TechnipFMC (FTI) 27 Feb 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the TechnipFMC Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Thank you.

I would now like to hand the conference over to Matthew Seinsheimer. ahead. go Please

welcome call. and fourth XXXX quarter Good to conference earnings afternoon, TechnipFMC's

Our yesterday statements on financial news and release issued our can website. found be

forward-looking call. I'd made to caution with to like you during any this respect statements

statements. beliefs implied Although these based certain they regarding materially are results forward-looking risk conditions, those by and developments business in subject could from and cause to current and actual on future are assumptions our statements these expectations, or to uncertainties expressed that differ

on any factors cause are place obligation statements undertake Authority. differ in caution most our We could material future Securities from any statements, Commission, French to our periodic date of new our XX-K, of and to Known revise which actual no results U.S. the after other events as as date AMF not are that undue our or information recent with or speak of wish the and otherwise. projected described update forward-looking made only recent you whether Conduct they a hereof. and We to the result Exchange Financial filings the the forward-looking results XX-Q, to publicly most UK reliance

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

year. very representing unprecedented achieved participating equaling versus order year a Matt. year We significant inbound afternoon. in Thank of billion call. prior company. good you proved of nearly for much, an be to growth Good for in XX% our you $XX.X earnings Thank and morning the XXXX fourth quarter level quote of the our

more more subsea driven was both model. is This iEPCI, levels subsea XX% highest become value the than of downstream the rate our versus This full the annual has our times market sanctioning. LNG no technologies, for of In inbound orders. growth by more billion and acceleration continued XXXX. prior of Our success XX% our choice award in of adoption the in than over grew in $X was our commercial most of driven our for growth decade and year Subsea than an for industry's project was strength company more an two new model integrated and inbound than accounting alternative It iEPCI total a year growth. customers. just doubling with model longer and iEPCI by

LNG almost Onshore/Offshore, ahead of XX% by versus year. upon which driven awards. than ExxonMobil's inbound from builds Novatek, limited also were FID Yamal LNG more Project, part We success in winning grew the we Arctic of orders LNG consortium the $X inbound LNG. X expected XXXX In This project a included recorded on value billion contract the of although this the Rovuma

company same grew last now all increasing with backlog Backlog billion, XX% Onshore/Offshore almost stands an segments the year. from Total time XX% increase at XXXX. of $XX.X versus across

Importantly, over us XXXX execution with half of unrivaled providing our total beyond backlog is scheduled visibility. for

increasing mix segments. by in marked Total segment project trough company Services Onshore/Offshore. $XX growth and year a also of billion all exceeded XXXX in XX% integrated increased XX% in revenue an the the in from activity year Fully across Subsea higher led revenue benefiting revenue Subsea activity. XXXX for

in and demonstrating total solid of And XXXX, seen and versus sequential the Yamal revenue quarters experienced excluding businesses. XX% when consecutive than have now revenue have the remaining more LNG We revenue three inflection growth. growth increased diversity segment

North growth Technologies, XX% of more outside America. Service in experienced we than And

with in than North This of America offset for international business the the decline growth delivering revenue. Our strong now a modest more increase. segment total accounts than revenue half more segment

such to Guyana as be the outlook important healthy greenfield momentum and activity projects a Subsea, for year. brown markets such emerging coming strengthening continues for our we field segment Africa. Brazil markets Now and outlook let Activity me ongoing with Mozambique anticipate as midsized small in turn and and to activity for and by market projects. in continued to driven Starting in part guidance

by also asset growth, We This part in digital refurbishment services, well monitoring Subsea anticipate for in again experience in XXXX level to revenue both approach activities. Services and orders intervention, the that Subsea will double-digit in strength Subsea driven project achieved Services activity framework the provides XXXX.

dependent one major timing However, of remains two this the upon or project awards.

timing In we project we year and impact with the to utilization. guidance, the in see of expect asset over remainder adjusted increased to of normal to least improvement billion see first the Subsea billion revenue margin $X.X due to at EBITDA $X.X quarter range and margin of seasonal Turning XX%. the

additional remain this Azul For requires Sempra for additional morning, sanctioned intermediate LNG that the selection TechnipFMC this just capacity. of term. EPC Costa announced Energía to near the Onshore/Offshore Energy in outlook the contractor we long-term And as project. demand be confident for LNG will projects their The

very are strategic been We proud for to have chosen development. this

and and we the project Asia in or biofuel East, Beyond engagement Europe, process America, our benefit selectively early portfolio. to petrochemical, refining, technology particularly North LNG, opportunities Middle from we leverage continue where can pursue

see adjusted coronavirus. includes impacts at that a the reflecting we XX%, a least early of for margin $X.X at $X.X lower contribution EBITDA contribution from can projects estimate the we in range stages. and time This to Onshore/Offshore increasing Yamal this of For revenue guidance, an from billion in guidance billion LNG and

North In revenue. driven foundation growth growth strong outside Surface outlook This serves makes as market technologies. international our as products America, double-digit tier supported anticipate and of to our XX% total franchise Technologies than revenue a activity up by more we our segment high by and of

of decline to and in activity drilling which We half completions anticipate North the in XXXX, second the activity year. assumes improvement XX% versus an America

topics range guidance, adjusted billion in EBITDA Maryann Technologies billion expect of related least in $X.X Surface guidance other cover later and this of XX%. to we $X.X For call. a revenue margin all at will

company in of but the separation represents that a tremendous this XXXX, to regard, The company. success our place is one for to in visible have beyond. we is taking aspect of actions step ourselves transformation better addition in and only been In commercial taking position our bold XXXX announced this

combination Subsea right In execution advantages Subsea, our that maintain purpose deliver we project assets innovative right to with are we the need have order of Part efforts capabilities and fit chain. organization. continue integrated in we you global with our our delivery. of technologies in align geographies. the a on to technologies, of ensuring partners such size the assets, the right reallocate leadership, are better our and this, integrated achieve for to and will further an And new as optimization to optimizing To assets, focused X.X value right assets market

forming increase in Allseas with costs asset can demonstrated provide cost that unique more help our recent our customers access for new assets will to manner. And our a us we coupled time efficient cycle partnerships These as are utilization lower greater and our capital announcement reduce and actions capital the can also products adoption with with strategic of when accelerating next generation operating and and that efficiency. technologies and in Subsea

and we further In by to gas strength In emissions. we capitalize working greenhouse anticipate of international order customers with leverage Sea. Surface to drive Asia-Pacific, we our transform Middle the America, to in franchise on North in efficiencies our lower continue East, and North the business site Technologies, will operational the well our the growth

sense, billion our strength optimize $XX Onshore/Offshore, quo. rather look transitioning to soon the than We new than geographies services Energies, we Technip is in into to we will are operating which And of by simply the in don't very and one backlog. more cycle, are optimizing status the make that in exit returns become when a will project economic growth underpinned

and remote most selective prospects we experience Our that choices, in of global both our remain and continue and on successfully TechnipFMC. will our offer leverage executed ahead. And on teams project complex have the focusing to in focus the regions for success work projects opportunity the we for intense best will those that some this lies customers

actions you businesses. across can are taking of see our As all we

Importantly, second diversified these we In our industry-leading XXXX The two August, year for separation announced on of our initiatives remains plays. strategy another the quarter. the completion business through reshape transformational into our for was company on in we further leadership would focused pure TechnipFMC. market track transformation. of supportive and future spinoff are

Capital plans in we XXXX exceeded a reinforced Paris the inbound of our transaction In we only we In Technip in the As in close. adoption have ahead fully Subsea host XXX% company as of position Energies also iEPCI company. new our shared, acceleration our Day Markets model. services the integrated to growth by integrated the and technology driven market

billion, XXXX. $X of merger, growth for increase the we accounted the iEPCI, XX% in versus than orders in more total choice XX% year more inbound has our Subsea which delivered with customers. Services, become XXXX, served When Subsea full of of the for combined most and model inbound than for of of catalyst double-digit Subsea the as an

XX% to international than when In of of Surface the more Technologies accounting the than more revenues now outside half for North we America segment prior revenue. with grew year compared

Our provides backlog all segments in validates with our significant and growth us strategy across in our outlook. confidence

LNG, to international Surface global Subsea, leadership our in and the continue We demonstrate market.

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

from million. company Thanks charges quarter revenue flow $X.X the diluted credits when $X.XX was operations was after-tax cash and billion was million. with Doug. $X.XX EBITDA of adjusted of in $XXX Total EPS the Adjusted quarter per Fourth $XXX share. in fourth excluding quarter

this charges to beyond credits of the better and specific outlined the billion, are a and of $X The taking impairment and related cost venture. we of of which our we which our as impacting for largely release, detailed gain million, company position reflect a $XX earlier in million charges tax separation goodwill credit included charges and and consolidation million, month, earnings are to total PLSV the provision, evaluation Doug actions after-tax his XXXX in of restructuring non-cash Subsea million $XXX joint reflect $XX remarks. allowance the of in disclosed net $X.X asset These

venture including items entirely adjusted in increased we $X.XX significant diluted almost do our an from impact partners provide in the share in period. of and losses expense driven Included exchange expense liability not was The diluted FX devaluation the earnings joint by resulted Kwanzaa per Angolan the $X.XX guidance, share. which corporate of foreign for to per included are of is which

remediated to excluded, adjusted previously our in These weaknesses. been upcoming fully have diluted and period our filings. per material two all This controls, regard disclosed adjusted $X.XX with we lastly, items in annual EPS would will impacted by And share. our have reflected be $X.XX the if internal EPS

quarter, $X.X highlights services well-established We billion, market versus a project increase Turning of Subsea trend to and quarter continues in delivered the quarter. double-digit an share project iEPCI of in year revenue, activity XX% growth towards the period. the the development. prior integrated fourth of to represent activity both increasing revenues operational in the reflective experienced project

Subsequently, Subsea activities. essentially refurbishment was The increase revenue for installations, seasonal was weather. the activities EBITDA adjusted margin of the of impact well $XXX driven as despite intervention, asset Services Adjusted modestly completions offset impact backlog. million services revenue And year higher XX.X%. and project Subsea improved reduction of was the with more a in priced by and EBITDA unchanged the competitively prior cost from

increase $X.X from year revenue $XXX activity. with portfolio. in by results strength quarter of quarter, fourth billion, reported Onshore/Offshore from across execution million prior in an benefited driven EBITDA was primarily the a of Operating margin the higher period the XX% Adjusted the XX.X%. of

finally the improvement $XXX reflects to markets in North whilst strength international we reduction of offset of and as American and down a the sequentially activity. modest saw the And Surface XXX international revenue cost year, X% margin by XX.X% from increased million prior activities. adjusted Technologies in basis benefit higher benefited the was points we mix lower EBITDA of business the Sequentially versus of

Operating was quarters. have resulted In operating generated quarter, differences timing we the positive milestones the of $XXX for flow cash, million six full we operations million the now cash consecutive flow between vendor cash of and payments. flow which to from project recorded Turning fourth some $XXX year. from for cash

operating line, in capital the period. Beyond were $XX the million expenditures

dividends and million spend for million recorded of paid for in year total we the $XX year. full the dive $XXX dividend year sale-leaseback full Our excluding we $XXX the in support vessel made when shareholder impact the quarter in the transaction million was payments. earlier in $XX million the We

year Additionally, of distribution with of the ended on cash we $XXX hand. joint Yamal made to $X.X million the venture billion a partners. We

with our XXXX, like regard segments in separation XXXX. details would the guidance. reflect financial million to note I Businesses of most reflected Technologies the approximately please XXXX provide parameters as in in guidance, business included of Now With new to around now came our Onshore/Offshore in that $XXX our announcement. our Surface from revenue which segment are additional revenue

our met of year. revenue, is coverage at the remaining be revenue In the anticipated from highlight from current backlog revenue Subsea me into services both by to for billion is Subsea, revenue in will of approximately modest approximately the scheduled XX% Services year, a anticipate potentially and revenue. We book expected exceed guidance, $X.X XXXX from execution billion amount most revenue Subsea midpoint in our is Let turn the in and Services backlog. of activity only expected in today, orders the projects. $X quickly convert backlog this

supports In We revenue expected of LNG. Onshore/Offshore, million million midpoint. anticipate for revenue XX% at approximately approximately Yamal in our $XXX backlog $XXX from XXXX to the

expense Turning for year million to items of impact to for be when to $XXX excluding we the $XXX the million guidance fluctuations. the foreign net remaining expect corporate XXXX, full currency

The is of with of $XX year from cash of liability. balances. lower mandatorily million $XX We full interest financial the million to revaluation when impact expect the largely income the net company's of the increase redeemable interest for associated result year prior the excluding partners' expense

forecast the flow with range the rate full no for should operating XX% stronger tax $X half than the activities being first million greater from exceed $XXX to Capital year the a half. of back little to We the expect expenditures cash we be of in and year billion XXXX than XX%.

strength our increased revenue In integrated closing, activity and has in our the adoption from international the our reflected Technologies acceleration to both of third market benefited order from new continue growth Subsea the Subsea of as revenue clearly of sequential growth, revenue achievement services, leverage Onshore/Offshore while we and the model. trough while in Technologies inflected franchise. Subsea of quarter projects by evidenced XXXX in Surface

operating results nearly Lastly in million we with in $XXX XXXX in generated cash flow four positive all quarters.

XXXX than with of we secured ahead, billion backlogs. more begin $XX Looking

strong at see revenue segments and We revenue have three We in growth our the of for range. Subsea midpoint revenue in coverage all Onshore/Offshore. year the both guidance

and in taking expect across proactively flow we business to all and are cash billion. operating we our actions in of leadership importantly, continued focus As transformation, market businesses our support on $X exceed XXXX

now Operator, open questions. for you may call up the

first from Our Instructions] BNP James [Operator Paribas. you. question from Thank comes Exane Evans

open. line is Your

Hi, taking good morning, for Thank questions. you my afternoon. good

restructuring you First high on the head size a guidance performance improved us pretty to good, next one on as opportunity quite actually charges, the decent if what drive deals bit just detail give there what obviously QX, is we year into a could I of doing more is? Surface a little wondered you're and from

the been clarify just I guide I around you the I is mean little Subsea, gap reason the pricing, like deviation? mean awards also bit and really your when for just we integrated in just XXXX an secondly on a And margins think on for maybe weaker things expected. business any coming update the through And the just et external deliver? and cetera that than could had actually on see awards environment, between results Thanks. comments you and benefit normal

a in most record packed questions very period. James, the I the that set I short you think much. will, for Thank

to us ways the is, is I not to I'm guidance, captured through bit margin your point. think if quite question address actually the a some and of little will other new five prevalent I going four most in and going parts walk because the I'm frankly do most think is what at most maybe What there. this I that of Subsea

it just take resulting a guidance. little through I'm kind time And this I what to our if important on of walk up in going we mind the don’t of and ended is James, XXXX progression cycle of this and you think that bit

of TechnipFMC XXXX. as XX% growth we than tremendous more inbound for in you had So know, order

or orders. time, integrated of very the of year, stated XX% the first to middle than more confidence the time. orders our that robust likely that total was representing XXXX at projects at following the margin that would half, of And by trough And Subsea iEPCI the the more my I

progression involved improvement. to would iEPCI whole also about more few into the benefit about margin but longer us happens the a means integrated the transition I we conversion an company period a XXXX we of question or that the If that the we back of only the However, being time. revenue that orders what with a company, being for noted the obviously talked go lifecycle, and of inbound be as the times in year have main the also over of

the have in stated and and months, first beyond, from XX the orders we design calls. late improvement meaning another to until can we and as of XXXX first again, So drive up commission, this half equipment margin build to before takes and XX I XX XXXX months that earlier had won't really can to install which take

And model said quite been to competitive was assets and as in also while that awards prioritize rate very business result only our to report vessels. during strategy from the inception when those projects period would both feed ultimately these This continue benefit from I've our partners. by iEPCI alliance on backlog integrated it iEPCI direct we will for I we alliance projects. we period, was from of has partners clear [ph] that driven a bidding higher lower this quality the utilization convert a that will day our this integrated important, can contracts and

on first XXXX our strategy by delivered inbound. strength we of evidenced the now And part of as this have the

while the issued impacts it we activity ramp our also margin night Subsea in is but our that trough, and suppliers that XXXX only supply with the directly, also message. consistent company last was in experiencing Our significant guidance still is this are And the general. absolute chain was not possible

our strengthen supply to well the as not as own cost experiencing underway. of we are Therefore our is proven efforts chain. base supply company. elasticity robust to The that of incremental be are These

are into or our to remain exceed part utilization and higher the strategy guidance, assets. driven transitory of double-digit emphasize as deliver remain expansion revenue confident outlook offshore the in in XXXX years. important and our coming confident the confident to we It growth come remains our that we ability campaigns, down, and these of we achieve we stated move will margin further will all is deliver our costs over will we unchanged As by in we and

With Maryann have today. about it I'll to talk the charges little pass that a that, we restructuring to bit announced

Sure. thanks. James,

North first think the charges I your referencing was in restructuring question America.

you've attributable As million directly seen, Surface. recorded about $XX probably we've to

product there. are we ensuring You say focused not very approach meeting we're heard profitability are and Doug the a taking where that businesses exiting we and lines

the represents and improvement exit reductions. product the improvement and XXXX. that headcount on certain that we North we in you deliver focused that margin success the so recorded the as quarter So is imagine, related, of And largely see charge America performance that we lines certain for that are can

that's in the to you're again North attributed America. being largely So recorded seeing what quarter, third

the I probably and think I won't follow so appreciate a up. you. answers, I [indiscernible] I Thank ask

Sachs. question next Angie Your Goldman Sedita from comes from

open. is line Your

guys. Good Thanks. morning,

Good morning, Angie.

Good morning.

the a I maybe Subsea but So really appreciate we could helpful, that. was the detail Doug, little on more very bit if on margin that ask

could said, obviously first the are costs? ramp? you see occurrence talked on is into supply predominantly XXXX which of fair, your and margin and ramp in that XXXX elimination and those strengthen see only saw comments Maybe additional half very larger through chain, we us you a is the in that the XXXX awards we'll the both that second with On half the the going

Angie. Sure,

matters. - leave question most you don't supply that through to doubled appreciate well of through chain the the all I matters follow came strong. expansion doubt. growth, translated again, are I the working And if really an really, that so chain. well market resolved to I an want XXXX, in combined very same trickle the our analogy be at we been the has supply will. share. and obviously We're We've And use that growth maybe translated advanced. any out in And of We've control. into has time be industry this of we under okay, is, to the the the with up could So could gate our

actually we to the came going I'm about margin back months with put - really small a nine around XXXX to a the color the fact just happening. the and being trough I rounding was comments think was guidance, of just out of below that what's pointing which in now, the emphasize ago the and just to little here six where and almost bit

Subsea in no So yes have your will to do has the around question, to of There there's the the geographies we with – the that. conditions is sea quarter. in first first activity certain at That because little see activity seasonal we normal quarter. in way which decrease just activity very

we much we able an more be ramp exit in But and see had XXXX. level year of we end this will to of half to of then inbound a that that quality rate of the reflective from and through would expect the be generate that type the the first margins would high of high

about Okay, feel year and thank XXXX a you if I but you've ask opportunities also mean, and or share, in could any iEPCI could XXXX, you, on two you and color helpful. And the - further total one XXXX remark mean, awards of upon some and there? course had made to Subsea far then the maybe very but color free if iEPCI as impressive obviously, outlook a And us rate, then levels, on could give the dependent inbound for if on of orders as very that is would orders? approach talk have major Subsea in exit as I you orders then the for percentage you I

industry iEPCI, we've I our our somewhat of is Angie of we guess I now to go very We, feed so why rest healthy flattering. percentage believe to I awards direct important terms think was not become that integrated the reason studies. of doing level way is at when ability that even it in Sure, projects, integrated way our XXXX look - of that than company. which feed Where would to is just see have of a somewhat that going convert those of these similar a I greater at business iEPCI it the studies acknowledging integrated it and XXXX? the established in the portfolio kind It's remember be I is, the it's we iEPCI forward. versus in we XXXX. no Again,

We two of XXXX additional is work added also us exclusive of of customers, new through list XXX% with - model. more coming Subsea have an We XXX% their work is iEPCI integrated or two coming expanding in meaning alliances. integrated their to our

that, So the with being not time, integrated, demonstrated we've that would in of us, just very close well. for I as business eventually two zero years likely the over for expect our to XX% is continue, clearly to industry from just but you rest know a trend of to as

So, you look think quite to know, I that strong. continues

at always size order guidance time of terms hard of projects on order period. It's and difficult hard year, know we the and them difficulty this give the intake. particular point absolute state a the absolute In to our you to within very XX-month tell, don't the in given level, to

remains But set do is available awards over publish projects say, next But XX large would work. are, remind We is don't some list. what us That update competition robust. our regularly. months. We or into the It that show that. opportunity of that percentage qualify a let's of on competition an show I the that publicly our that our to that do to we that you

as direct into client economic by benefits of the that proprietary set that first the award reach excuse both certain integrated iEPCIs have exclusive alliance project oil. again, from if our to well threshold we as me, accelerated iEPCI can partners, a opportunities, turn an time from feed or driven ourselves, typically We that studies,

that's XXXX robust When very we at the and the I reason was comment, a look did, it, yes year. made I

and happen, very versus timing to some have able things order billion that large XXXX have from be if of XXXX. obviously those forward awards and dollar are strong XXXX, came all in to a have year could would XXst we although to XXXX, billion right to of inbound. may would awards be range We a that together to in see all level some not they had as December continue and go have in We XXXX. the things in opportunities, by XXXX plus we going portfolio have do Some very we the of XXXX, we a plus in we similar of match

I'll turn it Great, thanks. over.

Lillian question Starke Morgan Your from next comes from Stanley.

Your line is open.

Hi, concerns own to, recognize a some driven you if may could if might on expect be clients, there's operating of partly improvement just also just wanted that guidance? good by color you morning. any cash seeing the back I of that your had the with any any the And is that I but capital I on delays certain was the second what advances on dynamics? of Chinese And from in provide wondering capital is bit I then seeing you're is question you working anything on we're know working coronavirus, are this or I yards, at there point there - time? underlying

sure. Okay,

is a make has know, is I'm who's Energies and pass the it involved the GBU very those been to in then projects. coronavirus Technip me, for and with Onshore/Offshore comment going for to the Catherine I'm Lillian. and is of you, President very CEO-elect going and thank around and MacGregor, you So, the to currently involved as

So the And around cash additional let some comment add flow color. made, Maryann then her I'll some additional you will which color that out. add pointing I it you appreciate

progression, We're progress that business a I'll there and that you just remind a of and very are progress and we we've made, proud will to projects our the good flow and very with of we that made, we've continue the share projects projects And projections able of in cash be the trend were out. are we closing always coming for and new to pleased that XXXX.

first impacted. been deeply we those are and look coronavirus, have the foremost concerned of terms in Just who for

situation the of the much to the many appropriate around work the the and ensure try and the very various contractors many, with company, actions of that we are and place health the the women XX,XXX monitoring world. of sites all projects and to wellbeing put We in have in our and more men various

some two on example an actually let what's again happening so Catherine of color additional around the maybe I'll or these, put projects.

in our but that are to subcontractors we the take and with impact coronavirus with our light our as measures with you. say the sure And on the of thank to very I make appropriate collaboratively working we well really also would indeed, our partners customers, project. actively, context of Yes, and mitigate

said as we that see on Onshore/Offshore the you what that what we we guidance coronavirus. is today So impact of the the gave reflects

little the our of you give example of one with doing, with to of our So we're working suppliers our very bit some a again customers collaboratively projects. and of things in

supplier. to based In one able a to diverted Chinese And possible supplier transfer from placed our number customers. example, Chinese some other based were subcontractors as to partners, to were European have of For take, these projects, a our working with were we we we as our or actions engineering productively that one suppliers some of are like operating and able hours from again center. of orders a

Lillian more little a just the flows and again, cash hi, question. color thanks Maryann here, and around your for maybe

know cash at think we project entire the be cash flow objective portfolio. given certainly or and I component, certainly positive that you neutral the our significant backlog the flow is minimum have and against to

piece improvement along what to continue of So that I you think continued that. we capital that execute see certainly working backlog is and a happening is as

for the color. you much Okay, perfect. very Thank

Your next Sean Meakim Morgan. from from JP comes question

is line open. Your

Thanks, good afternoon.

morning, Sean. Good

the up some working Can very on just financing million prepayments how influence impacts and just of with follow guidance, basis to maybe on positive. of around more XXXX the cash? see LNG cash maybe so put you on flow $XXX parameters little implied So, capital you flow with then awards, of on traditional you than from to respect cash granularity in more the free MRL cash sounds the a a

Sure Sean.

more to Maryann pass a – again, know important just answer, we to are projects business. the think but you it's detailed So provide that I we I

coming We as will always advanced payments, have gave out but new pointed projects we you and in well those, cash flow also guidance. XXXX from

So be is clearly very our Maryann? what to continued you'll improving guidance. in the think also reflected see I that trend, able is

more a Sure, Sean. little around color And maybe the MRL.

but you asked MRL when sits you you see there, actually think $XXX million. I as at XX-K, produce we it the know, and about our can today

outflow that at and happen the time payment its will changes partners assuming both further minimum, partners happen. that on a So other decide the to at project, TechnipFMC to for at which the no

financing the happen. that outflow well in but as you happens that noted, So section will

a progress the be as your expect as the XXXX the completion they that, big XXXX. as than there. working of But we continue Yamal outflows and that from think try you can XXXX Yamal outflows about certainly get toward know, part that was to saw question second around we piece than as you think project, big from in again, much of will granular the changes were talked capital, that and were in I less we of to I won't we

this costs that Okay, a you to transitory. carry year. any of budget into are that granularity that $XXX get maybe more you're was perhaps then, incremental some that's Does he I fair, proven when the of could very the thank for for little hoping planning for XXXX? CapEx your have we comments elasticity supply million to that led chain not And interesting that's of Doug's mentioned the company that. were and

not the we may incremental – budget directly those the supply Sean. projects. is capital reflected you'll Subsea particularly capital budget, chain Thanks, in commitments that are which considerations. see of part the The No, from large

the that when installations. with be those field the it capital level need Subsea XX, for for in of go think field out XX-year inspection, are certain of including Subsea for a to there's And expenditure this full come tooling project, iEPCI, to repair, if associated are with or recover which kind assets a field those services to most monitoring able So if even order we any call life about to you contract. of the and that's contract, and Greenfield we a integrated XX, iLOF life the way, required providing contract, support of life XX, it's of of

Got interesting, it, very okay. you. Thank

next Your from Hodée comes from question Kepler Cheuvreux. Bertrand

Your line is open.

may, questions of margin. have us those I everyone. providing question give if what of moving on the some a a you but incremental you Hello, quantify can you, around rate for impact the for supply the on Doug of main also, And Thank part, follow-up the will you coronavirus? guidelines expect utilization vessels kind chain XXXX? I can Two Subsea one the for XXXX? seeing And then you're is costs

Bertrand. you, Thank sure. Okay,

it's was first sure in took chain supply orders Look, supply one, So I first to during of want the the year. the very the orders which quantify impact cover let with We to understood. chain. again me It's make the half the it's the of I control. started think these under the of We first XXXX. placing well well half

have We a a complete understanding. This discovery. isn't new

understanding guidance. took a that our into complete what's we of in and reflected have account happening We that and

you and number control, a can XX%. it's that to the able is to why provide, the you but confidence not the for well I impact, by guidance guidance hard of know, exact guidance tell in it's and least we level which have at quantify were XXXX that guess we provide the huge we So the under

guidelines when tied again, meaningful see until improving of the of in around we'll overall half, In we much not to see the those utilization a really second And impact iEPCI utilization utilization, the the really don't that's the fleet improvement until terms and of XXXX/XXXX. awards.

the then Okay, on on follow question up thank coronavirus. you, and the the

revenues your already some guidance terms in coronavirus. that it help So, of this us impact you've the being at what terms if in is the well, you deferred in understood currently I that estimate impact this potentially Can can Onshore/Offshore includes was of or you for time margins? included, understand of

integrate could on a impact to of made we estimated done impacts. a these portfolio that you in XXXX to internal all the some project judgment on moving the obviously, Yes, ready not at the aggregate we've because quite give really we milestones what of guidance because you that, we looked to see the number, and give revenue the are and is

you've you well, we virus. think at summarized gave integrate it our give revenue, a current we you guidance and very today won't and stage the we see have of don't impact So, our view the that we this I breakdown of that really the

Thank enough. fair you. Okay,

You are welcome.

question from Vaishnav comes from next Scotiabank. Vaibhav Your

line open. Your is

trying morning. good Sean's on was question. guys, I guess to Hey, expand I

what So – of the life you that the CapEx, buckets $XXX mentioned, us million the and bigger on buckets? other more are can what and boats bigger think expand typical can are of about help you projects, but you if

you additional Sure, I'll color. provide some

the XXXX of out, grew investment substantially growth that XXXX the existing our that rate expect in level you're manufacturing to the in growth asset the tremendous in The increment the we the there's Subsea fleet. only as base, pointed of maintenance services to I seeing continued and and we assets with both So out CapEx really support inbound associated business, it as as increment a well XXXX. repeat is to and that pointed tied which certain

have ways piece boats about for you are you are if what the business? essential are thoughts being of thoughts you Can any owning as guess, I and if latest if Okay, or divesting that there talked not there talk about business. Subsea - have the around your any

to look I industry Well, the not driving do to cycle capital look get And whole companies. and on individual needs through the our in to really order focused that, of structure we think and to our capital returns. of the returns, just have restructure industry structure at have we at peak

are by believe that other in particularly in example. many attributes, we leading Subsea we business, As the

because Allseas asset important some continue at we – as we sales put cycle with on of in well be investment community ensure took very very we able can we'll to will forward, we at announced to once know, decisive success going and the a will to that for continue work make place through during again a their of you We the margins So basis. that demonstrate partnership look for ways anyone to last we move. it and announced with a order and money, and all the year industry some very the type collaboratively attractive

looking in individually type assets, where don't the situation the to of capitalized, is are are, generate industry of tend as keep size required. type we up at they of we assets a If returns we own over regardless and our the that it what of to end

very benefit working type we terms able the generate of we'll of we will with returns that So, and to open we have of that, in type anybody that behavior. because demonstrated to be and are that from of

you. Thank

Your Mark next question Jefferies. from comes Wilson from

is line open. Your

an Doug the just update riser and give us Hi, an ask that the flagged there I'd involvement I and by and update on you Doug Brazil good Maryann. Petrobras, can like morning, to in about Technip's situation it? think

Sure.

is cracking the It as a environment. accelerated of are presalt cracking. therefore, a are So, reservoirs that met. and the conditions there's presalt when corrosion And of know produced. in few prevalent conditions very the we see hydrocarbons called in composition Those corrosion the issue phenomenon are rate we stress stress an happens that

flexible high steel is absolutely you annulus content, way, and if presalt type the occur. happens the it's of not, I condition, the and out will, fact of there a riser structure, was experiencing cracking, bridge steel know, of in stress the emphasizing developed, can It that well-known where can Why the a physical phenomenon. placed that well-known is a this phenomenon. when accelerate When This where it's understood. am anywhere event that? flooded you corrosion the standing a is made By because if certain a CoX is

well-known it So accelerated. it's becomes just a phenomenon,

this – industry So is look, industry the an phenomenon.

We the and be. are continue in obviously flexible install certainly technology the and base leader in to pipe, both the

effects SCC corrosion the will, what - or corrosion of developing that resistant cracking the be actually be will then with directly - and but let's and working stress even stress at could impact the time same less, much parallel, that's solutions it, stress and so that's phenomenon clearly been you and understand the and will exactly Petrobras And we in this sure with in So the to corrosion doing. that very of cracking, free. predict able whilst process industry, model actively the we've be condition, making more we're very if say the could we cracking, that

out. multi-dimensional as I am pointing So it's

element, which very well closely on and model are with being now first and We predict able that. is to working Petrobras advanced the on

issue now understood So and well it's combined we're and a very a model issue to it. - able it's it's

understand that and developing leadership we'll flexible just is more importantly, pleased the we with are and this with - subject that we're hand we're to in solve have pleased, they way with about able had and because talking application open what with collaborative team, weeks use they'll pipe. hand ensure phenomenon to a a it's very and important solutions really the time, a continue them across making. and we're are an Petrobras, ago same they of will progress portfolio, the At We matter be we're that review the two on the their to product very Petrobras to work small in

situation. are a all if specific, making around the at look you portion a our It's of That very is of Petrobras. small flexible to very not in of be market and It's total situation. pipes of being amount said, not the will, as unchanged continues regards isolated all rest I If out, this we're the committed of not to presalt. impacted. that product It you is It's is sold, Brazil. line, all flexible continues of business total it to in good progress and that it, In solving pointed robust. quite that

working could capital, then thank I very additional cash if Onshore/Offshore one liabilities And in just contract Subsea build in was you that? split follow Maryann, a just Doug. of Excellent, XQ much million short up, about the you and between came $XXX for give wondered

how don't it the try cash certainly Catherine about have in got work the But as be the I be know, we've to ahead might change in early talked driven stay the can projects, level So contract mentioned, pointed quarter the Doug as to and liabilities. flow milestone not And gets complete. think is that moves be might think try some we segments specific, to indicates both curve. you in as progressing of it that granularity. we the if in as largely that, through But a to we out we've got And you they by helpful. and we're obviously, so about of stages, - flow of you you change about payments, cash major

between Subsea and size Onshore/Offshore. separation of recently about think thinking we've announced is You major help some in that of might about projects that the what the the can and the

you. I'll it thank Okay, over. turn

from Your next from question comes UBS. Amy Wong

is line Your open.

of afternoon. good me, please. questions couple from A Hi,

The SPS mopping and to on the to share. a seems big be and winning to have first integrated one yourself projects. reference seems market solution and up The your SURF tremendous another is just industry the a embraced success competitor of lot

increasing win seeming how like on on technology this how maintain can And leadership touched to more what other – my even You more emerging Thanks. then important will about So of want talk solutions reacting X.X technologies you second integrated that market is in front? competitors general other compete they're about up trying are sort start doing play, in program, and can or you your just pipeline your to you flexible picture, tendering but some XXK take talk be also to Subsea? share to you and to with or understand bigger of technology this progresses? as for the question

they've transaction, far. we're awarded the Thanks, I'm on me now. this for thus our had direct obviously completed what just is what thankful vision. majority even way by doing the sure XXXX is, it. vast right Amy. out that given evident about of We're first in is that thankful market real clients the thankful amount awards over - the that sure what more the integrated those being talking the in not The they're of billion for they're our doing. And of very in. look, the we we in recognition that be most thankful and is $X on the we're I'll It's situation us iEPCI? to evident so clearly brief am company, the one, We're to the competition XXXX that But trying going. they're around figure I to

of it's able model, model not fundamentally assets. the In also changed our terms operating that our It only market conduct in in it's the is important drives that an of But the has footprint, both or in Subsea, successful. we obviously usually example that the physical of as regards to you be pointed ability technology our business indeed. merge a of like an as technology - well very which terms out, with XXK be can way been commercial expansion to leadership The important elements. the Subsea one program that important in our

in cost point view beyond point for Subsea I returns positive manufacturing Subsea footprint So from forward will on type will, impact view X.X have going installation same that ultimately you the for way, and of X.X believe a has a from and impact had our the or industry. ourselves capabilities a and if the profound a on strongly of of

All you right, that's Thank very very much. interesting.

Thank for more have you. one And only question. we time

from last Our question Hallead comes RBC. from Kurt

Your line is open.

and here. afternoon me or you very morning much in I thank fitting that. Good appreciate for

to up the the very correctly transition backlog wanted make the the of quick how much sure real that significant and of impact understand just Subsea going of related to Doug, explanation through transition margins to year that XXXX I you on So I system. were flowing maybe detailed follow through

make XXX to safe baseline at provided, and to all way to of is are that that that margin costs that? be basis the backlog look points at chain it that projects, in therefore point the can you minimum higher would maybe that than that maybe incremental guidance would of that the maybe incurring execute sure difference through a that you've fair you supply So on these is be say have a

the Certainly Kurt. going to corner, statement. with in put a your to disagree creative way I'm fundamentally me not

half. a been first second bit other enough. that - occur, the throughout market American picking where than I be half your the will North stronger looks of the Technip thought Surface commentary then when seems just FTI fair commentary running Okay, up XX% EBITDA. XX%, the that found the the does the one countered. about that's earnings is split That we've roughly be last little here And be would There like on interesting some period. Tech, you the to on

just want been other to hearing? want you just get I with we've that how see perspective on things your to try to and So that evolving calibrate

pretend look way ball only right well. don't are I I'm too dynamic American Kurt, Yes gotten XX-month the a have It's of now route market. on have going that doing giving that it that don't period. HX Most anybody's crystal could of for too a we competitors it a yes, guidance. ever went over market just our as And North others and long. not to I think

we market understanding it's and But perspective, more what when like for we're develops come our out market. to do the with updated the appropriate. half kind we'll half position how from in that view the trying I first out put guidance of We everybody understand and we'll else think second our see the

from finish there's to may the I get an model think on Subsea to and opportunity off update that integrated Surface, into to on Okay, you you've just take want how an just here, progressing? that be indicated from

year. on. very it's note and lot a So great later we’ll thank about to the TechnipFMC talking It end much, is you going well, Analyst that Day more this a at be

you. Right, thank

And could if never a forward. just question I'm little maybe didn't remarks. before done huge get LNG is I prepared award call. We came and a our as surprised, before, around. I'm The to question That but part a an ask because of bit I've a hour for award for just company going my one Energies this huge, element Technip going announced this we operator,

about a us announced tell you Doug the little more that award earlier could Catherine, So today?

Now demand, Thank words we this needed. a for question. about positive that, a additional of future general, are you, will just is I’ll the extremely say say couple infrastructure setup. to outlook for Doug be your still LNG in

LNG come LNG within the a projects. players market our but Additionally, few only not there positioning that these very is are overly and as to own complex strong credible across tackle can confident,

Energy is a so from the satisfaction. great announcement really today, this of coming award as Sempra And

early customer’s We also in record, the of very before. award. experience of result are engagement very, global had our our track this very pleased It’s we recognition with with LNG Mexico, which

very, and to forward looking project. are pleased we So on this very deliver

for the question. So thanks

to Seinsheimer call And like back I would closing over turn Matthew to for remarks. the

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