FTI - Earnings call 4 2023

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Operator

Hello, and welcome to the TechnipFMC Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to Matt Seinsheimer. Please go ahead.

Matt Seinsheimer

Thank you, Sarah. afternoon, to good XXXX Fourth and Call. Conference morning and TechnipFMC's welcome Quarter Good

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

statements expressed on cause risks certain those these materially or regarding that expectations, could assumptions results these our and beliefs to statements. from to forward-looking Although developments are and subject current implied by and actual differ future in business are based conditions, they uncertainties

forward-looking to Known material and cause undue whether a place statements most our described update to to obligation speak statements Commission. after they with which results undertake or caution recent events of the projected of actual forward-looking wish Securities only new publicly We periodic hereof. otherwise. our the our as other our results you on factors that U.S. date not reliance in XX-Q result made, could differ any Exchange of the date from information, to recent no filings XX-K, future or most any revise and as are are We

turn Chief to Chair over the Executive now Doug TechnipFMC's Officer. Pferdehirt, will I call and

Douglas Pferdehirt

improved really benefited This Total participating for are grew period. morning, $XXX to included to afternoon. we and of of awards grew prior million excluding which increase Thank X.X. foreign for impact I versus you, Total Matt. level of the exchange. the billion. EBITDA book-to-bill iEPCI year when to Good XX% fourth billion. a momentum Thank in which company from billion, of you growth record was the an XX% Adjusted $X.X year revenue inbound a $X.X operational achieving. These quarter proud report speak Subsea the to good the strong full results the in and our of results, and $XX year for to our and am call. earnings company year orders strong quarterly

This flow prior share compared XX% increase nearly year, to free generated repurchases cash $XXX was through of for to returned dividends. of and the the an shareholders million we when million $XXX year. We and

are these received With iEPCI direct of together of exceeding XXXX. the am quality and solid with pleased particularly Subsea inbound inbound. While in Subsea all awards, the I services improvements, XX%

We driven decade, our are significant also a The North grow. higher in durability And more resources the performance, see energy portion world's continued for Technologies. XXXX greater of in than growth. cash consistency will you financial it, the at of this and unconventional Surface period ahead by of resiliency seeing in hydrocarbon way generation cycle. company. America and tangible have in our on has to This was improvements strength delivering we commitments. a growth for improved Any look strong annual demand a for And continue provided resulted

from offshore. from capital production be global that will and growth driven by East primarily more the international reward shareholder means limited region in needed ahead the the returns economic markets, growth will frameworks Middle The that increased This driven the incremental support higher to come and distributions. years by

capital ahead, energy trends: conventional we what leverage services, capabilities. increased flows differentiated service driven Subsea past, by new differently industry's a Looking the experienced most of technologies allow in the solutions, for role have capabilities X market the all which Subsea and for technologies integrated will resources an to role will our and full expanded TechnipFMC comprehensive shift for evolve the than major in an

Looking major more with trends, start let's closely these in the shift capital at flows.

offshore and continued both We in expect markets. to spending see strength land in

challenged economic are that the region. the major but most In to continued returns to modest of history has to from these prolific the capital result growth North as However, Middle Opportunities this number We attractive will limited, East typically be returns markets function flows access believe brings economic far strong the America, access. resources, basins. more benefit the dynamics offshore a returns outside access will across that will more continue which differ in resources growth. the drive is the of markets. That us to operators will in have in and said, the

Here, deepwater global of we attract access and believe to broad growing will much improved operator flows. share economic returns capital resources a

standout with as address of opportunity. revenue generated equity North to market, land outside our XX% total than this the And more the America pure-play FTI

guidance While intermediate on the track partly for our of prior confidence view. we reflected XXXX, in are our high to guidance, in over backlog have order the for also strength billion. versus period the is inbound In trends expectations year the ending Subsea to prior billion, Today, increase meet term. reach inbound over these market expectations our the a we $XX durability our approaching $XX XXXX increasing X-year XX% of current with and remain Subsea current revenue we

also we will a spending capital behavior. technology play in flows, beyond role that Looking expect bigger

Here, are to new specifically, for offshore technology TechnipFMC expansion. market growth opportunities. drive and developing new we using drive More to innovation both further focused is market creating inventional on technologies the energies in

[ for of into clear the were be overstated. be Dolly from month. the the will the Subsea use Subsea of well The is stream which [indiscernible] to significance example just capture this to A ] for innovation we COX the It industry processing reservoir. awarded contract, last first project cannot injection

the Importantly, place on seafloor. this all will take

a for meaningful innovation, priorities. while remaining us milestone our the partner [indiscernible] TechnipFMC. collaboration the industry project moving further enable simplified processing high This future designs FPSO our plays ] technology for reducing intensity, can capacity to the on and strengths. is addition topside driving be in and our processing gas in project to with project integration greenhouse that gas production emission to major to debottlenecking Subsea energy the economics. how will set gas participation allow demonstrate floor, aligned FPSO. resides entirely strategic sea [indiscernible] by significant improvement [ increase currently plant the technologies In transition the By

found first award billion. $X And the strong Subsea awarded with And momentum, subsea and by Subsea growth of third be and flexible Today, Petrobras. finally, upon our in This the project order driving exceeded is trees Subsea production iEPCI an is can not starting umbilicals that inclusive the market builds than more ever infrastructure, X,XXX pipe. systems, major certainly associated all manifolds, components opportunities year trend the list it fields It iEPCI services. control including major of system. host

throughout scale intervention and and through and However, the the highlight the optimization global way importantly, all to size installed more organization field role industry's from does entire life production of base. maintenance, field. services it the growing of critical life installation and large the system a plays TechnipFMC's of

year our value our and with improvement included having XXXX to achieved growth inbound to operational And drove iEPCI resilient, in Subsea that Our services into results over notable returns. increase high-return year XXXX. a delivering many solid growing our This increased of billion in this out strong supportive the clearly achievements. strategy prior orders $XX $X.X demonstrate a XX% XX% momentum over new for is having closed year. year, for revenue Subsea backlog versus further business our enhance awards. reflect in financial orders a In growth billion results delivered full in record continues the also with we high-quality that and summary, real

flows, by directed of the shift energy as resources largely will offshore we capital and by X Subsea time major unprecedented an of entered increased have the conventional aging driven for trends. A Middle in the an technologies, Services, role expanded growing an development driven and for [indiscernible] believe needs to which for We the markets, East new shown and infrastructure. by role be

trends growth call further for period turn will our XXXX, the the in of over will the backlog and now XX% Alf. these extend decade. Subsea execution the which underpin additional of in our $XX ending portfolio I to increase at Importantly, provide billion expectation over project the the through inbound end X-year

Alf Melin

quarter $X.X impairment $XX Inbound Subsea Doug. exchange when foreign million billion. totaled was driven $XXX restructuring, in loss orders. $X.X Revenue of billion, million. million and the EBITDA excluding and quarter by other totaling billion charges $X.X of Thanks, $XX the was in

driven of in results. by Gulf projects segment services points Mexico, Pacific of offshore XXX typical and [ Turning increase and third The Mexico. down was in also to third executed quarter higher particularly revenue activity by asset due ROE from billion by period. backlog. and million, due the to Revenue largely XX.X%, main backlog to vessel-based strength impacted projects of vessel $XXX the $X.X seasonal accelerated quarter versus of with from a impacted EBITDA modestly increased of the due a The North in was several mix in offset factors utilization. Gulf project of was revenue increased Asia conversion ] revenue activity was that less lower Africa the from in for in Sea. to increased Norway part Subsea Subsea the basis modestly quarter. activity the in maintenance seasonality, and the Services Services

the adjusted revenue XX% markets sales. Surface higher year, Adjusted Technologies, revenue quarter. The was benefiting XX.X%. sequentially. basis was increase from up both international third versus in XX the increased Adjusted basis benefiting the ] $XX in and increase margin up the versus activity quarter, revenue an from prior higher million full EBITDA million, international higher with EBITDA wellhead sales. In by equipment $XXX year, wellhead margin For grew Subsea points from increase to sequential was a [ XXX in services X% Clarica contribution XX.X%, was driven points

XX% was XX.X%. basis EBITDA Surface For year, Technologies revenue full prior up the XXX margin the points versus year, up to adjusted with

million free by income $X million generation. $XX million from million. other flow items Capital lastly, increased year part And foreign Free majority were flow $XX Net devaluation high to benefited the quarter. of Turning the expense activities This exchange million. million in which $XXX for strong of driven was corporate full period, the loss $XXX in $XX was and the of peso. million, range. to the excluding expense Argentine related quarter. guidance operating $XXX was expense interest was in significant of million. cash from the the when our cash in and of Tax Corporate was charges. flow cash in million, the $XX $XX end was interest resulted expenditures was Cash above

we foreign to achieving targeted EBITDA for XXXX. of cash XX% the converted Excluding of we adjusted the exchange, rate previously free impact cash conversion had flow,

the Net the with $XX $XXX for now In customary to period closing than million. $XXX subject conclude we $XXX conditions. the of We debt November, $XXX for quarter, cash our to the were equivalents first year. end sell million of million an in to cash. $XXX in declined distributions cash Total the full the expect transaction and business quarter million by million We announced agreement Measurement to shareholder ended more and million. Solutions

Moving our to outlook. financial

At our in release. speak to will year We have context some full provide year. represents Subsea. $X.X an I I of and of basis year fiscal earnings our detailed the improvement for we certain provided XX%. the details range, XXX guidance with full but items revenue the prior year guidance anticipate current EBITDA for first begin of from margin This billion all will the won't margin point midpoint with the a for quarter.

Subsea year revenue X level outlook our growth Our in this target. $X.XX anticipates to Services also approximately previous ahead continued of billion achieving

quarter, the For quarter to to revenue patterns margin with more line low digits anticipate to to first activity due fourth mid-single Subsea be and typical in results. we EBITDA seasonal decline

guidance EBITDA Surface margin of first the and exit portfolio rationalization an of we sale impact When range, billion guidance as by anticipate business of of we well our in the our of end quarter. of approximately $X.XXX Technologies. Measurement the sale This revenue the to the the At certain of full the midpoint as complete the XX%. Solutions geographies Americas. excluding with year assumes Turning

Our Surface grow Technologies revenue is year-over-year. approximately X% anticipated to

approximately the to of anticipate XX% EBITDA $XXX expense results, of year $XXX first We approximately fourth For corporate compared an anticipate decline to XX%. million. to full with quarter we million quarter, revenue when margin

an the system XXXX, ERP In initiated upgrade. company

Our corporate implementation expense now costs the includes approximately of the upgraded annual system. related to $XX million in

is at of expenditures of incur XXXX. revenue each the year until similar million in a which over of midpoint to project guidance X% of just range. We expect anticipate We completion $XXX our capital cost the

Finally, million. outstanding of we the full with for are to approximately the to million guiding all includes for a the flow $XXX range payments year $XXX related free million remaining to matters the of This resolution PNF. cash $XXX

the exchange. taken anticipate for free of we our approximate with the This these midpoint In items total flow EBITDA the are billion year. $XXX closing, represents our foreign Excluding versus midpoint million. company guidance excluding when of the when growth payments, XX% full prior year the cash EBITDA of guidance at of $X.XX range,

I X% reduction for actions to in and that a you the to This settlement growth may conversion in in achieve to nearly we this Surface free shareholder despite want related strategic the drive incremental year system the consecutive XX% least ERP payments. also cash at flow upgrade. a the stress of further of of when for taken we distribution the net significant this spend Technologies And open growth impact infers to line expect second excluding now debt. also Operator, and questions. expect the

Operator

Your Instructions] the [Operator Arun JPMorgan question Securities of first line Jayaram comes LLC. from of

Arun Jayaram

Doug, wanted order in guide. increase the long-term first X-year to I start with or your

market in versus You TAM of drove how $XX on the give sense share of and wondering is increase if terms to the more billion. offshore you of and much billion raised comment expectations what from Subsea that growing a was just FIDs. $XX this I for perhaps your us could

Douglas Pferdehirt

really weight greater properly of competitive just a is have to when remarks, increasing. to kind no stated Subsea giving our the the market higher represents market, due is the as and know, much confidence increasing we negotiation, us is enjoy much ability you to into opportunities. combination what which share in we you're prepared provide. Sure. of able an business, there offering as weight opportunities. durability my just in -- Arun. risk a the Clearly, of both. size you much the Look, the cycle XX% It's over visibility we total unique greater that seeing we tender, of be are risk share And When those our obviously a both of continue to direct

It's It's outlook it. just It's size we a the the see we're there. there, privileged solid. that -- about of really humble which slides markets You are provide and we market the in growing. position, the is

our sight have improve X.X XX improving of both Subsea our project, to our project this their the iEPCI time we Subsea and architecture reduces economics. a to that on to by are to vastly XX clear offering, We customers of -- in honored these terms and their economics are offer best position, deepwater line unique that offering our cycle months

position be continue in. take to our we So for lightly, to and we hard don't day. work it's a deliver privileged customers One, to really every really,

Arun Jayaram

Great. announced in new little My if of the intrigued you talk to But I this a quarter. X [ sides. the some in the unique an like facility bit it a separation I top application terms opportunities just earlier world [ processing know table follow-up, a you some bit design Mero the that we're you're you project would wondering seems Doug, of just And technology the the the perhaps as by surface by the word ]. about some was for the needs it bringing ], taking could mentioned, to of that for this? reduce of C could of and open of to at

perhaps the the could what could open was technology up and this you scope for on future opportunities maybe and I FTI. here wondering comment So if of

Douglas Pferdehirt

you Because announced the here we although about This was question. opportunity. earlier, for was it a the talk had haven't chance And thank first to this in it Sure. forum.

-- as there's very I us that. what are our really award So understanding, the well the as I there's I it said excited, the said, by company. think we enabled and unique both what really of industry pointed for then think -- it's some as you with as out, And actual is for

they delivery offshore So the with to The terms cycle grow, greenfield And those FPSOs. as number highlights. will are that of pole one are see long market be if the bottlenecks continues some developments, the start FPSO. complicated. the of just becoming, project tent providers will, the let's Yes, the of there we a of in the FPSOs the in clearly, of you in certain And are time. of

address in they're as to global the approach and really time that as that the spend risk reducing can i.e., customers' everything delivered ensuring ensuring our on cycle of privileged, delivering every by deepwater to remain Our time. way, economics projects capital we is doing well the

to let's FPSO itself put unit, do top the side you would intriguing an complexity you the of top configuration but on the water treat gas or you [ the an that is ICOX-rich-dense really because oil have this is ] separate separate to that have in that to So or example either gas flow be stream. from from you you case, in have say and the

advantages. can about a One, reducing simplifying FPSO, in therefore, do you If risk has cycle that many C-band, on the further it driving in bottleneck terms becoming time. that even of improvements the

horizontally, a do of real if constrained vertically. more floor. than estate much vertical will, Any whereas are to obviously more there's things, the costs on pretty you on things horizontal if can sea construction you We construction. you're doing ship, Secondly, sort

delivering And have than simplest this the just This the reducing project. is subsurface. terms, in estate real it the project. at ocean is to greenhouse and of It the sea in separating the sea floor more atmosphere. LTA-CXX into reinject This more gas again, greenhouse play the about ] is is and the on floor importantly the the where the separate we for can [ the much gas It hence just we intensity. about So intensity never a bottom is -- lower COX with. as reinjecting COX a a closed-loop and on sees CCS system economics,

the which also out, is important model. commercial unique I model, iEPCI integrated Petrobras first first is and our the this using the mentioned, point this then model, it's I is think to And commercial ever time

to architecture deliver be time are first system as and We've being We've design This as COX excited projects unique integrated done reinjection that extremely is for and putting to proud a the the done And this under boosting. separation, done of boosting this. on absolutely of into past. build Petrobras something working is right. the you're premise well together is advanced this in So and one, many. combination separation we specifically all

So all point open move as as sorts forward. we start you out, to up this of other can opportunities

Operator

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

John Anderson

on Just on the on follow question Arun's that up Subsea processing.

Subsea processing, of if -- think cycle XX probably this So -- ended kind kind go guys the to talking before before more off. really introducing you cycle started than became this if been long we've I ago, want this I back I took a serves, of time. of go memory about ended years kind my for the to really

you So of this today kind ago? about adoption Maybe XX today. different how of processing maybe it talk what's just part. Subsea the what's kind was curious why the versus can changing? And just I'm effective about years kind CCS of and before is

You've the first recall talked the of but point FPSO, that of about place. kind in to this of I ] kind was the [ seem whole

didn't why does maybe on it that it So catch on couch and before did now? why or

Douglas Pferdehirt

I say blood but a processing gas dynamic call just know, multiphase there's disagree. say let's application. very at same it's which the Even past though And a many new under up in So of as terms using this completely Subsea the sanctioning et the that here additional okay? why one Subsea around cetera, believe What different processing. is is it a has CCS [ wouldn't I a in market. intensity, it reason put it wouldn't you I Dave, is application. pumps unique the would and dimension, maybe different is we project, completely separation, the I to adds an greenhouse almost opens would bucket of a ]. technologies, market it the looking thinking underdelivered we're a of --

in with ], is been working unique XXXX. [ we've Petrobras since Secondly, Bulger there technology and

if work developing in system of gives Subsea an with our to unique have when go -- the and more decision back and just together going it application, makes in package ability add And bringing to that for towards I us to project, reason to believe, this light. Petrobras gives Subsea. criteria, closely and the We then and you're technology Brazil which Dave, point believe this you the putting a into experience leaves R&D one, this center integration the the entire us terms again, decision other to the dimension sanctioning I'm

John Anderson

that the the you're -- FPSO the as to of of saying idea well. of sort development of cost here? lower takes project? Is as And off and help overall the the Is that sort it kind intent cost

Douglas Pferdehirt

is with on a importantly, plant unloading -- more in Well, hole can a it is FPSO -- to fraction and hall full It the and offloading build is and as one it multiple with processing assembled. a an than -- isn't basic a in building often doesn't has the know, topside and gas top together, building cost, time configured, yards, storage going then time to the made be but to takes you just top. that of side the the at yard or the system, done the configuration, the different which, all element brought you at different build is

You're if just a complex. floating, refinery unit sense, in you building gas broad a processing much will, or more

think, are So know, improve focus, customers, the why whole help today. focusing as the shortening it's economics them That's our what doing going we're we're is time. by focus cycle I of you real to proud on our their and

John Anderson

kind working where out of billion packed I'm terms consolidated starting there. now? awards, you're show of here? I question that up to starting Okay. in to these of we evolving already from of just And because awards, could of in next -- from? X confidence just market is back Are over assuming Sorry, is curious, of early lot more We're I number -- that know I where $X -- X-year I kind the And that orders Is projects? essentially I'm very saying to added go a the in Subsea X-year awards at on if I iEPCI a that on pile today, on if or was about stage. bids? show next there. coming mean, How to up your are in is your you XX% there your up is in this one all would does kind outlook [indiscernible] comes And kind kind your a the view. start in pricing the go years?

Douglas Pferdehirt

problem, Dave. to try it I'll as No as I well address can.

the -- of awarded. that Subsea most the to our those see that the competitive is a alliance XX% always you know FEED which well which and partners. tender for our iEPCIs in with awards over The ours portion direct our the of and is few XX% increasing? integrated I is start our confidence are direct iEPCI that at design, Very an go out. study, total. as Do other XX% almost out awarded services X are us visibility So of they to as awards is refer years Yes. combination we to direct me X typically what a and gives direct from remember, integrated front-end case, as is engineering the

cases, be it make the value unless us direct what project. we're in the don't integration us visibility we're study, to do integrated sense we FEED awarded the and many if at to are, weren't demonstrating study, we iFEED integrated one, to we is, gives FEED So an iFEED. us table do of we would unique it earlier, much not -- can execute doing the will see Contractually, because for when going because it

that the studies, percentage level studies gives in integrated confidence. which, grow the at very integrated So right robust us which into will a front-end again, which convert now, of continues FEEDs, engineering are to

client, basin. will right can direct the we then economics that the if the know We awarded be and economic working achieve together, for So the -- our that we know around the know turn company. to we project

in our there's say great would and out degree we track I It's you know, numbers outlook. delivering we our of by great and we that put consistent name, have by there ability them. as So a inbound confidence, confidence give of against project when record the

us the we gives FEED studies. So the visibility from the confidence. have It

continue kind direct And wasn't of question, Dave. it's We going here part your up. awards interesting. but think I one I'll comment the see It other to for of you, make

we're far year, not this I that year. into mean new Just the right?

award, front-end by commercial they're I negotiation very large if record. anything commercial tendering in projects never it. -- size or, will the in tell the there And ], way, Colombia, emerging record. I'm next within the seen projects And saying counting not I'm the you maybe quite et not is -- say, counting here, [ It be because, like the of bring we countries are really a after and/or I'm record Tanzania again, the cetera. cadence this are late. and tender, will the that we're of those. the stage is of our operating I've and known projects traditional customers closely or let's very no that There's be greenfield a today. the already working one with stage we're they'll number we big lot engineering basins coming, direct think a it's in to those

John Anderson

out And Doug, is that to -- incremental the to the orders for that you're 'XX? highlighting

Douglas Pferdehirt

direct it's mentioned X raised past another in happen here. If calls, But [ ago. probably But months to necessarily. be -- not I've to we're today, this on -- started we and I point, don't if are going good too obviously, negotiations before this no, we're then. about you verbose ] Well, want and

secure to have we want understand our as a unique clients They offering. what Our capacity.

most about future only talking they're it whatever award, So to they're us cases, not us phase but about be. the future talking to current the times or in may the or

that but and awards of part yes, be working it beyond yes, on coming looking So we are also will is XXXX. in

Operator

question Mark of comes next from line Wilson with the Jefferies. Your

Mark Wilson

deliver lot the able out you past Doug, about you've billion to you've all services subject to built. $XX My a place put on the the in the the talked in the XXXX, to and of awards first process question, additional be manufacturing is as well

expected the if any first to impact So the larger outlook? and there's That's additional my we can talk about -- from margin this question. market

Douglas Pferdehirt

Mark. Sure.

because wanted some So the to I additional without believe throughput, higher of which existing actually an opportunity configure-to-order, you you've capital. there of X.X even look, But us angle to I yourself, to rates the I that's allows of achieve spend and had going believe the it go to I'm the to facilities these having going -- me where CapEx, of hope in you're go. witness

So as this machine capital terms able certain in capacity to our that CapEx always, within replacing expansion on or growth, case. is But to cetera. normal be be roof embedded deliver will et of be tools, capital or expenditures. major flying spend there'll not the It major

Mark Wilson

investment, you'd expectations? what actually, not to to coming really within the from EBITDA margin, put scale, in economies are having expected on margin generate a higher is we're of through more be throughput your the I was if frankly, And looking

Douglas Pferdehirt

agree with would with that fully I that agree statement, statement.

Mark Wilson

lot And technology a Subsea basins And emerging. new spoken Okay. separation, gas are then processing, through to lastly, you've injection. further coming looking the of obviously, COX ahead. There

has through which bringing basins now in there with have to with there for gas in technologies, through to gas step? looking out the clearly few Is decades and generally? Where are in terms but new indeed that of of terms You're go now processing. you new a industry suggest or going certainly terms been would deeper, the new with it of technological doing things levels just in depth is more Brazil, next coming electrification,

Douglas Pferdehirt

only you actually add one Chief were the enables Mark, on. review day. laughing So other. technology our thing in other as you Technology spot to And what Officer, you're said It's would is the the because I'm I if with our

allow can us the to very able longer electric transmit be response delays, and but the friction time you it, the to terms from So you actuation pressure, if done actuation, fluid a will, of more electrified are just to and electrication hydraulic electrification the us an And which in it's more hydraulic actually in versus will be push go to be the deeper. very, We've about step-outs and get quickly. response past a deeper able because further have complementary. allowing to ability the talked to

so certainly So I deeper. would

electrification there's it to when enable will but Now particularly electrification, other flexible design. going think only like is aspects things pipe but deeper deeper, also about you

basins depths unique have pipe very work It these a at that flexible emerging takes developed. able will We the being to only design. are be very, that the

than new on we've that which the also will move So as there's other be technologies that operated routinely be we're we some into beneficial of will today. at greater working basins, very indeed at depths

Operator

Daniel Thomson of Paribas. line with the from BNP comes question next Your

Daniel Thomson

on Maybe sort of continuing the front. technology

Just there that mean the where there your some a strict looking really on Nigeria, I acceptable. those have been time. in like project economics list are prospects know getting a few point been have at quite West are Angola, operators for we to sat Africa,

of kind those scope yourselves? you've projects future? technology many recently sanction And while through offers to So within to to those bring still of found you in the on enable work costs or else something down I maintaining refreshed attractiveness your wondering ways will was how the or near if

Douglas Pferdehirt

looking look No, Subsea opportunity at list a question. your When the answer and at very actually I fair I'm question. as often we

here aligned customer be first on aren't XX all, direct our on you in to going is as projects company. projects awarded cases, it So the are reach that to of list, expectation within That months. FID with the the or next that confidential because know, expectation they're to some there's an would and be order

the here at same through front in not on I confidently they're study of in So and/or as list are one, me, are can of looking I you FEED some right all the either commercial at a say you level but one negotiation. said, refreshed a the are going list. you, tell will

the of times to the just But discussed And I been I be I actually, a some point, over. many was have iEPCI. know there's before know Subsea been and That -- of these of have while here and that X.X. was blunt, very -- understand these before So vast majority them. been some

it a you to a has XX time, can big on XX when cycle the So deliver impact project shorter months economics.

move bring Now be not to which the to providing comment at board, projects the there's But that's customer on, help the I specific to them is that's to them reasons project that them -- would bring the stage could wanting up anything we're may client what that that's to FID these a to chose least other they the to project. they comment. if to

Daniel Thomson

light on sufficient follow-up mean you be or Makes years. of Brazil. Yes. on being for just from more in next there your of if with had comments you sense. opportunities I feel your I may you competitors wondered work elsewhere? Brazil strategy one barred in one going contracting few do for the have Maybe Petrobras how any guys changed bidding might

Douglas Pferdehirt

with as just We the respect them us to has close clients a our at Look, company our and clients. we that with very treat opportunity relationships we present are expect [indiscernible] treat with proud have [indiscernible]. their and work first-ever first-ever Petrobras very of of the and a strong the application doing, with relationship the very of respect. we're award And including we iEPCI

So way I that business. right we do to we say treating the to will continue we appreciate is that just treat and clients us, our believe way the that them

Operator

line Hallead the next of Kurt Benchmark. comes question with from Your

Kurt Hallead

So bigger you, right. question for kind a of potentially picture

seeing each be increased had of last end this that what ever call to in disconnect discussions, the my plan your business. you have customers and continue referenced, predicated out the reiterate potential seems you to investors projects and XX the towards that every significant June, a you want have what seen on it's years So actually between I've probably yet that game visibility decade, disconnect extend the the are to you believe in on in conference there and biggest

of what given of what around and the and come out conviction base when X is going years you've data you is that's everybody to -- but to the [indiscernible] is production a what projects of freaking to your in commentary think to points conviction driving customer lot for do going X in oil what's do. So these driving what about online pursue you're seeing input --

in oil So base the not personal investor companies opinion. seeing are that what the your may

Douglas Pferdehirt

a on -- not as Kurt, speak learned of and my long don't Well, I time behalf a clients. ago service to look,

or of everybody just and But is think in I energy give terms change my up rate Both not look, the you perspective, of has I'll the demand on the their behalf and my rate me. mix. People change. disagree the understand with may outlook. going they to long-term so And energy of speaking go agree of clients of

when be journey access ensure think energy forward. a realistic come dependable created conclusion reliable with are to to the has I and investments these as through economics world you solid and are right solid at a projects probably lens, X to making that you to that our These are look the those we continue now on schedule is creation our the anyone because ahead old-fashioned of they're XX-plus we and or way. projects of confidence it again, it to the a schedule, than what have ability do as these which, they else the and months can consistently of with because by faster TechnipFMC have doing company deliver done

doing they did. hard We're all It's rest market just -- goes confidence have before. bespoke that. I me much when Gener to not like they to confidence, configure you, It's work of is in, be [ our versus the I never doing very doing in today, you've wish unique and something of order. were a scenario company. we ] have say level for But always the it order wrong higher We're would a you bespoke tell anymore. because doing until to done to

there. as of be So towards their have require, don't level to energy deliver realistic complex. And to I is demand. giving the move the just the weigh confidence a then reiterate. investment from all demand of want we -- confidence their our with you going energy the mix based in deciding there. electricity to the able upon coming there's that facets what simple We the intelligence to just that's level on of make And demand we'll decision artificial again, in We're know that decisions. to to demand is just and going impact I be that But customers is on.

innovate, and I know -- it's viewpoint, continue Our will the I And shareholders, our grow, I a returning terms to disagree grow applications will of customers, to appreciate continue business and this that -- little to and and other I a both extremely maybe reality, can in execute, tell down, in recognizing that quickly inbound our we've and keep execute that top think stewards our probably look, what been be new and less don't I do with head bring allow disciplined line we you disconnect. just don't said, need to is profitability. so. your are but of I'll we'll good to people to we you -- continue

rewarded what just do doing we'll to that, continue or that Kurt. So for and right to confident I be the is doing think continue we'll be rewarded thing

Kurt Hallead

I appreciate insight, that up ] to the Doug, right. follow [

your and frame. reduce that indicated your similar faster processes time than you it time XX you've cycle months some iEPCI process So in competitors do and XX by of to integrated

-- out? how how So time more think cycle much Or is that? that do can we maxed that you about reduce

Douglas Pferdehirt

No.

we This saw going curve, to We a it. XX to day the a was I And back to now at that early what trimolfracking, We stage, so productivity growth be versus in impressive, me happened was and rig what did you be let able different I single very So early about of unconventionals. it we we're stages look, continue the in in be Subsea was and the X hours, well it's there a which stages in this. very say accomplished dramatic had just way. very -- it to saw in a will continuous move innovation we single the is look, then -- well, is isn't And it this and you because no the Think new. conventionals. was different. we're It's fracking, was went when down, went most, well. know then day simufracking, to to next when

So will be yes, to come. there more

Operator

comes Your next of line question from Scott Citigroup. the Gruber with

Scott Gruber

back circle to wanted on I margins. So

year a climbing forecasting robust closer Doug, normal talked to Subsea then your of to about being you're XX% And forecast 'XX. to in closer XX% this peak. So you and XX% versus

that would then awards close to So 'XX? Can in that now with outlook, margin order 'XX? extrapolate support should of level we thinking expansion literally and raised trend about this something a in intake margins be years? the recent And XX% to potential few we how

Douglas Pferdehirt

my a the of kind call, there, Scott, upon remind in. in on Look, I market minute a we're the is markets and had our based the myself what at I Clearly, year far to the thus whole Scott, just had question. there. discussion I the remind for look watch -- position shake we've had

market terms but time, is available offering certainly in economics own and direct terms about there, at time awards to go that may XXX% in just are also neither today. be unique and benefit conversion project are than come Our leverage, more and which of they there. total will iEPCI, today be exactly is improve internal cycle the you there leverage talked our so as of will, X.X which the improve more will are cycle both more but We've if we of never XXX%, to in and

-- I think conviction. a ambitious remain I let's of terminology we've before, fair certainly very look, and comments have today, like And confident kind on even just less on just anything, we've it's a made no we're if major continue on milestone more journey. said confidence, say, really stick the more that we but with So as we path certainly, I that if will that

Scott Gruber

and It's years I think but I content also is FTI about appreciate what the to on the stream. Can of I floor? you uplift the want of help few actually I uplift? content a to think to out, separation terms I content it. know imagine Subsea the us separation. on for about come ask. reasonable exciting about But to the talk upon for by had in to the done back putting again. the range sea reinjection sea and range just production there's based kind us floor what's the of

Douglas Pferdehirt

was I top side being it's and that So view is that's will, the know somewhere billion-plus on classified done that we it the we a if you $X today. would Well, right? else, award way because how it,

FTI, So do don't or work construction no whatsoever. we engineering sides do top we from an

it of a being under floor. scope a think we're functionality someone it under the FTI scope you taking sea on just putting then of of So and at minimum, and the putting you're that else the was it

this the kind It's So again, say, a not would actually what of terms that's I brownfield scale And of margin in is expansion. is you of about Well, project. that? well, aspect that if a think one project. kind greenfield of

scope $X of result a as company billion brownfield this our to and project coming an So you're unique is capability. offering a where this seeing incremental

said that And was very right you there, interesting a pretty greenfield, of if single billion include dramatic this just a that's by kind I uplift and by it So a Christmas I then But a the doesn't that's multiply when -- but few, a a versus tree. Scott. can't that thing other alluded is it award to brownfield. $X multiply you brownfield

shows in count, industry really for the thought often a a is a this -- past, always expanding the we've in about our there's tree. So market single billion $X way how trees for It without tree very also and trees, favorable but the company. award

Operator

Bertrand comes Hodee line Your Kepler with Cheuvreux. of from next the question

Bertrand Hodee

Doug. Two if I may. questions,

as contract previous billion QX XXXX the X question should liabilities ready was So have now it close close payment extremely balance free revenues? to how at to we down of in then was guidance $X are it the $XXX sheet, us lot cash You a strong. for flow received But your think as you had I the net quarters. comes when may look million now to is when to to of your on in Subsea that? second mind, intermediate an give uplift And

how of going So think we this should item forward?

Douglas Pferdehirt

I'll I'll touch to Alf if free wants he and add the on as color well. turn on then it over to the he cash can and then Sure. XXXX any touch question, flow

specific some give are that of we numbers example. target, side. inbound of And revenue also think let through had Alf we little expect any I'll updated and but XXXX, the to in So obviously company there's business over total something compelling. around also at on better surface give positive conviction directionally the a the very level, commenting as could been shared But it greater giving the our of but to sale Alf. That gives our previously I'll maybe view And some things on specifically in implications I -- happening the you without the meaning but can business an the there's Subsea pass end happening a look, kind of there one XXXX. the target you XXXX. what things

Alf Melin

XX% saw growth in another Thanks, Doug. subsea We grow only situation, year. We're earnings in and really, forward Yes. our off did backlog of that year the strong Maybe quality strong we're context coming growth, past the looking to XXXX. not a the backlog this just in putting backlog grew.

our -- having it a rationalization done of $XX building billion. sale the expect call service greater little we've to lastly, revenue that over offset services on XXXX. And I target relative bit the similar backlog. [ million adds to mix XX previous cash the strong the was Subsea outlook. months. really we the the then higher just XXXX, measurement of And up to $XX that in Doug question. We with in solutions flow will I as some to in lower talking last margins due that, top business as to do that business, you momentum free upgrading maybe Subsea are what the all well average ] And skip And earnings in are positive couple a to And the from overall XX the may coming Subsea clearly, about, by we confidence are we

So let me back get to that.

neutral as consider can a on advanced that build whole So actually from probably a that it of progress we necessarily positive company. necessarily all, QX don't liabilities activity noted come very you And working negative I milestone to part for contract first capital of inflow -- that's our the run basis a achieving they the on advances, Subsea indeed not and business the but business. our us payments

us next flow be don't capital the to slightly do I the for forward, certainly liabilities, to when call kind expect contract look year. positive, of, I in you in expect continue it, So same working positive build but to

Operator

of up America. last Pant Your question Bank from of the line Saurabh comes of

Saurabh Pant

said quarter, noted and this conversion think were Doug, the or in said if this Alf the if really you remember in I backlog fourth Subsea don't remarks, don't strong think but prepared I one-off of XQ accelerated revenues but into mind, is Or the a I you you in forward backlog that's in terms of fourth of of going comment the thing converting quarter? Subsea? timing revenue if that the on mindful project-specific we in you that can should be trend specific timing in

Douglas Pferdehirt

good and tell Alf story. to the a I'm going Obviously, story, Sure.

Alf Melin

out includes strong than partly experiencing And would what have, of So very mix all, margin flat actually is you're basically term revenue going a that you absolutely executed a to headwinds we that want legacy hence, revenue first was maybe we right. of the the positive of indeed, not the from have quarter quarter. necessarily a are to also -- of that have saw I backlog. that some due mix And Subsea as less projects did for the also third guidance the it quarter. backlog But the forward to We nothing evolve projects affect that including prior the quarter was our more that have seasonal I the in given to accelerated how about fourth really have But And will typical anything we do that quarter. factors that looking, did over years. the it we next will talked X did.

Saurabh Pant

Okay. of Awesome. spent know Subsea an a today, but on one question. just And unrelated technology lot I we then time processing more. maybe --

Gulf. the if project not won ] ] recently. also in KPI the [ I'm think You [ it's wrong, I XX And third Sparta only project the

projects of pipeline forward, a high-pressure other look should at benefit I good we that? look think And the ones, is these the [indiscernible] Gulf. how Because were should [indiscernible] FDI at opportunity? how the that in going Doug? from there opportunity can we How

Douglas Pferdehirt

was We you on. Spot were question. the the is forward. pressure first clearly Excellent [ which of award, Lower high award, Shenandoah to excited to starting get Gulf move as Mexico, out. tertiary pointed ]

So project. Sparta be XX,XXX delivery for but it first of Shell be our first XX,XXX the iEPCI will will not

that [ going know, additional think, Beacon, most assets, assets, as have Chevron have forward, BP projects well new set milestone. shows to which ], that Look, So going LLOG has we excited and -- as are, as super forward. assets, both you of assets [indiscernible] of

don't to a new So existing speak it new but is yes, we frontier, certainly it frontier. an as horizon within a

Operator

the for call Matt I turn that, closing with And will remarks. to Seinsheimer

Matt Seinsheimer

will beginning of call Thank fourth quarter on today. approximately our A call. you. the available website be Time Greenwich our concludes Mean conference at replay This p.m. X

out anyone you Thank please free end you to any us. team. Investor may the If joining on feel Relations have for further reach questions, call. Sarah, you the to

Operator

call. concludes today's for This you. joining. Thank you conference Thank

may disconnect lines. now your You

TechnipFMC (FTI) 22 Feb 242023 Q4 Earnings call transcript