FTI - Earnings call transcript Q3 2021

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Operator

Good day. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the TechnipFMC Third Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank like now the over call I to Mr. to would turn Seinsheimer. Matt ahead, go sir. Please

Matt Seinsheimer

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

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

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

Doug Pferdehirt

for you participating and morning Good good you, Thank Thank afternoon. all in call. today’s Matt.

in our Results further XXX period inbound Subsea our quarter $X.X was billion. and was our Melin, in direct Alf billion, in vessel the in charters. continued inbound company in long-term inbound financial $X.X company orders year-to-date the the full the bringing Total $X.X quarter to is in driven EBITDA year partners, segment of support billion. adjusted achieving operational X.X%. orders revenue was company EBITDA Total Total strength reflect performance guidance. with today of alliance total Chief adjusted Financial several million, by were the strength services, an quarter margin me Officer. and confidence were X.X The subsea awards, Joining billion.

we Additionally, is the Subsea for Surface quarter billion potential the expanded Opportunity now Technologies project important assuming List next in when region order third anticipate fourth project note our Middle seeing million opportunities significant Brazil. a the the orders partly in reflects Inbound XX will for that over expect increase activity the be awards and important ranges. been It to always for in for has XX midpoint This were fourth we quarter. of multiyear an months award the we growth inbound made TechnipFMC. in in XXXX Subsea shows the totaling quarter, the momentum consecutive East. in are XXX several as

established over the We country content, contributing XX% our to chain over present significantly decades, local supply well in with a have been and success. five for

Rio where award Robotic Valve we our contract to impressive all-electric of We the XXXX. And scheduled Voador generation Búzios delivery for two strong beyond well awards manufactured awarded received This we utilizing upon the a the and and center been project a Subsea has long second of our Petrobrass, XXXth for built significant And carried in the adoption our and milestones. achieved extending in of history project teams is reflecting and from supply iEPCI tree Marlim services our Brazil, global part first manifolds, second equipment important global innovation at first Fields, provide our research technology several our X-X Controller. backlog de have that will the an Additionally, country, the in development another first leadership our Brazil out us year, execution. delivered in Energy model. Karoon with integrated fields, position in our Janeiro. step

three awards for we the contracts will During with vessel also Brazilian long-term plus market These the Petrobras. signed serve charter next years. the quarter, three

The charters and venture Subsea. vessels were joint operated with through first our two support DOF for pipelay owned

and pipe The of has of quality depth third the market one a that to work consistently indicator These a clients' for for serve the awarded install vessel highest ability strong Brazil. up was rating been safety in and flexible also any flexible in wholly awards provides environment. to and that meters, operational leading for performance, health, owned the as the us with pipe X,XXX water demand

For the the technology the a allowed ultra deep pipes shallow industry, The the pipe has water. been water solution has preferred to TechnipFMC since early Brazil. to versatility and been from decades, flexible flexible pioneer with deep adapting has in evolve in XXXXs.

leader of we market created alliance of some since industry by is COX of years leader recent than Magma We advanced Global, believe showcase in flexible that pipe, flexible XX,XXX composite injection volumes than More technologies. double in a we applications Outside annualized supplied a applications, the More challenge, been a low next reliability kilometers are pre-salt these result risers, will Brazil made strategic across fields concentrations in for XXXX, manufacturing and remain peak current was market investment three levels. activity, advanced improving today. challenges supported minority increasingly awards are the constantly the in quality industry to harsh half pre-salt flexible’s our which installed the in particularly leading over high the TechnipFMC, COX region. XXXX. in robust, reduction for facility and than the volumes environments, the Acu more High in remains a and posed in to which automation. address we tendering market industry and In by limited COX a gas have of and has

are Magma, excited to pipe the in pipe, alliance, of with pleased to advancing acquired remaining them technology success a we this and the ongoing use Brazilian interest we are we fields. the announce TechnipFMC their family. to With development technology proprietary solution flexible of we were our hybrid for welcome By pre-salt combining the in flexible the

in capabilities, fleet to our high our our in strongest most Subsea in our success notably Our the us drive and this continue in technologies, flexible, research be history our and long that market to Brazil, decade. leadership investment well expected performing disruptive women the positions what is men

outlined our areas storage. previously wave, wind, carbon transportation hydrogen of have We and and focus

progress We real in are all these making areas. of

pleased offshore The discuss long-term in major this source Talos combining strategic We from initially turn critical of for companies, a our gas capture on Energy position Alf carbon concentration develop in a Magma and Additionally, alliance announce be or need, plants to address an look these we and important deliver and call refineries, heavy to our energy conversion integration forward and with the leading were to CCS. and to alliance Talos TechnipFMC financial of provider a provides experience facilities. a type be will the collaboration, the which a working long to to This composite a will focus U.S. Subsea transportation with to also believe engineering, blue enabler in automation over new will platform identified with storage. technologies transportation operational for subsurface and the that step solutions of emissions with Gulf storage, COX will and to opportunities. results. growing hydrogen market is and strength alliance now carbon Coast, and is control. system history of we both Talos' emerging The integration innovation This I liquefied natural system.

Alf Melin

is Doug. adjusted million. of Backlog stands X.X led period. quarter equivalents X company Revenue We X.X end scheduled X.X EBITDA the billion, you, of X.X XXX at over by Subsea another just net Total We for cash beyond ended backlog orders in inbound and the with cash was with Thank which billion. XXXX. billion. of quarter X at debt company the solid of billion billion, was had billion execution quarter, for billion the and total of X.X of

and the of to $X.XX loss extinguishment million the credits equity XX netted $X.XX an Loss after credits non-cash included following a These and of the the per primarily that on adjusted Technip items million. related million was of XX charges continuing continuing charges, related to loss Global. from recognized of to Expenses change continuing operations restructuring in of other quarter. we in to items. favorable XX XX in quarter, exchange debt of market per in our diluted loss initial million during items; million relates share impairment, expense from a our excluding the the XX totaling of During impact operations and by were share, ownership income million following When loss offset on value and charges Magma that share partially the investment an impairment The expense from early Energies, an a X operations to adjusted tax to which was and netted the foreign also included per period. $X.XX. primarily

was X.X commercial by on in multiyear turn and revenue results. partially from revenue North offset decline. success. an EBITDA X.X due Revenue America. The with quarter billion me XX driven X% XXX large results. North by revenue million driven sequential X% Adjusted by were by Inbound to the million. lower primarily of of margin was let orders quarter I of Now, increase the revenue million. the decreased of in our Sea basis awards, growth adjusted continued of quarter drilling of decreased performance third Subsea, the driven points for quarter. second the Asia. the in In international the Surface demonstrating decreased increased North segment higher America segment decrease sequential to was In were timing Technologies, our in quarter XXX was points the second EBITDA our lower from a activity. XX.X%, quarter period, million, and Adjusted the EBITDA billion activity continued XX.X%, EBITDA focus Adjusted will largely margin comparing XX a XX XXX to revenue. despite basis second third completion orders Inbound

items million. cash the totaling and expense which corporate resulted from flow the XX continuing X flow free was tax months continuing first from from million meet million nine million, million. to for Net And in the XXX working guidance XXX to full of million. was XXX million, exchange. of in benefited and flow cash quarter. to XXX flow XX of solid track our year was we the are expenditures on million period. Cash the XX for This million. a year free increase lastly, quarter in in which in earnings to cash quarter XX at announced largely third the we with Free Cash with XX the foreign previously expense the was call. in operations quarter other loss came in second was commentary level, capital interest Corporate third from Capital by awards our inflows, quarter. project We line Subsea. incurred capital are expenditures operations million Turning driven on in provided expense anticipated

we sale our We from XX% transaction of sales, position. lockup totaling sales, There remaining will below the is at In XXX year in stake, approximately significant expenditures continue settlement Energies will see we ownership of guidance of full in We stake in proceeds the a valued potential the third Technip XXX multiple reduced the of Energies in with of of more sales shares which XX% million. XXX to no quarter, portion remaining in associated before our made approximately received completion Upon to quarter for is remaining our progress by announcing of end the XX the come than currently the million have million with million. for proceeds XXX Technip retain the in our and transactions. monetization Energies, for these October of Technip scheduled million.

in the X.X% purchased XX% our XXXX, Island additional our early TIOS, field Subsea enhance for expertise we complete Magma our his we quarter. venture notes acquired coupon senior of for and Global capital capabilities due services acquired This clients October million offer. XXX remarks, XX to shares of the with wealth the as And in the transaction investment that globally. to With a regard XX highest our to the quarter, also debt brings of million. During range services mentioned shares remaining a million Offshore our during within tender life structure through the joint of Doug we company of will in remaining activity, provide

reminder, agreement we into XX% of Magma a with entered ownership which in XXXX, As the a a stake. included collaboration purchase

price our impairment a consideration the As Magma the paid quarter in recorded result paid The investment, the installments. cash will to three purchase shareholders on third reflecting we to a for be the of initial stake. acquisition, non-cash Magma in remaining

Let performance takeaways XXX the in solid free operations total million XX quarter. of by with the from me flow delivered and highlighting We of continuing period from adjusted million. few close EBITDA a company operational cash

results, these we we Given our that meet financial will XXXX. are confident for guidance

of flow objectives. the generation our ownership Technip of supporting cash several our business free Energies ongoing Additionally, stake and are important in monetization

we the remarks. flexibility now invest and call over First, demonstrated as back investments have net reduction a XXX second, we of during which of that we as we XXX that our to which structure, Magma. maintain quarter also strategic demonstrated turn million well our in improve for the to capital with debt. closing million his TIOS short will in and long-term And future, with I debt reduction the Doug

Doug Pferdehirt

Thank you, Alf.

to few close a I Before with want we to move remarks. Q&A,

inbound tangible continuation Our of we progress And energy our as acquisition operational the reflect remain the And of the remain on third a Magma further with in the orders demonstrate role XXXX. the in We digit we performance service achieve solid Subsea in strategic first results double the our and Alf half of guidance. year, financial very that track alliance achieving the billion have full growth. strong over Talos transition. year we of to and impactful matched will X quarter nearly play confident stated. demonstrated all

to I that host Day. November on Finally, our will Analyst XX, would remind everyone like Tuesday, we

of will innovation, collaboration and energy extending core demonstrate develop During new to offshore. both integration and and the our novel we we competencies leveraging are event, resources how

on while our also models and improve in we today. updates further new the we provide technologies new fundamentally economics conventional and transforming will are We how carbon using commercial operate to way project intensity business, reduce

hope to real the have line see continues there. on you show also drive to examples energy how open to change the industry. Operator, display you for in TechnipFMC questions. will we We now all you And may

Operator

Instructions]. [Operator

of first Your Chase. question the JPMorgan comes line Jayaram with Arun from

Arun Jayaram

bit My morning. sheet Good wanted about the Yes. to first is I little a Alf. for question balance talk improvement.

debt your the so? to on You agencies? to going get can rating with talked that next in year is how conversations line for And to you your leading status about just are an reasonable million I be thoughts of edge XXX the assume wanted reduction. or in upgrade And IG it

Alf Melin

for Sure. Thank question. the you

our the continue it debt as So first of previous objectives, deleveraging, were calls. stated We primary in to million all, remains in X.X we of one X.X our of successful our course, in from have quarter. reducing net by XXX to

debt our have We offer to with process tender million a shares Energies netted in quarter, started about continued and which we have reduction realize this reduction. XXX debt Technip our

can a complicated question of on terms little agency rating at you raised, fast In that you looking more bit ahead just a to give straight the answer on we that. how move

the to to possible dedicated and these get to we're it's out. metrics, clearly to get are metrics investment into where play leverage our and that really as debt let And foremost we to range back expect grade. a going first We production, improve,

of exact going it's I'm I go that, say and at in to short in the near timing let's timing, have that say, an to going Now but term, happen, exact least not the term. not

So be will on basis. an intermediate that more it is term something

Arun Jayaram

terms into XXXX, just are maybe up. it then Doug, just Day, orders seeing Subsea like going improvement be outlook sounds for lot like of side to in in outlook month? And a my of commodity follow on the going the on comments then what we're -- visibility And you look media next highlight longer we type for financial forward get you Can to you Great. sounds the relatively maybe in can the guys a of just to anything to Analyst term update. it's just given prices? it see

Doug Pferdehirt

Arun. morning, Good Sure.

with start people. for first. Indeed, will term some you're going projections I see many Let's Analyst that Day inspiring the think to longer quite be question

to the that. just and as We'll at few yes, Analyst should weeks at leave pure-play here expect more additional leverage we'll say really some full outlook to you longer begin of company. But this So see potential it we Day. have term a in

pivot around or for around had first your the second the question me inbound outlook question, Let to was for orders you which Subsea. me,

it me Let down. break

bit any to XXXX, a we've getting of sort said sort commentary any guidance than of that's on. fairness, further XXXX. But You we are provided to or in close

me see give let best So stacking kind my you we of up. outlook as things

continues activity First our ramp and to frontend foremost, engineering up.

this of proprietary level the what's we're about partners. And solid the we comes to working the in anticipated again, when inbound how had as another of exceeded question can we being really it the it all to on. receive is back interesting that year. that the for what's market. And alliance fully rest that quarter those strength by QX, on has Again, offering we And company that the only going a compare certainly the projects have as is do our we you of awards direct that? integrated well We

into example that, never studies So just our performing, which thirds you that those to two awarded of They'll company. give to frontend approximately of be will direct are integrated competitive out XX% currently those the marketplace. projects, go an engineering we're in of

on growth fairly deliver line XXXX, view out coming And don't change with of a quarter. digit on versus would kind solid that I in we're be expect translate as So that fourth building If we you idea looking the of to some it try you to way in gives XXXX. again, our we up. an numbers We any feat pipeline might that that. to We XXXX substantial commented consensus. indicated, quarter that of that anticipate, last into double

relatively beyond opaque, time. our as pipeline proprietary that's things gets If at Arun, little But up that can to a We you expect company. do unique look this more are you have stacking it nicely. that, a bit further

anticipate considerations we That early the So the quarter. just because currently you'll our in may me at perspective, of end that at QX to fourth slide to give some the clients comes quarter XXXX, allow first budgetary meaning pulled from orders may me it be the five plus orders in of if look or year. into a some quarter down QX the XXXX into

look quarters, inbound our billion. could Arun, five we I well if Subsea So see at orders $X approaching very those

Arun Jayaram

lot. Thanks a color. Great

Operator

Instructions]. [Operator

Your next of with ATB question comes Markets. from line Syed the Waqar Capital

Waqar Syed

about some question. what or Could that of about my you landscape positioned coming side and competitive the impact supply on segment disruptions about could Surface any But you’re taking the both may on Thank the be you quarters, side the then, in Subsea if And pricing the had is, you talked on quarter talk maybe and side? and talk in for on how they the market? Surface chain some you competitive landscape Subsea dynamics the the of what side. the Doug,

Doug Pferdehirt

second the Sure. Waqar. first. I'll with Thank Again, you, one start

we as between technology. by So our we're to market And times It's that about It's And us we is much business than Surface talk at going it's Surface driven pointed have Day. driven unique by Analyst and is larger projects. a Americas. Surface supply in surface Americas. we are vertically integrated which for And very business industry leader. the very many chain. a a International more International different, out have Surface

been And about versus As a it tree different often will XXx system. talking going and a difference. tree they how fact, are. Surface Americas a we've everybody to a understand matter I of it's what think system about you International help demonstration a show said I've we're Surface between

International SI business, our Surface that's So business.

Middle couldn't more orders mentioned Africa. East, Middle leader. in East my remarks, Surface we market mainly strong really excited driven very or Middle and be lots fourth the a of Americas, not by we're particularly countries really three for Surface East. the about that. there's I Surface have lots And in the Americas competition. the is two And as quarter strong different. International inbound positions, prepared anticipating We North being in as we're well in

that And some really not We we clients have have more a of as -- important product of is differentiate we the technology work proud we're for. the we work where real And a a strong we perform. reputation. But to are commoditized be tends team a and company. strong we that market, it clients, very is which larger necessarily

in volumes chain In both from into terms into question the come to let of additional question. additional that coming translate we pricing continue see through. volumes supply markets, the transition But pricing. tends me pricing, through, When to

why So through just to the on and I when went business, opening in about particularly of substantial you out we the look talking It's come our XXXX. opportunities, long-cycle inbound which very industry our favorable, benefited is strength hopefully done what having our we're mainly are a such Subsea through and a We gone at that the backlog for have by quite which company business. got backlog, mid-cycle stronger, for and type the potential have now everybody call even think eye business.

and So business, we the inflationary when all have the and think business our there's experiencing of well Surface in our as particular, professional about cycle We're short-cycle as it pressures, the pressures. of lives. terms we're in a when inflationary lives in personal experiencing or and look, pricing you

it's very So real.

of proud it, be absolutely a the inflation. work out. very amount of It's offset chain you unique I'm impact really significant Waqar. but there, supply It's things our We've the it We don't will, call able why to around there. from manage team has done. it's to that if done Now, the we

really you lock-in when to amounts predetermined and So to you're of you're have there materials, greater the ability business market, inflation. in cetera, where the responding short-cycle et is don't a

So expect pricing that pressure. manage would so the our inflationary that we offsets and there business we

in better to to Again, have we of uniqueness XXXX of through the business. we inflation continue inflationary supply a they’re pressure our much many of with and in period. the cycle partnerships stronger that short-cycle and into with companies, Surface as of because the inflationary the have the our in we that also we our go major but do We've offset that that benefit in terms of We’ve control between environment. the the is that move giving chain, our certainly the clients, result clients suppliers. of So them helped of as Americas, us longer pricing only relationship a with discussion something intimate our will become not businesses, an

opportunity different involved manage So aspects the have in much to yes, the businesses there's that businesses that to and cycle than longer a chance on inflation have we many shorter better pricing. rely you cycle in where

Waqar Syed

Thank you very much.

Operator

the Your next Barclays. comes Anderson question from David of line with

David Anderson

Hi. on That Good orders you that just number? or morning, $X number billion Subsea out put number guys. was there, total was a order that a that

Doug Pferdehirt

Subsea.

David Anderson

Wow. that little Can how of the just at a of see the one where dynamics time on some can you a as of much how think much coming and could bit kind area side, a that about Brazilian of just is talk the and they then And kind of order there down that book how I'm we're kind little see Subsea of starting of chunk to about number. you you? you talk just that Petrobras a rigs and lot a couple that getting be back. curious to were kind market how kind big they're see $X there? kind maybe there out just Can about awards offshore before? you you of Obviously, billion of recently. of noted are maybe going back one bit of you a talk of were of kind how You Brazil

Doug Pferdehirt

Sure.

South say and David, right. slightly, just it expand America, me let So

Brazil. the to forget just this is hugely business not Guyana. South Don't it's Subsea far So decade. for But our most important market by Guyana important us. America is

the to in and to We to have date relationship performance the we hopefully of are Subsea awards country for Guyana. future that Hess in the and equipment supply project grateful all deeply and that Brazil been with ability continue able in and the drive ExxonMobil we've

of is Mexico say, to anticipate country Guyana in of I potentially important. as terms in well business. later very that areas a develop decade, important of being We in America are other the towards know the very the as South So and we end would decade. Subsea Suriname beginning would

Brazil, to the turning clearly Now largest.

I’ve my there been out As in pointed decades. we've for remarks, prepared five

have local We XX% content.

and we tree a capabilities Brazil. people, other country just forth terms I fleet, We so have less -- more that's and combined. more long the rest than history. in any Brazil the of the our in rich manufacturing, in than of believe in R&D, we manufacturing on, of reached XXXth the have more We or all manufactured so

us. market very, We're very very, a it's We privileged. very So feel proud. very for significant

have a really and a very We've of done Petrobras. a Robot technology Petrobras. second our This relationship We the a long amazing Valve relationship Brazil, it Controlled talked in generation on great electric around with technology We're lot our with world. and about is this of new We already technology. development manifold. feeds all ambitions

XXXX will as very play expect or important partnership role that major I established Brazil well but well. partnership. a So the And a in beyond yes, both inbound, play role would it to a major

David Anderson

Surface of remarks, orders coming here. prepared your in were you the up about kind talking Doug, And,

there's a contracts. of up big couple said of are or tenders coming a that couple You big

So believe little appreciated. the you about much Middle side in would East. the can I on a there expand be bit Surface Thanks. you're that? little talking a -- about Could more

Doug Pferdehirt

want yes, -- be talking And Surface in Saudi to were to David. was orders in more the Technologies, specifically the to in QX significant ADNOC from Saudi increase Middle East Abu for and I Aramco. Arabia and clarifying. in thanks we Dhabi reference from specifically Sure, in

David Anderson

you much. Thank great. very Okay,

Operator

line of Piper from Macpherson the Sandler. next question Ian comes with Your

Ian Macpherson

Thanks. Good morning, Doug.

Doug Pferdehirt

Good morning.

Ian Macpherson

your well, very couple we've being a extrapolate be curious to that projects; and and past of couple was -- a of several the seen visible added quarters if we medium major sized expanded trend Would -- two projects I pipeline your crazy pipeline. large one over you with has slide into the Hi. that to quarters? come maybe up and opportunity maybe you projects some that come to that of from or into you expect that think focus, and seen a that as more you over Would and several more be the bottled we've phenomenon? expect update that's accretion next do view back as one-off

Doug Pferdehirt

That's thank question. interesting you. Ian, very a

Opportunity a List, that quarters been are this just moved look, quite explain you caution there's I'll Prior are second. on in would and First this the extrapolate, if within relatively that will, vast of I I that, the candid, this I'll a know although have just when couple, to I time, yet does look on that make why of some at not part list for majority latter be have question. a all, let's recent on not comment explaining list FID. new, trend, quarter. project four the to But the to here

said be don't frontend think through projects So to not a pre-opportunity, somewhat at I pipeline. I we you the again, as may not and of right, of which, activity, yet Certainly List, when the I that Opportunity things up of think reflection a -- know, the back coming I is to think me wouldn't it look when comment the as awards to bottled our Subsea disadvantage made kind I for would things may And competitive remember huge I give the be our market. speaking the show information that of be on to Opportunity List. it Opportunity a not the important never that yet for company, Subsea Opportunity Subsea direct all List, that on Obviously, List. of think also integrated on freely it's Subsea up

release, the List. specific we project. isn't set X.X press billion that charters, comes the So of a a really that again, necessarily strong opportunities we this this on but project Subsea when vessel have in we a inbound a that through name Opportunity had again, like not not and But quarter, proprietary foundation That's built. in

FID’ed around I or the a way you've Sea. there's coming be I’d be and to news certain North seen your out press cautious, in and but bit back likely you the seen little releases, there in of said projects heard articles you just all Now releases reason the projects the question, not you've -- that maybe have press Búzios potentially are about couple other the quarters, may market to that the a of intelligence beginning

awarded, but though as List. Absolutely, So see that they're to then quite than just if Subsea same three list, backfill? several I'm being and four them I necessarily awarded, quarter. could two impression just a could quarters. the in were of being Opportunity want of wouldn't very for one the by indicated these of saying conservative, few that leave maybe take just have or there in once replaced we more but I these, off growth, the billion four Are experienced particular a quarter-over-quarter-over-quarter coming we billion several or extrapolate that because to of earlier, projects be even and the could quarter, I not other the off past

Ian Macpherson

Great, very Thank you. clear.

quickening think necessarily For positioning I that don't and content energy about what new But material completely going your Subsea to see the type want otherwise. talk conventional to that your 'XX, Purple start for reawakening, the to in projects a maybe of does the -- Subsea accelerated? for or timeframe follow of next or work backlog? know deferment projects projects, Is front But we at in maybe up, month. you'll in just of in are becomes energy you curious being Deep of the the that expense orders I your come beginnings oil transition run

Doug Pferdehirt

Thank Sure. Ian. you,

few the the a in about question, more give much hear to I'll you here going you're think that since anticipation asked to sure, you about Day. Analyst But in of something weeks. For

because we and the But we're do. our of relationships technologies, system, all made, new -- our making advance brings that's we’re as the and transition. those new a are much energy elements be where to who the as more well. focused want four, and bringing We various company. transportation company, create DNA We announcing enabler. those believe some very deep announcing named of domain. we four or together area. two, it sources, to wind, industry the sources which if to We not one, system quickest, those carbon sticking and world hydrogen creates of to to particular and area one agnostic accelerate just you integrator, the and will, we've just is in know. those see generates transition of of formed what we generates us to available want revenue the investments very the that, of drive role That's out, the on more these other i.e. the that unique companies three quarter, in That's know that That's them, the potentially As to a per very what we're help which our way, by somewhat what help we wave, and are And energy we've is the very, coming well. this energy the you we surface in storage. as energy our But of globe said, offshore and we XX% pointed integrate offshore. us, the for most we By revenue which even architect

just let which about in talk one capture storage. is and particular, carbon So me

of for proud we and of So days the few Energy we we storage the with the just in formed of last carbon Gulf more that announcement Talos couldn't alliance Mexico. within an made be doing capture

the of of remarks, the that we really As capture from the and emissions. world storage, my Gulf a way and shares prepared share carbon greenhouse region indicated Coast objectives there's is and in around advance a gas benefit amount really would significant activity much in driving that down to

particular possible XXXX in in begin could area it moving already, capture storage. carbon the projects the of and to in of that So see area, again, having we is alliance, forward announced potential and that award

Ian Macpherson

I That's for to perspectives in weeks. the morning. great. few Thanks. Thanks look hearing a this forward more

Operator

Instructions]. [Operator

comes Your Palmer. Vaibhav Coker question Vaishnav next with from

Vaibhav Vaishnav

for you bill, of question. morning Good to awards months, around or put Hi. in be X try to I to to when the taking am say ballpark that? thank could my potential book just next context I think least that the Xx that Doug, fair in that billion XX at over is and

Doug Pferdehirt

will to and thing. things next What hard XX over was one It over would just I saying move was QX be the clarify versus it's right? me was months, next the so back QX, pinpoint forth. let because five So quarters, some exactly that

where or look, now based So it visibility. next XX a an in book do position assumption of a our a months, sure five exciting to at more quarters five and Certainly, have we we in lot on you industry. months. next this QX, for up make update company to I And speaks orders of have an see But time. if X.X you're sight certainly looking this the a line are we or is billion and said XXXX, quarters the we bill the right for as $X provide math we'll as for for which volumes XX and behind above change at that will and

Vaibhav Vaishnav

think this our point, about think increase, the it. to need do should also about we like Got think as improving a CapEx And if revenues million next we few we does XXX CapEx? revenues starting years, CapEx about like need good to year or and how enough over next Is increase?

Doug Pferdehirt

Yes, by just let start our right. me philosophy, reiterating

So operate through terms say, returns. you've philosophy us seen I really, in from past on cycle do our we is to some assets let's company. and things differently of of our the done things. how We've believe manage focus very the unique

also both together for that reduced relationships We have that benefiting example, of we them, benefiting alliance with the now with fleet size like we do we the others. growing industry. important company. And and and through actually but with very the our can an them that broader opportunities alliances, through well companies Allseas, while we work have for a being look And with works and company forming do

discipline, it give Alf in of of what going if kind And will. you a should the to real more turn about So I'm over to you numbers. bit CapEx terms actual to into be insight thinking a

Alf Melin

to number to said, Doug. grow background Yes, revenue. thank with you, is And not this expected the of Doug relative clearly what

that ratio right that it periods you we're times. to if any of grow So will be at look now, for expected over at certainly extended not the ratio

level If our some party business business. with incremental be at as you alliances, further of support we at actually that grow for can what believe our look core Doug more and of we further was and in the third revenue CapEx also the saying, lower the

in the it’s incremental are You things less for per and investing investing some driving more X.X actually other will. manufacturing allows we product business, of if we're you also standardization doing our Subsea also look CapEx unit, our technology, in us in at

a long as and of at want term. But should that staying be CapEx between helpful are drivers stated safe now, relative right couple ratio if you to revenue at be is there a stay fairly it you relative that think can today. ratio, So of I instead the for

Vaibhav Vaishnav

That's very you helpful. my Thank for questions. taking

Operator

no questions. for At would further like I remarks. call this the to turn over time, closing Matt there Seinsheimer to are

Matt Seinsheimer

This at call concludes approximately site, A third of be will conference on our time quarter Web X PM available our today. summer replay the beginning call. British

call. very you much Relations further the any please us. contact have the you now Operator, for you questions, free joining feel If to Investor end may team. Thank

Operator

today's conference. This concludes

now You disconnect. may

TechnipFMC (FTI) 21 Oct 212021 Q3 Earnings call transcript