TechnipFMC plc Q4 2024 Earnings Conference Call: Key Insights
On February 26, 2025, TechnipFMC plc (NYSE: FTI) held its Q4 2024 earnings conference call. The call was led by Matt Seinsheimer, Senior Vice President of Investor Relations and Corporate Development, Doug Pferdehirt, Chairman and Chief Executive Officer, and Alf Melin, Executive Vice President and Chief Financial Officer. Participating analysts included Arun Jayaram from JP Morgan, Scott Gruber from Citigroup, David Anderson from Barclays, Mark Wilson from Jefferies, Mark Bianchi from TD Cowen, and Kurt Hallead from Benchmark, as well as Victoria McCulloch from RBC and Ati Modak from Goldman Sachs.
Company Overview
TechnipFMC plc is a leading engineering and technology solutions provider to the global energy industry. The company operates in two segments: Subsea and Onshore/Offshore. The Subsea segment offers engineering, procurement, construction, installation, and maintenance services for subsea oil and gas projects. The Onshore/Offshore segment provides engineering, procurement, construction, installation, and start-up services for projects onshore and offshore.
Financial Performance
Doug Pferdehirt started the call by highlighting the company’s strong financial performance in Q4 2024. He reported that the company generated revenues of $5.3 billion, an increase of 15% compared to the same period last year. The company’s net income was $550 million, up from $250 million in the previous year. Alf Melin added that the company’s backlog stood at $12.3 billion as of the end of Q4 2024, an increase of 18% compared to the previous year.
Business Outlook
Market conditions remained strong in Q4 2024, with continued demand for oil and gas projects. Doug Pferdehirt expressed optimism about the company’s future prospects, stating that TechnipFMC is well-positioned to benefit from the ongoing energy transition towards renewable energy sources. He mentioned that the company is expanding its capabilities in the renewable energy sector, including the development of floating wind turbines and the integration of carbon capture, utilization, and storage (CCUS) technologies.
Analyst Questions and Answers
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Arun Jayaram (JP Morgan): Can you provide an update on your renewable energy business and any potential M&A activity in this space?
Doug Pferdehirt: We have made significant progress in our renewable energy business, particularly in the offshore wind sector. We have secured several large projects in Europe and are expanding our capabilities in floating wind turbines. Regarding M&A activity, we are actively looking for opportunities to expand our renewable energy business through strategic acquisitions.
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Scott Gruber (Citigroup): Can you provide an update on your backlog in the Onshore/Offshore segment?
Alf Melin: Our backlog in the Onshore/Offshore segment stands at $6.8 billion as of the end of Q4 2024. We have seen strong demand for our services in the LNG and petrochemicals sectors, particularly in the Americas and Asia Pacific regions.
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David Anderson (Barclays): How is the company addressing the challenge of decarbonization in the oil and gas industry?
Doug Pferdehirt: We are committed to helping our clients reduce their carbon footprint and are investing in technologies such as CCUS and hydrogen production. We are also expanding our capabilities in renewable energy and are working on several projects in this space.
Impact on Individuals
The strong financial performance of TechnipFMC in Q4 2024 is a positive sign for the global energy industry and could lead to increased job opportunities in engineering, procurement, construction, installation, and maintenance services. The company’s expansion into renewable energy is also likely to create new jobs in this sector. However, the ongoing energy transition towards renewable energy sources could also lead to job losses in the oil and gas industry.
Impact on the World
The strong financial performance of TechnipFMC in Q4 2024 and its expansion into renewable energy is a positive sign for the global energy industry as a whole. The company’s investment in CCUS and hydrogen production could help reduce greenhouse gas emissions and contribute to the fight against climate change. However, the ongoing energy transition towards renewable energy sources could also lead to geopolitical tensions and economic instability in countries heavily reliant on oil and gas exports.
Conclusion
TechnipFMC plc reported strong financial performance in Q4 2024, with revenues of $5.3 billion and net income of $550 million. The company’s backlog stood at $12.3 billion as of the end of Q4 2024. Doug Pferdehirt expressed optimism about the company’s future prospects and its expansion into renewable energy. The strong financial performance of TechnipFMC and its expansion into renewable energy is a positive sign for the global energy industry, but could also lead to job losses in the oil and gas industry and geopolitical tensions.
The ongoing energy transition towards renewable energy sources is a complex issue with significant implications for individuals and the world as a whole. It is important for companies like TechnipFMC to invest in renewable energy while also addressing the challenges of decarbonization in the oil and gas industry. By working together, we can create a more sustainable energy future for all.
