FTI - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the TechnipFMC Third Quarter 2024 Earnings Conference Call. [Operator Instructions]

And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Matt Seinsheimer, Senior Vice President, Investor Relations and Corporate Development. you. to over Matt,

Matt Seinsheimer

Good Quarter good XXXX Polly. to and TechnipFMC's Third Earnings morning, you, afternoon, and welcome Thank Conference Call.

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

implied our by with filings our XX-Q differ from are on these actual could statements. statements and from recent Known material are periodic in actual beliefs subject projected materially the certain factors current that risks and results business U.S. described assumptions most cause or these forward-looking most other our and they differ Although regarding recent Securities that conditions, cause XX-K, could results and uncertainties to are to and based in Commission. expressed expectations, future developments those to results Exchange

to We any a the date of undue are as place result reliance wish on otherwise. We as made, information, events date publicly of hereof. or or you undertake to caution forward-looking only statements future the whether after which our obligation forward-looking update to speak not they statements, new any of no revise

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

Douglas Pferdehirt

quarterly efficiently business certainty and allowing all These outcome are results with as and of both Surface morning Technologies. by more Adjusted Thank for you, our integrated success. repeatability you relentless The in for EBITDA participating of of to on third sequentially Subsea afternoon. Matt. Good and supported improved quarter models, team to results. execute greater us good and is demonstrate in which standardization reflected and Thank continues our margin our TechnipFMC focus well call. earnings solid execution, as were industrialization which

inbound was adjusted inbound billion. book-to-bill be record third quarter a inbound by also XX.X% margin by and quarter differentiated Subsea orders of iEPCI impacts. leadership a billion, an our a billion, continues driven new of excluding technology offering, to X.X, of EBITDA with was this EBITDA $XX.X backlog driving Subsea reaching Subsea capabilities. Revenue Subsea level with record supported Total to services particularly in foreign with unique $X.X our new company exchange $X.X backlog $X.X $XXX billion. when Adjusted $XX.X of million extensive was billion. the were orders

specifically, our high-pressure, production we marks overall are clients More equipment, iEPCI remain from an utilize flexible award project iEPCI forward production for in produce confident the as and Kaskida The and for waters to second XX,XXX announced the opportunity in bp's reservoirs. an set Kaskida awards we Mexico, a This production award of and for going XX,XXX look and pipe deeper fourth that system. high-temperature from represents Petrobras Gulf XX,XXX our reservoirs important systems development Paleogene. to a subsea

In for subsea flexibles Brazil, we and both scope production Petrobras. from systems awarded were

Our nearly strategic highlights region to our XX-year legacy continuing Petrobras' and in Brazil the of reflects our vision. deep support commitment

awarded been deliver leadership we've further We on XXX Notably, flexible operations our will global in-country inbound this contracts. our flexibles the kilometers year. in for nearly technology to on builds position draw these extensive on which

be technology also to continued see is this believe a we momentum. in We where enabler frontiers likely new key

growing driven and also field orders by quarter iEPCI inbound awards, announced large subsea base. for and installed another our on strong a opportunities of Beyond included of services, life installation

Moving Surface to Technologies.

and contributor in major was projects the Saudi East, the to a Solid Middle execution on UAE Arabia quarterly results. the particularly in key customer

impacting portfolio today differentiated opportunity long-term continued of expect our investment The exposure our in TechnipFMC. We growth a and these production by our and benefiting facility company state-of-the-art to qualification Saudi driven our favorably our are from Arabia to new completion clients' for of product continue growth. in markets, represent the

for particularly in confident our market backdrop, to We remain very Turning outlook. sustainability Subsea. the the of

strength subsea developments, projects Subsea our As are broader years. our X a these value the grew the which projects unique these billion. award And our typically opportunities the predicated outlook When to these iFEED of list an available a this record is using on market, sizable while subsea much to company. $XX is reminder, into the midpoint list opportunities for view market, list. reflected involve on opportunities of of over to potential our next the the converts not with direct Often, which the highlights to sequentially study, award a

more And $XX iEPCI. in continued services, technologies, remain in X-year XXXX. the and way, of we Subsea more expect broader the range you think clear Subsea period another utilize of our over why X.X is we of growth diversified billion also about of more more of the we opportunities year. see we inbound XXXX, mix confident it achieving what an current guidance list ending see a factor geographies, projects when extensive unique more When to even our in than we Said expect a we clients, that orders so from

Looking of notably for a beyond in baseline serves projects XXXX, new frontiers. includes I highlight XXXX, the presence strong on list to Subsea likely the significant that as which opportunities would sanctioned projects be

and FID the XXXX pipeline and subsea the of the project visibility gives that this are in confidence It's more combination the in projects which a Additionally, record factors for in importantly, FEED many advancing for level at decade. latter remains developments greater increased beyond. pipeline of us of towards half XXXX,

and as ability by execute Subsea for our In evidenced expanding demonstrating our XXXX. to closing, in are year-to-date on we results our clearly increased guidance backlog

driven technologies and higher along with that TechnipFMC by our backlog of services, for company. our for subsea factors, a market These has strong capital robust support policy. differentiated strengths all value our Importantly, outlook, built customers innovative deliver inbound and by returns more sustainable been allocation our a and of set iEPCI, orders,

XXXX with strength of continue double forward distribution with a our our Yesterday, our billion $X.X and increased repurchase for will TechnipFMC our with year. of of validated us increased both to authorization authorization. execution same backlog. providing and target $X the additional relationships our of nearly an And the billion, conviction we the intimacy we At share versus time, current goal by distributions outlook, nearly our business, customer by in uniqueness prior to drive we shareholder

turn over call now discuss to financial the to Alf will our results. I

Alf Melin

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

with increased EBITDA project the million revenue was improved in was backlog the project increased higher revenue offset $XXX quarter. and modestly Turning to XX.X%, completion basis Gulf period. sequential flexible from Mexico the margin of earnings in higher segment second quarter. Pacific, versus results. second modestly execution increase second up Latin activity the activity pipe in included mix project the and America and largely The revenue The Brazil. The from Adjusted lower the to of in activity Asia $X points XX of driven due improved of billion by milestones by Canada, activity quarter. in quarter. In following services significant a project Subsea, the Norway increase in was Subsea from strong

points America. by Technologies, was in $XX services driven revenue The quarter. the wellhead Adjusted basis versus to XX.X%, Surface and was revenue by was project X% activity North primarily improved EBITDA and lower North increased million, due versus margin second a second by partially lower the the increase improvement in equipment was Middle In up execution, modest in EBITDA sales $XXX was offset The XX offset activity up Middle quarter. higher improvement activity Adjusted sequentially. million, East, in the partially East the America. the

periods. to to tax expense in release million assets benefit valuation $XX Corporate was $XX of These the the allowance. corporate benefit and a million. by future expense benefit deferred from a improving resulted our net due now large driven income expected are tax in significantly allowance items the The the release in Turning $XX valuation value the reassessment expense to below quarter of tax other from was of and Net million, of positive a $X Tax million. interest plan profitability. carrying was was period. assets a part of

in $XX versus $XXX the million, resulted were of operating $XX path shareholder in quarter million expenditures from distributions on Total million. flow flow distributions This $XXX to of Cash putting including million. $XXX million, were a year-to-date activities Capital $XXX was distributions cash free brings double share million. us nearly last This repurchases. to year.

the with declined cash Doug now in ended sequentially repurchase and prepared remarks, Net remaining billion yesterday. to nearly million. to $XXX As following increase cash authorization share our authorization $X.X equivalents We period his of debt million. the we announced of $XXX have mentioned

our guidance. to Moving

adjusted revenue full EBITDA of EBITDA should billion. our to This fourth we approach single Subsea, For XX.X%. seasonal digits Subsea and quarter declining year with low expect sequentially approximately implies results for adjusted $X.X impacts margin

low to And we driven we For above Surface results. approximately third expect increase in incremental our expect single quarter XX%. Technologies, the quarter digits revenue sequentially, expense by of corporate in business be finally, modestly margins with international to growth fourth

full Now year to moving guidance.

from with even adjusted of improved And reducing for our previous We to favorable mix our approximately tax million, tax When of $XXX $X.XX our year, to guidance we release are $XX from guidance the us is million. earnings provision net had valuation also million the to for This to to million. This for our $XXX from expense reported profitability. exchange. tax to when we million allowing of foreign a the range $XXX our range the $XX excluding million expectations of down have increasing $XX million. expect guidance benefit We company million to of EBITDA $XX expense to total interest tax. $XXX down billion allowance, is moving including previous have range revised positions, expectations now a that XXXX

other remain Going a as focused we previously items on have tax are achieving we All XX%. normalized guidance rate communicated, forward, of effective unchanged.

address now XXXX. in me our for Subsea Let outlook

Subsea from the to of to of a $X.X are The growth $X an billion a from to implies margin than more to also $X.X guiding updated increase an for XX% our Subsea range XX%, Subsea approximately EBITDA of midpoint range outlook of when XX.X% the guidance range adjusted guiding to in billion. EBITDA increase the We compared previous XX%. revenue outlook previous XXXX. We're of of approximately adjusted billion,

third with quarter to We of financial and provide demonstrate fourth XXXX our will Surface EBITDA results XX.X% solid closing, our increasing XX.X%. Subsea performance to In our financial margin Technologies adjusted quarter remainder for with earnings. guidance improving the

for strong have to $X.XX expectations EBITDA full quarterly increased company adjusted our we also these With year results, total billion.

The backdrop led XX%. at now in end combined to in XXXX the has a of our the with with margin Subsea financial confidence execution, material guidance our upper strength outlook increase EBITDA market in continued our

top cash nearly to returning remains priority, double to expect shareholders distributions now year. Lastly, we the versus a and prior

our supports in authorization for repurchase share existing our further distributions. to billion growth expectations $X of increase the Importantly, shareholder

you questions. now open for the may Operator, line

Operator

Instructions] And first comes your of JPMorgan. from line [Operator question from the Jayaram Arun

Arun Jayaram

some margins. awards, wondering integrated I how if midpoint you was question wondering you just in My over Subsea projects of expansion of the the your 'XX, outlook, I could mix insights discuss implies some the the you first guidance top on raised. Subsea which provide of on of and XXX basis drivers In if in margin the particular, range, range. 'XX? points that direct higher mix the 'XX was of is versus year-over-year at XXXX end of XXX could margin changes the the At X.X

Douglas Pferdehirt

significant we've Arun, given versus more that in thank on you XXX thank and demonstrates And that uplift having. you basis for our quite point for we're the in success path acknowledging importantly, XXXX 'XX we're clearly the the already It guidance. and the had performance the is that question.

you much that. thank very So for

the the over of X.X to into and second first, add orders that and your XXXX, the with -- stated, conversion that revenue will part of pass of some more profitability. Simply Alf handle there it of certainly quality and and the of then more question be helps additional I'll Alf? to iEPCI backlog color. those in I'll from performance

Alf Melin

financial Thank excited this our points, you, about we're Doug. And clearly, outlook. basis very upgrade obviously to pleased, XXX

So of course. factors, a few

the X-year given, extremely billion period our $XX are inbound remain ending order we in We -- over that confident XXXX. guidance have a in

quarter demonstrating quarters, to prior resulting backlog, We with higher a in are and ability this margins. convert stronger quality and with they are, our operating

and where we guidance. XXXX in strong, focus relentless been initial of industrialization the business, performance reflected exceeding has a which I is execution on maintain our think clearly our Our are we

our we translating unique to as to commercially, continue to on and demonstrating well to value for into look the clearly been clients Doug our demonstrating of as improved a us. the margins us. cycle favorable you And mix able as referenced that being well shorter with backlog our financial times this for we're well, capabilities as we're If that ourselves technology performance back increase have iEPCI X.X

the and factors this thus think revised gives point. So all this putting greater us in I at forward Subsea really these all, outlook XXXX confidence

Arun Jayaram

could on your sense thoughts is tight today. quite given tighter on the because is market heard of about Great. elaborate from you one the the the as how seasons some going judging earnings for just was to of I be one OFS side market if the is results, follow-up managing recent your My concerns SLB, FTI by Baker projects far just from chain, obviously thus as commentary vessel this vessels. strongest will wondering you was is of food through that. is to some wondering the tightening SURF a execute but market of this could I parts a talk vessel of well Doug, and these the include I've appears that if buy

Douglas Pferdehirt

No, the doubt we were no the others this will historically buy Arun, or historically, it. we they just were as limitations. be about operating -- still as there's side. space in still if there company are as by It's fair And concern a had operating they

we partners' from and and together to This of relying we concern internal our capacity that moving projects. vessel As us call that XXXX allows what went our recognize into needed differently. In we you're our deliver XXXX, and own the be hearing building we out to iEPCI building your relationships stating from shareholders. done to And with clients this, ecosystem. some work on business by vessels and you're -- the recognized

iEPCI go because have XXX% XXX% know, our today which us flattering quickly for market means which and you the in is projects converted it are iEPCI, premium the awards. of model many the As obviously choice for direct becoming of to clients,

accelerating pointed we creating X by to to the that, iEPCI for of contracts conventional bid continue value versus year installation result out, customers separately. and cycle or tendered a time grow as Alf by first to shortening oil offering, our that So can as time versus hardware up being

projects, look our those partners. we the on So our look we capacity capacity, at of at

our commitments. well have and our the can the and confidence our market that, and to through assets own conversations have continue we continue our of and to our to as utilization result own through And we iEPCI outlook the We make in grow grow ecosystem. as as a within ability of -- ecosystem partners

Operator

is question Citigroup. from the line from Gruber next of Scott Your

Scott Gruber

want in looking there's start off, was were Subsea I help I at projects scope. your to increased Petrobras list, X couldn't I that opportunities their but that notice

some want award I color a there value perspective? to on projects would those is scope count more driving upsizing perspective? well added the getting So great. Or Some a technology from just get color, be bigger being potential from what's

Douglas Pferdehirt

conducted learning much maybe that the but done, some more above. in work top is I field, go values. where well ranges. higher not ticked as near this has lower. may scope, little it those they time the XXXX, FEED projects the challenge some count, of in the and or just A the the FEED infrastructure by the being we're more changes the is so just this case, is well of kind would layout were today. of of have to there Scott. say obviously Sure, and of that's indeed the was much indeed, then are having on bit the all driven on higher. range them if of end activity In to This something the And value. grown of And very out higher as from But

Scott Gruber

getting you're market white color why kind in drillers drillers. any questions it's seeing question hearing X the drillers. on offshore on for space having? different are the A guys Doug, in some a white this I you and they're 'XX. just space the $XX of and of and there's issue from what just that reiterated from the is that the of you around order if we're over that provide what for billion looking the kind offshore cadence lot issue And And can at great. offshore in confidence today we're That's you FTI read-through years. guess

Douglas Pferdehirt

bringing recent that. has answer somewhat been color So little Scott, for is a community. let topic a no. thank this But The to you within add me This short clearly more the up.

-- companies. is or I the And done but being look, cadence their a no say, and come XXXX portfolio was a This not point at from of move anyways, by Just but I not got company-specific to regards look not would time. a to they started project FIDs the forward X the is did doing been by is the X/X broadly this their what industry at out slowing a to X top a never simply tour in certainly world expectations from XXXX, it our contentious, not has of of for accelerated up issue. want industry. nonissue around did customers, only continue community, an all I is to also of as understanding drilling visiting needed deferral. way or bit with for and it the on it us risk us rest their was in at an issue. a mean simply It endorsed they It

Scott Gruber

quick. color. is about are heard that mean bridges rigs If good I kind what the drilling That's but issue it of gap? of the real part part follow in the we've I Is faster? could just that up that offshore Guyana, of

Douglas Pferdehirt

Can you time, repeat Scott? that one more

Scott Gruber

a execute few on? count to I well in extra project that like and the between offshore that count Guyana. you bridges the gap of drillers what white versus for locations certain efficiency be rig improving mean part Offshore is some space seems

Douglas Pferdehirt

by a our not because improving for And efficiency Scott, our is the for is drilling an well Yes. it time pleased existing clients. that reducing raised project hear in projects. terms that timing concern It or with execution being our clients. not very which Again, for FID issue is of is cycle strategy, of the that's the to fits

all we we would So efficiency, benefit that certainly mutually that. encourage and greater from

Operator

And your next from question Kurt is Benchmark. from of Hallead the line

Kurt Hallead

globe So Doug, with around traveled you where varying brought at you've up customers. dynamics met the play the I'm glad and

that yet seems extend oil So the a constructive So some I between right? more relative base. demand dealing about to to want customer to talking the that base a disconnect be and dynamic, oil you're supply, with upon have there short-term outlook concerns to maybe seems investor vis-a-vis you're to

So as these with them process with what they're of continue how what's the programs, And in kind backdrop, supply-demand from right, prospects, what a you're giving dynamic your executives conversations viewing going that on their executing forward? and when through conviction their learning having they're are you balances? push to of on the demand terms that thought to

Douglas Pferdehirt

which each is X.X quickly although, client. and choice, cycle having has level, every broad generalization, always do very its own quality The lie primary the X.X a our clients So to across and belief quality allow project At will offshore. a reservoirs I'm difficult cetera. an humbling, to Therefore, attractive. et call combination very specific continue company it and our accelerated but to iEPCI its is is understanding extremely strong board reservoir is award you'll profile, this to if that those there a generalize, again, time to of But preference at first in economics the apply -- going the again, risk the reduce understanding industry, let's highest It's opportunities, iEPCI a have Kurt, own you our efficiency, meaning can't each is today direct is conversation me, high-level its to of improved to is because conversation. their that quickly, we're it, efficiency TechnipFMC. own conviction There efficiency and time. generalization, oil makes and what the improved we or delivered portfolio,

economics we the our therefore, iEPCI economics project the and favorable award the we extremely to it sustainability sustainability -- deliver capacity will offshore. clients creates going to the subsea commitments be At is for be that's to them as That's our project think assure every the as to good for partners our and it are working knowing ensure towards make how who they end that direct of project of thing -- have and on a of We good successful. they most will think our going economics The lot embarrassing We the continuous the to our we're that, with do we to differentiates is continuously company that day, want certainly, will drive runway. to don't have what forward of And is able of to a cycle. we those project company them say, to X.X, have prepared those improvement. be thing but projects. that it's subsea

mature have of just that a done areas that efficient quite of lot reservoirs on be side yet to the other and in the Subsea access terms using to highly their outside some equation our in capital of are We already. versus quite have clients of our other

think what in longer understanding. the them I keep the projects. that's confidence these in mind, So Also, cycle are gives

bet. and are of And takes we're to longer-term day, market we're the them bit is by month, I that in every of a day out macro shorten hearing week a noise the making short-term that some the think situation a Although a today. reality they the trying a of

Kurt Hallead

No, Yes. appreciate good that. I context, that's and

increased or the second share shareholders this up to you're obviously, maybe repurchase, So year. here follow mentioned double thing distribution to right? either is the the you for Alf on you And and going to

expect you exhausted you generate XXXX will XXXX? of $X So into repo you flow dynamic? programmatic free billion do the that the think cash that terms share that to a timing And sense bulk have Are of of kind given in how share thinking do you guys be repo, opportunistic? in of about that what

Alf Melin

to Thank I'll the try tackle for Yes. you. question. this one. Thanks

mean, distribute year. But want said, when always, flow quarter. to as distribute put we said $X cash the is will So this nearly have see just $X this. first not shareholders. of maybe this this we billion with will or also again, announced of I that in we generation at context. nearly obviously, always year, to fact I authorization And all, additional least -- free that -- cash have foundational And the but context you put really, strong XX% of ahead billion that for nearly announced the double that our doubling, business implying a we would that we're million will we have buying shares around very we this of really maybe. kind -- also that you in we our are we be But we back commitment stated growing we going clearly is $XXX forward. we that again, of we This will outlook, be

look you when think about we look to growth, authorization that year. I upcoming and increase clearly, during this think So at

Operator

Capital question the And from comes of Waqar from Markets. your ATB line next Syed

Waqar Syed

First a quarter business. for surface raising congrats question and of all, on great my to guidance. the Doug, relates

upstream digits single guided of mid-single XXXX. low digits international like larger to type in Street in increase the have peers Some to spending markets your the

your do have next you opportunities setup market because surface Now in year manufacturing grow your could new the there? in you do think any kind Saudi of for range? same for gains business, Or share of Arabia that it

Douglas Pferdehirt

here for humbled we're a much women, the very of you simply which represent. acknowledging thank honored and reflection the quarter. Waqar, the in performance So XX,XXX It's to men,

So that. around the thank for surface asking thank And you for you also, business.

portion very surface know which -- our our business, far you our largest international differentiated. portion is the as So as and the of is --

We a in well. very different summarized business and than very that you American it differentiated optimistic, marketplace and the remain are We market. North

said. activity So well of investment I'll region, in within to Arabia result Emirates. in Arab just as the activity, repeat what of both as overall There's within the our the Saudi and ramp-up you try then United our market there's the the

very reasons. So confident our remain of we for in international those performance the business

Waqar Syed

like gas, And opportunity move improvement things price same as towards provide topic, unconventional any that in the does unit that East? for the Middle they or on

Douglas Pferdehirt

Indeed, higher our equipment's more wells much much specification. and specification, perspective, from a higher a

business the that in trend -- for positive provide is Kingdom. So products the a services indeed, it and for we

Operator

question Cowen. next the of line Your Bianchi from Marc TD from is

Marc Bianchi

the So it beyond Subsea of looks backlog of a like And said in awards higher you scheduled think ship direct proportion I expect XXXX. 'XX. XX% to during is you is

So you how representative and beyond? us in help margin XXXX margins the is outlook can for XXXX understand

Douglas Pferdehirt

selective Marc. Obviously, indicated quite on projects the looking the our in supporting of the most believe clients. lot we're of Sure, successful options, when do awards opportunities for be we one creating for that about earlier have and and a we at clients. success we when as in X.X, we we're those can create think today, greatest questions, And our iEPCI direct value are

that us. So Alf color. they value have no problem with sharing let a I'll add little additional

Alf Melin

No, just couple a I you of of want maybe remind Yes. to things.

in quality at all First, our still taking of in what we're as orders we in, much accretive to terms look are taking in backlog. of are we XXXX, -- pretty all that orders

for up future well. margins setting that in as growth So is

we've projects our backlog. legacy talked portion about a that I think have of in we

that of And end execute around the said backlog that of have XXXX. smaller. the XX%, that's portion as clearly, We we getting XX% at keeps

that to margins just help relative overall forward. overall, going So is mix going

Marc Bianchi

Right.

so how curious got and in the we you've got I'm just this releasing of you've EBITDA Maybe be thinking on light about free conversion, better these cash conversion some cash Okay. that's asset outlook updates. to tax mic you've 'XX. of while should got EBITDA for

Alf Melin

growth based give at to you variability flow. call or -- of to will, back in We'll free our due course, earnings, No. the cash admit the flow XX% tax as guidance anything going free we are at not by of the in 'XX cash we out. point else, first But that all, expecting I quarter and the earnings But stand for point any cash XXXX we're on, fourth this fourth come call. quarter to that free that we'll flow give with February. conversion It's

Operator

Bank come from America. line of from Pant today question of will the our And last Saurabh

Saurabh Pant

don't We on little if a maybe for like would the is pretty project that we big that, a Petrobras the of what on saw you. drivers couple market spend couple We for But are the Doug, over key start peers. that Doug, time of you your flexible next saw other And to for mind, a side Maybe I the know of strong. opportunity. flexible than The that opportunity orders, is things. years? the flexible market.

Douglas Pferdehirt

X high players is leader between, it's important company. been participate you. and a technology then the in R&D presence in X time. now but the And we've a just really end An focusing the development, the Tier continuous Tier very important driven on been very split that's more for industrialization. side, a only There's our by long in had space. commodity. Thank a and we've in We've and let's Historically, not or importantly, the side. that for played investment call a significant almost question. much technology Tier this few in market very product a X This exclusively technology very it, who And

Just doubled like we've side but where where drives can through facility, of that's still flexible have obviously we because the improvement, equipment, the additional the capital an higher seeing -- returns we is expenditure, with the much some capacity. Subsea which cadence business, on opportunity opportunity, X.X without the we're increase

that's to a the and iEPCI. a say outside important of think market leader serve is by Brazil pause market about to Petrobras. Petrobras actually Brazil, proud the I and that very a there's being been let leader continue market will outside humbled and driven and and significant Brazil, of But we've remain and markets me and and and When are privileged serve

the intended, flexibility, and else that ability therefore, are could greater can like conclude pipe, we the and oil have architecture So layout all unique of have And has flexible field. to one no we a design And in have iEPCI subsea pun that we in simplify be in one this industry. and the our no to much, able we results the the project do acceleration of of first improve the delivery. to architecture, vastly ability vastly, certainty much --

to change can welding simply limit that. them just time, efficiency there simply that When together break one there's you pipes We is and architecture. are limitations. risk associated, the there ascertain. We It's deploying by is the real being able a break to issue and that --

as in secret flexible this FMC access the is Technip it differentiator. because why this And the ingredient. first the pipe is created to we So occurred was and the in having the But the past, why I've clearly TechnipFMC place. combination referred of to

market an because in the of offering that project, to architect. mind, and iEPCI attributed our iEPCI largely on we're is So Brazil field keep outside growing

what right of game flexible doing the the the design working now. ability to That's ahead. obviously, we're those that changer. the projects is be and years a because through So to our right now. decade on And able end on leverage architecture we're we're why we working visibility have technology That's

Saurabh Pant

visibility the that's the for X coverage how think at associated any the right? the that? on those right? book if staging and you right, release. risk just business, would right? gave lot by No, Subsea, which color, to talk And cycle a Right, backlog, than we you that should with years, you press 'XX? numbers very uncertainty implied how you about that shorter think XXXX the of backlog that the $X backlog, How turn we should billion, in numbers, least better you in if for record in year X continue stage with it about light and I backlog, you I about do went switching up to a impressive, if is gives And in your business But macro in So backlog we fantastic overall that deliver everything right. point and the that other book if have, obviously, revenue just next can of on that's guidance and versus Subsea prior backlog Doug. the zero

Douglas Pferdehirt

It's too and are observing and No, proud obviously excited. we very great one observation.

to we're able you're to be ability As forecast. saying, our derisking

for a referring I are that have. we've think a other are guidance. most today is we companies time coverage, XXXX as or don't that to that we backlog do that not position long are do in we been position to now. book-to-bills, of that that the giving in a visibility because above X.X have Here Look, The backlog growing. in to you're

the is our So the quality in And first it's business. growing you're also variable backlog, And then then is backlog. that of the third we're the obviously services which the equation. growing

it's range give greater than we visibility and coverage XXXX. now a given So the those is when together, this for earlier gives historically. and why coverage we've -- maybe put of all and revenue greater kind us had coverage what we've But you you

or just that you against able as out deliver certainly to so take be the to mystery can give we those well. converting numbers, if We'll ahead have -- numbers backlog of to trying you we'll we're will know you number and So go we revenue. to And expect the the giving certainty. deliver we're the

observation. So -- but good

Operator

and Thank your conclude for this Q&A at over remarks. session I will closing you to for all the hand back time Matt questions.

Matt Seinsheimer

of beginning p.m. our approximately will conference A be website our This the on concludes available call call. replay at X:XX

New today. York Time

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

Operator

Thank conclude for today's does Thank all you This call. you. us. conference joining

You may now disconnect.

TechnipFMC (FTI) 24 Oct 242024 Q3 Earnings call transcript