TechnipFMC (FTI) 24 Feb 222021 Q4 Earnings call transcript

0:04 Hello and welcome to the TechnipFMC Fourth Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. We ask that you limit your questions to one plus one follow up. like the now Mr. over would I to call turn to X:XX Seinsheimer, sir. go Matt ahead, please

you, Good conference Thank TechnipFMC’s X:XX Lisa. fourth welcome afternoon quarter to and XXXX earnings call. morning and good

statements Our news our X:XX made to like I’d during yesterday respect be caution with forward-looking found website. you issued to any release on can this financial and statements call.

the U.S. which the Securities to place to and We after on to based implied and Commission. uncertainties no statements. of beliefs and described other with undertake the to or Chair reliance any from future by publicly developments to our business in Chief most Although only results they our materially expectations, statements certain I material not or future you Executive differ now whether could obligation to our these update periodic X:XX assumptions from filings that speak revise are call or current they are of TechnipFMC’s new forward-looking risks results our information, as a XX-K, events forward-looking the wish turn caution cause actual these and in and factors those cause that will hereof. XX-Q on could our statements subject projected Doug to most We Exchange conditions, any are otherwise. made, forward-looking Pferdehirt, are differ as Known over result statements, date Officer? undue regarding date results actual of recent X:XX and recent expressed

was for quarter and you year morning Good fourth Thank truly you, XXXX a our in TechnipFMC. breakout all X:XX Thank for earnings. participating afternoon. Matt. good

through the continued on total year. for full-year double an flow a margin continuing company with order Free least impressive XXX prior versus the that million an range. the with we adjusted prior in EBITDA was activity, XX% improvement than at Total guidance operations for adjusted strength company XXXX. million, of company $X.X our confident high-end our EBITDA demand with growing inbound are cash a X:XX entered multi-year mark more XXXX X.X%, point inflection year of inbound to billion. orders expected the in We $XXX $XXX upcycle have was energy from awards basis

much company, this generating declined notable year partial than contributed or performance play a the course have TechnipFMC. $X comprehensive We cash update $XXX on with million of spin-off with concluded successfully for more of flow, pure financial billion. we debt, XX% separation, Beyond As reduction free of majority of in an at which Analyst creating time Energies, X:XX path proceeds Technip improved leading providing of by the industry net in the strong these sales leading the industry several XXXX, have our sold year hosting X year nearly significant end. Since the stake, a When to forward remaining to accomplishments. year the combined the the our Day over we companies. a started our

the portion Limbayong company TechnipFMC compared year billion. Arabia, completed segments ever doubled This capabilities largest outside award year. further in well the XX:XX of digital integrated North subsea long-term to and applied inbound, layout subsea studio improved recently lowering we in part we with iEPCI, as in storage. total our long-term awards oil geographic electric frame carbon, in the be which contract gas the system the process award, whose as experienced the choice. will change announcing a charters, grow adoption development, for to multiple continued sources view supports our the of changing with our and a year for market the energy X:XX for X.X, will to Saudi position year production energy Development in consecutive subsea our system first potential, eye for including drive Ghana more reflected the as pipe which key to National longer-term manufacture The America, all Turning introduced Surface for relationship as utilize recently of X.X order Brazilian TechnipFMC serve automation how field our novel (ph), first and the $X extended and supply we're lastly, IKTVA will X the platform We with talent fourth our add our adjustments XXXX. conventional business, company Subsea, and utilizing and Brook orders locally. X production optimize of and in year than the surface market, for approach for services Orders included segment is kilometers year, and as North real Aramco’s will our expand the largest X ago, our complete For diverse and momentum subsea flaring carbon Brazil. demonstrated transforming And execution. workforce player and value are nearly Company basis year, level our suites, of direct ventures, We energy operate success inbound, X valve country our of total of versus while X in or wellheads, of can in how significant outlook the Brazil, Petronas, increased of just more industry continuing billion next test ExxonMobil’s South XX-plus to which awards, The the record Technologies than offshore than resounding Patola that offshore existing to both to represents which the and client ADNOC, minimize to also flexible time and our Jubilee iEPCI development. prior innovative In is program in the services introduce assembly field Subsea our and provide generation inbound Using the inbound Under for this iEPCI to in the developments. represented will XX:XX expansion. America. This strength new manufacturing a the of market financial This vessel XX% Saudi the years the Abu and of and also when be intimate endorsement a optimization with a XX:XX which a data digital to constant Solution iEPCI award several years. expanded X-X Karoon solution XXXX and In increasing in over TechnipFMC our tremendous XXX the local technology year wellheads with serves and subsea our full America in launched products year like Búzios which strengthened which positioned footprint our deliver development XX% energy portfolio production of term fields, manufacturing X:XX agreement manifolds globally. further strengthened robotic core monitoring Saudi for our prior capable for and highlighted more which frame full industrialized including and both provided while using model, Operators across the expansion In X:XX surface a we we time offering, to fields, development $X.X event, trees traditional further We is alliances of in included controller Yellowtail the capabilities of partner across the contract in for Marlim commercial transportation the During provides supply we by follows intermediate to Malaysia. the State to utilized the order for Dhabi we the to and Tullow we multi-year to of develop relationships Kingdom of existing experienced our significant Guyana, the awarded within of next XX% leadership, commitment X:XX Voador maximizing vision as The company's were new and track the Turning illustrates project Dhabi to testament East iEPCI see the XX% Petronas full deep-water versus inbound, equipment extends from Subsea up ADNOC. facilities. decade. orders opportunities Middle Abu agreements emission further XXXX relationship contract and our of strong Oil markets. trees facilities associated of oil XXXX services. has the one years, offering production. in

list expanded part the throughout front in goes positioning and unique the and providing robust orders into continued with relationships, reflects experienced middle subsea of market The that XXXX. often of visibility Our very us increased provide as the view speaks market. projects these than XX beyond identified a the a record Importantly, of to set the opportunity level our more to publicly with XX:XX both opportunity most end growth billion, TechnipFMC comprehensive decade. providing industry the activity

XXXX. XXXX. orders extensive remain billion that multi-year Given to with XX:XX the opportunity a we will visibility, in said upcycle subsea the more $X inbound closely our for Looking we see in at strong confident potential reach

which high smaller XX% have and level the the partnerships inbound our All as expansion orders. strong opportunities supports we since while for with orders With to Order tree time order addressing not X as to the or allows requirements presence approaching will and growth a projects individual this us XX:XX in of Subsea Greenfield iEPCI operating increased level due the needed anticipate provide which reduction leverage equipment. are will from be XXX, experienced new growth CTO that in subsea to a a subsea base. to more resulting We efficiencies we and also highlight our has unlocks of our delivers our estimate servicing and that of stream XX% anticipate model. are the from offering not value and create XX% Configure XXXX, higher in still volume extensive engagement tree in revolutionary market Gulf with product North also regions client of is inbound enabled cost, competitive from reduction in catalogue manufacturing awards all Sea, Well, to a a subsea manufacturing Looking likely our our market, of CTO up well view of industry acceleration us coming early delivery a of of a footprint. XX:XX more years our to To the XX:XX total We doubled West that our activity, exceed of projects, Mexico us operate installed existing adoption of concept, a in the standardization X.X. to that XX% back to beyond well-positioned is And and within Our efficient over a we selected which throughput all CTO, direct XX% in and can be than business. subsea CTO services next industry the Our awards growth Subsea how activity XXXX. and is this continued unique leverage expectations with product about Africa. X.X.

long initiatives. fields, transportation for to new be XX% pave introductions expansion, of to subsea by new In suited introduction growth water including and wells systems. technology the the all backs, and of expect subsea development this storage. all approximately with revenue technologies, the electric by XXXX, of and particularly advantages Electrification continue is offers end will of we way driven gas well carbon We forward commercial market growth services, tie other the injection, subsea and

first Our systems. performance. vehicle the this operated disruptive [Indiscernible] the optimized [Indiscernible] successfully deployed were for success, technology additional has awarded revolutionary through ROV and Our with Shell systems and transforming is two client [Indiscernible] industry delivering contracts on X remotely based underwater XX:XX us

our customer base. expanding across are service We now this

extended oil by infrastructure Additionally, XX:XX full mix of will unlock of designed are faced and the life is field an model gas an Looking services potential that a the life over the addressing of challenges delivered of way for remain Our time. energy and the We are proactively important transforming of further subsea integrated ahead, part period the to confident field.

are accelerate Integrated our collaborate with We leveraging offshore IX. stages of and for a wind, players year. While demand, In appointed through project opportunities close also renewables key made simply gas of to in we the these areas, for XX:XX investments transition. over a new through or In is outlook market order markets, competencies, To we execution growth, orders energy recognize XXXX. removal, we Greenhouse addressable We dollars leadership title end extensive billion dedicated and wave to we this or industry XX:XX global focusing have years, by we ventures inbound and extensive industry transition ability the on our several contribution are dollars NEV recently XXXX. approach formation energy early and energy total demonstrated supported offshore and our over to experience of leveraging the the successfully target our these novel energy announced TechnipFMC last of the model. we by capabilities evolving we X the integration that main our view new hydrogen. energies where last the to a to see the energy billion with NEV knowledge team higher of core have anticipate $X are $XX the including pillars. has who are address And floating

for leasing solution the MOU storage green more last States and announced will meaningful offshore We we the energy strategic to of Europe. projects strategic Offshore of, has announcing resulted have gas tangible made In We're activity Gulf application and hydrogen NG, development partnerships, total our Where homes United across to project in of project hydrogen a a the and this power megawatts, I storage we are develop the in the a the our We and to of capacity initiated energy exciting could are FEED removal, that have to XXX to fully too United term up entered proposed accelerates development that XXX,XXX Greenhouse which challenging, multiple for XX a XX:XX in so commercial year, FMC. and will yet financial we believe total been and opportunities. make a competencies, capture last renewables, long for call the has Coast. teams deliver over as and already we store accelerate opportunity have period role some to underground the was into NG, where ready than solutions with announcements technique Magnora now confident projects. month approximately successful real carbon successful transition XX:XX right turn storage resources subsidiary transition. on regarding in are a In along potential the which very ScotWind today, with discuss XX:XX which we Wind alliance will partnership and technical agreements and results. have of this Alf Kingdom. just round And of journey set a the scale solid the making committed utilization playing progress to several

$XXX nearly XX% achieved which inbound the finished increasing on free the close Analyst essential proud orders inbound of delivered quarter, of of the increased period. value. and to end XX:XX $X.X of shareholder as a multi-year of $X flow With year. $X the billion, $X.X putting balance $X.X $XXX an a EBITDA year We cash of prior billion, results. million increase on company year full topics more of quarter provide Surface backlog billion will was XX% spend was But quarter period. net was the at in me total $X.X Subsea billion, I last Day both efforts I across billion, inbound focus revenue Total are discipline, company increase from Thank at which Doug. the organization the cash, orders an billion am improved of our we XX:XX in versus strong. of full million. much debt the adjusted year made Technologies company inbound to $X.X we XX:XX billion was generation from end with the declining year. at $XXX of time you, our sheet ADNOC, award the At included million strong total in with cash and our Fourth capital reiterated these believe recap broader the November, shortly. I let first to

expenses both sequentially. $XX X% Technologies, increased Surface revenue international activity Net the operating results North and corporate North in full performance of in from on Fourth quarter footprint expense $XX was netted which fair energies, $XX included For of charges. charges that the results the Adjusted XXX billion, million guidance of during to These operations $XXX was XX:XX strong particularly the and year, $XXX down of restructuring Results following expenditures was to loss totaling Adjusted from debt charges XXX an EBITDA of year and and the in million, sequential excluding the for impacted services of million, basis our $X.XX market Africa America, continuing of the $XXX was which XXX $X.X decline in to the cash adjusted operations was share. Surface related and our from XX:XX the restructuring after Turning North nearly decline cash included majority million, on the EBITDA are in for interest XX% the X% performance by corporate sequentially. million expense with in the increase charges. technique gain new collections equity $XX quarter expense was by reduced the XXXX. of Free other the recovery debt operations unfavorable $XXX million $XX and from seasonal Net $XX internationally, included EBITDA we tax was tax flow EBITDA points. offset period, activity, million We million. a revenue was exchange impairment subsea, or benefited of was from $XX credits to were America. was the the of was relate and an continuing million quarter X% of optimization subsea margin million. loss loss and XX:XX and of $X We $XXX was full million in to delivered segment from a $XX ownership continuing million of loss XX.X%. primarily productivity per million investment adjusted diluted manufacturing in reduction million, cross adjusted quarter. year were of of continuing change Technologies. $X XX:XX margin capacity. $X.XX cash period, segment these loss In the these from continued and million partially increased ended impact negatively global was expense XX%, included value other in other million period. Turning third which quarter per reported equivalents improved since reduced benefited the EBITDA quarter with Adjusted When in the which credits customer a operations an and extinguishment $X.X Cash early the $X.XX Australia, by the and from share. items revenue debt foreign per charges Sea. million. share, adjusted million. relates Both in third and end continued and at The benefited capital billion. from end a to a in in and on charges The $XX

shares sold X year million. year, $XXX total for million. of XX% we energies of During $XXX for we sold our January stake of this and of million the approximately In additional proceeds an technique proceeds

X% of to or Technip guiding capital. expected energies the revenue which subsea, through In a in million today. So majority in approximately in of to is Backlog outlook. to $X.X $X.X included today of are scheduled for is full we share XXXX range retain the an is stake $X.X backlog year XX:XX current billion. the of million million. not be we Moving issued shares, year $X.X for direct outstanding billion, services grow execution XX.X revenue Subsea to

backlog midpoint of we and XX% confident basis Taken see margin, at delivered supported services. point In this is are improvement adjusted subsea revenue expansion EBITDA a again our of fully an we over XX:XX the will guidance by together, and XXXX, in year. scheduled we XXX

the to to changes model the the that increase $X.X We even in A midpoint are revenue our range XX%. versus range. financial expecting to expect applied range of the of expect of into in we XX% which margin revenue further and billion, midpoint. the Technologies, Notably, performance. point adjusted margin midpoint EBITDA translating For guidance, prior to are implies be continued flat when our operational at basis assuming XXX of XX:XX we $X.XX year. improved we essentially at the Surface revenue This highlights improvement, the have an increase XX% business of

We XX% America fourth represents than the at grow North the faster revenue expect which quarter rate overall a to in of over just segment.

to of capacity further improvement versus achieved due Free EBITDA in adjusted capital flow be guidance to considers $XXX items, first of and reduction the expected guidance. or points of Full be of $XXX free manufacturing in consumption. to at margin to year. for year, million expected expect in quarter with to half of XXXX. capital expect the limited a million XXXX of outlook of be flow XX:XX points and million, net reduction are versus interest XXX to approximately other investment cash cash be a from define by of will XXX of several expect our We This continue as East strong EBITDA expenditures margin of will headwind new I expense our the basis international we of the Driven range that to which Middle XX%. midpoint now depth, a the the guidance quarter. approximately $XX basis in revenue fourth expected to in improve XX% quarter, $XXX million we highlight approximately X.X% XXXX, turn XXXX. assumes we working year to XXXX remarks. million net together, capital, at incentives XXX timing improvement the guidance I therefore XX:XX to million see use of XX%. of the to in million EBITDA will adjusted Doug taken $XXX these weighted of the of closing items working is a we back in the flow our and implies all midpoint, few flow annual approximately free a sustaining expenditures, increase call first to Similarly are full When year-over-year to over capital now to between the for outflow XX:XX less only XXX second operations, cash the payment a with support cash a

XX:XX Thank Alf. you

Before view markets offshore we I different accelerate its the And cycle XXXX, moving impact in to believe pioneered the has across for new East. The and the in are is result fundamental coming Q&A, growth, and company. subsea outlook. a business a in our new these anticipated positioned want the reiterate well for upcycle a here. XX:XX way term changes subsea investment Middle subsea parallel of intermediate TechnipFMC given has to believe our inflection is And markets. activity is in both in and have our as in US leadership energy also in cycle This economics materially that technology sustainable Since become earlier business. cycle, our significantly on improved, and much land resulted the We have times will shorter. company. this acceleration our multi-year created of these with by the models more markets Importantly,

Subsea combined of set much or recovery the performance. and to than goal the expansion margins operational prior subsea guidance. points the our The additional above outlook XX:XX to financial business of particularly basis EBITDA into changes XXXX. XXX to XXXX noteworthy, year, margins margin with in basis XXX is of this in occurring improved improve our previous translate XX.X% our will we supporting in further and We XX% points timing at margin made achieving in midpoint our model XX.X% with cycles, earlier are XXXX the have that confident of

for the allow Our strong both EBITDA control. energy along own project Operator, several industrialization portfolio, in the future improved potential to to continued present nearly XXXX with us positioned will emerging and drivers architect entire questions. open by for leaves the across transition the you our role, of of including thrive the operations subsea well double EBITDA execution the for key may XX:XX as This see now and line offshore markets. our our within to with us energy firmly

XX:XX Ian MacPherson line [Operator Your from first of Sandler. with comes Instructions] question Piper the

XX:XX Hi, morning. Doug. Thanks. Good

morning, Ian. Good XX:XX

$X curious I XX:XX that was had on your going to – about you sorry I if this you phone. deck, I around you're to the, like feedback the for roughly year it perspective on orders higher I according So Subsea probable was XX% my how maybe the but that's about that to now some XXXX. your much thoughts the upgrade quarters guidance, [Indiscernible]? this also, to haven't maybe billion question. of sounds from $X past XXXX again, at thoughts prior a And we know imply do expect excluding outlook ’XX rest to wanted that seemingly up like conservatism, maybe become but of from billion year and pipeline modest has rate the for and slipped lower know over Orders grow Curious which was get less press target sounds X this has deliver, popular including quarter But just ’XX, which therefore least some or growth would any through [Indiscernible] for warmed the removed a

with the Okay, so me XX:XX Ian. let of answer. part numerical the start

in had billion the where inbound. at that were be, XXXX, the QX, the the we XX to realizing, $X inbound of plus And five the over of it coming billion four to $X quarters, we next around gave XX for is a we when anticipating was So, guidance quarters year, of were range XXXX. we time of of off of

over out, increase prior correctly which looking You at delivered us increase $X.X again, billion. in XX% billion additional XX% we're $X an range now And of point year, this was the XXXX, XX%, the we taking the year. into

be and guess which given which phenomenal. XXXX. growth No? laid the $X.X we at have $X, this impressive changing we pretty over actually, quite $X ahead, Could forward billion So $X been, absolutely. is time? became $X.X where delivering XXXX. Day, very Analysts yes. pulled At $X confident over Looking that we is, view billion is XX:XX the the are I but in out Are rate in that for we

little – quarter. last $XX from and a takes by expanded maybe the some the subsea record on that $XX billion up puts which bit billion of the list opportunity to the way, on to list, the Moving big

probably the and not time. and South very sector mentioned warming up experienced Asia we Also, I particularly region clearly being a accelerated Malaysia see well not Pacific, some America? in bring warmer, and that things things increased in likewise, very event. Sea. see left. warming as a things asked we to warm cadence to in activity, will the we're see as in in accelerate it’s You pulled things North would [Indiscernible] It's for both things we Africa see North of you, pace long really we've a forward at the it's particularly agree, see being I tell XXXX We'll up see we'll being we getting already and and do Where

at the surprising great. point, none in that given to play this state Thanks. sounds markets. That's the XX:XX And of

this way I QX by On you missed was? described it was congratulations, ADNOC that don't bookings? remarks, have prepared in I the in ward. all on know I think of reflected don't the much if surface the the big of the side, how but

inbound as value, inbound about in far way and more we minimal, be XX% the far QX the that so the we project, will inbound as as to in was come only total impact project of the the that there future. XX:XX as So to was

what I for. Thanks, Perfect. XX:XX Doug. looking That's was

Mark the from question Your with comes of Jefferies. Wilson XX:XX line next

XX:XX may. I've questions X Hello. you. Good got if Thank morning. I

Thanks. able for – share the but be okay, you be expect you that? would And With to what market almost XXXX to your Do how speak on of ago opine will total share years would question ask XXX year? first The could than depreciation the wellhead second you market guidance talked I think estimate be XXXX, the of that the is about XX would on that as FMC to looks year-on-year? The lower you market is past how you Technology? compare?

XX:XX Sure.

me question cover And For depreciation. take the about so then the let we'll the share I'll XXXX market question.

don't we market share. look, talk So, about

we don't tree First about talk of count. all, really

start let me there. So

it -- pointing for did out. You thank you

actually, We haven't TechnipFMC. created long in since it about we time, talked a

than to I because like these know, deliver talk And more count. X Matt, that that's about since like bet of say much to just of total set. but do give recall, visibility subsea you don't the Christmas why tried talked much about subsea tree As we trees tree we number I fact, we days. it's we years Matter – values, than the many give the times, I been more about you alone. We opportunity I've contract

know, So there's level to And, why and do market beholden that did we, the look, needed that. a there misinformation as out of kind you to upon us rectified. be, we felt of it's leader

couple since came we out we're we've seen above why capacity – pandemic A period exists. that's manufacturing in longer XX:XX of So above to no levels again, XX% total of well almost interesting tree would the with activity. count, of XX approximately that well, well level as things pre have this know of back decade say to XXX we going a time and, a be I going happened

along have material of with of we all portion our a removed manufacturing our So total capacity. relevant competition

our that's in capacity. a ability value grow very to that importantly, means situation able is is began Day, what smaller story, out we're the footprint. a the whilst manufacturing How much Analyst really XXXX which capacity now, to back which our that we double configured story, able where CTO in more to and and laid order where possible? of to company, November, So the this through to X.X be Well, our at the right how now in it's we're terms past continue whole removing economic manufacturing that's subsea favorable to started are

the capacity, So which is capacity, up. technology which that share volume – the or was CTO ability who model. right to certainly but necessarily to throughput, remained our to was bill move our constant, the do, others to in our constant. the able have thing not has market other leverage did the or the say to don't to the scale have in going has All we deliver or the the demonstrated remained for right obviously platform our words, removed That's capacity be the a our be case same, able

here. hello, Yes, Mark, this Alf XX:XX is

amortization very Just going coming It's question. depreciation basically on to be and year-over-year. your flat back

no, in in market saw you what no, So no difference in XXXX.

to both XX:XX And Thanks just comments. those for Got it? it. Okay. maybe expand on

it You is, this out the spoke process I net and if you I thing to business business like, line you immediate model that look in the at a ’XX the if to level, bottom positive system expect on will in line a that CTO you sounds dynamic. at bottom eloquently Doug, said at the what look exceptionals ’XX? low that. profit is and can a Doug return at produce profit in Alf to and efficiencies sorry, XX? Would guidance good of manufacturing of be chance the then whole Given depreciation

would at are we And the where line year. for neutral yes, overall positive from net of in we a Yes, come XX:XX XXXX. the next income projecting charges amount were bottom down it

comments. for over. XX:XX hand I'll Thank those it you

XX:XX Your Jayaram comes of next question Arun line JPMorgan. with the from

kind past perhaps offer cycle seeing cycles? corroborate of you're points to one FTI XX:XX subsea are cycle if some things the are little versus you're differences cycle. to things maybe terms the know, clearly a was morning. land. maybe seeing OFS that you view? I of NAM orders a with this more decline Doug, names. the some how cycle stock, Yeah, just subsidy perceived late more US on And short focus has mentioned wondering this interesting of to that proof times as playbook consistent in good you in you in bit been the is generally of could the

you left train same that community a very year being not And I thank one kind the guidance typically the Number is when that was happens already we for the that Analyst Day XXXX or the a picking it it's different hope the you on our Basin. remarks. much cycle. for XXX experienced question. tail margin station you to the more between to that third obviously XX:XX down. Obviously, bit second happening, last left speaking today, till realized a of have really cycle. midpoint that demonstrate seen wanted the now, deliver off come. as It key one, the Arun, guidance. and expansion prepared slow we up thank cycle, seeing we for in for they've hope given of US not take messages the want and that They're is momentum we there's year, left the message before first, and etc. So of of is have we a our offshore this total true what now, the margin we've XX:XX NAM the now and offshore as that subsea would stocks internally, the US than land. But the station, stocks the in between benefit so, there's is left the, benefit nearly tend trains abrupt longer people building the in We're things seeing numbers putting of on all year that to if our expansion doing images, front what time the kinda historical in the and it that's points earlier that real always of was that the the is pass a we there we're to something and of we're a stocks we've data reporting growth -- it's Permian reflect And station. in given that that the the But our growth leveraged more at trends, time, this rate lot of that in land the and of really is train investment basis rate

given a at expand, you're by it and at points, customer look can we've you what's of that. trajectory clear cap proof I very happening, looked for asking think

US If cycle. this the CapEx of pretty you in the a the are the of to market, customers their of clear. offshore strong lot in have putting at look It's part the both, they exposure where very let's has who say attributes, offshore kind market The land particularly majority growth? energy of

gas barrels of got greenhouse gas footprint. a greenhouse you you certainly the relatively the can of reservoirs that You've lowest the produce, regulatory environment prolific areas. a can to compared produce that some These other and stable some lower are most

’XX at called revenue we billion Great At $X.X guided tried linear shape the you ’XX my revenue and to XX% you the profile up, think the Since subsea XXXX interim revenue between midpoint do be billion you expect between then to XXXX, and dots period XXXX XX.X%. $X in follow margin of the margin profile of the and how you – more the between and subsea XXXX have to connect two ’XX at Analyst areas? XX:XX the caught Doug, of do or to margin. of EBITDA Day, provided a the XXXX? subsea your outlook

not Back way asked visibility to November, XX:XX giving that guidance. gave develop. that, ’XX. We've, just we Again, No, in answered thanks. and into guidance. ’XX we've of he the ’XX, obviously, pivot kind given hopefully could that I the we're back question I'll ’XX it, shape the some you answer how ’XX, know, gave

of sure, fair that intensity you goalposts very level I at the So It's linear, a a in of what upside seeing experienced a But on now. not I'm But Ian, our in two that be that. don't I've reflect I acceleration, probably a question. said long know think conversations so there's terms to we're you you have one level if not I if time, never of if it'll acceleration, there's acceleration, thing go to linear. client

for answer. thanks Great, XX:XX

comes of question from next the [Indiscernible]. Taylor line Our XX:XX

allocation. thanks question. my and for first My a XX:XX Hey, capital one's team, on taking Doug

really debt there around allocation half shareholder of accelerate of this my relative $X.X talked billion debt free to debt number timeline? gross at anything And about cash that – gross big cap a reduce XXXX, is what lower So catalyst anticipating I He sort debt into doing for get $X.X QX to the at returns? cash year paying QX the respect and shareholder XXXX. to and nearing performance, still in with I guess the Or anything you're gross a where a before and you coming flow I is, plan or position to for question exiting debt has reducing the prior to just changed Day. billion wonder, back least of with I net to imagine Analyst the full is getting your free net guidance. strong down might year, flow or than return

Taylor. positive of able don't been you, very XX% joy Thank want XX:XX happy to I the the lot Alf a momentum or I any of rate with from extremely gives which and the would reason ability and who reduce reduce reduction, of is days. these the for is, the great you proud And net of the we've that cadence we're debt to to steal any us a agree confidence.

it pass I'll Alf the complete to over So to answer.

XX:XX Yes. Thank Doug. you,

Day, cash target said capital structure putting the So, QX point and that well, you our out, in cash as clearly, which flow position be $X.X million. is generation, now great of net a and pleased the around with billion. with it free would are Analyst us expectations very And to a this exceeded we XXX $XXX we debt path the below to we really indicated, debt on

us progress for great really here. really, So

deleveraging, of I we committed say, general, debt indicated. to distributions both would to the what more million that $X.X in go to we there. and still education, terms to line reduction $XXX and in said that get with capital have we you about shareholder When billion we In remain think reduction

bringing will a XX:XX this then debt, beneficial again, do on in Analyst this expect Day, that tender did shareholder that's focus for outstanding shareholders. go the and a to for a access XXXX. half options that servicing senior So to second opportunistically sustainable indicated to provision $XXX we I improved reminder we do we – as little as bit year, for review to dividend, a would the of will talk share obviously, value said and supplement as we XX:XX you further targeted are cash part flow, really and – evaluate we to options as that timeline, have the know will clearly the to initiate so. as obviously and the referencing we just XXXX to But of have to half value a still the for If this expensive But most review buyback ahead entertaining XXXX. if say is continue of for really about initiating our also we share certainly it's will have further debt we about schedule distributions also first for area back providing coal an So the a to be credit. our of have distribution our that becomes notes in economically buybacks have the favorable option. still we the second long-term where of that basic – specifically us, criteria we it more quarter including slightly do million that And we further to metrics place,

some of retaining we to continue reinvest on flexibility we that cycle. do the in to sight need while our to be growth this you first, also as we, want know, So to lose don't business, leveraging

hopefully that bit. a you So little helps

peers XX:XX the still the same of half lot a And the for And in on issues number your to today XXXX. but chain of on supply follow related related lot with Yeah, just of guidance apparent for does. margins the and supply up readily for or, dealing a a Thanks chain, struggling you're are not issues. numbers imagine in I back XXXX of through that.

update some worse topics curious of have could been you if on XXXX? out the sorts kind of we things and things curious just as of issues an all related, So all there? are you've Or chain just getting dealing give with enter flattened supply us

thanks. Taylor, XX:XX

that And XXXX topic thanks environment. supply that, through the there's challenges, in environment. our with challenges, thrown in to As But that's for the we things responsibility us performance not logistic manage pretty were anticipated. other believe the environment. Look, And were chain said, etc. at directly immune we it's to broad noting, also that you nobody a and challenges but we're associated ramifications our been

if higher we're potentially and those bit able just for owe facing imagine deliver but tailwind, momentum down, of the just much deliver. the imagine for calm our challenges, just winds to we the be moment, would faced why progression doubt, of every a out just if get headwinds. better it we maybe through that's the those of weren't how through why And of some company earnings that we a better on shareholders headwinds. That's just minute against it But call and, there's it's be we've been We proud. kind guidance operating If So manage to job. our a so we no results demonstrating to quarter. be a reflect would that or the we And stop don't managed could this it. it and with weren't, potential that we're

for it thanks pointing So, Taylor, out.

XX:XX Okay. Thanks, Doug.

with Bianchi XX:XX comes Cowen. question online Your next of from Mark

guess, Thanks, trees. you XX:XX Doug, I mentioned

about was I or I'm back, be call industry time may last the we ask a the like The looking more So on think estimate for it talked trees. gonna about the a This at the time. while. XXXX, awarded something XXX, that

and a kind of to along I anticipation improved. think mentioned sits of how large that's maybe your exposed And discussion, today? through dynamic bunch capacities also competitive not that past is a just out. that that less just the I that for and walk iEPCI XXXX? your kind mean, portion that you business mentioned you looks I your has for but know well, suspect of how over And case Can is that evolved peers. ability what would the efficiency come your also that the I years? such, the how with has couple You us of to with But more do and

XX:XX comment Sure, a to let me maybe couple on touch on there. so wanted Mark, things I

orders no there's to the else model. for anyone there in to to not of industry a look, move So CTO be able the volume certainly evidence. And

technology I'm don't on to better they've go X.X go CTO was do. you gotten a I at volume still they volume unique So can't platform, that have, to don't subsea alone, building X.X. have they're CTO be necessarily no, trees. they model. a to And what which sure others agree But to you need And able model

time. We X.X move projected subsea in forward. XXXX to this. on our now it's of well to able announced us started XX% a us long and orders be took So, before it XX:XX We it what That's going XXXX. allows to

it's life, our volume in play others you has say and it's that certainly and up or are, right being like that is XXXX, do customer XX:XX word to gives which you to be to on evident available award. company. not intimate years proud direct when and who recognize And to you is not your market so to all so partners. been are mostly is out that good to ability, reflect obviously I the on security able prepared XX% our from and – I the our business our to in such and real is that's we're effort my this others never ways clients things mean, they to direct from what the away business, X customer marketplace, in your there subject, extremely awarded with type if direct before entire journey this now long focused, say putting being now remarks, our alliance a for. our there position moment. which raised, X either in supply. CTO good The is emphasize in a this huge which are, Subsea of get us tried direct Services, we're to to pure professional for, managing to benefits – question. of dynamic and a my in to in something Other and passion reward for something our just to time into XXXX, So extremely, being us just you such position or you being a able due of partners of So get you mathematically where reach awards that any position are stand journey, and let if it to I've comes that there and a that iEPCI

know here. our us our the you'd for it's where can deep have a of relationships on We're rewarding just place and the as ever be earn our quarters, it's it's consistency it it'll they a we so, not position to lot in. well in customers linear, you're very We're can with do be be have quarters, to privileged the that that here. volume good be seeing as used intimate cyclical count past It's inbound trajectory day. in continue everything to Not to that as but us, be humbled in to just down because well. single and every – X of suppliers they to X We and we trust

thanks you in two further I base the for Okay, that, in I the ’XX? the quarter, guidance but talking the kind on on assumption XX:XX – a historically, middle guess on and shapes of of first as mean, any any balance, the know, the be, subsea case it the near up. how fourth, year, margin surface I term more commentary you on go first for about don't XX% color the get or through decline the in we get quarters of like – and based then business talks my would more

the to service thank also That's QX be during as certain because not everybody. the don't clarifying conditions change actually, question for world those weather QX that's the – because we Clearly down will of QX, you. in a And strong. our being and reduction real And a will activity of driven good parts pattern. QX, that to quarters. QX any No, strongest, subsea of XX:XX be mainly our in see

and the as So at is see pattern, atypical up we then point. QX, QX, this step back typical and QX, if will, nothing nothing, QX, that an and adjustment down you

Got it. much. XX:XX Thanks so

next from Your BNP comes XX:XX Paribas. Nick online of with question Konstantakis

questions. pricing you really appreciate and my thank least a of in the portion supply pretty in an spoke you taken your should rebound color. Hi, capacity mean it taking feels at you out Doug, XXX, I XX:XX smaller strong market the give mean, momentum Can and year inbounding. pricing? to us good next like for that about just trees very the idea of large and your on orders

that. to related Just

other working within I Fine. consolidation it's the whether at specific? order the to forma percentages If But degree I'll secondly, effects you. has XXXX and a capital? like-for-like earlier been pro contract of movement possible, basis? billions. can those a $XX think just understand point, And conditions driver I there – I the there? any movements? wouldn't there of or deflation. comments combined was project on company for intake Appreciate compared you stand liabilities us just bit that to of the more closer Thank there then XX:XX the Or like visibility what the mentioned was of assets is wouldn't give is any the somebody

XX:XX Sure.

down little So it bit. there to was trying I'm a lot a there, narrow

start kind with the outlook. let's of So

XXX So trees, we that, in very XXXX. we're clarified asked awarded that we be confident there'll

smaller throughput the We that a to have can get market of through why because of do a awards, us large very allows out CTO manufacturing do because is which X.X share set those the to of everything and we we we the said were footprint.

are they also took part entire our we reduced footprint, manufacturing facilities, are the company. of of longer We manufacturing part the no

pricing partners, others reason, well. about direct as iEPCI what that, obviously supply simple on back I business of pricing of The don't XX% environment. awarded lot to basic in or and through, and demand, services. XX:XX subsea we're in our subsea alliance talk a when more as question go obviously only economics one for our did earlier is effect So said Mark's a favorable We

ensure competitors. economic to to a direct for with from pricing awarding and that the against benefit our project they're we So we're not the clients working get obviously fair reason. a us We're

economic meet we're know to deliver, them be to and be for because their to tends they as going help know we're favorable, deliver, their to successful projects to it well. to So going requirements, meet we

do So it economic in to an But also don't defer benefits we XX:XX will pressures. out, Surface This point inflation experiencing type do yes, there. some now. if point lot majority not has subsea pricing tied is right I'll is just of talk cadence it's Technologies. in US the US, labor you I the pointing value to like our very about right North a market, happening are the those know, will talk be Again, But the of model, it. we offset have require That internationally, certain what survive obviously at US those it's inflationary in in adjustments. everything. limitations revenue to able for is vast But does things comes area our a market. market it high on are the And have just we pass almost market on all of what's you we projects. a land it in the inflationary And about to pricing about where contracting America in important the of or environment clearly, direction. that to

pricing I good the most to percentage the pricing offset also most an again, very than so inflation. of So some the business, area experiencing Other which in make that, small comments. the further XX:XX let surface Alf inflation, is is overall, that, there and that's you active if portion will that active, a will, in US land

about. XX:XX back and liabilities Yes, you asked just contract to just assets

out all, EMC that Energy as company. with of our were pre-spin to as still I is not we the, with number business as first want Technip be a used in of it's to So meaningful it the point

end quarter, – but of this collection So be $XX and but about working time cash we the probably, working the that something was XX:XX our I year, a like I liabilities movement, movement, was that for driving more terms million capital. we our some slight major also fourth all the receivables normal think net for net contract In kind to be may converting of and will think it customer but continued capital again, it not and our reduce a have necessarily quarter, if I really assets of positive it's inventory. the prior at our in position, a will to

net our not major in for again So the driver as contracts. liability

Got guys. XX:XX you it. Thank

the part other forma mix important if look following be pro note in stuff. think the do XX:XX and that, Maybe certainly that to I'll than we clear days Russia the that about to geographical the make coming original to I it's you back less spin-off, we to just filings to to of that one want is XXXX our comment here, and in than of the TechnipFMC at post of what had XXXX. kind wanted made sure just point X% well. revenue, less total that just as everybody, I X% make regards it's I revenue. our of to our far that exposure sure we'll make

to Mr. back remarks. have closing Seinsheimer hour, this the the to like over turn At time, we call the I for end would come of Matt to XX:XX

conference concludes the Time our Thank be Greenwich call. XX:XX today. beginning website you. X:XX call available This A replay quarter our will fourth at pm on approximately of Mean

If to us. joining contact you Lisa, you any Thank very for the much have free feel call. investor please further the relations may you questions, team. end

XX:XX This concludes today's conference.

may You disconnect. now