Home Blog Shale slump stings TechnipFMC during third quarter ahead of company split

Shale slump stings TechnipFMC during third quarter ahead of company split

Demand for hydraulic fracturing services continued to slump in the US and Canada for three quarters, ahead of plans to split the Houston and Paris oilfield service companies into two.

In a statement released after the market close Wednesday, TechnipFMC reported $ 21.8 million in profits of $ 3.3 billion in three quarters, compared to a result of a blend of $ 136.9 million in revenues of $ 3.1 billion in the third quarter of 2018. .

Shareholders received 5 cents per share in the third quarter, down from 30 cents per share in the same period last year.

TechnipFMC missed Wall Street's $ 200 million revenue and 44 cents per share.

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The company's maritime / sea division saw revenue growth of nearly 17%, the subsea sector saw a nearly 43% decline, and the surface technology sector saw a sharp decline of 88%.

In the statement, Doug Pferdehirt, CEO of TechnipFMC, said that the performance of the company's three divisions reflects various trends.

Pferdehirt said, “Surface Technologies' operating margins have weakened due to reduced activity in North America and competitive pricing. "On Shore / Off Shore again has strong operational results through our continued strength in our main business."

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Created in the January 2017 merger of Paris-based Technip and Houston-based FMC technology, TechnipFMC has more than 37,000 employees in nearly 50 countries. The company lost $ 1.9 billion in 2018 with sales of $ 12.4 billion.

In August, TechnipFMC announced that the company would be split into two independent and publicly traded companies, given the placeholder names RemainCo and SpinCo.

RemainCo will focus on technology, services and development projects, while SpinCo will be an energy sector engineering, procurement and construction company.

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