With a robust market outlook for the remainder of 2022, TechnipFMC’s subsea opportunities are being led by Guyana, Brazil, and West Africa with massive oil and gas projects set to bring in almost US$20 billion.
TechnipFMC’s Chairman and Chief Executive Officer (CEO), Doug Pferdehirt, made the disclosure on Thursday during the company’s first-quarter earnings call.
According to the TechnipFMC Chair, the company also expects increased activity in other regions across the world to meet the growing demand for feed gas used in Liquefied Natural Gas (LNG) facilities – the majority of which is supplied by subsea wells.
“We expect these volumes to be supplied by increased activity in major basins from Africa to the Asia Pacific,” he told investors.
He said the company has a strong track record with large gas developments and is well-positioned as an agnostic provider of integrated subsea projects.
Pferdehirt added that the expanding LNG market gives TechnipFMC “even greater confidence” in its intermediate-term outlook.
It continues to anticipate a subsea inbound order growth of up to 30% this year, with iEPCI direct awards and subsea services together approaching 75% of inbound orders.
iEPCITM is TechnipFMC’s unique approach to subsea developments, which integrates subsea production systems (SPS) and subsea umbilicals, risers and flowlines (SURF) offerings, from design to life of field services.
Also, of note in the quarter, the CEO added, was the breadth of operators and regional diversification, with projects from more than 30 clients across all major offshore basins.
TechnipFMC has raked in close to US$1.6 million in revenue since the start of 2022. Loss from continuing operations attributable to TechnipFMC was US$42.3 million, or US$0.09 per diluted share.
These results included after-tax charges and credits totalling US$29.3 million of expenses, or US$0.06 per share – including impairment, restructuring and other charges of US$0.8 million; and a loss from equity investment in Technip Energies.
“First quarter results demonstrated our ability to effectively navigate the ongoing challenges facing the global supply chain,” Pferdehirt said.
While not immune to the market dislocations, he said TechnipFMC has taken many strategic actions over the last several years that have mitigated the near-term effects on the company and its internal efforts to drive simplification, standardisation and industrialisation.
Just days ago, TechnipFMC commissioned its Guyana Service Base at Rome, McDoom, East Bank Demerara – a move that has successfully transferred all activities done in Trinidad to Guyana as the Base operates at 100 percent.
The Guyana Service Base consists of a low bay, storage, and testing capabilities for both drilling and completion activities. The Base was expanded to support all current operations and future growth and opportunity in Guyana.
In November last year, TechnipFMC was awarded the contract to supply the subsea production system for the recently approved US$10 billion Yellowtail Development Project in the Stabroek Block.