TechnipFMC sees big boost in subsea orders in incipient ‘multi-year upcycle’

TechnipFMC saw a big increase in orders for its subsea unit in the first quarter of the year, describing an improving outlook for the oil and gas sector which management said is now well into a “multi-year upcycle”.

The offshore contractor took in orders for subsea business worth $1.9 billion in the first three months of 2022, up 80% on the preceding quarter.

Total company orders in the quarter were $2.2 billion, up 3.7% on the final three months of 2021 and 26.9% on the same quarter a year earlier.

Chief executive Doug Pferdehirt said: “We are in the midst of a multi-year upcycle for oil and gas investment.

“Our subsea opportunity list highlights this very robust market outlook, representing an opportunity set of larger projects that totals more than $20 billion in potential industry awards over the next 24 months.

“In the current environment, we are also experiencing improvements in pricing and contractual arrangements that more appropriately balance the terms and conditions needed to support this growth.”

Pferdehirt told analysts that about 40% of the $1.9 billion-worth of subsea orders were smaller pieces of work from about 30 operators, which he said highlighted the recent market improvements.

He added: “First-quarter results demonstrated our ability to effectively navigate the ongoing challenges facing the global supply chain.

“While not immune to the market dislocations, we have taken many strategic actions over the last several years that have mitigated the near-term effects on our company.”

First-quarter revenues were $1.56 billion, down 4.7% year on year.