Total company revenue was US$3.434.2 million. Net income was US$97 million, or US$0.21 per diluted share. These results included after-tax charges and credits totalling $78.6 million of expense, or $0.18 per diluted share; adjusted diluted earnings per share were US$0.39.
Adjusted EBITDA, which excludes pre-tax charges and credits, was $450 million; adjusted EBITDA margin was 13.1%.
Other significant pre-tax items impacting the quarter, for which we do not provide guidance, included the following:
- US$18 million of foreign exchange losses included in corporate expense, or US$0.03 per diluted share on an after-tax basis; and
- US$140.2 million of increased liability payable to joint venture partners included in interest expense, or US$0.31 per diluted share on an after-tax basis.
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated: “We achieved record inbound orders in the quarter, with total company orders reaching US$11.2 billion – a book-to-bill of 3.3. Onshore/offshore inbound of US$8.1 billion was also a new record for the business segment, driven by the award of Arctic LNG 2. In subsea, first half orders have already exceeded the levels achieved in all of 2018, with inbound of US$2.6 billion. Total company backlog increased more than 75% since year-end to US$25.8 billion.”
Pferdehirt continued: “In the subsea industry, iEPCI™ is a structural transformation that is occurring as a result of the creation of TechnipFMC, and this paradigm shift is accelerating. Integrated project awards have exceeded US$3 billion for the first half of the year, and we have secured 100% of these awards. Importantly, integrated awards have accounted for more than 50% of our inbound orders in 2019. iEPCI™ has clearly proven to be a unique growth engine for TechnipFMC.”
“This momentum is evidenced by our recent award for Anadarko’s Golfinho development in Mozambique. TechnipFMC was a first-mover in the country, and this award further strengthens our leadership position. Golfinho is also our largest integrated subsea project to date and further highlights the differentiation of iEPCI™.”
Pferdehirt added: “In onshore/offshore, we are benefiting from the new wave of liquefied natural gas (LNG) projects. The LNG market growth continues to be underpinned by the structural shift towards natural gas as an energy transition fuel, helping to meet the increasing demand for energy while lowering greenhouse gases. Our demonstrated leadership in this important growth market will continue as we anticipate additional LNG awards in the coming quarters.”
“In the second quarter, we were awarded the Arctic LNG 2 project. This award exemplifies our experience in the delivery of large scale modularised fabrication for harsh environments. The project will bring on-stream nearly 20 million tpy of new capacity utilising an innovative engineering solution developed during the FEED stage of the project. We will leverage our recent success from Yamal LNG through the continuity of leadership, execution model and lessons learned.”
Pferdehirt concluded: “This was a very strong quarter for TechnipFMC. The unprecedented level of order activity demonstrates that we are winning, with an intense focus on project selectivity and commercial differentiation. We reported solid improvements in total Company revenue and adjusted EBITDA. The strength of these results and significant growth in backlog give us even greater confidence that we will achieve our increased full year guidance and provide us with improved visibility as we look to 2020 and beyond.”
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