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TechnipFMC plc (FTI - Free Report) posted second-quarter 2024 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate of 31 cents and increased from the year-ago quarter’s reported figure of 10 cents. The improvement can be attributed to better-than-expected performance in the Subsea segment.
The oil and gas equipment and services company's revenues of $2.3 billion beat the Zacks Consensus Estimate by 3.7%. The top line also increased from the year-ago quarter’s figure of $2 billion. This was attributed to a higher revenue contribution from the aforementioned segment.
FTI’s second-quarter inbound orders decreased 30.5% from the year-ago period’s level to $3.1 billion. The company’s backlog rose in the same time frame. As of June-end, TechnipFMC’s order backlog totaled $13.9 billion, up 4.7% from the year-ago quarter.
On Jul 23, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Aug 20, 2024. The payout, which remained flat quarter over quarter, will be made on Sep 4.
In the reported quarter, the company repurchased 3.9 million of its common shares for a total of $100 million. Total shareholder distributions were $121.5 million, including $21.5 million dividends.
Subsea: Revenues from this segment totaled $2 billion, up 24.1% from the year-ago quarter’s level of $1.6 billion. The figure also beat our projection of $1.9 billion. Revenue growth was driven by heightened iEPCI project activity in the North Sea and Gulf of Mexico. Additionally, service revenues saw an increase attributed to seasonal improvements.
Adjusted EBITDA amounted to $356.5 million, up about 52.5% from the year-ago quarter’s level. The metric also surpassed our estimate of $317.8 million. Inbound orders increased 31% year over year to $2.8 billion. The backlog rose 6.9% in the same time frame.
Surface Technologies: This segment recorded revenues of $316.5 million, down 10.5% year over year. The decline in revenues was due to the disposal of the Measurement Solutions business before the end of the quarter. However, the matric beat our projection of $302.8 million.
The unit’s adjusted EBITDA decreased 1.9% to $46 million. The figure beat our estimate of $40.5 million. The segment’s inbound orders fell 23.6% year over year. The quarter-end backlog also decreased 18.3% in the same time frame.
Financials
TechnipFMC reported $2 billion in costs and expenses, which was 11.2% higher than the year-ago quarter’s level of $1.8 billion. In the reported quarter, the company spent $50.8 million on capital programs.
As of Jun 30, FTI had cash and cash equivalents worth $708.2 million and long-term debt of $646.8 million, with a debt-to-capitalization of 33.9%.
The company expects revenues from the Subsea unit in the $7.6-$7.8 billion range. It also anticipates revenues between $1.2 billion and $1.35 billion for the Surface Technologies unit. The adjusted EBITDA margin is anticipated in the range of 16.5-17% for the Subsea segment and between 13% and 15% for the Surface Technologies segment.
The company expects free cash flow generation in the band of $425-$575 million for 2024. It also expects annual capital expenditure of $275 million and net interest expense in the band of $70-$80 million for the year. FTI anticipates net corporate expenses in the range of $115-$125 million, including depreciation and amortization of $3 million, net interest expense of $70-$80 million and tax provisions of $280-$290 million.
Important Energy Earnings So Far
While it's early in the earnings season, there have been a few key energy releases thus far. Let’s glance through a couple of them.
Liberty Energy (LBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced second-quarter 2024 adjusted earnings of 61 cents per share, which marginally beat the Zacks Consensus Estimate of 60 cents. However, LBRT’s bottom line underperformed the year-ago quarter’s reported figure of 87 cents due to a year-over-year increase in costs and expenses.
Ahead of the earnings release, Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Sep 20, 2024, to its stockholders of record as of Sep 6. As part of its shareholder return policy, LBRT repurchased the company’s shares worth $30 million at an average price of $20.39 per share in the reported quarter. Liberty returned $41 million to its shareholders through share repurchases and cash dividends.
Houston, TX-based Halliburton Company (HAL - Free Report) , an oil and gas equipment and services provider, reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter profit of 77 cents (adjusted). The robust numbers reflect strength in the international markets.
As of Jun 30, 2024, the company reported $2.1 billion in cash and cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 43.2. HAL also bought back $250 million worth of its stock in the April-June period. The company generated $1.1 billion of cash flow from operations in the second quarter, leading to a free cash flow of $793 million.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate. The bottom line was favorably impacted by strong financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s second-quarter discounted cash flow (DCF) was $1.10 billion, up from $1.07 billion a year ago.
As of Jun 30, 2024, Kinder Morgan reported $98 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For the full year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.
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TechnipFMC (FTI) Q2 Earnings Beat, Revenues Rise Y/Y
TechnipFMC plc (FTI - Free Report) posted second-quarter 2024 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate of 31 cents and increased from the year-ago quarter’s reported figure of 10 cents. The improvement can be attributed to better-than-expected performance in the Subsea segment.
The oil and gas equipment and services company's revenues of $2.3 billion beat the Zacks Consensus Estimate by 3.7%. The top line also increased from the year-ago quarter’s figure of $2 billion. This was attributed to a higher revenue contribution from the aforementioned segment.
FTI’s second-quarter inbound orders decreased 30.5% from the year-ago period’s level to $3.1 billion. The company’s backlog rose in the same time frame. As of June-end, TechnipFMC’s order backlog totaled $13.9 billion, up 4.7% from the year-ago quarter.
On Jul 23, FTI’s board of directors declared a quarterly cash dividend of 5 cents per share to its common shareholders of record as of Aug 20, 2024. The payout, which remained flat quarter over quarter, will be made on Sep 4.
In the reported quarter, the company repurchased 3.9 million of its common shares for a total of $100 million. Total shareholder distributions were $121.5 million, including $21.5 million dividends.
TechnipFMC plc Price, Consensus and EPS Surprise
TechnipFMC plc price-consensus-eps-surprise-chart | TechnipFMC plc Quote
Segmental Analysis
Subsea: Revenues from this segment totaled $2 billion, up 24.1% from the year-ago quarter’s level of $1.6 billion. The figure also beat our projection of $1.9 billion. Revenue growth was driven by heightened iEPCI project activity in the North Sea and Gulf of Mexico. Additionally, service revenues saw an increase attributed to seasonal improvements.
Adjusted EBITDA amounted to $356.5 million, up about 52.5% from the year-ago quarter’s level. The metric also surpassed our estimate of $317.8 million. Inbound orders increased 31% year over year to $2.8 billion. The backlog rose 6.9% in the same time frame.
Surface Technologies: This segment recorded revenues of $316.5 million, down 10.5% year over year. The decline in revenues was due to the disposal of the Measurement Solutions business before the end of the quarter. However, the matric beat our projection of $302.8 million.
The unit’s adjusted EBITDA decreased 1.9% to $46 million. The figure beat our estimate of $40.5 million. The segment’s inbound orders fell 23.6% year over year. The quarter-end backlog also decreased 18.3% in the same time frame.
Financials
TechnipFMC reported $2 billion in costs and expenses, which was 11.2% higher than the year-ago quarter’s level of $1.8 billion. In the reported quarter, the company spent $50.8 million on capital programs.
As of Jun 30, FTI had cash and cash equivalents worth $708.2 million and long-term debt of $646.8 million, with a debt-to-capitalization of 33.9%.
This quarter, the Zacks Rank #3 (Hold) company generated $230.9 million in cash from operating activities and $180.1 million in free cash flow. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2024 Outlook
The company expects revenues from the Subsea unit in the $7.6-$7.8 billion range. It also anticipates revenues between $1.2 billion and $1.35 billion for the Surface Technologies unit. The adjusted EBITDA margin is anticipated in the range of 16.5-17% for the Subsea segment and between 13% and 15% for the Surface Technologies segment.
The company expects free cash flow generation in the band of $425-$575 million for 2024. It also expects annual capital expenditure of $275 million and net interest expense in the band of $70-$80 million for the year. FTI anticipates net corporate expenses in the range of $115-$125 million, including depreciation and amortization of $3 million, net interest expense of $70-$80 million and tax provisions of $280-$290 million.
Important Energy Earnings So Far
While it's early in the earnings season, there have been a few key energy releases thus far. Let’s glance through a couple of them.
Liberty Energy (LBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced second-quarter 2024 adjusted earnings of 61 cents per share, which marginally beat the Zacks Consensus Estimate of 60 cents. However, LBRT’s bottom line underperformed the year-ago quarter’s reported figure of 87 cents due to a year-over-year increase in costs and expenses.
Ahead of the earnings release, Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable on Sep 20, 2024, to its stockholders of record as of Sep 6. As part of its shareholder return policy, LBRT repurchased the company’s shares worth $30 million at an average price of $20.39 per share in the reported quarter. Liberty returned $41 million to its shareholders through share repurchases and cash dividends.
Houston, TX-based Halliburton Company (HAL - Free Report) , an oil and gas equipment and services provider, reported second-quarter 2024 adjusted net income per share of 80 cents, in line with the Zacks Consensus Estimate and above the year-ago quarter profit of 77 cents (adjusted). The robust numbers reflect strength in the international markets.
As of Jun 30, 2024, the company reported $2.1 billion in cash and cash equivalents and $7.6 billion in long-term debt, representing a debt-to-capitalization ratio of 43.2. HAL also bought back $250 million worth of its stock in the April-June period. The company generated $1.1 billion of cash flow from operations in the second quarter, leading to a free cash flow of $793 million.
Meanwhile, energy infrastructure provider Kinder Morgan (KMI - Free Report) reported second-quarter adjusted earnings per share of 26 cents, in line with the Zacks Consensus Estimate. The bottom line was favorably impacted by strong financial contributions from the Natural Gas Pipelines, Products Pipelines and Terminals business segments. Moreover, KMI’s second-quarter discounted cash flow (DCF) was $1.10 billion, up from $1.07 billion a year ago.
As of Jun 30, 2024, Kinder Morgan reported $98 million in cash and cash equivalents. Its long-term debt amounted to $28.5 billion at the quarter-end. For the full year 2024, KMI anticipates a DCF of $5 billion ($2.26 per share) and an adjusted EBITDA of $8.16 billion, each indicating 8% growth from the previous year’s reported figures.