TechnipFMC (FTI) 25 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Matt Seinsheimer	executive
Douglas Pferdehirt	executive
Alf Melin	executive
Arun Jayaram	analyst
James West	analyst
Luke Lemoine	analyst
Guillaume Delaby	analyst
Marc Bianchi	analyst
Kurt Hallead	analyst
Scott Gruber	analyst
Doug Becker	analyst
Daniel Thomson	analyst
Saurabh Pant	analyst
Bertrand Hodee	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the TechnipFMC First Quarter 2024 Earnings Conference Call. I would now like to welcome Matt Seinsheimer to begin the call. Matt, over to you.

Matt Seinsheimer

Thank you, Mandi. Good morning and good afternoon, and welcome to TechnipFMC's First Quarter 2024 Earnings Conference Call.

financial website. earlier and found can release our on news statements today issued be Our to you like during I'd caution this statements any call. made forward-looking with respect to

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

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

Douglas Pferdehirt

$X.X with $X.X quarter exchange with the X.X. in which inbound Total impacts. Total Thank solid our we was quarter highlights XX.X% participating am on was margin excluding a of EBITDA quarter the quarter. for billion. Thank foreign billion first earnings of performance our billion. Good very year had strong delivering and call. continuing Subsea, revenue orders million in commitments. pleased book-to-bill to $XXX you you, a further EBITDA Matt. company of in the adjusted In good the start $X adjusted orders afternoon. representing in company I morning quarter were success for our an first company Total when with first the

mature of several new in subsea offshore first inbound which portion unlock basins. for was of and technologies, Importantly, driven that our a will new were significant opportunities by help industry both

we processing occur X first industry development. reservoir, first sea a for well January, the it the This COX announced the directly MIDOR separation represents will The capture utilizing floor. which on major use to project to stream Petrobras. the injection be subsea subsea will In HISEP iEPCI milestone back from all our X for the of as for into

production Gulf XX,XXX quarter, technologies for the XX,XXX the also awarded conditions. of first PSI high-temperature utilize The During reservoir meet Shell's project the Paleogene the were of system system. Mexico. iEPCI production includes being high-pressure, U.S. demands the we in to Sparta to in new This a play required

require the meters estimated and deeper and our pressures. The central XX,XXX XX,XXX water formation depths for the that The maturing spans discovered third exceed billion reserves has equipment and the it to of reservoirs development. with look located use that in the Gulf X,XXX fastest-growing the as for most of regions waters of This X barrels the of will And Mexico Gulf. supply of award produce and Paleogene clients Paleogene productive become X generally is marks sources production basin. from reservoirs in of western higher technology exhibit in

XX We forward months, successfully expect the opportunity company. our move over set additional projects next yet to for representing another

Coast the capture the Equinor between this Total deliver for storage a be of half BP, from projects in the anticipated which an infrastructure joint announced award inbound we cluster. the transportation The Endurance partnership, is first iEPCI, East all-electric U.K.'s finally, is to building and COX subsea Energies, venture Northern which and And partnership to in year. carbon is second

of infrastructure the umbilicals. will collect and of of field All-electric an time. the systems simplified the installation offer into gas for Our permanent and drive storage. reduction through simplification and feed all-electric solution hydraulic pressurized design, removal the components enabling

also technology distances. a controls facility. is Mero to power Endurance And Endurance, Sparta to With these extend combination for our The Northern all-electric and it the of system long an and over industry. subsea unique achievement market onshore from our entirely subsea Northern award our unique portfolio. the this provides and company. is of creating a development differentiated XXX of projects industry significant for the Each innovative examples and strong is opportunities execution are technologies X challenge. The host technology kilometers both HISEP, projects the integrated all the solution enables of equipment of that new an will company

it While critical as project time that deliver and on successfully a we selectivity budget important promised. objective, remains is more even on

confidence the performance in continues in is As project the financial driven high a this our demonstrated quality we focus the that at by in orders Operational and portfolio Having market on strong on and the execution on financial strong part, quarter, execution having across and by targets. the achieve favorable capitalize it selectivity of can our impact right backlog. level, both our us the gives backlog

our to significant to shareholder completed than of in expect the proceeds portion current total million years. total This in the share in given distributions, In business to keeping allocated the were XXXX. shareholder the compared at in shareholder XX% X acceleration And first quarter. sale in brings million of $XXX repurchases, the our in distributions distributions repurchasing year shares with when grow a we achieved measurement March. Finally, levels of least to solutions to we our $XXX now this less commitment

will call turn the I now Alf. over to

Alf Melin

of of increased driven to the quarter backlog a our Measurement of Revenue impairment billion. was totaling in $X by foreign the was million. restructuring, a Solutions exchange company $XX.X quarter million, sequentially sale EBITDA was Inbound other when and . gain $X of billion. million; million excluding $XXX subsea $X Doug. Thanks, business the $X.X billion $XX billion, in on charges and loss Total orders. $X.X

with in of fourth revenue In Brazil largely offset billion the was the and was $X.X by lower and Sea the North Mexico Adjusted versus up Gulf flat the mix offshore of XX strong activity segment Subsea, driven quarter. was Higher from backlog. the revenue was a by earnings seasonality. activity services Asia execution fourth from million, XX%, increase $XXX reduced in due Turning EBITDA improved project and largely The results. points basis sequential to of Pacific quarter. typical to margin and

North Technologies, revenue solutions activity and quarter, margin Surface XXX Latin was lower quarter, North from Adjusted sequentially. In versus decreased portfolio the basis EBITDA the to XX% Revenue measurement in sale of of a XX.X%, Adjusted fourth in the driven closing fourth Measurement million, activity of the revenue lower lower America. points America was EBITDA down in $XX was $XXX the decrease end from XX% down optimization by Solutions million, the before quarter. America. and due

sale corporate costs were the period. the and associated items with was primarily to of Measurement other Corporate Solutions. $XX million, expense which excluding transaction-related Turning million in when $X of charges

$X Tax Foreign outflow our exchange $XX by average in Cash pattern Net the higher loss expense the the seasonal operating cash benefited typical The in expense quarter follows interest was was was of million. $XXX period. was $XX balances business. which million, million. from million. activities required

P&F. period Similar Additionally, third fulfill to remaining will of a million included obligation. our cash in payment quarters and the the second in payments and the flow will occur $XX

were of consumption quarter. the free $XXX million expenditures in Capital million. $XX flow This resulted cash in

of the Proceeds in the majority repurchase. completed used of $XX repurchase first Doug highlighted, million, were which with $XXX and shareholder with Solutions sale a to million in from for million. share $XXX This was million for included sale being $XXX increase in cash $XXX we debt in the share total ended equivalents the $XXX period drove and Net March. million, As the quarter dividends. We the Measurement million. significant cash distributions

some with quarter. the thoughts Starting outlook. on provide our second will I Now

from million For seasonal as benefit Subsea, as improved with basis of margins margin points. and approximately approximately of XXX uplift revenue the backlog we expansion well expect $XXX to sequential growth in typical

For we of impact with of This sale EBITDA expect adjusted and first quarter. includes the in the Solutions. Surface to Measurement the margin line Technologies, be revenue

give I you Now update year outlook. will full also our to an

total results when into foreign approximately million strength a an taking EBITDA and first expect $X.XX adjusted the range excluding February. company Within the to the and outlook, increase from half of account upper of of of Given the total $XX to in the revenue approximate in we February. trending we outcomes, following we Subsea relative guidance the ranges. provided billion anticipated guidance company half now see exchange, our this guidance EBITDA towards provided margin both

the Both revenue as guidance for margin on expense of as Technologies for midpoint track respective their ranges. corporate EBITDA and remain well Surface

the entire the grade. Lastly, balance view to March, we maturities significant we and $XXX update, also milestone to In of are sheet deleverage I an the materially Poor's time Standard is cash company we this over to achieve capital current our This can structure reflects discuss million due. scheduled investment-grade together X from capital a reduction debt, revising target and amounting to & versus for serves come achieve by million of as a of upgrade to our and efforts With This net $XXX debt. $XXX received target and prior tremendous structure. investment upgrade the the our want level organization million metrics. approximately as debt our

with also and Importantly, operations we our commitment to delivering our structure while believe the this on capital us flexibility distributions. needs shareholder provides capital our fund manage to

for line the open now may you Operator, questions.

Operator

Arun JPMorgan from Securities. [Operator Jayaram Instructions] Our the first of comes line question with

Arun Jayaram

provide project? the could details on terms and FTI drove of Doug, Endurance on the I more of your scope if providing the to what you do details Northern think more that on you Maybe projects? technologies wanted is see nature what in CCS success perhaps

Douglas Pferdehirt

stated system. major all-electric my industry. also This be company this the the in Look, production as for application prepared a an but of first -- for our was will remarks, milestone

have transportation integrated pleased be shore a the we of qualification top Think required to came been award. everything the as extremely that And the call system. qualification. and it it There are that able to of the considered rigorous was we're We technical be are on to We out to extremely, carbon from proud to seafloor. selected. very receive

tree, X.X specific so part a CO of have our family. We X.X

have COX We developed injection configure order a tree. to

than oil to is of but far, when a you were compared tree, do would gas technical, the comes the because or a it and greater times a what typical simplified development. of looks opening number that of tree the would will the it's very valve injection in in to It particularly -- COX gas is oil surfaces far actually of number called you a you sealing cycle, a cycles close that traditional and cycling

We on for kilometers, Brazil. floating we and of just In other it on and where projects. over Hisetproject. really about there much being top is standard. like major scope interesting selected taken technical There's extremely XXX subsea it It really traversed. that enabling higher be key entire a of the major, pleased all CCS did distance in nothing have So the is be is the on that what's to we've were are be these will that. milestone And a seafloor by the we driving project the we component the words, market CCS to water. a

Arun Jayaram

comment an that wanted maybe starting you that? basins. and maybe anticipating can talked basins? West could talked that the mature in remarks, on if you I to some Great, was could Africa see Doug. some mature expand comment but maybe maybe X year, in next using opportunities in you And upon your you're you to if more what prepared of improvement know your technologies I maybe I on if see peers more new you elaborate of unlock about wondering about in

Douglas Pferdehirt

Sure.

what X what could that along step be specifically, economics it's with of there's with host unlock deeper further find from producing Mexico, in was just the mature in to likely And driven horizon. an a iEPCI, call basins really the mature a or integrated in But would we a an forward the call was basin given So value case I the, economic of a can the projects projects. be it different doing horizon, with facility. to is those there's Paleogene, referring the out the of are we it, project in opportunities traditional by our family, approach, X.X it just the integrated I to help Gulf

what so And that the key are enablers. are technologies the

system fully To to production the by XX,XXX supported Paleogene, XX,XXX get and well the regulators major have achievement. as it's to our qualified, clients, as a full

future. is integrated third this alluded project. more as script, And look be the at expect XX,XXX enabled outs come a will When noted, our step further project the to in awarded. in we to the As in you by first This mature that all-electric. basin, is to be the

you to oil back the hydraulic host using greater than controls application Xx X energy to it or So all-electric do this existing the environment via to in comes will when up much be the the facility. further enabling a and production traditional gas can to an again, primary to distance systems, reach

in and this being So the enablers X XX,XXX, case key technology the all-electric.

case of COX talked the are the it and separating separation, seafloor. HISEP, about separation reinjecting technology, In first the subsea in quarter, then we was as on all we where advanced

Operator

Our of next the with line question from West ISI. James comes Evercore

James West

your saw about I bit wanted a picture. doing well. I start a we've how It's I little you're talked bit the Actually, bigger in past. results. know something to

those? capacity With the how starting sure of lever contracts make now, partnerships that And and have to can capacity? are you these that are EPCI joint backlog about you ventures you to deliver through, you of to these feeling into all all to really coming add on some

Douglas Pferdehirt

was And we as not familiar was the integrated would not restructure the way be the with that the drive and that that but a way expect with have years personality to utilization iEPCI to projects, ecosystem, continue market. And well drive people. within decision asset not well that to company. that And grow but through will I that the the to and both sustainable. question. a cycle made work ecosystem in with monster. that's us We terminology, we higher that from utilize than the the industry returns, we support of work see would past, to those big for only operated, timely we way from our do would expand we higher that a a our We're the others. ago the able James, are you would just also subsea standard

deep a and that. and effort very time we have trust-based, of lot into put relationships, We they're all and

and today projects that So are providing us And operators do and concept. our to vessel introduce out a those . iEPCI what access to of that's them the market allowed integrated portion iEPCI us grow being -- alongside partners very was the continues to awarded to projects deliver significant become the other work to projects. as go to to total on giving

get that's So also order. which the double this the understood, our It to beyond financial up see been in but but the installation ability of And side time think of as using showing plant at by building what allows expand as the will, results industry significant theoretical the in a Subsea manufacturing now our to, X.X, us if runs the traditional projects, to today. X.X is benefit. the to the the be through portion what there's the you rest configure able leverage fully is it capacity of X/X one of is And you approximately I -- cadence not a projects. that's or

either invested through a cadence the and their order through and system by an to allows plant. have have expanding they additional and building whereas of So to to the technology configure us get to that then capacity going to we've consolidation from plant additional the capital technology the order or engineering budgets in

far allowing beyond again, capacity. traditional expand So to theoretical the us

we are monitor long-term we period allow the to share We're very discussions that understand expand open. capacity would new to operating with to of that projects. traditionally having we're those this -- model, and -- have the have confidence discussions doing that look, it clients their and have support see they we having to We us closely. deliver with will that to be beyond So time continue us very they and because things be discussions, the our the they and very well situation we

James West

that? capture the And was if technology? it this contemplated you kind the side Okay. this are you on -- targeted novel of particularly new using so, Or in then expand some the fascinating. And this are I or CCS? initially the additional maybe as technology? we awards, of targeting offshore Got projects? for these Could all the is then thought is projects use Doug. technology first-time And existing CX Very helpful, it. of carbon And

Douglas Pferdehirt

great Both questions.

companies we put they of been right if any you have we developers that do of at on footprint it floor go those only takes further company about to from with So kind I the greenhouse as believe the this floor it quite science, know, go some et some fundamentally bottom then few up. And quite look material today. is the most of technology, advanced might and cetera, time. sort want they very offshore, challenge a something to like quite that, some a to And and associated really working that we be the structures they have kind in everything really if academia, they that industry, controls offshore, James, approach fixed because takes look, think structure. for we've And places want to or touching floating is or power frankly, to of frankly, way onshore. on most automation in is industry. the think the the sort sea mono that We eliminate But the seafloor, but exists very beyond there's sea

industry that's for and quite And operate. putting we controls life in robotics designed X where to or automation, industry we're with all done today. We're the anything that, frankly, the XX-year that's sea advanced to proud, on miles being water things beyond challenge X last XX- to floor, the in deep the

well involved in believe and like terrestrial So those a known. reservoirs, when sure, be we And and depleted far line will abandon involved safest the look say But in They're to projects. or to that in COX project fundamentally, CCS, happy at they we store the can we place a be be exist. challenge best offshore.

It's Northern project, shore in into of any injection being way infrastructure. can the demonstrated without those to Endurance partnership a sort all as fields subsea then having those You described. the transport we out floating all from

From design, you the view, bit much comes projects. automation and point and infrastructure, to a technical to and important it gas believe. talked believe control a that's required there also also is little technology on one and the of and flow existing monitoring use people can as that make that tree just note more than that's is The oil I down tree, challenge the of It the reverse true. the the would It are not explained. these tree on about I valves a

do call an facility it again, us developed -- entire definitely to that really see an of are would And offshore, the host and from in not the and basically to also see but this that and one that We them carbon system that helping what the we forms and trend injection other we, certainly energy. have we allows potential and And So an to that -- transportation is trend proud fullest just energies is reach to take required. to their achieve integrated so. see point. the to we for new scale in we we're CCS, enable are going

Operator

line Our Lemoine Piper Sandler. of with next the comes Luke question from

Luke Lemoine

recapped [indiscernible] with all-electric Endurance Northern CCS? for You you have and already, the announcement the first subsea

Douglas Pferdehirt

off, Luke, you Luke. dropped

mind don't question, the repeating you If Luke. you dropped off,

Luke Lemoine

Yes, sure.

your all-electric? system gas, can Just when speaking talking the customers, are kind you all are oil them? points the any electric the pinch And for when and chatting with seeing for we start about at look Northern Endurance there first with on if CCS, when what you're uptake for of

Douglas Pferdehirt

is in CCS happening the and oil to gas opportunity. look, parallel The

actuators and world. full and So have gas we've I development, the XXX electric stress because around using installed field we for full actuation in opportunities field subsea see over mind, a years, will keep Electric equipment you many on electric using been oil and

would that subsea partnership to Halliburton So unique, development. electric to fully a subsurface But an be it that's safety to system, that field would go us all-electric and of working valve enable with for which we're part electric include together a novel. not is an

again, commercial But activity parallel. going there's on in

for and in Look, that? operated opportunities the that all stress, more in of that reasons. So expensive right bigger tree, And the I I see than gas would in a area see is the the is you more why will electrohydraulically all-electric though, tiebacks. oil also. tree area

a cost distance be when cost umbilical point tieback across a Now to tieback, view, economics those long-distance very be hydraulic at use not costly. cost, long a of very dissipate very versus and because more be that It actuation quickly unit it at would to either you tree expensive. a look But able possible or would from of be all-electric look it it the the in would and you the when is limiting. on umbilical unit

development, greenfield be will So those therefore, a I opportunities in think there.

market, about a be the it but talked brownfield. -- before. it area of will the be big I We've in will significant stress, And market and

such at If they're brownfield to world FPSUs, are capacity back you look those any capital XX% slightly nameplate over now up gotten tiebacks of able producing FPSOs, All the And to very be capacity. compelling. allow bring projects it between to all the that cost. economics near cycle XX% level around that and production very, the floating assets we've brownfield nameplate time will at on a to the without today, year significant makes that them electric down X

Operator

question next line Bernstein. from Delaby of Guillaume comes with the Our

Guillaume Delaby

Yes. your I'm Maybe regarding we not that quick way. policy. question can allocation capital sure new it call a

quarters? it, essentially underlying, strategic so can associated I it again discipline, are to bit some behind resulting say, still better make some is maybe you for that? also do thinking considering a elaborate I you an it's consider kind in say, is Maybe you question. on I time the a do capital know of if financial coming targeted but or outlook or would And would there So acquisitions from, little small

Douglas Pferdehirt

experienced by workforce. small currency capital. investments significant with . we start-ups. capital it unique any our capital we It subsea very using doesn't cost is human financial part, few most have start because company The talented we we're for a Guillaume, the But our today have, in far, and And most have and our because continue using Look, engineering. will and thank to taking in the and is second we're you most greatest small company. cases, Often, to do early in questions. targeted me we're the acquisitions. let So

that's if a major who's also, go going earlier. tackle how the to putting But component. developer were we and outweigh trade, of S&P; sea So get of first can particularly upgraded net subsea have part there your X will, Things I a on and to won't into bit. net an terrestrial I details Alf to we often, targeting engineering debt. comes And I'm a dynamic obviously, challenge floor. that that have to by of hours it do offshore comment, we that, knowledge, a And were change developer. terms the then being delivered we in when being comment. the Guillaume, want trying onto this things X messages from two, you are major design, company to of but One, in to our do quite I

it X So over Alf. to I'll major but pass milestones,

Alf Melin

Yes. just build you. on maybe Doug, to thank And that.

company believes little XXX more So $X we $XXX by million. net a that than debt as little current stated today, we million previously above of would and operate billion million have a from EUR -- on than would so just we gross million billion that of and neutral us, And And said, that it debt we a this further, Doug reduce net have the $X of debt will cash. reduced imply $XXX that position by more $XXX level. bit debt the a

to need this immediately. intermediate-term where be so call and And is, it, necessarily target we not an

proceeds the uses that have outlook continue of also there generation, achieved our by X will one the an our believe And just quarter, debt take emphasize grade. best grade over to that that to achieving of we cash to upgrade Doug we strong also investment going majority I as naturally. is we S&P years in we funds, the us we March. investment measurement ahead, but solutions demonstrated that in and business share committed will first next the now that from certainly remains to repurchases and distributing of we see mature the said, remain And here given

debt it as coming and go ratio when longer current in with leverage time overall, asking, think term below that's X we strategically debt-to-EBITDA down about with maybe But be expect clearly and on from EBITDA the expected you're you levels, to and what . forward. gross growth keeps

Operator

Our question line of from comes with Bianchi Marc Cowen. TD next the

Marc Bianchi

on going over you they on your But the address maybe about I them what materialize WhiptailAward $X scope anticipated sort could $XXX of to the $X some that for And billion I up looking of ended wanted being be earlier competitors. had expected to million think large be and might and the opportunity your you at over projects. versus suspect didn't inbound about ask awards, of then is talk you And I scope to billion. Yau I'm could that? of direct to right there opportunity sort on you be maybe getting what for you're now to time? get scope your what

Douglas Pferdehirt

we clarify If need it. question. important an on it's then mind, to your that's Look,

us it. count, from every it rig Subsea opportunity publish the that an you industry perspective. if So will. we I opportunity quarter as giving clarify list published the The Think appreciate to you of is

are tenders. will, is we or on reflected awards our of are we These if you chart. use tendered clients, are projects out, the what exists scope blue within those trying Therefore, full red to we put that the set we we're being of and industry. that the So people, -- the it's the to -- not or opportunity place able the these that value expect we our and purple, be subsea to when that's see to in opportunity demonstrate anticipate give value, what by that

just is subset are. we the also of full What's the So of hopefully, happens cases, opportunity that to or be the a clarifies is important scope the not is that be TechnipFMC. for company project. what this In targeting tendering. may We list may to many understand

to we company, full TechnipFMC, integrated study set our proprietary project and project on for FEED because iEPCI, But list. have FID, enter hurdle economical the that competition. that the opportunity we project we receives because studies, do the assuming Now completion, company. direct an exclusive integrated the the integrated is ability FEED we the upon awarded for because the we are opportunity is an achieve that for rate, to aren't Subsea have Those into then

just well-known put out to project. Occasionally, are it's and there there. need might it on up show one that to us, We opportunity not such direct proprietary they're on because a awards because list. But these

company a we So our often look really performance and list at why the that's upside. our frankly, opportunity every drives what quite performance we second surprise the day, to that have inbound and of numbers the and

an the idea give you a of there's at the we're to just world looking one, bit is of looking little other. So lists, X at which really

We be opportunity projects, tendering can we the or the be we may that meaning the whatever or list contribute to, concerned may not project. we way, about on greatest Subsea may that not something the be about of some by projects to X.X it or integrated may they're think because Subsea value

we So well. as may may or not tender those

think to and entire it talked the have us scope, entire third-party or have uniquely. the we as makes a far comprehensive. products entire both SURF, project. do and positions by We can components. party capability. the before, the We've be to As subsea able know third you a the about us ability have key SPS, installation an I We most bring don't in to

Operator

comes question the Our Benchmark. Hallead of from with Kurt line next

Kurt Hallead

Mark's in call. past, the course would like your look explicitly wasn't Maybe question, a your to order that given in regarding couple years outlook subsea again, guys respect with referenced book quick this recent the some anticipate of most So what over next you just follow-up right? to of have the you

some on talk at business you wondering However, it the how and give to changed has dynamics be given if was about then has might how the play opportunities. able outlook us unlocking talk quality new new at on order technologies, you that if over or -- update I you all? about where quantity, changed

Douglas Pferdehirt

Again, you clarifying Kurt, well. Marc, to because like much our thank for effectively, communicate learn you we as but do best

very that in fact billion very, or was mention be that remain X the confident. through strong guidance So a confident thought we target very we message years clear for have of of we of billion that a let me not orders we it, orders. not confident, Us our achieving did that very saying $XX of $XX XXXX we remain but XXXX we're very approaching

and very, terms say, mature, complaining in late-stage but terms I'm of pre-FID with that today activity of the, I'm very conversations having about it, I'm in busy. feed clients In meaning not tendering would I of terms Marc, the the and activity very

Operator

comes next of Gruber the Our from line Citigroup. with Scott question

Scott Gruber

for One Alf.

in of the the years 'XX tax have rate 'XX, the With normalized in should profitability evolution about should fall to business ahead? the we And towards improving, we for over level the year, how and the time. could this of tax guidance a the trend where think rate that more

Alf Melin

for the thanks question So on here. taxes the

quarter. of a first rate this in you all, the of bit effect point normal than at the being a look maybe if just timing there a is out, it So bit for of quarter, lower effective little tax little

roughly this XX% So growth all, guidance is stand implying cetera, for to of with the first our et projecting, a tax as earnings we the consider our EBITDA, I'd XXXX. of we for behind you $XXX effective mix year $XXX that current in planned. And say million million rate if are that

a the tax a couldn't or we we that As we of out mix normalized on take I of come and you're targeting years it combination for the of XX%, tax and a talked that looking are would continue rate build opportunities if bit past. other in that of advantage on largely some will from little utilization about to model earnings before,

normalized confident So remain overall, we drive towards tax to rate. XX% a

Scott Gruber

something or in Is you would And it in to there? possible that's that 'XX how take long do think get 'XX?

Alf Melin

in somewhere ballpark right in that X You're yes. of years, those the between

Operator

the from comes with One. of question Doug next line Capital Becker Our

Doug Becker

subsea Doug, you was hoping frame realistic opportunity XXXX. incremental through or you $X maybe could a mentioned billion I all-electric risk of production in just previously that could as see result for tieback systems today you opportunities it FTI?

Douglas Pferdehirt

Thanks, it entire put much pretty at in, this point. covered and that Doug. terms is to And time. of of aligned. All-Electric that then say -- getting out obviously base. we Yes. number now. actually our some Clearly, adoption probably the developing I Yes, client a your I customers and is and the would XXXX. that We've in there's little upside but technology, qualification all-electric number then stale qualifying that It's takes think,

early, environment, I are the bit that that a CCS set I developing in I of being of It bid CCS But but don't yet. in how terms kind have and a brownfield getting hard as be things year-by-year little the not In might see between in energy. was tieback still being award key, today -- the said, obviously, environment. first parallel traditional

But So there'll come. Doug, confident. look, remain to more very we be

I'll bit be one, a honest, this And of little is one no-brainer. a this

cost many aging that can that's flow existing have you that some the and with results ago you're the through get obviously financial hydrocarbon to investment facility made you sense. improve that just an additional and makes of it If host capital may day, leverage every years sitting

a position. in kind we're So of unique

the We lot of have infrastructure. a

sea world's know the floor. You infrastructure on the of over XX%

So called really away simply too its has required to of produced CapEx to it marry position to somebody we're a host of so be with that's what a And a that the try up to to host because asset. certainly and production stranded facility in be was having. do that marry asset, a, we're would somebody could be a meaning help today to able up be we're kind able from not that far facility unique support to what has conversations own that the in economically doing to

Doug Becker

Is reasonable side award? encouraging. all-electric XXXX award and to of on oil sounds certainly that or No, the year an more it a gas expect this

Douglas Pferdehirt

FID. think to the oil an little be on about you things for and of a end if project see to gas customers too could the just being of think FID. maturity the something the frame I I but We'd again, do see time a all-electric when XX-month shorter or wouldn't in discussions, that like and meant meaning could commercial think conservative, those in bit parallel, be and award to you it I about that. what that's by But our discussions up out. just far

Doug Becker

the that upper it. consensus half a to that least in the expected than And free I one. context narrower loss was then flow the just Alf, at expected cash quick guidance the range. Got Subsea of is toward

flow, midpoint trending the half to best free toward is that cash the still or anchor? place upper For

Alf Melin

is cash strong solid first that have. net it all, quarter for flow, So really XXX legal represents We quarter. outflow at us. settlement have really right. had a out typically being for towards of that us we for first And the of we And seasonally quarter also most start on The the did our point represents that because free affected the least. weak $XX the a payment million year you're

expect, the about feel the during year. obviously, build And of second you good are. majority the really generation of half year. we We and typically trend to will where the So we cash the the I during overall, up year, see in flow

little we clearly, as from free we and of a Subsea, cash flow to conversion additional in grow EBITDA. in expect particular EBITDA, And of bit see

So typically sit -- today. XX% where and is we we operationally use the ratio

But if flow. So want up you flow fourth end to still use And capital There working the will be an if for other overall year. to cash determine quarter free as if not take that ready the look approximation. to you quarter the profile, business and year. of big again, the at our lead to that the cash always officially is we're dynamics things

Operator

Daniel the Thomson Our comes of from BNP question Exane Paribas. with next line

Daniel Thomson

has to a had conversations other technology been around using or clearly, a internationally the awarded has interest question other And now from been fields, talk on flag? technology? the I technology mean you're about HISEP. Can using having qualified I part client Petrobras. the and you contract specific any that similar in the about with in of had that your clients have with you of Brazil anything sort

Douglas Pferdehirt

the if this many, because a a production also is Clearly, that I'll little allows short same of first at gas they existing the you, in as this this of technology But behalf see a existing on bit foremost, give color much going time. X award. the case The X part around answer clients, as project to to I build but you want approaching is debottleneck obviously, to stated field yes and this but being too and I it's my greenhouse of it clearly Petrobras reduce an in you increase of yes or and opportunity and answer, it. as of is don't speak brownfield, an Petrobras But see assure the design Mero will, are much times. very but the also use first they one, to benefit intensity multiple has an can a

from other Interest clients.

well-known world-class along very the Petrobras. there companies First were large as Merrell of all, partners in project, X well with a

for are are with of to just provided supportive so the So who about I the you, they've traveled those intimately supportive project, quite and of we Brazil it. and recently, technology approval And the involved partner included. client obviously to learn they intimately a wanted -- been tell obviously they because more actually have I'll

of but they with participate were in using outside I in they type and that would they it Brazil, Now Brazil. won't them. be of to was happy be more using than this visit technology so interested

and the were some we're the that we what things good Petrobras, the with to development the of support with share terms And technology. doing able of them we've of of done in

market can mean business a answer, XX Aramco Arabia MSC the don't mean East. unconventional and yes on you This going spending in an your squeeze I incremental incremental an I offshore where after onshore So this gas surface announcement, seems for given Middle mix like and if Saudi is follow-up. the positive in in from I particular again, short yes, time compete. the the

Daniel Thomson

for you demand respond to from Aramco? sort your before to for how can the And your incremental that expectations confirm announcement readiness in But demand of Saudi surface onshore does the equipment? opportunity to compared

Douglas Pferdehirt

if Saudi we just wellheads our surface i.e., And in they clarify business business. falls go Arabia, below surface, falls think under Sure. the don't they maybe that about that wet, business. Surface and don't when everyone, trees, under our for if get then Daniel, And Technologies to water

what business. That's very, business And in actually, we our primarily onshore is do. it. So at an we're Saudi Arabia good very

the market reduction the and some the in jackup of in the reduction offshore activity. So

amount of spent production same be It affect far drilled number the land. are for produced the typically But on us number obviously CapEx versus a because, The wells tree. it's that can of does so wells platform, the latter the they is versus for again, a of from greater. CapEx dry dollars

to as product well sell land it allows favorable very So answering as appropriately perspective, selfishly is that to from our and Think from CapEx of to perspective, environmentally produced. our I'm from a simple we only offshore company. our CapEx safely shift be a

if we the And you and will, wellbore, what paid by that's get matters. so

In addition, unit per our gas to higher oil. in is revenue than important is us. in gas it sold is

we of shift the the provide gas able products to the as So And are it side gas, fracturing additional stimulation well. in and unconventional favorable. is to around

So it expands our, well. let's say, per revenue

us. that's for So how market the works

importantly, manufacturing strategic Kingdom to the to you've we company, a in from Asia more to and the capacity Kingdom. make bring been investment following Now as decided

very up our We've its in fullest continue ramp successfully. not that second of improvement we the gone has new half to and and reached facility, the We yet anticipate further potential, year.

announcements have Kingdom Aramco quite been us. Saudi our business, The contributor remains to a very very of our perspective. international to favorable And frankly, and is So positioned. surface important well the key some we're from

Operator

with the from comes question Bank America. Pant of next Saurabh Our of line

Saurabh Pant

bit I margins spend are right? the also that but you that resulted the the time let's pulling maybe it's subsea about a you've a work the Doug, and little you're quality technology winning. backlog delivering, the side, little new on think on talking been of

focus on integrated we you and about your heightened you project the Is So Or just talking conditions? are that? spend What's the if press doing focus? a on moment you it stand-alone are the a about terms selectivity, projects can that phrase mentioned how in more release versus projects?

Douglas Pferdehirt

X.X the believe We model accelerating for every and project as the because time, we've above. it greatly order. of with start it's in that of different the have it's production to Subsea execution question. front But as configured a about of and us. first deem combination at Look, cycle would let's of -- demonstrated talk shortening time best our drives main thing in it to Great quality we we day. really that the all is Sure. opportunities simplifies we the we terms look

So from go the order backlog. to engineer order. X.X configure allows the the to the us to higher that higher And clearly, quality to the orders,

of X eliminate before As us on to I've about that this allows talked engineering. months call,

months operating, have we So spend of the a we X take is never been building a article. X.X months order, or detailed which would is rest the first to doing they built you're to It's because engineering before. have spend industry X how

the place And have a you purchase you single that X.X go order before I have with configure you can't to platform. say, just again, through order Subsea a So it. to

our chain. a to supply have have you twice and not much You you about, I to to also scale the our to critical that have putting existing a have platform, allows simplify simplify allows talked partners footprint through to internal, as volume the secure but only in more reliable us manufacturing competent it and

really it's the combination So to quality. of a that X lead the

project, In just levers. we addition integrated to have that, an many full more scope. take the We on

TechnipFMC underlying best us, create set very important set to not schedule activity why for with objectives single and to and the able because was to a it have then competing consummate and have so the a when a of single because you reporting single entity ability you're relationship to that financial difficult interest. We that's of do be works

we So have that.

on important. then and of terms of conditions And sure. the that, top contracts are The

confident more put about what not allow past several shared the in surprised in we've most are talked to when done side. us it for instance, to to to that that the we being And We've inflation, in on be that. place that be we're understand going ensure customers things the Our way. comes appropriate parameters that

these but very it's X.X and to all, future to and as and X, just clear us awards, iEPCI of the very, favorable you announce our our So execution. and it's combination X.X the iEPCI us it's very the all for a focus hear where in assurity of is,

Saurabh Pant

No, helpful. very that's

know basins. But updated I year of your Can in any very there? it's share has 'XX, for Namibia of updated quick from thoughts flow, in a beyond outlook your any billion the the but positive. follow-up, include the you Just I thoughts front order does any on basis? not terms that subsea Doug. your outlook especially been know particularly $XX frontier new

Douglas Pferdehirt

from We this activity. I is understand from We're the would most We're lots more in saying which how Sure. in mover. Mozambique, these and would of executing very say, not markets. anything lots emerging of both And markets. have stated we Guyana favorable do in were same from that not discussion, public first the of playbook using emerging our clients I'm the to the recently, publicly, our favorable other trending that's fashion. indications net-net, a say, I they playbook

part decade. forward of look in the the to emerging contribution we markets those from the So latter

Operator

Chevreux. from Our will of last line Kepler question Bertrand Hodee come the with

Bertrand Hodee

any on or discussion well it technologies clearly I do understanding, for development? iEPCI But your a require your operator Namibia. probably you from early and follow-up suited will believe here. Based X.X will Namibia and/or be model to mention specific conceptually, Subsea future no need the name on have

Douglas Pferdehirt

particular, the in challenge water be depth. one the Look, of -- speaking well-known Namibia the will

our model, So greatest It's very demonstrated time the concern deep value these their drives and so model clearly there. accelerate we very X.X, economics. certainly, And parameters in within iEPCI deep. which are we expect no project favorable the the customers, that X and markets to as very operating unlock of we've oil would is a for believe emerging would first other

very closely clients. but X.X, with iEPCI So working our

the learning the producibility reservoirs, compartmentalization, doing tests terms obviously of as the their extended of geochemistry. the they're they're So in well

to there's the ensure So learning we're we provide things them we'll world-class be support. ready subsea with way, engaged to the but that actively along are

Operator

Matt over Seinsheimer. would I call to to the turn now like

Matt Seinsheimer

p.m. of fourth Mean Time will beginning This our be Greenwich replay today. the our A on call concludes quarter at website approximately call. conference X available

have us. joining you member of feel Relations Investor Thanks free the further for If contact questions, to team. any please any

now You the may end call. .

Operator

call. This concludes today's

now disconnect. may You

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