FTI - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the TechnipFMC Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Matt Seinsheimer. Thank you, please go ahead.

Matt Seinsheimer

Lisa. you, Thank good XXXX and welcome TechnipFMC's to Good conference afternoon call. quarter earnings third morning and

Our and caution on this our to news be forward-looking call. website. can release any I'd financial statements like made to statements you respect yesterday with during issued found

regarding expressed subject cause Although assumptions implied projected factors the actual with those and by to materially recent that could or and results that to XX-Q statements. are could Known filings certain these material described results beliefs US most cause statements business Securities to from differ results our recent and periodic forward-looking our on from our in and risks developments these most expectations, conditions, actual our Exchange XX-K, differ current other in based and future they are uncertainties are Commission, Chairman of the We Authority. speak undue on Financial any French forward-looking to or undertake revise publicly wish update to as date UK and over which place Officer. AMF forward-looking you not no Doug of obligation will reliance they as the whether now Conduct statements, made, to hereof. We otherwise. new the the events result after the caution only of turn call any are a information, TechnipFMC's I Executive date Pferdehirt, future statements and our Chief or to

Doug Pferdehirt

for our third in participating quarter Matt. you, you good afternoon Good call. Thank Thank morning. and earnings

thank and entire want global they unprecedented start Financial community Mannen, shown quarter, dedication to of the throughout workforce third operational periods and; for of On one after once in Technip ever has solid today delivered the Chief Pieton, resilience of months Officer We results President just me faced. Maryann are; the CEO that the times. Energies. these have call Arnaud the challenging and I elect our with again the most

by on ability continue while health accelerating far steadfast in winning, executing our to focus Our strongest in to exceeded our remaining represented our the quarter inbound $X.X This In and success continue of sequential XX%. quarter, continue transformation, largely was business is thus a orders our increase Subsea. driven and XXXX evident safety. and to in billion,

our Our success innovative during company and strong $XXX confidence our projects excellence adjusted customers our collaboratively Total demonstrated solutions financial a with results X.X%. stem to execution where move in was help of times. clients, of margin working such the provide from EBITDA million, with with challenging forward

our showed already momentum rate we segments full Importantly, than three sequential transformation, the the looking more across portfolio. continue all to as cost continued accelerate And business efforts of improvement targeted reduction $XXX and million. execution at savings our run have the margin achieved

will leverage we reduction innovative As organization. to new drive solutions, gains cost digital across continue efficiency the models, technologies and our business we and further

provide results operational the reaffirm our orders, inbound confidence reduction cost our together, for initiatives XXXX. full our to Taken us our and year guidance

EPC continue contract the fourth the their exceeds a is quarter. in Energies that have Well be totaling projects most portfolio reprioritize Having we Technip for to an award announced projects backlog, the July, activity. of billion in clients our aggregate improvement Hydrocracking already were anticipated these inbound Assiut in $X.X As to award seen our since billion value. X contract globally of investments, our in complex, $X

emissions. equipment announced award furnaces. where and plant, for helps technology demonstrates also ethylene our a drive will COX in ethylene This services their Shell we We in award Moerdijk X an and of reduction revamp further for the from leadership related proprietary provide

client. opportunity set as In we by our major X awarded have LNG inbound remained upon FID strong been projects, will addition, which the

by prospect with likely recent year project a award a are Qatar, the has for is in actively Sempra's indicated projects, major end, and these client tendering project evidenced work of one scopes. Azul, For announcements a Costa we FID by good several Energia momentum

gas across And projects through plans year. company, Oman, opportunity and our our due We capabilities, our our believe latest to our and billion While we Subsea, portfolios. with in-country Malaysia. Kuwait, equipment highly the significant Technologies, iEPCI international an as for to strategic leverage us where Equinor resilience we other competitively pressure Surface of agreement and the quarter, continue were award projects in EPC the as the of awards well most award in In market were Breidablikk technology basins in country. demonstrate in competitiveness set with a the for are Middle both has economics offshore Brazil, remain It tendered. Petrobras secured on of track services. believe opportunities project, a growth the We our to the Mero in frame the within to a inbound expand we is competitive East. to that clearly incorporates $X in And of investment being X our opportunity, result awards X cycle of five-year these is Payara the in we for the the Petrogas, important XX% in positioned clients' In project leading these diverse this region. of received high we franchise Subsea provide These basins operator share our contract leadership. the direct in some the world. drilling awarded captured project of for Norway, Guyana. unique Subsea the secure the strength Shell X.X well TechnipFMC Project an full approximately active technology, ExxonMobil and resilience our with In further in

Looking opportunities through continue Life optimize Therefore, Field proven the to alliance project the opportunities unique leveraging opportunities and relationships support operator partners, from development our market business services. I on focusing we am with to concept set to by ahead, exclusive economics and to North another iLOF Subsea long-term future Sea capabilities. phase proprietary Subsea pleased healthy our our utilizing returns, and an optimize strategic iFEED, iEPCI of of in UK our we iEPCI with announce grow and see a early integrated model, and production and

very Front active. End Additionally, Engineering remained teams our

awards leadership a another exemplify seen solutions our these prior operations. acceleration towards and introduced an of company, days the on and recently assets digital Subsea three pillars in intelligent business months, key autonomous And in Studio now our which and and further offering pillars; focused and Digital our study double-digit enabler transformation growth have strategy driving iEPCI we future that above are our is data-centric well are benefits with to of expectation. study digital products X developing fact, Studio is our integrated, Subsea In offering iComplete our and position. awards. becoming expand half leverage our for of expected us recent positions

concept, those reducing And Once on applying reduces completions the a in of making integrated me concept operating configurations, field fully bring solution and with to XX% decades extending learnings feed Studio reduction phases iComplete tendering Let system expenditures a of the from open Subsea way ultra-fast architectures And start simplified projects. artificial key optimize much execution the element transforming that Working architecture machine a on and our time and through the removes site, Digital the engineering XX% accelerate iComplete integration Front has is a engineering package. we'll company End together design Engineering. approach we the risk. efficiency, Subsea learning are able digital design and management intelligence an handoffs we're integration shale of a taking execution as Subsea improving to of resulting across is And other This a completions. clients, and the Subsea efficient as automation that Subsea fewer eliminating implemented, is to with thread the have and in control. allows revolutionary and only the components incorporate platform by beyond are field. conventional XX%. field phases truly project. with is also of to value. maximize all pad knowledge focus and complete system that develop XX% has life the and in we with and of digital required multiple iComplete for need the manufacturing are our for systems, with Studio. well we connections product to integrated, digital land. now to The while

the him evidence-based strategy over to team aligned for Technip valued on company is decisions company bring is All are to energy project Technip and role, know to make undoubtedly Arnaud is operators available I new taking secured put, and has assume data major process. at business, role. new market Simply of real-time. experience And we site of Energies. broad related and technological up what the member experiencing in a call to of all today. integral Pieton his future led of and has features, two-thirds. of us new from the our we his CEO our would gathered for with committed US of and the an at increased Well required the And iComplete most Leadership automation that it seasoned fully It start will with role elect foundation exciting and a years to new to every he extensive President with the since Executive of he levels ideas Subsea that acceptance, of the reduces enables market Earlier the the operators step Arnaud site award new success. professional by personnel combined he and basins, information a I is XX to with TechnipFMC. welcome and actionable He successful realizing will formation business when Arnaud to been of month, part recently to and at like an Energies, this on commercial announced leading today. the it share.

with strategic of in arena week, the a hydrogen in and we production distribution the leading and last hydrogen. of the used Just McPhy, equipment announced green partnership green investment manufacturer

over TechnipFMC the example more Maryann will which detail. partner call and be to world many real collaboration technologies a financial that ourselves both material net in today, in this of And will large believe McPhy, solutions distribution. in scale role as to technology the also We We're storage and equipment project joined engineering, whose capabilities. in technology established already and hydrogen and brand complementary competitive leader leverage our well our process to execution and competencies integration production with as core the expertise relationships, and I the will in are our to to Chart all needed play customer results from stands firmly targets. transition. and in between way liquification, development achieve by to the the McPhy, for we and ways turn Industries, now zero a our collaboration innovative a green will develop carbon as We Chart hydrogen discuss is energy Industries project

Maryann Mannen

comments Total Thanks, $XX.X for benefit higher quarter activities. strong billion million. improved execution the Doug. XX% company driven the revenue company billion, cost scheduled adjusted project end at was EBITDA increased and the today period environment, with $XXX more is was for my of of reduction Backlog in underlying In with second demonstrate clearly revenue $X.X the important $XX.X increased billion asset by the will duration activity execution, more the focus Adjusted end it visibility X% from this remained the and of size current Subsea. our and performance. sequentially, years. in sequential higher over quarter, our of Total several the I backlog XXXX. resilient provide next improvements through throughout The the us to EBITDA versus by strong with than utilization driven downturn our in on have us quarter.

the free Doug of cost, this of than capital the ahead of was cash million in We million, million excluding savings $X.XX expenditures stood our XX% more charges flow when $X.XX see schedule. $XX $XXX benefits benefited from completed in after-tax In per direct indirect million from targeted flow including quarter, resulting Net rate $XX to million, $XX we reduction period. per sequentially was quarter, Net share. of during down in improved in of cost significant at expenses, discussed totaling we earnings credits corporate million. diluted and earlier, Cash activities functions. $XXX As COVID-XX $XXX identified the period, were liquidity share and our $X.X the run debt Adjusted billion. the operations sequentially. cash

$X.XX our would impacts and liability the incremental per Over were virus resulting the of joint adjusted diluted the of $X mitigate have this period share. and per per to from to or been million if year, share. These course of gains or adapted in $X.XX partners have in venture increased items two share $X.XX the quickly by Included foreign impacted business. our our cost diluted of the results $XX earnings excluded, earnings exchange $X.XX share, per on expense reported we diluted million

The to turn quarter sequential of accompanying the will the segment segment But to to on highlights. I provides me slide Let results the our third comparing highlights quarter in third here comparing performance. again, information the when comments focus XXXX. operating on my when

In X.X% by construction $X.X efficiency X%, XXX sequentially the as the increased Third experienced quarter Energies, improvement Africa in increased services. driven revenue $X.X project US, X% operational asset increased our due EBITDA margin in to of performance. Subsea improvement adjusted revenue continued Subsea as to increased We utilization of Subsea sites. by activity operational Technip billion supply Sequentially well basis efficiency. activity points, and improved increased chain project primarily and completions, within in increased and in Asia billion, driven

progressing continued EBITDA, are X% well. portfolio revenue also $XXX million, Technologies, America. XX.X%. benefited across in which execution projects $XXX in of lower activity our to factors, same In market as These sequentially declined as increased Surface sequentially with North strength a well of margin adjusted the due our projects to Importantly, million

unchanged Year-to-date last $XXX by corporate for cost $XX manufacturing acceleration $XXX initiatives XX% primarily at a of cost expense a XXX international $XX our benefit accounted segment guidance our nearly for corporate The expense significant of However, and initiatives. revenue, adjusted revised in North EBITDA to to decline revenue. in favorable reduction was corporate business. segment range million, was margin product our to stands Adjusted improvement total reduction quarter improved the driven America full our increased We the expense the in sequentially. accelerated Despite and period year. of mix, execution revenue million. was outside million the million the X.X% points of our basis due largely of

continue of trend actions the towards range. Given we this end have taken, to low we the

each from guidance segments, impacts. material our related full financial year our assuming COVID-XX business Our in is in quarter achieving further update. We no outlook from second unchanged remain confident our of degradation

operational year. $XX and to We Turning of capital million momentum spend our confident the approximately of $XXX investment million were first and year. $XXX months now improved the achieving guidance supports quarter, to $XXX cash nine for million. remain full experienced free the in neutral have to lowering throughout reduced maturity and cash debt in operational equivalents with Net $X.X by We year flow, totaled committed confidence cost, expenditures capital The delivered our flow $XXX our full In our net quarter disciplined of $XX are showing the we $XXX in interest capital million improved million. adjusted we cash ended with rate. segments absolute blended reductions both while margin. in in sequential summary, million, commercial paper the and fixed debt. cash with reduced our These improvement funding cash sequentially million In billion. actions EBITDA solid results of to all this period

with million Subsea of backlog. we sequential challenging new the than awards schedule. savings ahead the increase winning market run achieved more our And targeted have backdrop, rate $XXX very continued We of despite in

debt operating sheet. increased and we Beyond line, cash reduced expect and commitment. further in managing year as by Sequentially, in remained on full the the we intently our improvement net the position significantly the cash flow focused implied quarter, fourth balance our period we

for our XXXX. we Operator, questions. open of that the successes All now call for up give these may guidance deliver on will financial confidence us you

Operator

Instructions] line [Operator Meakim JP you. comes from Thank question And Morgan. the Sean from of first our

is line Your open.

Sean Meakim

everyone. Thanks,

Doug Pferdehirt

Sean. morning, Good

Sean Meakim

then that free really through cash that it? Could reiterating fourth working So we see for about about be cash and with guide a critical implications little XXXX? couple the if quarter. And you maybe could redeemable start thinking to just and we on the guide just as maybe pieces free a you walk the we like the seems moving mandatorily more look flow as flow cash capital the liability, think could exit of what piece

Maryann Mannen

Sure, Sean. question. the thanks Thank you for and

we one have with know, performance. conviction remaining operating obviously, in quarter you So, strengthened

capital So year the to back in working the obviously improvement our expect continued improving you've middle cash seen and the as year. that capital from is flow will we see working half deliver of increased

range think the that we outcomes identified clear last the to - path, discussed our I deliver see a $XXX know, potentially for quarter, a you of in would neutral back million we opportunity and sorry, performance given as maybe the still we've the quarter. fourth in

your think $XXX as approximately that we'll for I second continue free liability. the in fourth that's below the payable, to million And cash below know, you question around line payment the flow expect quarter Yamal was and working that redeemable from capital have operations. the we

obviously we expect as improvement head flow cash that had comments, cash see well. my net we'll do we see I as and mentioned we free XXXX, in into improvement as So that will

Sean Meakim

it, a thank is the that. really other Energies. Got for today the appreciate resolution stock And that Technip critical then think piece for I explanation. to you I getting on

dual clearly, spin around more really, And commitment to finish little you. to gating items get there Just so to business? on just you executing we this tracks looking other we running transparency that has the you're I to Doug, value on line are get been piece? as And can the know, guess around Thank unwavering. much the how with maybe a creation that Can get we the granularity your spin? any

Doug Pferdehirt

and thank Sean you Certainly, question. for the

it in transaction. importance steadfast I You're And absolutely with creation unchanged. has of say, independent clearer forward conviction the moving become company. The Technip of remains rationale right. anything, an a Energies, to my I remain in would the strategic as if such

was had the to decision, panic decision. decision important around was weighed think There lot a to that an in know, secondly, your be position what both leaning that, what pandemic you clients' then plans driven in question there ensuring really like is lot was to to was cetera, markets, et about to our three we I as well a - back us that of I'd though really reflect by when time what into in defer the of led at triggers, the came to industry. down within And price. One factors think at could of transaction. as the out commodity know, in to we it's us conducive was complete terms finally, the time. on, you financial that our there it the me, leaning the say the that difficult a environment uncertainty versus And

forward and uncertainty where there's always fast to know, the in certainly and But be. just still we market, we've actually a about could bottom fear I concern think the be. point today, complete past anxiety when and, of a there you and panic will So that come

was the In it's of position. opportunity shared unique XX% terms I if in and third which direct our know, you X.X know, at numbers quarter important a of the to the projects in, and for that and And think in very book done had win Subsea, a with you We're takes you leaning it's those math, evidenced is, company. And strategic remarkable. really a we to quite that for part, them, industry, winning. substantial here quite inbound we're the results an we're winning to the to as us just our bill for look in awarded being been anyone's QX third which really Subsea,

we continue supply very impact across strategic we I weren't no we than be, in backlog. didn't in at going deliver the it would backlog. X our And suspended, indicated three to have of what the to kind well. was most ability know our to on we been are time our to as what some instance, and where results projects. say, was be execute put and a there We we're I plans we can our chain to today you different our didn't what execute world's have feel going for business customers our sure those very to and it able our of segments, on have cancellations know we going impact complex were financial of all when environment together, that So reaffirm at

continue to scenario look timing to what right So we're this to situation the and be structure is intent forward. what our different direction. a Sean. move would it at in move to now, But in right the that continue and is We'll transaction

Sean Meakim

Fair enough. Doug. Thanks,

Operator

of Our Wong next comes UBS. Amy question line the from from

Your line is open.

Amy Wong

couple guys. good A questions Hi, afternoon of me. from

some just gas - and to export proposing I gas for recently the the not first it's - guarantees projects from if to government is The from as that industry. - and news one oil projects And I relates there's flow but to end going oil as overnight, like be XXXX. far understand, XXXX if French as

wondering on to So know, when terms how just help that to that projects? or you French like your you export clients of ability the credit that in guys impact rely more win facilities, credit may your impact arrange maybe might TechnipFMC how could some export try client of for maybe, these

Doug Pferdehirt

we're position there are. I reading. true, good facts any that of be to it's play we returns rely it think sources you're you parties the in that for if we assume It nothing that things question. we're don't Amy. or good project or the Yes, financing. the also reading we will, to funding, think in timeline And that on in afternoon, than No role client, is that I time particular can together, the key any word has used the additional single source same time Interesting only do project that true from link than it assist. the help project was is that's two we more which But that you the And do to, if there, tends and and you funding. financing. source privy realistic really project but of we're try any project funding a to multiple will to not doesn't But single

economics seen I - But different source none over the don't on it Amy, - this. with would way us know, we sources, most the funding time be good that future in evolved have, major funding can project would these you on assumption, appropriate. that a my of you and So as deems feel certain projects whichever we've able know, I from predict has quite

So, out and certainly play we're in don't we'll see continue we'll do. support nothing asked, help or to how But do the not to is project and wait you we'll which or role, we assist. our financing again, which But more to than what when we know, assist, things game. play we normally can

Amy Wong

Great. That's to that. helpful get on your thoughts

good, going you in purpose Just conversion a pre discussions, trying thoughts and lines to on were pretty understand the here from you were and your And both think XXXX degree order particularly question still But been I projects a of your pandemic, those pandemic to intake, started mean, of is you have like? for of, it's understand maybe know, directionally the intake look you on difficult know, of COVID your, in already follow-up Subsea with you some more know, and that it some XXXX for the to Or of orders, or projects early what you know, you the is just really what Energies. along from negotiations order environment, projects? understanding is I potential new kind initiated becoming thoughts were, pipeline. in clients? to how know, half know, the second you have converted

Doug Pferdehirt

the We XXXX there - got going knew Sure, to on we I Amy. to question. quickly. We get second were

thank thank or So you, no, maybe. you

thoughts quantitative Now be you some much. as give premature. I'll obviously at give time look, would thoughts, this Amy qualitative kind we'll you of

XXXX. their Our plans customers their developing for still are budgets,

bit would subject to premature, I'll a to regarding but in some I'm then thoughts anything his the going willing your and Arnaud Technip So question, I'm spirit Surface to Subsea some the to think on I they and quantitative, on Energies. cover International comments make you give going ask be qualitative outlook. of be do

So to let's emphasizing strong And you know, turn it's continuing keep North I momentum order only we because business. service - in International. Look, in international are outlook Surface for America, as book International. with start and our Surface a see very

Surface But to North of it that other very, made instance, integrated. equipment I it the to used our very So in as to American have that's as quite There's a specifications some maybe in-house, about the that in International know market. into from a may continue in really that understand The We Subsea, other - it's bit is required and and will I we supplier the the actually of It's it machine it's international sophisticated the technology inbound the expect far it's to little high-spec come And the is up. contrary - totally vertically or to and hence is outsourced we're market. North be Service that's exceeds market. all anywhere not us able materials it equipment. provide pick level International, do to else, American requires think one position reason tooling to been equipment so very similar comments for important for that that the in China unique. that successful.

mentioned and leadership expand. Middle closely the key awards So region East, continued players in all XXXX. We our we had a extended the prepared of we to position always announced position in the remarks, see a couple very, success the that of work just continuing Middle we've success I North East, my in Africa. expect to in continue and growing very and with the new in strong

terms in would inbound ago, is, achieve months order Subsea few like of XXXX. Amy I forever, ago, $X few it a we billion just felt that orders, at this of a it was In point, say know, but for Subsea you could mentioned what I seems I quarters

now already we it QX XXXX. it's achieving we lock a QX as and of as to complete one that moving XXXX, I, of some really saying resemble you largest for that that kind from clients. skepticism know, and of shifting level things. at in have a discounted activity majority grown know, around at, to. come to just the always, part, direct does I'm awarded of the But you XXXX granularity understand committed have the our that change iFEEDs prepared trying is to remarks, towards not to to think in our I Again, a think long of double-digit, see I FEED, of the why market. Amy, I large which that's the Subsea lot And could able one was of my you our look way year, XXXX opportunity could we could yet the our and timing. of our know, bit look of point, of still at we're I market And there's Again, when were access is which that there's growing do don't you billion to project the success iFEEDs, execution, to And early, XXXX this that. that. majority mentioned why majority quarter proprietary we this left being it's I our a have know, pieces to set Obviously, are we've see I from our company, the when similar, with look $X remain this it's I down rest customers the

be that our You strength, And Subsea continue probably services we projects and again forget it's more finally, then year resilience to the important awards. to next foundation of continue on from. with know, build that iEPCI that to we continues to the a more strong expect business, direct not

alliance again, together, I maybe we that going just are when last timing remarks. - that and know, prepared Subsea. didn't, of you those really to signed to projects may move to thought, you understand we the for put up exclusive one you in have expect XXXX. all projects, So but you my have XXXX know, And But if expect you resemble forward what picked I another to

we're really we're So making. progress of proud Arnaud? the

Arnaud Pieton

Doug you, thank thank Amy. and you, Yeah,

that, add Energies by remarks, I Technip each know, in previous Doug expressed his for before prepared to there you projects potential end before quarter, is year. billion for and inbound his know, of by would of [technical Doug you $X as the difficulty] Technip So the end or a the Energies exceeding the prospects, to

a quite for the relying year inbound for past share you traditional solid you fold I pre-COVID or of other alone place customers. in blue inbound and like next into very I to, fact, know on, know, you hydrogen, you or was hydrogen in markets Energies think building position Technip year are new markets terms having we year every going in know, we a And conversations decarbonization you is, our you there's Technip would more conversations? call year. like or emphasis an And for will Energies, a, isn't as question types Technip the we prospects maybe don't are yet I having in opportunities And idea markets a of interestingly, Energies new types pipeline say having that are I'd opportunities? blocks a conversations to it's, over you know, on is what we if look traditional about So perspective to with converting you and your know, good And the and in us. year. also know, placed including just in new opportunities. the another know, in very there something yes, what that all know, traditional But conversation have being the conversations by And energy are one including giving huge are for actual can our to well. and customers, on, full of conversations and but And also is this of green next about of wave LNG solid new with a transition of new I'm

a us here for know, Energies. well set you set as real as So, Technip for opportunity activity there's grid Brownfield a in

nice Energies you. going if So, Technip forward. you know, may conversation, Thank say for of I mix a

Amy Wong

Doug you, your Thank and Arnaud Thank comments. you. for

Operator

Bianchi next Our Cowen. Marc comes the of line from from question

open. line Your is

Marc Bianchi

the help fourth from on we the thoughts feel with the progression across And quarter to we much always but kind in quarter? it in think And quarter in in would do for you, kind segments. solve into Thank guys you too seasonality way I end up like the know, be hear get of Subsea, detail, what great I the out related can third the do third situation to you got was closeout? put the of know, this quarter. don't how you any and target want you an And just could fourth guidance annual know project realized you. where, we of we've to much particularly X

Doug Pferdehirt

the we a solid Subsea imply not in summarize full North amount the that, a did least we fourth bit year the therefore, know, you more is necessarily had in remain confident do But maybe very the with to can quarter we the to The it's than of X.X% quarter, always guidance want as with And saying you you I in one very way a and particularly lighter annual it for this would Marc it on Sure, mind activity, North Sea. know, and indicated, know, we're the fourth guidance. third exception our one Marc. very provide know, confident I'll maybe you guidance, and us vessel is other? quarter. of that. is, has keep we cover that fourth that, our add and quarterly instances related two that Sea or is. Marc the are project you reactivity will activity bit always at quarter this that be And The in Subsea, in I'd the to in that reduced softer way our

Marc Bianchi

could North improvement kind the Surface, businesses, some to something just other in know, international extent for seeing But, offset? exposure no, can that certainly, the there's Yeah, example, we're - the you mean fourth, in I given talk is suspect for mean America. would momentum that you I revenue that third the the from potential to of about perhaps I

Doug Pferdehirt

America hard. a North Surface bit is Marc,

they But did make in Energies? a proud on actually and Technip of of a international And run very of franchise. right in trend a the in you terms and the revenue you budgetary the year bit end see As lot into a quarter. constraints North of know, the of softening times America at fourth to of want we're the very international now, say I our situation. strength you would comment Arnaud, But our franchise it's fluid

Arnaud Pieton

I Yeah, you you're in other thank to year. mean the confident add delivering know much not for Doug. even you, guidance the than really being

yeah, So, for year I a, confident in mean so. rest have know hand the it's just you quarters now so the I of three

Marc Bianchi

Subsea maybe just we ask could think margin. a follow-on about I Well, to is, okay. the just if Right, progression of 'XX

You there nice had margins. be utilization. really see some a uptick expectation talked, you think you the to we third you in quarter, quite wouldn't know, the was mention in But last had level I did here time some that we yeah of where could nice utilization

based out that in what of just right know, Just how kind now? plays on curious 'XX you factor

Doug Pferdehirt

Yeah, will Marc, industry-wide, year be the best good. utilization next not

anticipate pandemic some right. don't much there's across for big result pushed still you the industry, had way projects that in So of utilization and a utilization too to that's the going a the the pushed deferred recovery the right, as gotten maybe talking, that's be know, uptick to industry I'm things the to some capacity, of

work vessels. to the Now leader I And new We collaboration, learn alliances encourage And as been grow continue through into by strategic be we're stalking, need the quit we'll we're we're and to be deliver can to healthy, that and the would vessels. to projects cold ownership upon going to direct And sure we pursue present. together. form not and to with those industry continue happy that. building our to we're do it integrated may in make just ensure to projects. building you it to new going feed have adding and we've And opportunities that what market. example. the may depends going we capability selling and path that integrated very be and versus we're And work the that to know, vessels, it And continue to very capacity others through lead selling,

that right do thing leading industry the definitely right investors. do for So this thing right the company is and for a certainly the and to our It's it's to do big change. thing to most it's our change. the for We're

Marc Bianchi

it that, for Thanks Yeah. Doug. back. I'll turn

Operator

comes question from CIBC CIC] the Market Jean-Luc line next - Our [sic CM from Solutions. of Romain

open. is line Your

Jean-Luc Romain

that LNG before reduction for ExxonMobil price thought a Good for this? afternoon. Could It for it your it sanctions definitively. seems project more you is its give asking Mozambique

Doug Pferdehirt

Rovuma regarding trouble were believe you were the that asking having recent of some and is we coverage the issues project, here. Sorry, around I correct? had a of here. bit some We media audio discussions

Jean-Luc Romain

right. That's

Doug Pferdehirt

That's selected. the best we should very the more project to our the think of we read good, Sorry, know, with singular closely very very about much. way the thank project. know, we you since to we And can project ExxonMobil why It's with with would our much an there's was reach as practice us for and the media for in collaboration that beginning. important project. to we partners, to project our coverage just so. and close I and that engineering. on - than economics remain expect do partners very work we project, remain selected working consortium for ensure focus you along continue don't into you this been project very Look, this ExxonMobil were excited and some And is our very and normal

Jean-Luc Romain

Thank you.

Operator

next our RBC. Kurt And comes from question from the line of Hallead

open. Your line is

Kurt Hallead

Maryann of How the are Doug morning, rest you? good and the and Hey, team.

Doug Pferdehirt

Kurt. morning, Good

Maryann Mannen

Good morning -

Doug Pferdehirt

you. Thank well. Very

Kurt Hallead

Excellent.

Doug, with the the other curious, know, around, know, but push going the lot you you energy that's and, you industry here industry, on of know, a hydrogen you decarbonizing, really McPhy. So from the hype your participation I'm reducing, you with not just know, on know, opportunity now industries,

you piece you about, exists. anything looking would additional know, inside, you both you Subsea, curious potential the I'm there provide do context I what one see on for and is helpful. the FTI business market Energies know, that of be Technip opportunity So, just some is you know very if was for for addressable that

Doug Pferdehirt

you're smile on like have me, I see that. But going Sure, Kurt, I can't big my answer, know a my you not but to fully face.

don't time, my apply two credible But best, but very, weeks' to have the you have be know, some - or what I'm The have we build do. it's the build than I We suggesting our up really keynote portfolio. our steal less it's, to answer, really the style. and our know, just to opportunities we're real and show it two want making little you do think will and weeks' tend for us going just you've and examples, I out, going very most think We thunder to going that. the but have ambition Kurt across you in, of I I more know, Kurt, compelling. are we And a it of presentation and to we're say, kind definitely with say say more thunder company. pure heard time real versus belief and let's the not

gas You've by XX%. heard emissions iProduction, me talk greenhouse future reducing about

that is going because fact right some to the to the because setting. doing. us make you investment to of You've measurable and not apologize thing But three-year this you believe these Subsea believe progress you we to made which because our greenhouse gases I message know, to investing, it's, have that I'd judged we're the we've in for it's to done, a talk investment we're you. like at what we about a actually But market. in going message set tell me the Arnaud new. we doing strategic about because the, XX%. plan our And to what been promise, I going isn't anything it's the deliver ambition, in - of has proper by a X.X, areas going impact the recent Kurt, you're overall about show we compelling And a will to I'm we're know, hydrogen popular to forth of to have work we done, a set saw the with very also talk that where And heard talk be been you we've we're McPhy, do, going bit more hydrogen We're ask reducing demand, forth examples scorecard green the in about been you it, having, can that real five investing years, against. over

going focus we generate on to can we're So markets actually good those where returns.

that But right take you've selective. a the analyze enough to it just me decent it long very some it, you there's offshore doesn't to before, popular be installation make say And and people not company pursuing. - left it, heard for we're going look So were to at return. does when now that there's markets really

So contractors, which done these be X packages X typically between are would being split contractors. - X of upwards or

technology, Xth installation, expect on generate if not don't don't if not we if our the believe the you we you're that that the, So list, have the can bringing if the doing know, of shareholders if you together type the the us. integration, you're you're from just you're returns

that for facts, hydrogen. about we're in be weeks recent some the doing - quite be very, is we've green market to think me So hydrogen Arnaud they'll bit it'll talk at about what real our a a about a by excited and looking This a backed talk compelling. will be really investment an other ambition market. let be things very is to I'd Arnaud? while we're they'll going couple of examples been in like we're and but hear in backed very things you're and I surprising, that up up will of be by

Arnaud Pieton

thank Yeah, and Kurt you, for questions. you, the thank Doug

Doug industry know, leading our, it pretty you much that COX we we technology. is capabilities, credible management stated, player Energies XXX we Technip hydrogen, a very the can say hydrogen have be And we and you have history as TechnipFMC know, utilizing in know, as you know, base have proprietary very basically you an do a blue plants space we combine as with one when that you - rich that everything our know, installed you So to in need evolves.

will McPhy to is this a in know, the market, going continue well. basically mature, way mature, And investment to to including us large hydrogen blue is be Technip a green. on, totally leader not Energies be So, green scale position you - as to for mature but is to

this ago you we And course, we're how super forward-looking journey part a because way a to other is partnering the McPhy a iFEED going the of But with with McPhy there continue know, is about will, where and decades supplier. it's to So, hydrogen and it, scale opportunities Tier-X be we And beginning that forward. be many do might partnering and development that with and electrolyzer position. - technology. help with accelerate leadership have on excited started the we

the really. for future about it's preparing So

Kurt Hallead

about forward presentation. Great, that points to should so alone thanks stock, on that four for five to looking teaser worth probably that. And, multiple Doug the

Operator

of Our from comes Mark Jefferies. next from question line the Wilson

Your line is open.

Mark Wilson

Thank that transition, gentlemen. clearly on you. answered to and Good morning, think to forward I was but energy going very we look I presentation. that ask you've

maybe the on name partner? announced But cover So alliance give for that did you've that. just new to a firstly North I'm off the alliance that Sea, in you

Doug Pferdehirt

by moving of because think it's it's know, client integrated that least very will forward the more and along like to wait the It an marketing, when well-known not our project is for Again, with that a want to, They them. partner's makes at, I enabled We've that's But about a event bit they the it have we we know, reality. in most come now know, definitely into their about economics would formally one the FEED industry announced would to again, convert unique to be our we are and And we name announce they a you right integrated like you once those on is projects again, at that will done name. become, us, of with we, know, and same you first - and our for let's a have it's times. then is a And integrated that time. are which say, to economics expect well, be one to of you event We're that the, the surprised integrated project, real, the those, name. an offering. move phase you portfolio. - in, would as more it at few when know,

have we're So basis. to the with is be relationship working them a direct is if ours move long-term another not we from and to Subsea operator, proud. on yet could a award then iFEED on exclusive All more proprietary these do iEPCI, convert the they relationship, to we

Mark Wilson

ask shorter And profile on okay. a off we Thank liabilities you. roll up your what two-year remaining Excellent, the mouth. Is is those contract that? Maryann then or to that period should cover you. than Thank Could I to expect over?

Maryann Mannen

Mark. Thank question, the you for

ability than periods. are And quarters continue multiple we phase. you to trains the project successive a than project those as in unwind years avoid had degree more of multiple the you unwind. to no we therefore, risk. certainly years, that quite say in but more certainly have know, warranty would the I we of should had excellence And high progression. the as confidence This be saw successful as So improvement, warranty fairly a year, two see and no two significant We've execution,

So positive we expect that to result, be a Mark.

Mark Wilson

Okay, still you the and those the grow through revenues warranty. will line work the top pass and off as MRI

Maryann Mannen

they will, liability, Absolutely as unwind seen. yes. come the revenue They will through contract and That's correct you've correct. as just

Mark Wilson

very Okay, thank much. you

Maryann Mannen

most You're welcome.

Operator

Our next & Company. of O'Leary from TPH comes George from question the line

Your open. line is

George O'Leary

Good Good Doug. team. morning, morning

Doug Pferdehirt

Good morning, George.

Maryann Mannen

morning. Good

George O'Leary

diesel be side of out the On us the renewable opportunity kind market? more equation But a to - what any historically that diesel there's and position wondered days. had seems the I have front. if on guys these I TechnipFMC are know you in could that biodiesel renewable if catching for headlines end for on you of seeing you lay guys

Doug Pferdehirt

right, as of biodiesel lot you're been So a renewable both diesel. on there's focus as well

is I projects of spend very, to we've way. renewable that this in we strong comments all as continue that before market the Neste diesel be Neste area you our think you company, strength have for market, diesel regarding had the a strong have an more the still time it's very we couldn't make we we But all relationship biodiesel of any that of we the execution more I renewable know, know market. need with the with early think proud - very that along we little too just stages,

turn of his to comments to subject. to So regarding like the add I'd it own a over few Arnaud

Arnaud Pieton

and Doug thank you, you, George. thank Yeah,

a a just enjoying short today it's but yeah, yeah Doug's we other going so - very So have than market are position biodiesel. in be to addition strong to comments, but do we

us with don't there history We you many biojet. Neste. that long is relationship other references, I enjoying know, much And, to a bear how have collaboration the can you very, it if happy biofuels. know, this have And technology partnership biochemical, to partners you and may entities recurring add the very projects, are recurring and biodiesel is we're you and and are deep than I biodiesel technology and we have one of their that and we a our very which know, about leader we fruit, the say just, that continues so. pleased which, in know type and, when making and preferred on with know, to - we have

because it's with them we on one But happy and an are and are are You to we it with we and have you going for us. work time we important we may many scaling know, we to, continue each references them. get nurturing on as every know

George O'Leary

it's better sounds basin. headway, that US the Okay. us every explain some point you and virtue to offering I Appreciate and the kind having getting into to market? a of the differentiated less high efficiencies I from to probably and understand bit Doug, just could even know, at help drives appreciate and making mentioned you you more you're good by how just of if you us a those the But of wondered know systems It the the less having color equipment like on connections reduction that help the XX% in competition labor on site And the conceptualize, the versus site and equipment. system in little people if have helps iComplete reduces why just there. it how then realize out I well major earlier, better and offering level

would extremely there be any helpful. color So

Doug Pferdehirt

know, US not it of I think these, most an XX/X is appreciate. be the of in to Sure. And maybe one shale it's you been use might be to kind hard if helps today, visualize, analogy, analogy, multi-stage hasn't of it kind you great a operating on, it'll us environments one - of I'm that happening know, but going

bunch control, But know, consider the just way has the forever. forever, it it very very we around that of complicated. the and managed pumping for So And there's it's just execution a I hazards. bottom describe it's simultaneous I'll with But as which an operations, what of of be really, between is happens you're stage a of the at a ants the if integrated and activity. that Subsea everybody will, it's worst, stages, scurrying everything dealing then highly And actual don't a of I it scurry or industry automation say automated visualize pressure it's goes just because it's try There's But people with - those chaotic. between back. And common, and it's it's the efficiently. been Subsea, doing the to know, - best you you. It's around. what you operations, and the at regions, ourselves high it looked you're it's since trip we you is, at to in unable I've in uses architect. to ocean. do at dealing - at around have running what because orchestrated bunch very, quite they're you obviously, been in point we

it activity do. different them take why we that initially, automated, and efficiency, at same But the the So to kind chaos improving describing and contractors, everything quite that a it's safe we which if you don't And to put “Oh, tremendous as best activity what Surface”. really of people, we really know amount it somebody remotely most on challenge, here of able interface, went look talented when to activities, can't “What, from charge you to I'm this from And were on worst possible, said, what client operated, the the that nobody part course, many something give a giving just iPad. of orchestrated have know, time, to the take it removing you overall and way know, that's, it's to owned by most I'm a “Well, not owned, was cetera. accelerating, find amazing. say, to smart an it, et smart know, it's and do people say, why people the those and of, that I people environment make they not And of controls and the of removing really applicable, operate. it's to it's able at importantly, and that you and doesn't now you. way all But really And we amazing they're do in

it's Because quickly We've happen I talking one have you it's the All It's because barely iComplete a an call. of been of those things. was it's acceptance, introduced. how are fully it But relatively know, amazing activities that spread. market to we're it's working know, quite now for just about in earnings again, meaningful between And it's you really time new. on on are first and while. now, just the it it's know, automated. these

solution share, things up can very come real benefit these the and sense in successful. be upfront get from case, that get to that market customer you terms that tremendous tend our from right benefit the of makes this we in efficiency, If with our operating

focus real them that results, and things deliver the make complex, don't our company. that's matter overly on So

George O'Leary

Arnaud. Thanks, Thanks, Doug.

Operator

line come from of Societe final And our Delaby today will from the Generale. Guillaume question

Your line is open.

Guillaume Delaby

vision go Thank the now how what years? from now is last six company four Good back see next are lesson, draw taking different those four And do from you years if to two main, is morning, What months also it are versus lessons the the question question. Yes. how would the of the two we that used two in for main my currently Doug. basically, TechnipFMC ago? your months, last reshaping The to lessons six you you final six to for see to you months.

Doug Pferdehirt

do a It's the to sake is lessons But I that best, for hard six get there it down will learned. to last have time, few over lessons That's a quite great my been two months. question. of the learned

and what if do just the got feel you right, it's - know, I right it's do know, the is You heart. to feel right. it If two, tried one to you in right know, first is, the is in mind got to pick what

some them and need, them, you well-being know, giving amazing do pandemic, we them I that health employees, our to our then in and Be on it's know, you thrown number tools can't cases, say our project of just, focus I difficult through at And mean to and time, of on the our them putting complexity and the struggled, crews of our was daily weekly, this a what when the when, I me, to perform. adapting many other period teams route XXX% and basis So being changes many the because companies by manufacturing the of staff enough. that done directors project on contractors, vessels, helping the reacted our period that? hourly partners and way companies to and that allowing they trusting other were that it very this what and of the failed us just by during

So do care and of faith take what It's and is amazing trust job have And lesson them a them, learned confidence. them there, do. they it's need give if people to tools, there the keep healthy, and the amazing. will

around really the The of behaviors. second change one is

know, customers. work challenges You but coming staying support to them, pestering were say that they we that some your operate. to them COVID lot - terms were could. some I through did them, in really them has we so close focused, to very greater, of ways, them so are testing becoming them to now people, trust. loyalty And customer, way and required, in in obviously very us had builds just we also terms to even there, We at in would we weren't that We close our that helping helping of letting whatever was companies. think internally too know whatever much whatever mobilize not remain let's hurt unique they latitude extending much their kits, And own of with early a

think adoption is some by integration. argue would how less it seriously that think will Look, see don't major going And going adoption cases, five when Subsea, as in I more on-site both remote think through, maybe to think it more playing value. in this - I but we versus always talking and comes and comes some versus accelerated is crisis inspections - historically. years. integration wanted much future, new the I the to where as it proven, to their when a get, as here it prominent in I very well as I do And think So find have this it to we to company Technip by forward, adaption this is think creating We're reality, of terrible much I you'll than our stay, it's projects they're to Energies role in we've inspections, industry, I that went now revert. very I the about clients probably operate

Guillaume Delaby

the color. Thank for much you very

Operator

to Seinsheimer I like for remarks. the turn Matt now closing back would to phone over

Matt Seinsheimer

This A third available at X our conference call of PM British beginning will concludes the today. approximately quarter call. Time our website, be on replay Summer

end further Lisa, of may questions, call. to for Thank operator much member us, If the you any feel the please you have team. so you free Investor any contact joining Relations

Operator

concludes for you conference this and call. today's gentlemen, you. Ladies Thank participating. Thank

You may now disconnect.

TechnipFMC (FTI) 22 Oct 202020 Q3 Earnings call transcript