News

Jun 03, 2023

TechnipFMC Announces Second Quarter 2023 Results

NEWCASTLE & HOUSTON, July 27, 2023 — TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today reported second quarter 2023 results. Reconciliation of U.S. GAAP to non-GAAP financial measures

NEWCASTLE & HOUSTON, July 27, 2023 — TechnipFMC plc (NYSE: FTI) (the “Company” or “TechnipFMC”) today reported second quarter 2023 results.

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

Three Months Ended

Change

(In millions, except per share amounts)

Jun. 30,

2023

Mar. 31,

2023

Jun. 30,

2022

Sequential

Year-over-Year

Revenue

$1,972.2

$1,717.4

$1,717.2

14.8%

14.8%

Income (loss)

$(87.2)

$0.4

$2.1

n/m

n/m

Income (loss) margin

(4.4%)

0.0%

0.1%

n/m

n/m

Diluted earnings (loss) per share

$(0.20)

$0.00

$0.00

n/m

n/m

Adjusted EBITDA

$205.9

$157.5

$186.5

30.7%

10.4%

Adjusted EBITDA margin

10.4%

9.2%

10.9%

120 bps

(50 bps)

Adjusted income

$44.0

$1.0

$8.4

n/m

423.8%

Adjusted diluted earnings per share

$0.10

$0.00

$0.02

n/m

400.0%

Inbound orders

$4,447.3

$2,858.9

$2,201.7

55.6%

102.0%

Backlog

$13,278.6

$10,607.4

$9,039.4

25.2%

46.9%

n/m - not meaningful

Total Company revenue in the second quarter was $1,972.2 million. Loss from continuing operations attributable to TechnipFMC was $87.2 million. These results included after-tax charges and credits totaling $131.2 million of expense, or $0.30 per share, which included the following (Exhibit 6):

Adjusted income from continuing operations was $44 million, or $0.10 per diluted share (Exhibit 6).

Adjusted EBITDA, which excludes pre-tax charges and credits, was $205.9 million; adjusted EBITDA margin was 10.4 percent (Exhibit 8).

Included in total Company results was a foreign exchange loss of $48.3 million, or $45.2 million after-tax. When excluding the after-tax impact of foreign exchange of $45.2 million, loss from continuing operations was $42 million. Adjusted EBITDA, excluding foreign exchange, was $254.2 million (Exhibit 8).

On July 26, 2023, the Company announced that its Board of Directors (the “Board”) authorized and declared a quarterly cash dividend of $0.05 per share. The Company intends to pay dividends on a quarterly basis, and this dividend represents $0.20 per share on an annualized basis.

The Board also authorized additional share repurchase of up to $400 million. Together with the existing program, the Company’s total share repurchase authorization was increased to $800 million, of which $200 million has been completed to date. The remaining authorization to repurchase up to $600 million represents more than seven percent of the Company’s outstanding shares at yesterday’s closing price.

Doug Pferdehirt, Chair and CEO of TechnipFMC, stated, “Our second quarter results reflect both strong operational performance and continued delivery on our financial commitments. Total Company revenue for the quarter was $2 billion, with adjusted EBITDA of $254 million when excluding foreign exchange. Both Subsea and Surface Technologies delivered sequential improvement in adjusted EBITDA margin, including a 420 basis point increase in Subsea to 14.4%, the highest quarterly margin since 2018.”

Pferdehirt continued, “Subsea inbound orders of $4.1 billion were exceptionally strong in the period, driving sequential growth of 29% in segment backlog to $12.1 billion. Subsea orders included six integrated projects, including the direct award of our largest iEPCI™ to date, a contract from Equinor for the BM-C-33 development in Brazil. Year-to-date, iEPCI™ has accounted for more than 50% of our order intake. We continue to expect iEPCI™ to achieve its highest ever inbound in 2023, enabled by a record level of iFEED™ activity that often converts to direct award.”

“We continue to drive further adoption of our Subsea 2.0™ platform, with more clients recognizing the benefits of our configure-to-order product portfolio. In the quarter, we signed a 20-year frame agreement with Chevron, and we were awarded projects by Equinor and ExxonMobil that will utilize this unique technology.”

Pferdehirt added, “Subsea inbound for the first half of the year totaled $6.7 billion, giving us confidence to raise our full year outlook. We now expect orders to reach $9 billion in 2023. We anticipate 70% of these orders will come from a combination of iEPCI™, Subsea Services and all other direct awards, highlighting the quality of our inbound.”

“The market backdrop remains very strong. The FEED pipeline continues to expand, with more projects in advanced stages moving towards final investment decision. Our Subsea Opportunities List, which highlights projects available over the next 24 months, remains robust. Longer-term visibility is also improving, with clients securing capacity for projects that extend to 2030. These are among the many tangible signs that support our view that this will be an extended market cycle.”

Pferdehirt continued, “Demonstrating our continued commitment to maximize shareholder value, we have initiated a quarterly dividend and doubled the size of our existing share repurchase authorization to $800 million. These actions build upon the $200 million of shares we repurchased over the last 12 months.”

“We also announced a new commitment to return more than 60% of our annual free cash flow to shareholders through at least 2025. This is supported by our confidence in achieving sustainable improvement in our financial performance and the strength of our long-term outlook. We intend to distribute a material portion of the improved returns to shareholders, and at the same time further strengthen our balance sheet.”

Pferdehirt concluded, “We have strategically placed ourselves in a very differentiated position. More than 90 percent of our total Company orders and revenue are generated outside the North America land market. We are fundamentally changing the way we operate our business to ensure that we create greater value for all stakeholders. This is clearly being recognized by the market, with the quarter representing the highest level of inbound activity for both iEPCI™ and Subsea 2.0™ in our Company’s history. We look forward to sharing future milestones with you as we continue our more ambitious journey ahead.”

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

Three Months Ended

Change

(In millions)

Jun. 30,

2023

Mar. 31,

2023

Jun. 30,

2022

Sequential

Year-over-Year

Revenue

$1,618.4

$1,387.6

$1,414.6

16.6%

14.4%

Operating profit

$153.4

$66.8

$97.1

129.6%

58.0%

Operating profit margin

9.5%

4.8%

6.9%

470 bps

260 bps

Adjusted EBITDA

$233.8

$141.9

$176.0

64.8%

32.8%

Adjusted EBITDA margin

14.4%

10.2%

12.4%

420 bps

200 bps

Inbound orders

$4,114.5

$2,536.5

$1,928.0

62.2%

113.4%

Backlog1,2,3

$12,088.5

$9,395.3

$7,926.3

28.7%

52.5%

Estimated Consolidated Backlog Scheduling

(In millions)

Jun. 30,

2023

2023 (6 months)

$2,353

2024

$4,272

2025 and beyond

$5,464

Total

$12,089

1 Backlog as of June 30, 2023 was increased by a foreign exchange impact of $189 million.2 Backlog does not capture all revenue potential for Subsea Services.3 Backlog as of June 30, 2023 does not include total Company non-consolidated backlog of $350 million.

Subsea reported second quarter revenue of $1,618.4 million, an increase of 16.6 percent from the first quarter. The sequential revenue improvement was largely driven by increased project activity in South America, the North Sea, and the Gulf of Mexico. Services revenue also increased due to seasonal improvement, including higher installation and intervention activity.

Subsea reported an operating profit of $153.4 million, an increase of 129.6 percent from the first quarter. Sequential operating results increased primarily due to higher revenue, improved margins in backlog, and increased installation and services activity.

Subsea reported adjusted EBITDA of $233.8 million. Adjusted EBITDA increased by 64.8 percent when compared to the first quarter, benefiting from the same factors that drove operating profit. Adjusted EBITDA margin increased 420 basis points to 14.4 percent.

Subsea inbound orders were $4.1 billion for the quarter. Book-to-bill was 2.5x. The following awards were announced and included in the period:

Additionally, we secured the following frame agreement in the period:

Financial Highlights

Reconciliation of U.S. GAAP to non-GAAP financial measures are provided in financial schedules.

Three Months Ended

Change

(In millions)

Jun. 30,

2023

Mar. 31,

2023

Jun. 30,

2022

Sequential

Year-over-Year

Revenue

$353.8

$329.8

$302.6

7.3%

16.9%

Operating profit

$25.7

$22.4

$10.0

14.7%

157.0%

Operating profit margin

7.3%

6.8%

3.3%

50 bps

400 bps

Adjusted EBITDA

$46.9

$40.3

$32.4

16.4%

44.8%

Adjusted EBITDA margin

13.3%

12.2%

10.7%

110 bps

260 bps

Inbound orders

$332.8

$322.4

$273.7

3.2%

21.6%

Backlog

$1,190.1

$1,212.1

$1,113.1

(1.8%)

6.9%

Surface Technologies reported second quarter revenue of $353.8 million, an increase of 7.3 percent from the first quarter. The sequential revenue improvement was driven primarily by higher activity in the Middle East and North America.

Surface Technologies reported operating profit of $25.7 million, an increase of 14.7 percent versus the first quarter. Sequential operating results increased primarily due to higher revenue and improved operational performance. Results in the period were negatively impacted by $3.9 million of higher restructuring and other charges.

Surface Technologies reported adjusted EBITDA of $46.9 million. Adjusted EBITDA increased by 16.4 percent when compared to the first quarter. Results increased largely due to higher revenue and improved operational performance. Adjusted EBITDA margin increased 110 basis points to 13.3 percent.

Inbound orders for the quarter were $332.8 million, a sequential increase of 3.2 percent. Backlog ended the period at $1,190.1 million.

Corporate and Other Items (three months ended, June 30, 2023)

Corporate expense was $153.5 million. Excluding a non-recurring legal settlement charge totaling $126.5 million, corporate expense was $27 million.

The non-recurring legal settlement charge in the period was related to the resolution of all outstanding matters with the French national prosecutor’s office. As previously disclosed, TechnipFMC is responsible for $195 million (€179.5 million) of the legal settlement. The charge represented an increase to the existing provision to reflect the value of the total liability.

Foreign exchange loss was $48.3 million, primarily due to the significant depreciation of the Angolan Kwanza in the period.

Net interest expense was $30.3 million.

The provision for income taxes was $43.3 million.

Total depreciation and amortization was $97 million.

Cash provided by operating activities from continuing operations was $156.2 million. Capital expenditures were $52.8 million. Free cash flow from continuing operations was $103.4 million (Exhibit 11).

The Company ended the period with cash and cash equivalents of $585.2 million; net debt was $844 million (Exhibit 10).

During the quarter, the Company repurchased 3.6 million of its ordinary shares for total consideration of $50 million. For the six months ended June 30, 2023, the Company repurchased 6.9 million shares for total consideration of $100 million.

The Company’s full-year guidance for 2023 can be found in the table below. No updates were made to the previous guidance that was issued on February 23, 2023.

2023 Guidance (As of February 23, 2023)

Subsea

Surface Technologies

Revenue in a range of $5.9 - 6.3 billion

Adjusted EBITDA margin in a range of 12.5 - 13.5%

Revenue in a range of $1.3 - 1.45 billion

Adjusted EBITDA margin in a range of 12 - 14%

TechnipFMC

Corporate expense, net $100 - 110 million(includes depreciation and amortization of ~$5 million; excludes charges and credits)

Net interest expense $100 - 110 million

Tax provision, as reported $155 - 165 million

Capital expenditures approximately $250 million

Free cash flow2 $225 - 375 million

1 Our guidance measures of adjusted EBITDA, adjusted EBITDA margin, free cash flow, and adjusted corporate expense, net are non-GAAP financial measures. We are unable to provide a reconciliation to comparable GAAP financial measures on a forward-looking basis without unreasonable effort because of the unpredictability of the individual components of the most directly comparable GAAP financial measure and the variability of items excluded from each such measure. Such information may have a significant, and potentially unpredictable, impact on our future financial results.2 Free cash flow is calculated as cash flow from operations less capital expenditures.

The Company will host a teleconference on Thursday, July 27, 2023 to discuss the second quarter 2023 financial results. The call will begin at 1:30 p.m. London time (8:30 a.m. New York time). Webcast access and an accompanying presentation can be found at www.TechnipFMC.com.

An archived audio replay will be available after the event at the same website address. In the event of a disruption of service or technical difficulty during the call, information will be posted on our website.

###

About TechnipFMC

TechnipFMC is a leading technology provider to the traditional and new energy industries; delivering fully integrated projects, products, and services.

With our proprietary technologies and comprehensive solutions, we are transforming our clients’ project economics, helping them unlock new possibilities to develop energy resources while reducing carbon intensity and supporting their energy transition ambitions.

Organized in two business segments — Subsea and Surface Technologies — we will continue to advance the industry with our pioneering integrated ecosystems (such as iEPCI™, iFEED™ and iComplete™), technology leadership and digital innovation.

Each of our approximately 20,000 employees is driven by a commitment to our clients’ success, and a culture of strong execution, purposeful innovation, and challenging industry conventions.

TechnipFMC uses its website as a channel of distribution of material company information. To learn more about how we are driving change in the industry, go to www.TechnipFMC.com and follow us on Twitter @TechnipFMC.

This communication contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events, market growth and recovery, growth of our new energies business and anticipated revenues, earnings, cash flows, our expectation on shareholder distributions through cash dividend and stock repurchases, or other aspects of our operations or operating results. Forward-looking statements are often identified by words such as “commit,” “guidance,” “confident,” “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “may,” “will,” “likely,” “predicated,” “estimate,” “outlook” and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on our current expectations, beliefs, and assumptions concerning future developments and business conditions and their potential effect on us. While management believes these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All of our forward-looking statements involve risks and uncertainties (some of which are significant or beyond our control) and assumptions that could cause future results to differ materially from our historical experience and our present expectations or projections, including unpredictable trends in the demand for and price of crude oil and natural gas; competition and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation; the COVID-19 pandemic and any resurgence thereof; our inability to develop, implement and protect new technologies and services and intellectual property related thereto, including new technologies and services for our New Energy business; the cumulative loss of major contracts, customers or alliances and unfavorable credit and commercial terms of certain contracts; disruptions in the political, regulatory, economic and social conditions of the countries in which we conduct business; the refusal of DTC to act as depository agency for our shares; the impact of our existing and future indebtedness and the restrictions on our operations by terms of the agreements governing our existing indebtedness; the risks caused by our acquisition and divestiture activities; additional costs or risks from increasing scrutiny and expectations regarding ESG matters; uncertainties related to our investments in New Energy business; the risks caused by fixed-price contracts; our failure to timely deliver our backlog; our reliance on subcontractors, suppliers and our joint venture partners; a failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks; risks of pirates endangering our maritime employees and assets; any delays and cost overruns of new capital asset construction projects for vessels and manufacturing facilities; potential liabilities inherent in the industries in which we operate or have operated; our failure to comply with existing and future laws and regulations, including those related to environmental protection, climate change, health and safety, labor and employment, import/export controls, currency exchange, bribery and corruption, taxation, privacy, data protection and data security; the additional restrictions on dividend payouts or share repurchases as an English public limited company; uninsured claims and litigation against us; tax laws, treaties and regulations and any unfavorable findings by relevant tax authorities; potential departure of our key managers and employees; adverse seasonal and weather conditions and unfavorable currency exchange rates; risk in connection with our defined benefit pension plan commitments; and our inability to obtain sufficient bonding capacity for certain contracts, and other risks as discussed in Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and our other reports subsequently filed with the Securities and Exchange Commission.

We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by law.

Investor relationsMatt SeinsheimerSenior Vice President, Investor RelationsTel: +1 281 260 3665Email: Matt Seinsheimer

James DavisDirector, Investor RelationsTel: +1 281 260 3665Email: James Davis

Media relationsCatie TuleyDirector, Public RelationsTel: +1 713 876 7296Email: Catie Tuley

David WillisSenior Manager, Public RelationsTel: +44 7841 492988Email: David Willis

Exhibit 1

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

2023

2023

2022

2023

2022

Revenue

$ 1,972.2

$ 1,717.4

$ 1,717.2

$ 3,689.6

$ 3,273.0

Costs and expenses

1,813.7

1,666.4

1,640.2

3,480.1

3,185.6

158.5

51.0

77.0

209.5

87.4

Other income (expense), net

(181.2)

12.9

7.3

(168.3)

53.5

Income from investment in Technip Energies

—

—

0.8

—

(27.7)

Income (loss) before net interest expense and income taxes

(22.7)

63.9

85.1

41.2

113.2

Net interest expense

(30.3)

(18.7)

(27.7)

(49.0)

(61.6)

Loss on early extinguishment of debt

—

—

(29.8)

—

(29.8)

Income (loss) before income taxes

(53.0)

45.2

27.6

(7.8)

21.8

Provision for income taxes

43.3

37.4

19.8

80.7

48.3

Income (loss) from continuing operations

(96.3)

7.8

7.8

(88.5)

(26.5)

(Income) loss from continuing operations attributable to non-controlling interests

9.1

(7.4)

(5.7)

1.7

(13.7)

Income (loss) from continuing operations attributable to TechnipFMC plc

(87.2)

0.4

2.1

(86.8)

(40.2)

Loss from discontinued operations

—

—

—

—

(19.4)

Net income (loss) attributable to TechnipFMC plc

$ (87.2)

$ 0.4

$ 2.1

$ (86.8)

$ (59.6)

Earnings (loss) per share from continuing operations

Basic and diluted

$ (0.20)

$0.00

$0.00

$ (0.20)

$ (0.09)

Earnings (loss) per share from discontinued operations

Basic and diluted

$0.00

$0.00

$0.00

$0.00

$ (0.04)

Earnings (loss) per share attributable to TechnipFMC plc

Basic and diluted

$ (0.20)

$0.00

$0.00

$ (0.20)

$ (0.13)

Weighted average shares outstanding:

Basic

440.1

442.1

452.2

441.1

451.6

Diluted

440.1

455.0

456.8

441.1

451.6

Exhibit 2

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

BUSINESS SEGMENT DATA

(In millions)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

2023

2023

2022

2023

2022

Segment revenue

Subsea

$ 1,618.4

$ 1,387.6

$ 1,414.6

$ 3,006.0

$ 2,703.7

Surface Technologies

353.8

329.8

302.6

683.6

569.3

Total segment revenue

$ 1,972.2

$ 1,717.4

$ 1,717.2

$ 3,689.6

$ 3,273.0

Segment operating profit

Subsea

$153.4

$66.8

$ 97.1

$220.2

$151.1

Surface Technologies

25.7

22.4

10.0

48.1

13.7

Total segment operating profit

179.1

89.2

107.1

268.3

164.8

Corporate items

Corporate expense(1)

$ (153.5)

$ (27.4)

$(22.0)

$ (180.9)

$(51.5)

Net interest expense

(30.3)

(18.7)

(57.5)

(49.0)

(91.4)

Income (loss) from investment in Technip Energies

—

—

0.8

—

(27.7)

Foreign exchange gains (losses)

(48.3)

2.1

(0.8)

(46.2)

27.6

Total corporate items

(232.1)

(44.0)

(79.5)

(276.1)

(143.0)

Income (loss) before income taxes(2)

$(53.0)

$45.2

$ 27.6

$ (7.8)

$ 21.8

(1) Corporate expense primarily includes the non-recurring legal settlement charges, corporate staff expenses, share-based compensation expenses, and other employee benefits.

(2) Includes amounts attributable to non-controlling interests.

Exhibit 3

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

BUSINESS SEGMENT DATA

(In millions, unaudited)

Three Months Ended

Six Months Ended

Inbound Orders (1)

June 30,

March 31,

June 30,

June 30,

2023

2023

2022

2023

2022

Subsea

$ 4,114.5

$ 2,536.5

$ 1,928.0

$ 6,651.0

$ 3,821.6

Surface Technologies

332.8

322.4

273.7

655.2

565.0

Total inbound orders

$ 4,447.3

$ 2,858.9

$ 2,201.7

$ 7,306.2

$ 4,386.6

Order Backlog (2)

June 30, 2023

March 31, 2023

June 30, 2022

Subsea

$ 12,088.5

$9,395.3

$7,926.3

Surface Technologies

1,190.1

1,212.1

1,113.1

Total order backlog

$ 13,278.6

$ 10,607.4

$9,039.4

(1) Inbound orders represent the estimated sales value of confirmed customer orders received during the reporting period.

(2) Order backlog is calculated as the estimated sales value of unfilled, confirmed customer orders at the reporting date.

Exhibit 4

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

June 30,2023

December 31,2022

Cash and cash equivalents

$ 585.2

$ 1,057.1

Trade receivables, net

1,206.2

966.5

Contract assets, net

1,266.5

981.6

Inventories, net

1,158.2

1,039.7

Other current assets

1,026.0

943.8

Total current assets

5,242.1

4,988.7

Property, plant and equipment, net

2,350.5

2,354.9

Intangible assets, net

673.9

716.0

Other assets

1,366.4

1,384.7

Total assets

$ 9,632.9

$ 9,444.3

Short-term debt and current portion of long-term debt

$ 429.5

$ 367.3

Accounts payable, trade

1,516.5

1,282.8

Contract liabilities

1,219.0

1,156.4

Other current liabilities

1,273.0

1,367.8

Total current liabilities

4,438.0

4,174.3

Long-term debt, less current portion

999.7

999.3

Other liabilities

1,064.0

994.0

TechnipFMC plc stockholders’ equity

3,099.6

3,240.2

Non-controlling interests

31.6

36.5

Total liabilities and equity

$ 9,632.9

$ 9,444.3

Exhibit 5

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

(In millions)

Three Months Ended June 30,

Six Months Ended June 30,

2023

2023

2022

Cash provided (required) by operating activities

Net (loss)

$ (96.3)

$ (88.5)

$ (45.9)

Net loss from discontinued operations

—

—

19.4

Adjustments to reconcile income (loss) from continuing operations to cash provided (required) by operating activities

Depreciation and amortization

97.0

190.0

189.9

Loss from investment in Technip Energies

—

—

27.7

Income from equity affiliates, net of dividends received

(1.2)

(15.4)

(9.3)

Loss on early extinguishment of debt

—

—

29.8

Other non-cash items, net

(6.1)

11.9

46.5

Working capital(1)

198.0

(286.8)

(686.2)

Other non-current assets and liabilities, net

(35.2)

(41.2)

1.8

Cash provided (required) by operating activities

156.2

(230.0)

(426.3)

Cash provided (required) by investing activities

Capital expenditures

(52.8)

(110.1)

(63.4)

Proceeds from sale of investment in Technip Energies

—

—

288.5

Other investing activities for ER

26.2

30.7

4.4

Cash provided (required) by investing activities

(26.6)

(79.4)

229.5

Cash required by financing activities

Net decrease in short-term debt

(16.9)

(26.1)

(173.5)

Cash settlement for derivative hedging debt

(17.2)

(30.1)

—

Net change in revolving credit facility

50.0

50.0

170.0

Repayments of long-term debt

—

—

(451.7)

Share repurchases

(50.0)

(100.0)

—

Other financing activities

(20.2)

(35.6)

(5.5)

Cash required by financing activities

(54.3)

(141.8)

(460.7)

Effect of changes in foreign exchange rates on cash and cash equivalents

(12.4)

(20.7)

15.0

Change in cash and cash equivalents

62.9

(471.9)

(642.5)

Cash and cash equivalents, beginning of period

522.3

1,057.1

1,327.4

Cash and cash equivalents, end of period

$ 585.2

$ 585.2

$ 684.9

(1) Working capital includes receivables, payables, inventories and other current assets and liabilities.

Exhibit 6

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2023 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year or sequential basis. Income (loss) from continuing operations attributable to TechnipFMC plc, excluding charges and credits, as well as measures derived from it (including Diluted EPS, excluding charges and credits; Income before net interest expense and taxes, excluding charges and credits (“Adjusted Operating profit”); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits (“Adjusted EBITDA”); and Adjusted EBITDA, excluding foreign exchange gains or losses, net; Adjusted EBITDA margin; Adjusted EBITDA margin, excluding foreign exchange, net; Corporate expense, excluding charges and credits; Foreign exchange, net and other, excluding charges and credits; and net debt) are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC's operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.

Three Months Ended

June 30, 2023

Income (loss) from continuing operations attributable to TechnipFMC plc

Loss attributable to non-controlling interests from continuing operations

Provision for income taxes

Net interest expense and loss on early extinguishment of debt

Income (loss) before net interest expense and income taxes (Operating profit)

Depreciation and amortization

Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)

TechnipFMC plc, as reported

$ (87.2)

$ (9.1)

$ 43.3

$30.3

$ (22.7)

$ 97.0

$ 74.3

Charges and (credits):

Restructuring and other charges

4.7

—

0.4

—

5.1

—

5.1

Non-recurring legal settlement charges

126.5

—

—

—

126.5

—

126.5

Adjusted financial measures

$ 44.0

$ (9.1)

$ 43.7

$30.3

$ 108.9

$ 97.0

$ 205.9

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported

$ (0.20)

Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc

$ 0.10

Three Months Ended

March 31, 2023

Income from continuing operations attributable to TechnipFMC plc

Income attributable to non-controlling interests from continuing operations

Provision for income taxes

Net interest expense

Income before net interest expense and income taxes (Operating profit)

Depreciation and amortization

Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)

TechnipFMC plc, as reported

$0.4

$ 7.4

$ 37.4

$18.7

$ 63.9

$ 93.0

$ 156.9

Charges and (credits):

Restructuring and other charges

0.6

—

—

—

0.6

—

0.6

Adjusted financial measures

$1.0

$ 7.4

$ 37.4

$18.7

$ 64.5

$ 93.0

$ 157.5

Diluted earnings (loss) per share from continuing operations attributable to TechnipFMC plc, as reported

$ 0.00

Adjusted diluted earnings (loss) per share from continuing operations attributable to TechnipFMC plc

$ 0.00

Exhibit 6

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Three Months Ended

June 30, 2022

Income from continuing operations attributable to TechnipFMC plc

Income attributable to non-controlling interests from continuing operations

Provision for income taxes

Net interest expense and loss on early extinguishment of debt

Income before net interest expense and income taxes (Operating profit)

Depreciation and amortization

Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)

TechnipFMC plc, as reported

$ 2.1

$ 5.7

$ 19.8

$57.5

$ 85.1

$ 94.0

$ 179.1

Charges and (credits):

Restructuring and other charges

7.1

—

1.1

—

8.2

—

8.2

Income from investment in Technip Energies

(0.8)

—

—

—

(0.8)

—

(0.8)

Adjusted financial measures

$ 8.4

$ 5.7

$ 20.9

$57.5

$ 92.5

$ 94.0

$ 186.5

Diluted earnings per share from continuing operations attributable to TechnipFMC plc, as reported

$ 0.00

Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc

$ 0.02

Exhibit 7

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), the second quarter 2023 Earnings Release also includes non-GAAP financial measures (as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended) and describes performance on a year-over-year or sequential basis. Income (loss) from continuing operations attributable to TechnipFMC plc, excluding charges and credits, as well as measures derived from it (including diluted income (loss) per share from continuing operations attributable to TechnipFMC plc, excluding charges and credits); Income before net interest expense and taxes, excluding charges and credits (Adjusted Operating profit); Depreciation and amortization, excluding charges and credits; Earnings before net interest expense, income taxes, depreciation and amortization, excluding charges and credits (Adjusted EBITDA and Adjusted EBITDA, excluding foreign exchange, net); Adjusted EBITDA margin; Adjusted EBITDA margin, excluding foreign exchange, net; Corporate expense, excluding charges and credits; Foreign exchange, net and other, excluding charges and credits; and net debt, or cash are non-GAAP financial measures. Management believes that the exclusion of charges and credits from these financial measures enables investors and management to more effectively evaluate TechnipFMC's operations and consolidated results of operations period-over-period, and to identify operating trends that could otherwise be masked or misleading to both investors and management by the excluded items. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered by investors in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of the most comparable financial measures under GAAP to the non-GAAP financial measures.

Six Months Ended

June 30, 2023

Income (loss) from continuing operations attributable to TechnipFMC plc

Loss attributable to non-controlling interests from continuing operations

Provision for income taxes

Net interest expense

Income before net interest expense and income taxes (Operating profit)

Depreciation and amortization

Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)

TechnipFMC plc, as reported

$ (86.8)

$ (1.7)

$ 80.7

$ 49.0

$ 41.2

$ 190.0

$ 231.2

Charges and (credits):

Restructuring and other charges

5.3

—

0.4

—

5.7

—

5.7

Non-recurring legal settlement charges

126.5

—

—

126.5

—

126.5

Adjusted financial measures

$ 45.0

$ (1.7)

$ 81.1

$ 49.0

$ 173.4

$ 190.0

$ 363.4

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported

$ (0.20)

Adjusted diluted earnings per share from continuing operations attributable to TechnipFMC plc

$ 0.10

Exhibit 7

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Six Months Ended

June 30, 2022

Loss from continuing operations attributable to TechnipFMC plc

Income attributable to non-controlling interests from continuing operations

Provision for income taxes

Net interest expense and loss on early extinguishment of debt

Income before net interest expense and income taxes (Operating profit)

Depreciation and amortization

Earnings before net interest expense, income taxes, depreciation and amortization (EBITDA)

TechnipFMC plc, as reported

$ (40.2)

$ 13.7

$ 48.3

$ 91.4

$ 113.2

$ 189.9

$ 303.1

Charges and (credits):

Impairment and other charges

1.1

—

—

—

1.1

—

1.1

Restructuring and other charges

6.8

—

1.3

—

8.1

—

8.1

Loss from Investment in Technip Energies

27.7

—

—

—

27.7

—

27.7

Adjusted financial measures

$ (4.6)

$ 13.7

$ 49.6

$ 91.4

$ 150.1

$ 189.9

$ 340.0

Diluted loss per share from continuing operations attributable to TechnipFMC plc, as reported

$ (0.09)

Adjusted diluted loss per share from continuing operations attributable to TechnipFMC plc

$ (0.01)

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Three Months Ended

June 30, 2023

Subsea

Surface Technologies

Corporate Expense

Foreign Exchange, net and Other

Total

Revenue

$ 1,618.4

$ 353.8

$ —

$ —

$ 1,972.2

Operating profit (loss), as reported (pre-tax)

$ 153.4

$ 25.7

$ (153.5)

$ (48.3)

$ (22.7)

Charges and (credits):

Restructuring and other charges

0.5

4.6

—

—

5.1

Non-recurring legal settlement charges

—

—

126.5

—

126.5

Subtotal

0.5

4.6

126.5

—

131.6

Adjusted Operating profit (loss)

153.9

30.3

(27.0)

(48.3)

108.9

Depreciation and amortization

79.9

16.6

0.5

—

97.0

Adjusted EBITDA

$ 233.8

$ 46.9

$ (26.5)

$ (48.3)

$ 205.9

Foreign exchange, net

0.0

0.0

0.0

48.3

48.3

Adjusted EBITDA, excluding foreign exchange, net

$ 233.8

$ 46.9

$ (26.5)

$ —

$ 254.2

Operating profit margin, as reported

9.5 %

7.3 %

-1.2 %

Adjusted Operating profit margin

9.5 %

8.6 %

5.5 %

Adjusted EBITDA margin

14.4 %

13.3 %

10.4 %

Adjusted EBITDA margin, excluding foreign exchange, net

14.4 %

13.3 %

12.9 %

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Three Months Ended

March 31, 2023

Subsea

Surface Technologies

Corporate Expense

Foreign Exchange, net and Other

Total

Revenue

$ 1,387.6

$ 329.8

$ —

$ —

$ 1,717.4

Operating profit (loss), as reported (pre-tax)

$ 66.8

$ 22.4

$ (27.4)

$ 2.1

$ 63.9

Charges and (credits):

Restructuring and other charges

(0.1)

0.7

—

—

0.6

Subtotal

(0.1)

0.7

—

—

0.6

Adjusted Operating profit (loss)

66.7

23.1

(27.4)

2.1

64.5

Depreciation and amortization

75.2

17.2

0.6

—

93.0

Adjusted EBITDA

$ 141.9

$ 40.3

$ (26.8)

$ 2.1

$ 157.5

Foreign exchange, net

—

—

—

(2.1)

(2.1)

Adjusted EBITDA, excluding foreign exchange, net

$ 141.9

$ 40.3

$ (26.8)

$ —

$ 155.4

Operating profit margin, as reported

4.8 %

6.8 %

3.7 %

Adjusted Operating profit margin

4.8 %

7.0 %

3.8 %

Adjusted EBITDA margin

10.2 %

12.2 %

9.2 %

Adjusted EBITDA margin, excluding foreign exchange, net

10.2 %

12.2 %

9.0 %

Exhibit 8

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Three Months Ended

June 30, 2022

Subsea

Surface Technologies

Corporate Expense

Foreign Exchange, net

Total

Revenue

$ 1,414.6

$ 302.6

$ —

$ —

$ 1,717.2

Operating profit (loss), as reported (pre-tax)

$ 97.1

$ 10.0

$ (22.0)

$ —

$ 85.1

Charges and (credits):

Restructuring and other charges

2.6

5.4

0.2

—

8.2

Income from investment in Technip Energies

—

—

—

(0.8)

(0.8)

Subtotal

2.6

5.4

0.2

(0.8)

7.4

Adjusted Operating profit (loss)

99.7

15.4

(21.8)

(0.8)

92.5

Depreciation and amortization

76.3

17.0

0.7

—

94.0

Adjusted EBITDA

$ 176.0

$ 32.4

$ (21.1)

$(0.8)

$ 186.5

Foreign exchange, net

—

—

—

0.8

0.8

Adjusted EBITDA, excluding foreign exchange, net

$ 176.0

$ 32.4

$ (21.1)

$ —

$ 187.3

Operating profit margin, as reported

6.9 %

3.3 %

5.0 %

Adjusted Operating profit margin

7.0 %

5.1 %

5.4 %

Adjusted EBITDA margin

12.4 %

10.7 %

10.9 %

Adjusted EBITDA margin, excluding foreign exchange, net

12.4 %

10.7 %

10.9 %

Exhibit 9

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Six Months Ended

June 30, 2023

Subsea

Surface Technologies

Corporate Expense

Foreign Exchange, net and Other

Total

Revenue

$ 3,006.0

$ 683.6

$ —

$ —

$ 3,689.6

Operating profit (loss), as reported (pre-tax)

$ 220.2

$ 48.1

$ (180.9)

$ (46.2)

$ 41.2

Charges and (credits):

Restructuring and other charges

0.4

5.3

—

—

5.7

Non-recurring legal settlement charges

—

—

126.5

—

126.5

Subtotal

0.4

5.3

126.5

—

132.2

Adjusted operating profit (loss)

220.6

53.4

(54.4)

(46.2)

173.4

Depreciation and amortization

155.1

33.8

1.1

—

190.0

Adjusted EBITDA

$ 375.7

$ 87.2

$ (53.3)

$ (46.2)

$ 363.4

Foreign exchange, net

—

—

—

46.2

46.2

Adjusted EBITDA, excluding foreign exchange, net

$ 375.7

$ 87.2

$ (53.3)

$ —

$ 409.6

Operating profit margin, as reported

7.3 %

7.0 %

1.1 %

Adjusted operating profit margin

7.3 %

7.8 %

4.7 %

Adjusted EBITDA margin

12.5 %

12.8 %

9.8 %

Adjusted EBITDA margin, excluding foreign exchange, net

12.5 %

12.8 %

11.1 %

Exhibit 9

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Six Months Ended

June 30, 2022

Subsea

Surface Technologies

Corporate Expense

Foreign Exchange, net and Other

Total

Revenue

$ 2,703.7

$ 569.3

$ —

$ —

$ 3,273.0

Operating loss, as reported (pre-tax)

$ 151.1

$ 13.7

$ (51.5)

$ (0.1)

$ 113.2

Charges and (credits):

Impairment and other charges

—

1.1

—

—

1.1

Restructuring and other charges

(0.8)

5.9

3.0

—

8.1

Loss from investment in Technip Energies

—

—

—

27.7

27.7

Subtotal

(0.8)

7.0

3.0

27.7

36.9

Adjusted operating profit (loss)

150.3

20.7

(48.5)

27.6

150.1

Depreciation and amortization

154.7

33.7

1.5

—

189.9

Adjusted EBITDA

$ 305.0

$ 54.4

$ (47.0)

$ 27.6

$ 340.0

Foreign exchange, net

—

—

—

(27.6)

(27.6)

Adjusted EBITDA, excluding foreign exchange, net

$ 305.0

$ 54.4

$ (47.0)

$ —

$ 312.4

Operating profit margin, as reported

5.6 %

2.4 %

3.5 %

Adjusted operating profit margin

5.6 %

3.6 %

4.6 %

Adjusted EBITDA margin

11.3 %

9.6 %

10.4 %

Adjusted EBITDA margin, excluding foreign exchange, net

11.3 %

9.6 %

9.5 %

Exhibit 10

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

June 30,

March 31,

June 30,

2023

2023

2022

Cash and cash equivalents

$585.2

$522.3

$684.9

Short-term debt and current portion of long-term debt

(429.5)

(385.0)

(104.0)

Long-term debt, less current portion

(999.7)

(1,005.7)

(1,370.7)

Net debt

$(844.0)

$(868.4)

$(789.8)

Net (debt) cash is a non-GAAP financial measure reflecting cash and cash equivalents, net of debt. Management uses this non-GAAP financial measure to evaluate our capital structure and financial leverage. We believe net debt, or net cash, is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure. Net (debt) cash should not be considered an alternative to, or more meaningful than, cash and cash equivalents as determined in accordance with U.S. GAAP or as an indicator of our operating performance or liquidity.

Exhibit 11

TECHNIPFMC PLC AND CONSOLIDATED SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2023

2023

2022

Cash provided (required) by operating activities from continuing operations

$156.2

$(230.0)

$(426.3)

Capital expenditures

(52.8)

(110.1)

(63.4)

Free cash flow (deficit) from continuing operations

$103.4

$(340.1)

$(489.7)

Free cash flow (deficit) from continuing operations, is a non-GAAP financial measure and is defined as cash provided (required) by operating activities less capital expenditures. Management uses this non-GAAP financial measure to evaluate our financial condition. We believe from continuing operations, free cash flow (deficit) from continuing operations is a meaningful financial measure that may assist investors in understanding our financial condition and results of operations.