %
Revenue $ 5,746.5 $ 5,006.0 $ 740.5 14.8
Costs and expenses
Cost of sales 4,828.8 4,323.0 505.8 11.7
Selling, general and administrative expense 487.7 454.6 33.1 7.3
Research and development expense 49.7 45.1 4.6 10.2
Impairment, restructuring and other expenses 10.0 15.1 (5.1) (33.8)
Total costs and expenses 5,376.2 4,837.8 538.4 11.1
Other income (expense), net (225.1) 33.5 (258.6) (771.9)
Income from equity affiliates 35.9 23.5 12.4 52.8
Loss from investment in Technip Energies — (27.7) 27.7 100.0
Loss on early extinguishment of debt — (29.8) 29.8 100.0
Net interest expense (75.7) (92.5) 16.8 18.2
Income before income taxes 105.4 75.2 30.2 40.2
Provision for income taxes 100.2 91.0 9.2 10.1
Income (loss) from continuing operations 5.2 (15.8) 21.0 132.9
(Income) from continuing operations attributable to non-controlling interests (2.0) (19.4) 17.4 89.7
Income (loss) from continuing operations attributable to TechnipFMC plc 3.2 (35.2) 38.4 109.1
Loss from discontinued operations — (34.7) 34.7 100.0
Net income (loss) attributable to TechnipFMC plc $ 3.2 $ (69.9) $ 73.1 104.6

~~Revenue~~

~~Revenue increased by $740.5 million during the nine months ended September 30, 2023, compared to the same period in 2022. Subsea revenue increase was~~ ~~driven by~~ ~~24.5%~~ ~~higher~~ ~~backlog as of December 31, 2021, than December 31, 2022, converting into an increase of $530.2 million in project revenues. Surface Technologies revenue increased by $144.9 million, year-over-year, of which~~ ~~$79.5 million and~~ ~~$26.9 million are due to increase in operator activity in the Middle East and North America, respectively~~.

~~Gross Profit~~

~~Gross profit (revenue less cost of sales) increased to $920.5 million during the nine months ended September 30, 2023, compared to $674.0 million in~~ ~~the prior-year period.~~2023. Subsea gross profit increased year-over-year by ~~$199.9~~$114.5 million, of which ~~$75.4~~$70.7 million iswas due to volume increase and ~~$124.5~~$43.8 million due to favorable activity mix. Surface Technologies gross profit ~~increased year-over-year by $43.9 million,~~was flat compared to the same period in 2023, as the sale of ~~which $23.4 million is driven by North America’s improved operational performance~~MSB and ~~$21.3 million due to higher~~lower activity in North America were offset by improved profitability in the ~~Middle East.~~rest of the world.

Selling, General and Administrative Expense

Selling, general and administrative expense increased by ~~$33.1 million year-over-year, in support of increased activities in both segments.~~

~~Impairment, Restructuring and Other Expenses~~

~~We incurred $10.0 million of impairment, restructuring and other expenses during the nine months ended September 30, 2023, compared, to $15.1~~$5.9 million during the ~~nine~~three months ended ~~September 30, 2022. During~~March 31, 2024, compared to the ~~nine months ended September 30,~~same period in 2023, ~~we incurred $6.6 million~~ as a result of ~~restructuring and severance expenses, primarily associated with exiting operations~~increased activity in ~~Canada and costs from the closure of a site in Mexico. Additionally, we incurred $1.8 million of asset impairment in the U.K.~~ ~~During the nine months ended September 30, 2022, we incurred impairment, restructuring~~ ~~and other expenses, primarily associated with exiting our operations in Russia and Canada.~~

both reporting segments.

Other Income (Expense), Net

Other income (expense), net, includes gains and losses associated with the remeasurement of net ~~cash positions,~~monetary assets and liabilities, gains and losses on sales of property, plant and equipment and non-operating gains and losses. ~~For the nine months ended September 30, 2023, we recognized a $126.5~~The net increase in expense of $11.0 million non-recurring legal settlement charge and the remaining increase is mainly the year-over-year impact of net foreign exchange gains and losses. Excluding the non-recurring legal settlement charge, Other income (expense) net increasewas driven by ~~$65.1 million year-over-year, which is the result of $79.6 million~~an increase in net foreign exchange ~~losses compensate~~loss of ~~d by higher gains on sales of property, plant and equipment.~~$6.6 million compared to same period in 2023 and other non-operating losses.

Gain on Disposal of Measurement Solutions Business

For the three months ended March 31, 2024, we recognized a gain of $75.2 million from the sale of equity interests and assets of MSB.

Income from Equity Affiliates

For the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ we recorded income from equity method affiliates ~~of $35.9~~of $1.4 million and ~~$23.5~~$14.2 million, respectively ~~resulting from an increase~~, driven by a decrease in ~~operational~~operational activity of our joint ventures.

~~Loss from Investment in Technip Energies~~

During the nine months ended September 30, 2022, we recorded a loss of $27.7 million as a result of our investment in Technip Energies. The amounts recognized represent fair value revaluation gains (losses) of our investment and the result of the sale of the investment. See ~~Note 9~~ ~~for further details.~~

~~Loss on Early Extinguishment of Debt~~

For the nine months ended September 30, 2022, we recognized a loss of $29.8 million on early extinguishment of debt which related to premium paid and write-off of bond issuance costs in connection with the repurchase of the 2021 Notes. See ~~Note 11~~ ~~for further details.~~

Net Interest Expense

Net interest expense of ~~$75.7~~$12.7 million decreased by ~~$16.8~~$6.0 million in the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, compared to the same period in ~~2022,~~2023, due to ~~the~~a reduction in outstanding ~~debt.~~

debt and higher interest income.

Provision for Income Taxes

Our provision for income taxes for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ reflected effective tax rates of ~~95.1%~~23.6% and ~~121.0%~~82.7%, respectively. The ~~year-over-year~~ change in the effective tax rate was ~~primarily related~~largely due to ~~losses in jurisdictions with a full valuation allowance, a~~the change ~~in other discrete adjustments and~~ in geographical profit mix year over ~~year.~~

year, tax adjustments related to the reassessment of prior year tax accruals and changes in valuation allowances on some of our deferred tax assets.

Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom.

~~Discontinued Operations~~

~~Loss from discontinued operations, net of income taxes, was $34.7 million for the~~ ~~nine months ended September 30, 2022. S~~ee ~~Note 17~~ ~~for further details.~~

SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2024 AND 2023 ~~AND 2022~~

Segment operating profit is defined as total segment revenue less segment operating expenses. Certain items have been excluded in computing segment operating profit and are included in corporate items. See ~~Note~~ ~~4 for further details.~~

Subsea


		Three Months Ended
		September 30,						Change
(In millions, except % and pts.)		2023			2022			$	%
	Three Months Ended
		March 31,
		March 31,
		March 31,													Change
(In millions, except %)										(In millions, except %)	2024		2023			$	%
Revenue	Revenue	$	1,708.3		$	1,415.0		293.3	20.7
Operating profit	Operating profit	$	177.7		$	105.0		72.7	69.2

Operating profit as a percentage of revenue	Operating profit as a percentage of revenue	10.4		%	7.4		%		3.0 pts.
Operating profit as a percentage of revenue
Operating profit as a percentage of revenue											9.0	%	4.8	%				4.2 pts.

Subsea revenue increased ~~$293.3~~by $347.2 million ~~as a continued positive impact~~during the three months ended March 31, 2024, compared to the same period in 2023, driven by increased backlog during 2023, related to higher energy demand and upstream spending, further aided by our unique commercial offerings. $152.6 million of the ~~backlog~~ increase in ~~2022, compared to prior year. $143.6 million increase comes~~revenue came from Brazil, ~~$116.9~~$83.8 million from ~~Norway~~Guyana, $80.9 million from Angola, and ~~$54.1million~~$66.5 million from the United States, due to higher installation activities, sales of subsea production equipment, and increased supply of flexible pipe. The increased revenue in these geographies was offset by a net ~~$20.9~~$36.6 million decrease from the rest of the ~~world.~~

world primarily from lower activity as projects reached completion.

Subsea operating profit for the three months ended ~~September 30, 2023,~~March 31, 2024, increased by ~~$72.7 million. $42.0~~$89.8 million, ~~comes~~of which $70.7 million came from volume, combined with ~~$52.7~~$43.8 million indue to a favorable activity mix, partially offset by a ~~$22.0~~$24.7 million increase in operating ~~expense.~~expense related to the higher activity.

Surface Technologies


		Three Months Ended
		September 30,						Change
(In millions, except % and pts.)		2023			2022			$	%
	Three Months Ended
		March 31,
		March 31,
		March 31,													Change
(In millions, except %)										(In millions, except %)	2024		2023			$	%
Revenue	Revenue	$	348.6		$	318.0		30.6	9.6
Operating profit	Operating profit	$	33.3		$	19.0		14.3	75.3

Operating profit as a percentage of revenue	Operating profit as a percentage of revenue	9.6		%	6.0		%		3.6 pts.
Operating profit as a percentage of revenue
Operating profit as a percentage of revenue											33.7	%	6.8	%				26.9 pts.

Surface Technologies revenue ~~increased~~decreased by ~~$30.6~~$22.6 million ~~$22.2 million of which is attributable to increased activity in the Middle East. During~~during the three months ended ~~September 30, 2023 and 2022, 60.6% and 54.0%~~March 31, 2024, compared to the same period in 2023. $11.7 million of ~~total segment~~the decrease in revenue ~~respectively,~~ was ~~generated outside~~primarily driven by the sale of MSB as well as $15.6 million of lower activity in North America driven by lower levels of ~~which~~drilling and completion activity in the ~~Middle East represented 25.2%~~U.S. and ~~20.6%, respectively.~~the exit of Canadian operations. This revenue decrease was offset by a $4.7 million increase from the rest of the world, primarily in Asia Pacific, driven by higher deliveries this quarter of well service pumps.

Surface Technologies operating profit increased ~~versus the prior year~~ by ~~$14.3~~$81.0 million. $75.2 million of ~~which $7.2 million is~~the increase was due to ~~North America’s improved operational performance and $5.3~~the sale of MSB, $2.6 million ~~due to higher Middle East activity.~~

~~Corporate Expense~~

Three Months Ended
September 30, Change
(In millions, except %) 2023 2022 $ %
Corporate expense $ (24.7) $ (25.2) 0.5 2.0

~~Corporate expense of $24.7 million for the three months ended September 30, 2023 is~~was related to ~~costs associated with our support functions, such as corporate staff expenses, share-based compensation expense and other employee benefits.~~

~~SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC~~

~~NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022~~

~~Subsea~~

Nine Months Ended
September 30, Change
(In millions, except %) 2023 2022 $ %
Revenue $ 4,714.3 $ 4,118.7 595.6 14.5
Operating profit $ 397.9 $ 256.1 141.8 55.4
Operating profit as a percentage of revenue 8.4 % 6.2 % 2.2 pts.

Subsea revenue increased by $595.6 million, driven by increased backlog during 2022. $410.2 million increase comes from Brazil, $168.5 million from Norway, $172.9 million from the United States and $100.1 million from Guyana, offset by $321.8 million decline in Asia Pacific as projects reached completion in the region.

Subsea operating profit for the nine months ended September 30, 2023, increased by $141.8 million, $75.4 million from volume, combined with $124.5 million in favorable activity mix, partially offset by a $58.1 million increase in operating expense.

~~Surface Technologies~~

Nine Months Ended
September 30, Change
(In millions, except %) 2023 2022 $ %
Revenue $ 1,032.2 $ 887.3 144.9 16.3
Operating profit $ 81.4 $ 32.7 48.7 148.9
Operating profit as a percentage of revenue 7.9 % 3.7 % 4.2 pts.

~~Surface Technologies revenue increased by $144.9 million, $79.5 million of which is the result of increased activity~~business in the Middle East, and ~~$26.9~~$3.2 million ~~is due to increased operator activity~~from improved operational performance in ~~North America. During~~ the ~~nine months ended September 30, 2023 and 2022, 58% and 54%~~rest of ~~total segment revenue, respectively, was generated outside of North America.~~the world.

Surface Technologies operating profit increased year-over-year by $48.7 million. $21.3 million is due to North America’s improved operational performance and $27.4 million is the result of higher activity in international markets.

Corporate Expense

Nine Months Ended
September 30, Change
(In millions, except %) 2023 2022 $ %
Corporate expense $ (205.6) $ (76.7) (128.9) (168.1)


	Three Months Ended
	March 31,				Change
(In millions, except %)	2024		2023		$		%
Corporate expense	$	(32.2)	$	(27.4)	$	(4.8)	(17.5)

Corporate expense increased by ~~$128.9~~$4.8 million, or ~~168.1%~~17.5%, ~~year-over-year, mostly due~~compared to the ~~non-recurring legal settlement~~same period in the prior year, primarily driven by $5.2 million of transaction costs associated with the sale of ~~$126.5 million incurred during the nine months ended September 30, 2023.~~MSB.

INBOUND ORDERS AND ORDER BACKLOG

Inbound orders - Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.


		Inbound Orders
		Three Months Ended					Nine Months Ended September 30,
							Inbound Orders
							Inbound Orders
							Inbound Orders
				Three Months Ended March 31,									Three Months Ended March 31,
(In millions)	(In millions)	2023			2022		2023		2022		(In millions)	2024		2023
Subsea	Subsea	$	1,828.0		$	1,400.8	$	8,479.0	$	5,222.4
Surface Technologies	Surface Technologies	317.1			449.2		972.3		1,014.2
Total inbound orders	Total inbound orders	$	2,145.1		$	1,850.0	$	9,451.3	$	6,236.6

Order backlog - Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date. Backlog reflects the transaction price for products and services for which we have a material right, but work has not been performed. See Note 34 for further details.

Order Backlog

(In millions)

September 30,
2023

December 31,
2022

(In millions)

March 31,
2024

December 31,
2023

Subsea

12,073.6

8,131.5

Surface Technologies

1,157.1

1,221.5

Total order backlog

13,230.7

9,353.0

Subsea - Subsea backlog of ~~$12.1 billion~~$12,455.5 million as of ~~September 30, 2023~~March 31, 2024 increased by ~~$3.9 billion~~$291.4 million compared to December 31, ~~2022. Subsea backlog~~2023, and was composed of various subsea projects, including Petrobras Buzios 6, Mero ~~I, Mero~~ II, and, ~~Marlim; Total Energies~~Mero 3 HISEP®; TotalEnergies Mozambique LNG ~~Lapa North East~~ and ~~Clov 3;~~GirLiFlex; ExxonMobil ~~Yellowtail and~~ Uaru; AkerBP ~~Utsira;~~Utsira High; Azule Energy Agogo; Shell ~~Jackdaw and Dover;~~Sparta, Husky West White ~~Ros~~e;Rose; Equinor BM~~-C33, Rosebank~~Raia and ~~Irpa, Verdande; Tullow Jubilee South~~Rosebank; ENI Merakes East; ~~Wintershall Maria~~Woodside Trion and ~~Dvalin; and Harbour Talbot.~~OMV Berling.

Surface Technologies - Order backlog for Surface Technologies as of ~~September 30, 2023~~March 31, 2024 decreased by ~~$64.4~~$29.9 million compared to December 31, ~~2022.~~

2023. Surface Technologies’ backlog of $1,037.0 million as of March 31, 2024, was composed primarily of projects in the Middle East, namely Aramco and ADNOC. The remaining backlog was composed of various projects in the rest of the world.

LIQUIDITY AND CAPITAL RESOURCES

Most of our cash is managed centrally and flows through ~~centralized~~ bank accounts controlled and maintained by TechnipFMC globally ~~and~~ in ~~many operating~~various jurisdictions to best meet the liquidity needs of our global operations.

Net Debt - Net debt is a non-GAAP financial measure reflecting ~~total debt, net of~~ cash and cash ~~equivalents.~~equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net debt should not be considered an alternative to, or more meaningful than, ~~our total debt~~cash and cash equivalents as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.

The following table provides a reconciliation of our ~~total debt~~cash and cash equivalents to net debt, utilizing details of classifications from our condensed consolidated balance sheets:

(In millions) September 30,
2023 December 31,
2022
Cash and cash equivalents $ 690.9 $ 1,057.1
Short-term debt and current portion of long-term debt (407.3) (367.3)
Long-term debt, less current portion (933.5) (999.3)
Net debt $ (649.9) $ (309.5)


(In millions)	March 31, 2024		December 31, 2023
Cash and cash equivalents	$	696.8	$	951.7
Short-term debt and current portion of long-term debt	(136.6)		(153.8)
Long-term debt, less current portion	(887.2)		(913.5)
Net debt	$	(327.0)	$	(115.6)

Cash Flows

Operating cash flows ~~from continuing operations~~ - We used ~~$8.1~~$126.7 million and ~~$214.3~~$386.2 million ~~of cash~~ in operating ~~activities~~cash flows from continuing operations during the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022.~~respectively. The decrease of ~~$206.2~~$259.5 million in cash used by operating activities ~~from continuing operations~~in 2024, as compared to 2023, was ~~primarily~~ due to timing differences on project milestones, ~~vendor~~ payments to vendors for inventory, ~~and~~ fluctuations in derivative assets and ~~liabilities.~~

liabilities and timing of income tax payments.

Investing cash flows ~~from continuing operations~~ - ~~We used $63.5~~Investing activities provided $136.3 million of cash ~~in investing activities from continuing operations~~ during the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 as compared to ~~$213.3~~$52.8 million cash ~~generated~~used in investing cash flows ~~from continuing operations~~ during the same period in ~~2022.~~2023. The ~~decrease~~increase of ~~$276.8~~$189.1 million in cash from investing activities was primarily due to ~~$288.5~~$186.1 million in proceeds received from sales of our investment in Technip Energies during 2022 and an increase in cash required of $59.4 million for capital expenditures. This cash need was offset by $61.9 million cash from sale of assets, of which $54.4 million was related to the sale of ~~Apache II pipelay vessel.~~MSB during the three months ended March 31, 2024.

Financing cash flows ~~from continuing operations~~ - Financing activities ~~from continuing operations~~ used ~~$276.7~~$256.2 million and ~~$626.8~~$87.5 million ~~of cash~~ during the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ respectively. The ~~decrease~~increase of ~~$350.1~~$168.7 million in cash used by financing activities was ~~driven by long-term debt pay down activity of $451.7 million during the nine months ended September 30, 2022, partially offset by~~primarily due to an increase of ~~$100.0~~$100.1 million in share repurchases, an increase of payments related to taxes withheld on share-based compensation of $35.1 million and dividends paid of $21.7 million during the ~~nine~~three months ended ~~September 30, 2023.~~March 31, 2024.

Debt and Liquidity

~~On April 24, 2023, we entered into~~We are committed to maintaining a ~~fifth amendment (the “Amendment No. 5”) to the Revolving Credit Facility (as amended, the “Credit Agreement”), dated~~ ~~February 16, 2021~~, which increases the commitments available to the Company under the Credit Agreement to $1.25 billion and extends the term to five years from the date of the Amendment No. 5. The Credit Agreement alsocapital structure that provides ~~for a $250.0 million letter of credit sub-facility.~~

On April 24, 2023, the Company also entered into a new $500 million five-year senior secured performance letters of credit facility (the “Performance LC Credit Agreement”). The commitments under the Performance LC Credit Agreement may be increased to $1.0 billion, subject to the satisfaction of certain customary conditions precedent. The Performance LC Credit Agreement permits the Company and its subsidiaries to have access to performance letters of credit denominated in a variety of currenciessufficient cash resources to support future operating and investment plans. We maintain a level of liquidity sufficient to allow us to meet our cash needs in both the ~~contracting activities with counterparties that require or request a performance or similar guarantee. It contains substantially the same customary representations~~short term and warranties, covenants, events of default, mandatory repayment provisions and financial covenants as the Credit Agreement and benefits from the same guarantees and security as the Credit Agreement on a pari passu basis.long term.

Availability of borrowings under the Revolving Credit Facility is reduced by the outstanding letters of credit issued against the facility. As of ~~September 30, 2023,~~March 31, 2024, there were ~~$54.2 million~~no letters of credit outstanding, and our availability of borrowings under the Revolving Credit Facility was ~~$1,195.8~~$1,250.0 million.

Credit Ratings - Our credit ratings with Standard and Poor’s (“S&P”) are ~~BB+~~BBB- for our long-term unsecured, guaranteed debt (2021 Notes) and BBBBB- for our 2012 and 2020 long-term unsecured debt (the 2012 and 2020 Private Placement ~~notes)~~Notes). Our credit ~~ratings~~rating with Moody’s ~~are~~is Ba1 for our long-term unsecured, guaranteed debt. See Note 1112 for further details regarding our debt. On March 7, 2024, S&P Global Ratings upgraded TechnipFMC to investment grade, raising its rating to ‘BBB-’ from ‘BB+’ for both the issuer credit as well as the issue-level ratings on the Company’s senior unsecured notes.

On ~~July 26, 2023,~~February 20, 2024, our Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share. The cash dividend of $0.05 per share was paid on ~~September 6, 2023,~~March 28, 2024, to shareholders of record as of the close of business on the New York Stock Exchange on ~~August 22, 2023.Cash dividends~~March 19, 2024. The cash dividend paid during the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 was ~~$21.8~~$21.7 million. We intend to pay dividends on a quarterly basis, and this dividend represents $0.20 per share on an annualized basis.

On April 23, 2024, the Company announced that its Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share, payable on June 5, 2024 to shareholders of record as of the close of business on the New York Stock Exchange on May 21, 2024. The ex-dividend date is May 20, 2024.

On July 26, 2023, our Board of Directors authorized an additional share repurchase of up to $400.0 million. Together with the then existing program, our total share repurchase authorization was increased to $800.0 million of our outstanding ordinary shares under our share repurchase program. Pursuant to this share repurchase program, we repurchased ~~$50.1~~$150.1 million of ordinary shares during the three months ended ~~September 30, 2023,~~March 31, 2024. Since the initial share repurchase authorization in July 2022, we have purchased an aggregate amount of ~~$250.3~~$455.4 million of ordinary shares through ~~September 30, 2023.~~March 31, 2024. Based upon the remaining repurchase authority of ~~$549.7~~$344.6 million and the closing stock price as of ~~September 30, 2023,~~March 31, 2024, approximately ~~27.0~~13.7 million ordinary shares could be subject to repurchase.

~~We expect to repurchase~~ All shares from time to time through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, and any other means in accordance with applicable securities laws. The share repurchase program does not obligate us to repurchase shares and may be suspended or discontinued at any time at our discretion.

repurchased were immediately cancelled.

Credit Risk Analysis

For the purposes of mitigating the effect of the changes in exchange rates, we hold derivative financial instruments. Valuations of derivative assets and liabilities reflect the fair value of the instruments, including the values associated with counterparty risk. These values must also take into account our credit standing, thus including the valuation of the derivative instrument and the value of the net credit differential between the counterparties to the derivative contract. Adjustments to our derivative assets and liabilities related to credit risk were not material for any period presented.

The income approach was used as the valuation technique to measure the fair value of foreign currency derivative instruments on a recurring basis. This approach calculates the present value of the future cash flow by measuring the change from the derivative contract rate and the published market indicative currency rate, multiplied by the contract notional values. Credit risk is then incorporated by reducing the derivative’s fair value in asset positions by the result of multiplying the present value of the portfolio by the counterparty’s published credit spread. Portfolios in a liability position are adjusted by the same calculation; however, a spread representing our credit spread is used.

Our credit spread, and the credit spread of other counterparties not publicly available, are approximated using the spread of similar companies in the same industry, of similar size, and with the same credit rating. See ~~Note 15~~Not e s 17 and 1 8 for further details.

At this time, we have no credit-risk-related contingent features in our agreements with the financial institutions that would require us to post collateral for derivative positions in a liability position.

Financial Position Outlook

We are committed to a strong balance sheet. We continue to maintain sufficient liquidity to support the needs of the business through growth, cyclicality and unforeseen events. We continue to maintain and drive sustainable leverage to preserve access to capital throughout the cycle. Our capital expenditures can be adjusted and managed to match market demand and activity levels. ~~Based on current market conditions and our future expectations, our capital expenditures for 2023 are estimated to be approximately $250 million.~~ Projected capital expenditures do not include ~~any~~all contingent capital that may be needed to respond to contract awards. In maintaining our commitment to sustainable leverage and liquidity, we expect to be able to continue to generate ~~free~~ cash flow available for investment in growth and distribution to shareholders through the business cycle.

CRITICAL ACCOUNTING ESTIMATES

Refer to our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 for a discussion of our critical accounting estimates. During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, there were no changes to our identified critical accounting estimates.

OTHER MATTERS

On March 28, 2016, FMC Technologies received an inquiry from the U.S. Department of Justice (“DOJ”) related to the DOJ's investigation of whether certain services Unaoil S.A.M. provided to its clients, including FMC Technologies, violated the U.S. Foreign Corrupt Practices Act (“FCPA”). On March 29, 2016, Technip S.A. also received an inquiry from the DOJ related to Unaoil. We cooperated with the DOJ's investigations and, with regard to FMC Technologies, a related investigation by the SEC.

On June 25, 2019, we announced a global resolution to pay a total of $301.3 million to the ~~DOJ,~~U.S. Department of Justice (“DOJ”), the SEC, ~~the MPF~~and Brazilian authorities (Federal Prosecution Service (“MPF”) and the ~~CGU/AGU~~Comptroller General of Brazil (“CGU”) and the Attorney General of Brazil (“AGU”) to resolve these anti-corruption ~~investigations.~~investigations related to historic conduct by Technip S.A. in Brazil and historic conduct by FMC Technologies concerning services provided by a vendor, Unaoil S.A.M. We were not required to have a monitor and instead, provided reports on our anti-corruption program to the Brazilian and U.S. authorities for two and three years, respectively.

As part of this resolution, we entered into a three-year Deferred Prosecution Agreement (“DPA”) with the DOJ related to charges of conspiracy to violate the FCPA related to conduct in Brazil and with Unaoil. In addition, Technip USA, Inc., a U.S. subsidiary, pled guilty to one count of conspiracy to violate the FCPA related to conduct in Brazil. We also ~~provided~~consented to the ~~DOJ reports on our anti-corruption program during~~entry of an Administrative Order issued by the ~~term of the DPA.~~

SEC related to Unaoil.

As previously disclosed, we have also resolved an anti-corruption investigation by French authorities (the Parquet National Financier (“PNF”)). On June 22, 2023, the Company, through its subsidiary Technip UK Limited, along with Technip Energies SAS, a subsidiary of Technip Energies NV, reached a resolution with the PNF of all outstanding matters, including its investigations into historical projects in Equatorial Guinea, Ghana, and Angola. The resolution took the form of a convention judiciaire d'interet public (“CJIP”), which does not involve any admission of liability or guilt.

agreements, TechnipFMC is responsible for €179.45 million to be paid in installments through July 2024, and Technip Energies is responsible for the remaining €29.45 million. During the three months ended June 30, 2023, we recorded aan incremental liability of $126.5 ~~million liability incremental to our existing provision.~~million. After making a scheduled installment ~~payment~~payments of €24.7 million and €51.6 million on July 13, 2023 and January 15, 2024, respectively, we have an outstanding balance ~~after foreign exchange impact,~~ of ~~$164.0~~€103.2 million that is translated to $111.5 million and is recorded in other current liabilities in our condensed consolidated balance ~~sheet~~sheets as of ~~September 30, 2023.~~

March 31, 2024.

TechnipFMC fully cooperated with the PNF and was not required to retain a monitor. The CJIP received final approval by the President of the Tribunal Judiciaire of Paris at a hearing on June 28, 2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures about market risk affecting the Company, see Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023. Our exposure to market risk has not changed materially since December 31, ~~2022.~~2023.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of ~~September 30, 2023,~~March 31, 2024, under the direction of our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of ~~September 30, 2023.~~March 31, 2024.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended ~~September 30, 2023~~March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

4235

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various pending or potential legal actions or disputes in the ordinary course of our business. These actions and disputes can involve our agents, suppliers, clients and joint venture partners and can include claims related to payment of fees, service quality and ownership arrangements, including certain put or call options. Management is unable to predict the ultimate outcome of these actions because of their inherent uncertainty. However, management believes that the most probable, ultimate resolution of these matters will not have a material adverse effect on our condensed consolidated financial position, results of operations or cash flows.

ITEM 1A. RISK FACTORS

As of the date of this filing, there have been no material changes or updates to our risk factors that were previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, ~~2022.~~2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We had no unregistered sales of equity securities during the three months ended ~~September 30, 2023.~~March 31, 2024.

The following table summarizes repurchases of our ordinary shares during the three months ended ~~September 30, 2023:~~March 31, 2024:

ISSUER PURCHASES OF EQUITY SECURITIES

Period
Total Number of
Shares
Purchased (a)
Average Price
Paid per
Share Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
Maximum Number
of Shares That May
Yet Be Purchased
Under the Plans or
Programs (b)
July 1, 2023 to July 31, 2023 160,000 $ 18.38 160,000 32,539,540
August 1, 2023 to August 31, 2023 2,051,404 $ 18.32 2,051,404 29,368,163
September 1, 2023 to September 30, 2023 462,217 $ 20.50 462,217 27,025,139
Total 2,673,621 $ 18.70 2,673,621 27,025,139

~~____________________~~


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (b)
January 1, 2024 to January 31, 2024	—	$	—	—	—
February 1, 2024 to February 29, 2024	—	$	—	—	—
March 1, 2024 to March 31, 2024	6,245,154	$	24.02	6,245,154	13,723,705
Total	6,245,154	$	24.02	6,245,154	13,723,705

(a)In July 2023, the Board of Directors authorized additional share repurchase of up to $400.0 million. Together with the then existing program, the Company’s total share repurchase authorization was increased to $800.0 million. For the three months ended ~~September 30, 2023,~~March 31, 2024, we repurchased ~~2,673,621~~6,245,154 shares for a total cost of ~~$50.1~~$150.1 million at an average price of ~~$18.70~~$24.02 per share.

(b)Based upon the remaining repurchase authority and the closing stock price as of the last trading date of the respective period.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

None.

ITEM 5. OTHER INFORMATION

~~None.~~Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements

During the three months ended March 31, 2024, certain of our directors or officers adopted Rule 10b5-1 trading arrangements (each, a “Rule 10b5-1 Plan”). Rule 10b5-1 Plans allow our directors or officers to transact in Company equity pursuant to a non-discretionary written plan adopted at a time when the director or officer is not in possession of material, nonpublic information and require a waiting period of at least 90 days prior to the first trade.

Plans

Name and Title

Action

Date

Rule 10b5-1(1)

Non-Rule 10b5-1(2)

Maximum Number of Ordinary Shares to be Sold

Expiration

Duration (in days)

David Light

Adoption

03/27/2024

5,928

The earlier of (i) the date when all securities under the plan are sold and (ii) March 26, 2025

364

Senior Vice President, Controller and Chief Accounting Officer

(1) Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

(2) Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

ITEM 6. EXHIBITS


Exhibit Number						Exhibit Description
10.1*10.1^						~~Separation, Release~~Form of Restricted Stock Unit Agreement pursuant to the Amended and ~~Waiver~~Restated TechnipFMC plc Incentive Award Plan (Non-Employee Director)
10.2^						Form of ~~Claims~~Restricted Stock Unit Agreement pursuant to the Amended and ~~Restrictive Covenant~~Restated TechnipFMC plc Incentive Award Plan (Employee)
10.3^+						Form of Performance Stock Unit Agreement pursuant to the Amended and Restated TechnipFMC plc Incentive Award Plan (Employee)
10.4^						Form of TechnipFMC plc Executive Severance Agreement (incorporated by reference from Exhibit 10.1 to the Current Report on Form 8-K filed on ~~July 31, 2023)~~January 29, 2024) (File No. 001-37983)
10.5^						Amended and Restated Supplemental Retirement Savings Plan, effective January 1, 2024 (incorporated by reference from Exhibit 10.1 to the Annual Report on Form 10-K filed on February 27, 2024) (File No. 001-37983)
31.1						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a).
31.2						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a).
32.1*						Certification of Chief Executive Officer Under Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350.
32.2*						Certification of Chief Financial Officer Under Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350.
101.INS						XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document.
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*~~Furnished herewith.~~

+~~Certain schedules or exhibits to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided to the~~


^			Indicates a management contract or compensatory plan or arrangement.
+			Certain information in this exhibit has been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request.
*			Furnished herewith.

4437

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TechnipFMC plc

(Registrant)



/s/ ~~Krisztina Doroghazi~~David Light
~~Krisztina Doroghazi~~David Light
Senior Vice President, Controller and Chief Accounting Officer (Chief Accounting Officer and a Duly Authorized Officer)

Date: ~~October~~April 26, ~~2023~~2024

4538


(In millions)	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives	Revenue		Cost of sales		Selling, general and administrative expense		Other income (expense), net		Revenue		Cost of sales		Selling, general and administrative expense		Other income (expense), net


Amounts reclassified from accumulated OCI to income (loss)	$	(0.6)	$	21.7	$	(0.1)	$	(1.6)	$	(1.4)	$	(5.6)	$	—	$	(2.2)
Amounts excluded from effectiveness testing	6.5		(6.8)		(0.4)		(8.5)		5.2		(4.8)		(0.1)		(11.7)
Total cash flow hedge gain (loss) recognized in income	5.9		14.9		(0.5)		(10.1)		3.8		(10.4)		(0.1)		(13.9)
Total hedge gain (loss) recognized in income	$	5.9	$	14.9	$	(0.5)	$	(10.1)	$	3.8	$	(10.4)	$	(0.1)	$	(13.9)

Loss recognized in income on derivatives not designated as hedging instruments	—		(0.5)		—		(29.6)		0.1		0.6		—		(22.0)
Total	$	5.9	$	14.4	$	(0.5)	$	(39.7)	$	3.9	$	(9.8)	$	(0.1)	$	(35.9)


(In millions)	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
Total amount of income (expense) presented in the consolidated statements of income associated with hedges and derivatives	Revenue		Cost of sales		Selling, general and administrative expense		Other income (expense), net		Revenue		Cost of sales		Selling, general and administrative expense		Other income (expense), net


Amounts reclassified from accumulated OCI to income (loss)	$	(9.0)	$	22.4	$	(0.2)	$	(6.0)	$	(1.9)	$	(12.6)	$	(0.3)	$	(11.1)
Amounts excluded from effectiveness testing	15.1		(27.4)		(1.0)		69.8		8.2		(8.6)		0.4		(31.3)
Total cash flow hedge gain (loss) recognized in income	6.1		(5.0)		(1.2)		63.8		6.3		(21.2)		0.1		(42.4)
Total hedge gain (loss) recognized in income	6.1		(5.0)		(1.2)		63.8		6.3		(21.2)		0.1		(42.4)

Gain (loss) recognized in income on derivatives not designated as hedging instruments	(0.1)		(0.8)		—		(33.1)		—		(0.8)		—		(8.0)
Total	$	6.0	$	(5.8)	$	(1.2)	$	30.7	$	6.3	$	(22.0)	$	0.1	$	(50.4)