April 25, 2019 / 11:11 PM / 3 months ago

TechnipFMC sees return to growth with new orders, Q1 misses

PARIS (Reuters) - Oil services company TechnipFMC’s saw a slump in revenue and net income in the first quarter, missing expectations but said it had returned to growth as it booked $6.2 billion in orders, the highest since the last quarter of 2014.

FILE PHOTO: The logo of energy engineering group TechnipFMC is seen on top of the company's building in Courbevoie at the financial and business district of La Defense near Paris, France, May 14, 2018. REUTERS/Charles Platiau

The company, whose clients include oil and gas majors, said revenue was at $2.913 billion, down 6.8 percent compared with the same period a year ago. Net income in the quarter tumbled 78 percent to $20.9 million, or $0.05 per diluted share.

“Weaker-than-expected activity in North America significantly impacted our quarterly results and has led to a change in the market outlook,” Doug Pferdehirt, TechnipFMC’s chief executive officer, said in a statement.

“We no longer anticipate the recovery in North America as originally forecasted,” he added.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 23.5 percent to $295.8 million, while adjusted EBITDA margin was 10.2 percent.

The company that was created by a 2016 merger of France’s Technip and U.S. rival FMC Technologies during the prolonged oil price slump, took a hit alongside other oil services firms as majors slashed costs and shelved projects.

“Our company has returned to growth, and we are well-positioned to benefit from the recovery underway in many of our key end-markets,” Pferdehirt said.

He said that TechnipFMC’s quarterly orders of $6.2 billion were its highest since the fourth quarter of 2014 as inbound orders in the quarter soared 77.4 percent.

Backlog of projects stood at $17.8 billion, up 27 percent compared with the same quarter in 2018.

“In the first four months of 2019, we have secured seven new integrated projects, representing an aggregate contract value of $1.4 billion. This expansion of our integrated portfolio includes projects from BP, Lundin, ENI and ConocoPhillips,” Pferdehirt said.

Reporting by Bate Felix; Editing by Cynthia Osterman

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