Slide 1: Q4 2018 Earnings Call Presentation
Q4 2018 Earnings Call Presentation February 21, 2019
Slide 2: Disclaimer
Disclaimer Forward-looking statements We would like to caution you with respect to any “forward-looking statements” made in this presentation as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as am
Slide 3: Q4 2018 Overview
Q4 2018 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer
Slide 4: 2018: Winning, executing, collaborating
2018: Winning, executing, collaborating Delivering on a clear strategy to create value and expand growth opportunities Winning Executing Collaborating $14.3B 12.2% 5 Inbound order intake Adjusted EBITDA(1) margin Strategic relationships announced Margin down 93bps on anticipated Island Offshore, Mag
Slide 5: Strengthening our competitive position through collaboration
Strengthening our competitive position through collaboration Global Strategic Master Services Strategic Strategic Frame Agreement Collaboration Agreement Collaboration Cooperation Covers supply of Includes full scope of Subsea services Develop new Deliver riserless light surface wellhead,
Slide 6: Differentiated approach, iEPCI momentum building
Differentiated approach, iEPCI™ momentum building Rebuilding – disciplined and differentiated Expanding the iEPCI™ reach Subsea order intake 2 new iEPCI™ awards announced in 2019 Inbound Order Mix 100% BP Atlantis 3* Lundin Luno II* Gulf of Mexico North Sea Total Subsea Orders Smaller unannounce
Slide 7: Subsea opportunities in the next 24 months
Subsea opportunities in the next 24 months* EQUINOR Johan Sverdrup 2 EXXONMOBIL Neptun Deep CHEVRON RELIANCE Anchor MJ-1 ENI Merakes EXXONMOBIL SHELL Payara Bonga SW TOTAL INPEX Preowei ENI Ichthys 2a PETROBRAS Zabazaba Itapu TOTAL ACCE CONOCOPHILLIPS PETROBRAS Petronas Barossa Mero 2 Limbayong ENI
Slide 8: Onshore/Offshore: delivering projects from concept to start-up
Onshore/Offshore: delivering projects from concept to start-up Robust inbound; diverse project set Well-positioned to capitalize on the growth in LNG Order intake Ending backlog $ billions $ billions 9 9 +27% +95% 4.5 4.5 0 0 2017 2018 2017 2018 Anticipated profitability from project backlog susta
Slide 9: Q4 2018 Financial highlights
Q4 2018 Financial highlights Revenue OTHER ITEMS $3.3 billion After-tax charges and (credits) of $2,220.3 million Corporate expense of $90.3 million, excluding charges and Adjusted EBITDA(1) $342 million (credits); includes $38.7 million, or $0.05 per diluted share, $431 million from Subsea, Ons
Slide 10: Improved operating cash flow; shareholder distributions increased
Improved operating cash flow; shareholder distributions increased FY 2018 Operating cash flow 4Q 2018 Cash flow walk (in $ millions) 159 141 4Q 2018 items of note ▪ Positive operating cash flow ▪ Capex funding for growth initiatives (in $ millions) ▪ Shareholder distributions continue (202) (284) 5,
Slide 11: Disciplined capital allocation strategy
Disciplined capital allocation strategy 1 2 3 Growth Dividend $350 Share million capex planned in buyback 2019 $350 million capex in 2019 Declared a Quarterly Completed previous cash dividend of USD $500 million Reduced from prior guidance of $400 million $0.13 per share share repurchase Growth
Slide 12: Summary
Summary Q4 2018 – Solid conclusion to the year Solid operating performance across segments despite headwinds in certain markets, notably North America Major award for MIDOR refinery expansion; project to be inbound in first quarter 2019 Positive cash flow from operations; shareholder distribut
Slide 13: Appendix
Appendix Q4 2018 Earnings Call Presentation | 13
Slide 14: Q4 2018 Segment results
Q4 2018 Segment results Subsea Onshore/Offshore Surface Technologies USD, in millions USD, in millions USD, in millions -5% -685 bps -17% -160 bps +12% -481 bps 18.9% 20.4% 14.6% 417 2,020 1,292 13.0% 372 1,233 1,672 12.0% 15.6% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Revenue A
Slide 15: 2019 Financial guidance
2019 Financial guidance(1) *Updated February 20, 2018 Subsea Onshore/Offshore Surface Technologies Revenue in a range of $5.4–5.7 billion Revenue in a range of $5.7–6.0 billion Revenue in a range of $1.7–1.8 billion EBITDA margin at least 11% EBITDA margin at least 12% EBITDA margin at l
Slide 16: Backlog visibility
Backlog visibility Subsea(1) 4Q 2018 Inbound orders: $881 million Non-consolidated Backlog(2) $6.0 billion $1.4 billion Subsea $3.4 billion $1.2 billion 2019 2020 2021 & beyond 2019 $185 million (1) Backlog does not capture all revenue potential for subsea services. 2020 $136 million 2021+ $653 mill
Slide 17: 4Q18 Updates: Subsea opportunities in the next 24 months
4Q18 Updates: Subsea opportunities in the next 24 months* PROJECT UPDATES Added Removed Petronas WOODSIDE Limbayong Sangomar WOODSIDE PETROBRAS Browse Mero 1 TOTAL WOODSIDE ACCE Scarborough PETROBRAS Itapu $250M to $500M $500M to $1,000M above $1,000M *February 2019 update; project value ranges refl
Slide 18: Outlook supportive of our key growth markets
Outlook supportive of our key growth markets Subsea LNG Unconventional Offshore Final Investment Decisions(1) Emerging LNG supply-demand gap(2) North America onshore capex(3) (4) 30 120 Mtpa 250 25 100 200 20 80 150 15 60 100 10 40 5 20 50 0 0 0 # of FIDs Oil Price ($/b Brent) Capex (In $ billions)
Slide 19: Select financial data
Select financial data Three Months Ended Three Months Ended Revenue December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Inbound Orders (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Subsea $ 1,233.3 $ 1,209.1 $ 1,217.4 $ 1,180.
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Slide 25: TechnipFMC
» 3 TechnipFMC