Technipfmc Plc · NYSE:FTI
Technipfmc — Q1 2019 Earnings Presentation
26 slides from Technipfmc's earnings presentation, Apr 26, 2019
Slide 1: Q1 2019 Earnings Call Presentation
Q1 2019 Earnings Call Presentation April 26, 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: Q1 2019 Overview
Q1 2019 Overview Financial Results and Operational Highlights Doug Pferdehirt, Chief Executive Officer Maryann Mannen, EVP and Chief Financial Officer
Slide 4: Record Q1 orders provide increased revenue visibility
Record Q1 orders provide increased revenue visibility Total Company 2.1x Book-to-bill 1 $6.2B Inbound orders +22% Sequential backlog growth 2 Highest level of total Company inbound orders since Q4 2014 Subsea Surface Technologies Onshore/Offshore Inbound of $2.7B more than North America completi
Slide 5: Onshore/Offshore momentum continues; LNG wave underway
Onshore/Offshore momentum continues; LNG wave underway Diversified order activity Value through collaboration Select LNG opportunities Downstream continues to drive Targeting inbound ▪ MIDOR Refinery Modernization and expansion of existing complex in Egypt 5 Projects globally Saudi Aramco agreem
Slide 6: iFEED is an enabler, drives iEPCI momentum
iFEED™ is an enabler, drives iEPCI™ momentum Integrated FEEDs continue to grow iEPCI™ acceleration iEPCI™ awards $1.4B 2019 YTD No. of new integrated FEEDs Q1 2019 2018 Q1 2019 Q2 2019 BP Atlantis 3 Neptune Duva Lundin Solveig3 Neptune Gjoa Lundin Rolvsnes ConocoPhillips TOR II ENI Merakes 2016 2017
Slide 7: iEPCI continues to take market share and drive growth
iEPCI™ continues to take market share and drive growth Evolution of iEPCI™ Growing and maturing iFEED™ portfolio 2017 2018 2019e provides confidence in 2019 and beyond % of FTI Subsea orders Anticipate increased value of iEPCI™ awards in 2019e Strong customer qualification and adoption of new techno
Slide 8: Subsea opportunities in the next 24 months
1 Subsea opportunities in the next 24 months SHELL Ormen Lange EQUINOR Johan Sverdrup 2* EQUINOR EQUINOR Bay Du Nord Grand CHEVRON Anchor EXXONMOBIL Neptun Deep EXXONMOBIL Payara TOTAL RELIANCE Preowei MJ-1 ENI PETRONAS Zabazaba Limbayong SHELL PETROBRAS Bonga SW Itapu INPEX PETROBRAS Ichthys 2a Mer
Slide 9: Capital discipline fully aligned with shareholder interests
Capital discipline fully aligned with shareholder interests Disciplined capital spend Shareholder distributions Management compensation 2019e capital expenditures of $350M Quarterly cash dividend: $0.13/share Long-term incentive compensation ▪ Capex remains below depreciation ▪ 1 Current divid
Slide 10: Q1 2019 Financial highlights
Q1 2019 Financial highlights Revenue $2.9 billion OTHER ITEMS Adjusted EBITDA1 After-tax charges and (credits) impacting EBITDA of $296 million $46.7 million Corporate expense of $72.6 million, excluding charges Adjusted Diluted EPS1 and (credits); includes $11.6 million, or $0.02 per diluted $0
Slide 11: Q1 2019 Segment results
Q1 2019 Segment results Subsea Onshore/Offshore Surface Technologies USD, in millions USD, in millions USD, in millions +0.4% -279 bps -15% +93 bps +6% -587 bps 14.6% 14.6% 13.5% 11.8% 1,573 13.7% 393 1,335 372 1,180 1,185 7.7% Revenue Adjusted EBITDA margin Revenue Adjusted EBITDA margin Revenue Ad
Slide 12: Updates to 2019 segment financial guidance
Updates to 2019 segment financial guidance Reflect strong execution in Onshore/Offshore, revised market outlook for Surface Technologies Surface Technologies (updated) Onshore/Offshore (updated) Revenue in a range of $1.6 – 1.7 billion Revenue in a range of $6.0 – 6.3 billion EBITDA margin at
Slide 13: Positive operating cash flow; discretionary items drive spend
Positive operating cash flow; discretionary items drive spend Q1 2019 items of note 1Q 2019 Cash flow walk (in $ millions) Positive operating cash flow in Q1 Capital expenditures of $98m exclude 5,540 $80m associated with dive support vessel (DSV) DSV acquisition funded by $96m of vessel finan
Slide 14: Summary
Summary Company highlights Orders of $6.2 billion highest since 4Q14 – including $2.7 billion for Subsea, $3.1 billion for Onshore/Offshore Book-to-bill of 2.1 resulting in sequential backlog growth of 22% to $17.8 billion Positive cash flow from operations of $121 million Segment highlights
Slide 15: Appendix
Appendix Q1 2019 Earnings Call Presentation | 15
Slide 16: 1Q19 Updates: Subsea opportunities in the next 24 months
1Q19 Updates: Subsea opportunities in the next 24 months1 PROJECT UPDATES Added Removed EQUINOR ENI Grand Merakes TOTAL ENI Lapa SW Kalimba SHELL PETROBRAS Ormen Lange Sepia EQUINOR Bay Du Nord EQUINOR Carcara $250M to $500M $500M to $1,000M above $1,000M 1April2019 update; project value ranges refl
Slide 17: Preliminary impact of new lease accounting standards
Preliminary impact of new lease accounting standards Lease accounting guidance Impact to financial statements Under GAAP Under IFRS Effective January 1, 2019 Balance Sheet • NPV of future lease payments • Like US GAAP, all leases Required to recognize all leases on the balance sheet: recognized
Slide 18: 2019 Financial guidance
2019 Financial guidance1 *Updated April 25, 2019 Subsea Onshore/Offshore Surface Technologies Revenue in a range of $5.4–5.7 billion Revenue in a range of $6.0–6.3* billion Revenue in a range of $1.6–1.7* billion EBITDA margin at least 11% EBITDA margin at least 14%* EBITDA margin at lea
Slide 19: Backlog visibility
Backlog visibility 1 1Q 2019 Inbound orders: $2,678 million Subsea Non-consolidated Backlog 2 $7.5 billion $2.5 billion Subsea $3.4 billion $1.6 billion 3 2019 2020 2021 & beyond 2019 $140 million 1 Backlog does not capture all revenue potential for subsea services. 2020 $137 million 2021+ $660 mill
Slide 20: Inbound orders reconciliation
Inbound orders reconciliation Q1 2019 Earnings Call Presentation | 20
Slide 21: Select financial data
Select financial data Three Months Ended Three Months Ended Revenue March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Inbound Orders (1) March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Subsea $ 1,185.3 $ 1,233.3 $ 1,209.1 $ 1,217.4 $ 1,
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Slide 26: TechnipFMC
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