TechnipFMC plc Targets $25 Billion in Revenue, Emphasizes Certainty and Strong Customer Relationships
2023-08-01
The company held a conference call to discuss their financial performance and future goals. One of the main topics of the meeting was the company's target of achieving $25 billion in the next 10 quarters. The call was attended by the Vice President of Investor Relations, Matt Seinsheimer, as well as analysts and members of the Investor Relations team.
During the meeting, the company emphasized their focus on certainty and the timely delivery of projects. The CEO highlighted the importance of delivering projects on time, as it impacts the economic outlook of the project. The company's value proposition, iEPCI 2.0, aims to provide customers with first oil or first gas up to a year earlier than their competition. This not only has a significant impact on project returns upfront but also helps build trust with customers. The company has consistently delivered projects on time and has undergone a period of redesign and reengineering to become a different company.
Another key point discussed was the significance of deep and long-term relationships with customers. The company mentioned a 20-year frame agreement with Chevron, which involves the adoption of their Subsea 2.0 configurable product family. This agreement showcases the company's ability to maintain strong relationships with customers and secure long-term partnerships.
The company expressed confidence in securing more announced awards in the future, although not at the same level as the exceptional second quarter. This indicates their belief in their ability to secure new projects and continue their growth trajectory.
Overall, the company's focus on certainty, early delivery, and strong relationships with customers are key factors driving their success. By prioritizing these aspects, the company differentiates itself from competitors and positions itself as a reliable and trusted partner in the industry.
The company's plans for its product or service were not explicitly mentioned in the call. However, there were indications that the company is focused on delivering projects on time and with certainty, differentiating itself from competitors, and building long-term relationships with customers. The mention of their Subsea 2.0 configurable product family suggests investment in innovative products, and the frame agreement with Chevron indicates a desire to secure more extended frame agreements in the future. The company also mentioned upgraded guidance for orders in the second half of the year, suggesting active pursuit of new business opportunities.
Regarding capital spending plans, specific details were not provided in the call. However, the company mentioned their focus on returning capital to shareholders through share repurchases and dividends. They initiated a $400 million share repurchase authorization, with an additional $400 million added, bringing the total authorization to $800 million. The company has already completed $200 million of share repurchases. Additionally, they announced a quarterly dividend of $0.05 per share. The company expects shareholder distributions to exceed 60% of their annual free cash flow generation through at least 2025, with the majority of distributions expected to come from share buybacks.
The conference call included various participants, such as Matt Seinsheimer, Vice President of Investor Relations, Doug Pferdehirt, Chairman and CEO, Alf Melin, CFO, as well as analysts from Barclays, JPMorgan Chase and Company, Piper Sandler, The Benchmark Company, and TD Cowen. The call provided valuable insights into the company's financial performance and future goals.
In conclusion, the company's conference call highlighted their target of achieving $25 billion in the next 10 quarters, their focus on certainty and timely project delivery, and the importance of building strong relationships with customers. The company is confident in securing new projects and differentiates itself through its commitment to early delivery and customer trust. They also mentioned their intention to return capital to shareholders through share repurchases and dividends. Overall, the call provided valuable information about the company's performance and future plans.