In the earlier half of H1 2021, TechnipFMC completed the spin-off transaction of Technip Energies N.V. from its core business, retaining 31% of share dividends. Technip Energies, now listed on the Euronext Paris exchange, accounted for 53% of the company’s revenue in Q4 2020, with TechnipFMC’s remaining subsea and surface technologies businesses contributing an equally substantive US$1,600m or 47%. Though Technip Energies was not reported in TechnipFMC’s Q1 2021 earnings release, the remaining business units increased in revenue by 2% to US$1,632m.
TechnipFMC, with the assistance of its backlog inventory, was able to navigate the worst of the COVID-19 pandemic industry slump in 2020. The company continues to provide technological and integrated solutions to clients through offerings such as Subsea 2.0™, iFEED™, iEPCI™ and iLoF™. Additionally, the company’s energy transition strategy incorporates its tech with renewable energy in products such as Deep Purple™, using hydrogen fuel cells to store excess wind and wave energy generated from offshore projects.
As with many companies in the energy industry, TechnipFMC’s 2021 projected capex spend of US$250m echoes the trend of capital discipline, registering as one of the lowest budgets since 2017. Reduced capital spending, fluctuations in inbound orders and backlog means that the company must remain aggressive, especially as it enters into the frontier energy transition space.”
