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April 23, 2020, 2:43 a.m. EDT

TechnipFMC swings to loss on impairment, charges

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By Cristina Roca

TechnipFMC PLC said Thursday that it swung to a significant loss for the first quarter of 2020 due to impairments, but that its revenue increased.

The Paris-listed company reported a first-quarter loss of $3.26 billion, compared with a $20.9 million net profit during the same period a year earlier.

The company booked noncash impairment and charges totaling $3.16 billion for goodwill and other assets in its subsea and surface technologies segments.

Adjusted earnings before interest, tax, depreciation and amortization fell 26% to $220.2 million, it said.

Revenue for the quarter rose 7.5% to $3.13 billion.

TechnipFMC said it has kicked off a series of cost-reduction initiatives amid the coronavirus crisis. It aims to achieve total annualized savings of over $350 million.

The company on Wednesday updated its 2020 guidance for each of its units. For Subsea, it sees $3.1 billion of backlog to be converted into revenue for the rest of the year, and inbound orders falling by up to 50% compared to 2019. For Technip Energies, revenue should be between $6.3 billion and $6.8 billion in 2020. For Surface Technologies, the international market should make up about 60% of revenue mix.

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