TechnipFMC plc

Previous wording

Overall Outlook - The global economy remains resilient despite multiple headwinds, including aggressive monetary tightening undertaken to curb high inflation. Inflation has eased, but interest rates remain elevated and central banks remain diligent in their efforts to balance price stability and economic growth. These actions are anticipated to support continued growth in energy demand in 2024.

Current wording

Overall Outlook - The global economy remains resilient despite prevailing headwinds. Some central banks have lowered interest rates in response to softening inflation, but they remain diligent in their efforts to balance price stability with economic growth. These factors are expected to support sustained growth in energy demand.

Previous wording

With long-term energy demand also forecast to increase, the conflicts in Ukraine and Israel have further highlighted the need for greater energy security across the globe. As a result, the energy industry has accelerated its efforts to address the essential need for hydrocarbons today to ensure the continuity of affordable energy while also playing an essential role in the energy transition.

Current wording

Conflicts in Ukraine and the Middle East have further highlighted the need for greater energy security across the globe. As a result, the energy industry has accelerated its efforts to address the essential need for hydrocarbons today to ensure the continuity of affordable energy while also playing an essential role in the energy transition.

Previous wording

The price of oil has been supported by regional geopolitical tensions and the industry’s more disciplined capital spend, particularly for OPEC+ countries focused on production levels that support both economic growth and energy investment. This includes OPEC’s recent decision to maintain voluntary reductions to existing production quota into 2025. An extended period of underinvestment also contributed to a supply deficit that has required increased upstream spending, lending support to a constructive view on the longer-term outlook for oil and natural gas prices.

Current wording

The price of oil has been supported by regional geopolitical tensions and more disciplined capital spend spending within the industry, particularly among OPEC+ countries. These nations are prioritizing production levels that foster both economic growth and energy investment, as evident by OPEC maintaining voluntary reductions to existing production into 2025. Additionally, a prolonged period of underinvestment has also contributed to a supply deficit, requiring increased upstream spending and reinforcing a positive long-term outlook for oil and natural gas prices.

Previous wording

Our leadership in subsea processing, technology innovation, and integrated solutions was recognized earlier this year with the award of the Mero 3 HISEP® project, which is the first iEPCI™ (“iEPCI”) contract ever awarded by Petrobras. The significance of this project for the subsea industry cannot be overstated. This will be the first project to use subsea processing to capture CO 2 rich dense gases directly from the well stream for injection back into the reservoir, with all of the infrastructure residing on the seafloor.

Current wording

Our leadership in subsea processing, technology innovation, and integrated solutions was recognized at the beginning of the year with the award of the Mero 3 HISEP® project, which is the first iEPCI™ (“iEPCI”) contract ever awarded by Petrobras. The significance of this project for the subsea industry cannot be overstated. This will be the first project to use subsea processing to capture CO 2 rich dense gases directly from the well stream for injection back into the reservoir, with all of the infrastructure residing on the seafloor.

Previous wording

In addition to reducing greenhouse gas emission intensity, HISEP® technologies will increase production capacity by debottlenecking the gas processing plant that currently resides on the floating production storage and offloading unit (“FPSO”). By moving the gas processing entirely to the seafloor, future FPSO and topside designs can be further simplified, driving significant improvement in project economics. With this award, our New Energy business has now achieved more than $1 billion of inbound orders- nearly two years earlier than previously anticipated.

Current wording

In addition to reducing greenhouse gas emission intensity, HISEP® technologies will increase production capacity by debottlenecking the gas processing plant that currently resides on the floating production storage and offloading unit (“FPSO”). By moving the gas processing entirely to the seafloor, future FPSO and topside designs can be further simplified, driving significant improvement in project economics. With the award of the Mero 3 HISEP® project, our New Energy business has now achieved more than $1 billion of inbound orders- nearly two years earlier than previously anticipated.

Previous wording

As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle times and further reduce costs. An example of this is Subsea 2.0 TM, our pre-engineered configurable product offering. This technology provides simplification of unique project requirements by leveraging a configure-to-order (“CTO”) model that further improves the economics of our customers’ projects while driving greater efficiencies for TechnipFMC.

Current wording

As the subsea industry continues to evolve, we are driving simplification, standardization, and industrialization to reduce cycle times and further reduce costs. An example of this is Subsea 2.0®, our pre-engineered configurable product offering. This technology provides simplification of unique project requirements by leveraging a configure-to-order (“CTO”) model that further improves the economics of our customers’ projects while driving greater efficiencies for TechnipFMC.

Previous wording

There is also exploration activity occurring in new offshore frontiers. In Suriname, five major discoveries have been made through the successful appraisal of two oilfields, with confirmed combined recoverable resources of approximately 700 million barrels of oil. One operator recently disclosed their intentions for future development of the resource, citing expectations for a final investment decision before the end of the year. In Namibia, there has also been a major discovery with multiple operators beginning their drilling campaigns. We believe additional countries will become producers of deepwater resources during this decade.

Current wording

There is also exploration activity occurring in new offshore frontiers. In Suriname, five major discoveries have been made through the successful appraisal of multiple blocks, with confirmed combined recoverable resources of approximately 700 million barrels of oil. In October, TotalEnergies and partners reached a final investment decision for the first oil development in Block 58. In Namibia, there has also been a major discovery with multiple operators beginning their drilling campaigns. We believe additional countries will become producers of deepwater resources during this decade.

Previous wording

Our Subsea inbound orders grew to $9.7 billion in 2023, an increase of 45 percent versus the prior year. The robust inbound benefited from a record level of iEPCI projects, and when including all other direct awards and Subsea Services, the combination represented more than 70 percent of total segment orders. The strong order activity continued in the first half of 2024, with more than $5.2 billion of orders increasing backlog to $12.9 billion as of June 30, 2024 - a record level for TechnipFMC. We are well positioned for Subsea inbound to approach $10 billion for the full year, giving us confidence in achieving $30 billion in Subsea orders over the three-year period ending 2025.

Current wording

Our Subsea inbound orders grew to $9.7 billion in 2023, an increase of 45 percent versus the prior year. The robust inbound benefited from a record level of iEPCI projects, and when including all other direct awards and Subsea Services, the combination represented more than 70 percent of total segment orders. The strong order activity has continued, with $7.7 billion of orders in the current year increasing backlog to $13.7 billion as of September 30, 2024 - a record level for TechnipFMC. We are well positioned for Subsea inbound to approach $10 billion for the full year, giving us confidence in achieving $30 billion in Subsea orders over the three-year period ending 2025.

Previous wording

Surface Technologies - International markets comprise a significant portion of segment revenue, representing 60 percent of the total in the first half of the year. We continue to benefit from our exposure to the North Sea, Asia Pacific, and the Middle East. TechnipFMC’s unique capabilities in these markets, which demand higher specification equipment, global services, and local content, provide a platform for us to extend our leadership positions.

Current wording

Surface Technologies - International markets comprise a significant portion of segment revenue, representing over 60 percent of the total in the first nine months of the year. We continue to benefit from our exposure to the North Sea, Asia Pacific, and the Middle East. TechnipFMC’s unique capabilities in these markets, which demand higher specification equipment, global services, and local content, provide a platform for us to extend our leadership positions.

Previous wording

Drilling activity in international markets is less cyclical than in North America as most activities are undertaken by national oil companies that tend to maintain a longer-term view that exhibits less variability in capital spend. This trend is most evident in the Middle East where we experienced a continued ramp up in production at our Saudi Arabia facility, as well as successful execution on our 10-year framework agreement with Abu Dhabi National Oil Company.

Current wording

Drilling activity in international markets is less cyclical than in North America, as most activities are undertaken by national oil companies that tend to maintain a longer-term view that exhibits less variability in capital spend. This trend is most evident in the Middle East where we expect to continue benefiting from our exposure to the region, particularly in the United Arab Emirates and Saudi Arabia, driven by our clients’ continued investment in long-term production growth. The completion of our new, state-of-the-art facility in Saudi Arabia and the qualification of our product portfolio are favorably impacting our company today and represent a differentiated growth opportunity for TechnipFMC.

Previous wording

The shift to renewable energy resources will take time. During this transition, we believe that natural gas will provide a bridge between current conventional energy supply and future renewable energy supply. The transition is expected to drive growth in the surface market, led by large natural gas projects in the Middle East. We also expect North America to play an important role in meeting increased natural gas demand due in part to sanctions placed upon Russian supply.

Current wording

The shift to renewable energy resources will take time. During this transition, we believe that natural gas will provide a bridge between current conventional energy supply and future renewable energy supply. The transition is expected to drive growth in the surface market, led by large natural gas projects in the Middle East. We also expect

Previous wording

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.

Current wording

Revenue increased $291.5 million during the three months ended September 30, 2024, compared to the same period in 2023. Subsea revenue increased by $319.8 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, supply of flexible pipe and installation activities particularly in the United Kingdom, Australia, Angola, and Guyana. Surface Technologies revenue decreased by $28.3 million, compared to the same period in 2023, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024 by $52.2 million. This decrease was partially offset by $23.9 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.

Previous wording

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.

Current wording

Gross profit increased to $493.8 million during the three months ended September 30, 2024, compared to $366.9 million in the prior year period. Subsea gross profit increased year-over-year by $124.6 million, of which $55.7 million was due to volume increase and $68.9 million due to favorable activity mix. Surface Technologies gross profit decreased year-over-year by $0.6 million, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB in the three months ended March 31, 2024 resulting in a decrease of $11.7 million, partially offset by $6.9 million of higher profitability from continued growth in the Middle East and an additional $4.2 million increase from other operating locations such as Asia Pacific and Latin America.

Previous wording

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

Current wording

Selling, general and administrative expense increased $3.6 million year-over-year, driven by higher employee costs in support of increased business activities.

Previous wording

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.

Current wording

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 $34.2 million year-over-year decrease in net expense was driven by the decrease in foreign currency loss of $43.3 million, primarily related to the net impact of hedging positions year-over-year. This decrease was partially offset by a net decrease in miscellaneous other net non-operating charges.

Previous wording

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.

Current wording

For the three months ended September 30, 2024 and 2023, we recorded income from equity method affiliates of $8.4 million and $20.6 million, respectively. The year-over-year decline was driven by a decrease in operational activity of our joint ventures.

Previous wording

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.

Current wording

Net interest expense of $15.9 million decreased by $10.8 million in the three months ended September 30, 2024, compared to the same period in 2023, primarily due to the net decrease in outstanding debt.

Previous wording

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.

Current wording

Our provision for income taxes for thethree months ended September 30, 2024 and 2023 reflected effective tax rates of (2.2) percent and 17.2 percent, respectively. The change in the effective tax rate was largely due to the release of a valuation allowance in the United States with a positive net tax discrete benefit of $60.6 million, the change in geographical profit mix year-over-year and tax adjustments related to the reassessment of prior year tax accruals. During the third quarter of 2024, the Company determined it was more likely than not the Company would be able to realize the benefit of a portion of the deferred tax assets in the United States, resulting in a partial release of the valuation allowance.

Previous wording

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.

Current wording

Revenue increased by $969.5 million during the nine months ended September 30, 2024, compared to the same period in 2023. Subsea revenue increased by $1,057.7 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 installation, iEPCI, supply of flexible pipe and services activities particularly in Angola, the United States, Guyana, Australia, Brazil and the United Kingdom. Surface Technologies revenue decreased by $88.2 million, compared to the same period in 2023. The decline was primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024, which collectively decreased revenues by $139.6 million. This decrease was partially offset by a $51.4 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.

Previous wording

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.

Current wording

Gross profit increased to $1,336.1 million in 2024 compared to $920.5 million in 2023. Subsea gross profit increased year-over-year by $403.1 million, of which $183.0 million was due to volume increase and $220.1 million due to favorable activity mix. Surface Technologies gross profit decreased by $3.5 million compared to the same period in 2023, primarily due to lower drilling and completion activity in Europe, North America and the sale of MSB in the three months ended March 31, 2024 resulting in a decrease of $33.6 million, partially offset by $30.1 million of higher profitability from growth and higher operational leverage and efficiency across international markets such as Middle East, Asia Pacific, and Latin America.

Previous wording

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.

Current wording

Selling, general and administrative expense increased by $34.4 million during the nine months ended September 30, 2024, compared to the same period in 2023, driven by higher employee costs in support of increased business activities.

Previous wording

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.

Current wording

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 inexpense of $161.4 million was driven by the $126.5 million non-recurring legal settlement charge recognized during the nine months ended September 30, 2023. Foreign currency loss decreased by $67.3 million, due to exposures to certain currencies with limited derivative hedging markets such as Angolan kwanza and the net impact of hedging positions during the nine months ended September 30, 2023. These decreases are partially offset by a net increase in miscellaneous other non-operating charges.

Previous wording

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.

Current wording

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

Previous wording

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.

Current wording

Net interest expense of $50.0 million decreased by $25.7 million in the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a net reduction in outstanding debt and higher interest income.

Previous wording

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.

Current wording

Subsea revenue increased $319.8 million during the three months ended September 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. Of the increase in revenue, $89.9 million was from the United Kingdom, $88.0 million from Australia, $78.7 million from Angola and $78.0 million from Guyana, driven by higher iEPCI, supply of flexible pipe and installation 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.

Previous wording

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.

Current wording

Subsea operating profit for the three months ended September 30, 2024, increased by $111.1 million, of which $68.9 million was the result of a favorable activity mix and $55.7 million from higher volume, partially offset by a $13.5 million increase in operating expense related to the higher activity.

Previous wording

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.

Current wording

Surface Technologies revenue decreased by $28.3 million, compared to the same period in 2023, primarily due to $52.2 million decreased revenue as a result of lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024. This decrease was partially offset by $23.9 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.

Previous wording

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.

Current wording

Corporate expense increased by $6.4 million, compared to the same period in the prior year, was related to costs associated with our support functions, such as corporate staff expenses, share-based compensation expense, and other employee benefits.

Previous wording

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.

Current wording

Subsea revenue increased by $1,057.7 million during the nine months ended September 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. $257.5 million of the increase in revenue was from Angola, $195.0 million from Brazil, $176.9 million from Guyana, $168.8 million from the United States, $155.7 million from Australia, and $145.5 million from the United Kingdom, driven by higher installation, iEPCI, supply of flexible pipe and services activities. The increased revenue in these geographies was offset by a net $39.1 million decrease from the rest of the world, primarily from lower activity as projects reached completion.

Previous wording

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.

Current wording

Subsea operating profit for the nine months ended September 30, 2024, increased by $325.2 million, of which $220.1 million was the result of a favorable activity mix and $183.0 million from higher volume, partially offset by a $77.9 million increase in operating expense related to the higher activity.

Previous wording

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.

Current wording

Surface Technologies revenue decreased by $88.2 million, compared to the same period in 2023, primarily due to $139.6 million decreased revenue as a result of lower drilling and completion activity in Europe, North America and the sale of MSB during the three months ended March 31, 2024. This decrease was partially offset by $51.4 million of revenue growth from higher equipment delivery across the rest of the world, with the majority of the increase occurring in the Middle East.

Previous wording

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.

Current wording

Surface Technologies operating profit increased by $86.3 million, and was driven by the gain on the sale of MSB, which was partially offset by lower drilling and completion activity in Europe and North America, resulting in a net increase of $61.1 million. Additionally, improved operating performance in Latin America and activities in the Middle East, Asia Pacific and other operating units generated improved profitability of $25.2 million.

Previous wording

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.

Current wording

Corporate expense decreased by $118.6 million, or 57.7 percent, compared to the same period in the prior year, primarily driven by the non-recurring legal settlement charge incurred during 2023.

Previous wording

Subsea - Subsea backlog of $12,925.9 million as of June 30, 2024 increased by $761.8 million compared to December 31, 2023, and was composed of various subsea projects, including Petrobras Buzios 6, Mero 3 HISEP® and flexibles; TotalEnergies Mozambique LNG and GirLiFlex; ExxonMobil Whiptail and Uaru; AkerBP Utsira High; Azule Energy Agogo; Shell Sparta, Husky West White Rose; Equinor Raia and Rosebank; ENI Merakes East, and Woodside Trion.

Current wording

Subsea - Subsea backlog of $13,732.1 million as of September 30, 2024 increased by $1,568.0 million compared to December 31, 2023, and was composed of various subsea projects, including Petrobras Buzios 6, Mero 3 HISEP® and flexibles; Equinor Raia and Rosebank; ExxonMobil Whiptail and Uaru; TotalEnergies Mozambique LNG and GirLiFlex; Energean Katlan Phase 1; Shell Sparta and Bonga North; bp Kaskida, AkerBP Utsira High and Azule Energy Agogo.

Previous wording

Surface Technologies - Order backlog for Surface Technologies as of June 30, 2024 decreased by $94.0 million compared to December 31, 2023. Surface Technologies’ backlog of $972.9 million as of June 30, 2024, was composed primarily of projects in the Middle East, namely Aramco and ADNOC. The remaining backlog was composed of various projects in the rest of the world.

Current wording

Surface Technologies - Order backlog for Surface Technologies as of September 30, 2024 decreased by $100.1 million compared to December 31, 2023. Surface Technologies’ backlog of $966.8 million as of September 30, 2024, was composed primarily of projects in the Middle East, namely Aramco and ADNOC. The remaining backlog was composed of various projects in the rest of the world.

Previous wording

Operating cash flows - Operating activities provided $104.2 million of cash during six months ended June 30, 2024 as compared to $230.0 million cash used in operating cash flows during the same period in 2023. The increase of $334.2 million in cash from operating activities was due to timing differences on project milestones, payments to vendors for inventory, and fluctuations in derivative assets and liabilities.

Current wording

Operating cash flows - Operating activities provided $382.1 million of cash during nine months ended September 30, 2024 as compared to $8.1 million cash used in operating cash flows during the same period in 2023. The increase of $390.2 million in cash from operating activities was primarily due to increased profitability during nine months ended September 30, 2024, as compared to the same period in 2023. It was also due to timing differences on project milestones, payments to vendors for inventory, and fluctuations in derivative assets and liabilities that require cash settlement.

Previous wording

Investing cash flows - Investing activities provided $87.1 million of cash during the six months ended June 30, 2024 as compared to $79.4 million cash used in investing cash flows during the same period in 2023. The increase of $166.5 million in cash from investing activities was primarily due to $186.1 million in proceeds received from the sale of MSB during the six months ended June 30, 2024.

Current wording

Investing cash flows - Investing activities provided $36.7 million of cash during the nine months ended September 30, 2024 as compared to $63.5 million cash used in investing cash flows during the same period in 2023. The increase of $100.2 million in cash from investing activities was primarily due to $186.1 million in proceeds received from the sale of MSB, which was partially offset by a decrease of $69.8 million from proceeds of sale of other assets as compared to the same period in 2023.

Previous wording

Financing cash flows - Financing activities used $417.9 million and $141.8 million during the six months ended June 30, 2024 and 2023, respectively. The increase of $276.1 million in cash used by financing activities was primarily due to an increase of $150.1 million in share repurchases, an increase of payments related to taxes withheld on share-based compensation of $32.5 million, dividends paid of $43.2 million and a decrease of $43.8 million in net debt activity during the six months ended June 30, 2024.

Current wording

Financing cash flows - Financing activities used $522.5 million and $276.7 million during the nine months ended September 30, 2024 and 2023, respectively. The increase of $245.8 million in cash used by financing activities was primarily due to an increase of $180.0 million in share repurchases, an increase in dividends paid of $42.9 million, and an increase of payments related to taxes withheld on share-based compensation of $32.5 million during the nine months ended September 30, 2024.

Previous wording

On March 7, 2024, S&P upgraded TechnipFMC to investment grade, raising its rating to ‘BBB-’ from ‘BB+’ for both the issuer credit as well as the issue-level ratings on the Company’s senior unsecured notes. On June 27, 2024, Fitch assigned a first-time investment grade long-term issuer default rating of “BBB-” for TechnipFMC. As a result of the S&P and Fitch investment grade ratings and the satisfaction of certain other conditions precedent, the Investment Grade Debt Rating (as defined in the Credit Agreement) has occurred and the collateral securing the Credit Agreement and the Performance LC Credit Agreement was released and certain negative covenants no longer apply to the Company.

Current wording

On March 7, 2024, S&P upgraded TechnipFMC to investment grade, raising its rating to ‘BBB-’ from ‘BB+’ for both the issuer credit as well as the issue-level ratings on the Company’s senior unsecured notes. On June 27, 2024, Fitch assigned a first-time investment grade long-term issuer default rating of “BBB-” to TechnipFMC. As a result of the S&P and Fitch investment grade ratings and the satisfaction of certain other conditions precedent, the Investment Grade Debt Rating (as defined in the Credit Agreement) has occurred and the collateral securing the Credit Agreement and the Performance LC Credit Agreement was released and certain negative covenants no longer apply to the Company.

Previous wording

On February 20, 2024 and April 23, 2024, our Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share. The cash dividends of $0.05 per share were paid on March 28, 2024 and June 5, 2024, to shareholders of record as of the close of business on the New York Stock Exchange on March 19, 2024 and May 21, 2024, respectively. The cash dividends paid during the three and six months ended June 30, 2024 were $21.5 million and $43.2 million, respectively. We intend to pay dividends on a quarterly basis, and these dividends represent $0.20 per share on an annualized basis.

Current wording

On February 20, 2024, April 23, 2024 and July 23, 2024, our Board of Directors authorized and declared a quarterly cash dividend of $0.05 per share. The cash dividends of $0.05 per share were paid on March 28, 2024, June 5, 2024, and September 4, 2024 to shareholders of record as of the close of business on the New York Stock Exchange on March 19, 2024, May 21, 2024, and August 20, 2024, respectively. The cash dividends paid during the three and nine months ended September 30, 2024 were $21.5 million and $64.7 million, respectively. We intend to pay dividends on a quarterly basis, and these dividends represent $0.20 per share on an annualized basis.