TechnipFMC plc

SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC

THREE MONTHS ENDED JUNE 30, 2024 AND 2023

Segment operating profit is defined as total segment revenue less segment operating expenses. Certain items have been excluded in computing segment operating profit and are included in corporate items. See Note 5 for further details.

Subsea

Subsea revenue increased $390.7 million during the three months ended June 30, 2024, compared to the same period in 2023, driven by increased backlog in 2023 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. $170.2 million of the increase in revenue was from the United States, $97.9 million from Angola, $55.6 million from the United Kingdom, $53.8 million from Norway, and $39.7 from Australia, driven by higher iEPCI, installation and services activities. The increased revenue in these geographies was modestly offset by a net $26.5 million decrease from the rest of the world, primarily from lower activity as projects reached completion.

Subsea operating profit for the three months ended June 30, 2024, increased by $124.3 million, of which $100.2 million was the result of a favorable activity mix and $63.8 million from higher volume, partially offset by a $39.7 million increase in operating expense related to the higher activity.

Surface Technologies

Surface Technologies revenue decreased by $37.3 million during the three months ended June 30, 2024, compared to the same period in 2023 primarily due to $50.2 million decreased revenue as a result of the sale of MSB during the three months ended March 31, 2024 and lower drilling and completion activities in North America, partially offset by growth of $12.9 million in the Middle East and the rest of the world mainly driven by higher service activities.

Surface Technologies operating profit increased by $4.9 million, with activities in the Middle East and Asia Pacific improving $8.3 million and the rest of the world, exclusive of North America, generating improved profitability. Operating profits in North America decreased $4.6 million over the comparable period primarily due to the sale of MSB during the three months ended March 31, 2024, offset by improved operating performance in the region.

Corporate Expense

Corporate expense decreased by 129.8 million compared to the same period in the prior year, primarily driven by the non-recurring legal settlement charge incurred during the three months ended June 30, 2023. Corporate expense is related to costs associated with our support functions, such as corporate staff expenses, share-based compensation expense, and other employee benefits.

SEGMENT RESULTS OF OPERATIONS OF TECHNIPFMC PLC

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Subsea

Subsea revenue increased by $737.9 million during the six months ended June 30, 2024, compared to the same period in 2023, driven by increased backlog during 2023 related to higher energy demand and upstream spending, further aided by our unique commercial offerings. $236.7 million of the increase in revenue was from the United States, $178.8 million from Angola, $170.4 million from Brazil, $114.3 million from Guyana, $67.7 million from Australia, and $55.6 million from the United Kingdom, driven by higher iEPCI, installation and services activities, sales of subsea production equipment, and increased supply of flexible pipe. The increased revenue in these geographies was offset by a net $85.6 million decrease from the rest of the world, primarily from lower activity as projects reached completion.

Subsea operating profit for the six months ended June 30, 2024, increased by $214.1 million, of which $144.0 million was the result of a favorable activity mix and $134.5 million from higher volume, partially offset by a $64.4 million increase in operating expense related to the higher activity.

Surface Technologies

Surface Technologies revenue decreased by $59.9 million during the six months ended June 30, 2024, compared to the same period in 2023 primarily due to $74.2 million decreased revenue as a result of the sale of MSB during the three months ended March 31, 2024 and lower drilling and completion activities in North America, partially offset by $14.3 million of growth in the Middle East and the rest of the world mainly driven by higher service activities.

Surface Technologies operating profit increased by $85.9 million and was driven by the gain on the sale of MSB, which was partially offset by lower drilling and completion activity in North America, resulting in a net increase of $63.4 million. Additionally, improved operating performance in Argentina and activities in the Middle East, Africa and Asia Pacific generated improved profitability of $17.6 million. During the six months ended June 30, 2023, we recorded $5.3 million of restructuring, impairment and other charges, primarily associated with exiting operations in Canada and Bakersfield.

Corporate Expense

Corporate expense decreased by $125.0 million, or 69.1 percent, compared to the same period in the prior year, primarily driven by the non-recurring legal settlement charge incurred during 2023.