TechnipFMC Profits Dive in Q2
The net income of energy services giant TechnipFMC slumped 88% in the second quarter to $11.7mn, from $97mn a year earlier, it reported July 29. Revenues came to $3.16bn, versus $3.43bn a year earlier, while adjusted core earnings (Ebitda) slumped to $241mn from $450mn.
CEO Doug Pferdehirt noted that the firm saw no order cancellations during the period, despite the market conditions, with its backlog now at $20.6bn. A year ago it was $25.8bn. The company is also targeting over $350mn in annualised cost savings this year.
"We entered this period with a solid foundation built upon the strength of our balance sheet, backlog and execution," he said. "While client conversations remain ongoing, the increased visibility we have today gives us confidence in our full-year guidance for all business segments. This is further supported by the acceleration of our business transformation initiatives to maintain – if not expand – our market leadership."
TechnipFMC has reined in its capital expenditure plan for 2020 by 30% to $300mn, and has put its plan to split itself into two independent businesses on hold in light of the Covid-19 crisis. It had intended to separate its engineering and construction activities from its integrated technology and services.