TechnipFMC is an oil industry leader. Interested in investing in the company? Read on to find out everything you need to know.
Interested in investing in the oil sector? French CAC40 companies, such as TechnipFMC, could be a good option. TechnipFMC is one of the world's leading engineering and construction companies. Fine-tune your trading strategy by taking a look at the information in this guide.
TechnipFMC was the result of the merger of Technip and FMC Technologies in 2017. The company is currently among the world leaders in engineering and construction of operating structures in sectors such as oil, petrochemicals and gas.
The corporation’s activities can be divided into two main business lines. The first is subsea activities, i.e the design, production, installation and maintenance of equipment required for subsea exploration and exploitation, such as rigid or flexible pipe systems, tie-ins and umbilicals.
The second business line is the design and manufacturing of crude oil and natural gas exploration and extraction systems. These include surface wellhead operating systems, such as insulating sleeves or metal seals and subsea systems such as piggable manifolds. The company also produces submerged loading, metering, and material handling systems, as well as other equipment for extraction and refinery platforms.
In February 2021, the group split off its onshore and offshore design activities, which consisted of the construction of fixed and floating platforms and operating units. This led to the founding of Technip Energies.
TechnipFMC is present in several countries and employs nearly 35,000 people.
TechnipFMC is an oil industry leader. Its size means that there are several shareholders who hold shares in its capital. Here are the main ones:
In its development and to acquire an increasingly large market share, TechnipFMC has set up various strategic partnerships with companies that include Bombora, Magnora, Chiyoda, ExxonMobil, Halliburton, BP, Aramco, Neste's, Areva, General Electric and Serimax.
It is important to follow updates from TechnipFMC’s main competitors. Its direct competitor in oil exploration and drilling is the Saipem group. We can also mention some companies that have the same or similar activities, such as Sonatrach, SunPower, Perenco, Flowerserve, Tecnicas WSP, Arcadis, WorleyParsons, Aecom, Jacobs, Mott MacDonald, Fluor, Fugro and Dar Al-Handasah.
TechnipFMC Group's latest pre-merger annual report reported revenues of USD13,050 million in 2020, compared to USD13,409 million in 2019, a decline of 2.7 %.
Adjusted EBITDA as of 12/31/20 was USD 1,083 million with adjusted net income of USD 89.3 million. A result that has sharply decreased by almost 72.9% compared to 2019, due to the expenses and operational impacts related to the Covid-19 pandemic. And after incorporating after-tax charges and credits totaling USD 3,377 million, TechnipFMC posted a net loss of USD 3,287 million.
Nonetheless, TechnipFMC reported that it met financial targets in all its segments in 2020.
In 2020, revenue was broken down as follows:
The main countries where the corporation generates its revenues are Russia (18.7%), the USA (16.3%), Norway (10.6%), Brazil (5.3%), UK (3.9%), Angola (3.7%), Egypt (3.4%), Mozambique (3%) and India (2.9%).
TechnipFMC shares are included in the French CAC40 stock market index. It is listed in compartment A on the Euronext Paris market, in the Oilfield Equipment and Services sector. TechnipFMC has a market capitalization of EUR 2,692 million. The number of shares issued by the Group is 458,143,122. TechnipFMC shares are only eligible for the SRD.
TechnipFMC's positioning among the leaders in the international market reassures its clients, and thus investors, which influences the share price.
Expansion of business lines enables the company to spread the risks. The geographical distribution of sales is a factor that influences the share price.
The company's business is subject to several factors that should be closely monitored, such as the supply and demand for oil and gas and the discovery of new wells to be exploited. The economic situation of oil companies and producing countries also has an impact on the company's activities. These factors influence TechnipFMC's share price.
The price of raw materials influences the share price. It is therefore necessary to follow the variations of the various indices and stocks on this market.
Announcements from competitors, oil companies, producing countries and various regulatory bodies such as OPEC can also influence TechnipFMC's share price. It is therefore important to follow updates from major industry players.