TechnipFMC plc

CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED JUNE 30, 2024 AND 2023

Revenue

Revenue increased $353.4 million during the three months ended June 30, 2024, compared to the same period in 2023. Subsea revenue increased by $390.7 million, primarily driven by a 49.6 percent higher backlog as of December 31, 2023, when compared to December 31, 2022, which resulted in increased revenue from higher iEPCI, installation and services activities particularly in the United States, Angola, the United Kingdom, Norway and Australia. Surface Technologies revenue decreased by $37.3 million, compared to the same period in 2023, primarily due to the sale of MSB during the three months ended March 31, 2024 and lower levels of drilling and completion activities in North America of $50.2 million during the second quarter. This increase was partially offset by growth of $12.9 million in the Middle East and the rest of the world mainly driven by higher service activities.

Gross Profit

Gross profit increased to $500.9 million during the three months ended June 30, 2024, compared to $330.4 million in the prior year period. Subsea gross profit increased year-over-year by $164.0 million, of which $63.8 million is due to volume increase and $100.2 million due to favorable activity mix. Surface Technologies gross profit decreased year-over-year by $2.9 million, driven by a decrease in North America of $12.8 million, primarily due to the sale of MSB in the three months ended March 31, 2024, offset by improved operational performance in the region. Continued growth in the Middle East increased gross profits by $5.0 million with an additional $4.9 million increase from other operating locations.

Selling, General and Administrative Expense

Selling, general and administrative expense increased $24.9 million year-over-year, driven by higher employee costs in support of increased business activities.

Other Expense, Net

Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The $138.2 million year-over-year decrease in net expense is driven by the $126.5 million non-recurring legal settlement charge recognized during the three months ended June 30, 2023. Foreign currency loss decreased by $30.6 million, primarily related to exposures to certain currencies with limited derivative hedging markets, such as Angola kwanza during the three months ended June 30, 2023 and the net impact of hedging positions year-over-year. These decreases are partially offset by a net increase in miscellaneous other non-operating charges.

Net Interest Expense

Net interest expense of $21.4 million decreased by $8.9 million in the three months ended June 30, 2024, compared to the same period in 2023, due to the net decrease in outstanding debt and fluctuation in interest rates.

Provision for Income Taxes

Our provision for income taxes for thethree months ended June 30, 2024 and 2023 reflected effective tax rates of 24.1 percent and (81.7) percent, respectively. The year-over-year change in the effective tax rate was primarily related to losses in jurisdictions with a full valuation allowance and a change in geographical profit mix year-over-year.

Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than those of the United Kingdom.

CONSOLIDATED RESULTS OF OPERATIONS OF TECHNIPFMC PLC

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Revenue

Revenue increased by $678.0 million during the six months ended June 30, 2024, compared to the same period in 2023. Subsea revenue increased by $737.9 million, driven by conversion of increased backlog, which was 49.6 percent higher as of December 31, 2023, when compared to December 31, 2022, and resulted in increased revenue from higher iEPCI, installation and services activities, sales of subsea production equipment and increased supply of flexible pipe, particularly in the United States, Angola, Brazil, Guyana, Australia, and the United Kingdom. Surface Technologies revenue decreased by $59.9 million, compared to the same period in 2023, primarily due to the sale of MSB during the three months ended March 31, 2024 and lower levels of drilling and completion activity in North America of $74.2 million, partially offset by $14.3 million of growth in the Middle East and the rest of the world.

Gross Profit

Gross profit increased to $842.3 million in 2024 compared to $551.3 million in 2023. Subsea gross profit increased year-over-year by $278.5 million, of which $134.5 million was due to volume increase and $144.0 million due to favorable activity mix. Surface Technologies gross profit decreased by $2.9 million compared to the same period in 2023. $17.4 million of the decrease is due to the sale of MSB in the three months ended March 31, 2024 and lower levels of drilling and completion activity in North America, offset by $14.5 million of growth and higher profitability in the Middle East, Asia Pacific and Africa.

Selling, General and Administrative Expense

Selling, general and administrative expense increased by $30.8 million during the six months ended June 30, 2024, compared to the same period in 2023, driven by higher employee costs in support of increased business activities.

Other Expense, Net

Other income (expense), net, includes gains and losses associated with the remeasurement of net monetary assets and liabilities, gains and losses on sales of property, plant and equipment, and non-operating gains and losses. The net decrease in expense of $127.2 million was driven by the $126.5 million non-recurring legal settlement charge recognized during the six months ended June 30, 2023. Foreign currency loss decreased by $24.0 million, due to exposures to certain currencies with limited derivative hedging markets such as Angola kwanza and the net impact of hedging positions during the six months ended June 30, 2023. These decreases are partially offset by a net increase in miscellaneous other non-operating charges.

For the six months ended June 30, 2024, we recognized a gain of $75.2 million from the sale of equity interests and assets of MSB.

Income from Equity Affiliates

For the six months ended June 30, 2024 and 2023, we recorded income from equity method affiliates of$4.0 million and $15.3 million, respectively, and the difference is driven by adecrease in operat ional activity of our joint ventures.

Net Interest Expense

Net interest expenseof $34.1 million decreased by $14.9 million in the six months ended June 30, 2024, compared to the same period in 2023, due to a net reduction in outstanding debt and higher interest income.

Provision for Income Taxes

Our provision for income taxes for the six months ended June 30, 2024 and 2023 reflected effective tax rates of 23.9 percent and (1,034.6) percent, respectively. The change in the effective tax rate was largely due to the change in geographical profit mix year-over-year, tax adjustments related to the reassessment of prior year tax accruals, and changes in valuation allowances on some of our deferred tax assets.

Our effective tax rate can fluctuate depending on our country mix of earnings, since our foreign earnings are generally subject to higher tax rates than in the United Kingdom.