TechnipFMC plc

Good day and thank you for standing by. Welcome to the TechNIC FMC second quarter 2021 earnings conference. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. I would like to hand the conference over to your speaker today, Matt Seinsteiner. Please go ahead.

Good morning and good afternoon, and welcome to Technip FMC's second quarter 2021 earnings conference call. Our news release and financial statements issued yesterday can be found on our website. I'd like to caution you with respect to any forward-looking statements made during this call. Although these forward-looking statements are based on our current expectations, beliefs, and assumptions regarding future developments and business conditions, they are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by these statements. Known material factors that could cause our actual results to differ from our projected results are described in our most recent 10 , most recent 10 , and other periodic filings with the U.S. Securities and Exchange Commission and the French AMF. We wish to caution you not to place undue reliance on any forward-looking statements which speak only as of the date hereof. We undertake no obligation to publicly update or revise any of our forward-looking statements after the date they are made, whether as a result of new information, future events, or otherwise. I will now turn the call over to Doug Ferdihart, Technip FMC's Chairman and Chief Executive Officer.

Thank you, Matt. Good morning and good afternoon. Thank you all for participating in today's call. Joining me today is Elf Malin, our Chief Financial Officer. Second quarter results reflect another strong quarter for our company. Total company revenue improved sequentially to $1.7 billion. Adjusted EBITDA for the quarter was $144 million, with both subsea and surface technologies reporting an adjusted EBITDA margin of 11%. Total company inbound orders were $1.6 billion. In Sub C, we demonstrated our ability to continue winning with inbound totaling $1.3 billion for the quarter. The strength in the first half of the year has been indicative of the continued market progression we outlined last year. This includes 10 announced awards, 50% of which will be executed as integrated or IEPCI projects. The strong start to 2021 is clear evidence of our leadership position and is highlighted by significant milestones achieved in the second quarter. These include the addition of two new IEPCI clients, Karun, where we will execute our first IEPCI in Brazil for the Petula Field, and Tullo, where we utilized our subsea studio digital solution to optimize field layout for the Jubilee development in Ghana. Also in the quarter, we announced an award from Equinor for the Christian Serif Field, where we leveraged our early engagement capabilities and will utilize the Deep Arctic, which is equipped with a hybrid battery solution that reduces greenhouse gas emissions. and an award from Petrobras for the supply of production equipment, installation services, and intervention support for fields six through nine of the Buzios project. Importantly, the surf opportunities for these fields remain on our subsea opportunity list, each of which have been identified with values in a range of $500 million to $1 billion dollars. Our long history of partnerships and collaboration continues to benefit our inbound orders. Direct awards in the quarter were nearly 60% of inbound orders, which came from IEPCI, direct awards, and subsea services. In surface technologies, inbound orders were $268 million, up 32% from the first quarter. By region, international orders increased by more than 50%, as well-completion activity continued to recover from the prior year decline. Growth was led by the Middle East, including Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, as well as the North Sea and China. Orders in the Americas increased by approximately 10%, reflecting continued momentum in drilling and completion activity and the success of our iComplete offering. Our 2021 Revenue Guidance for Surface Technologies anticipates further order growth in the second half of the year when compared to the first half, fueled by increased market activity, new customer alliances, expansion of our manufacturing capabilities in Saudi Arabia, and the continued market penetration of new technologies. In total, our second quarter results demonstrate that our businesses and markets continue to improve. Subsea inbound orders of $2.8 billion in the first half of the year were very strong. We continue to see a healthy list of prospects, and remain very confident in our full year guidance of more than $4 billion. Furthermore, growth in 2022 is supported by an increasing set of opportunities. When using the midpoint value of our subsea opportunity list, the project award potential has increased by nearly 20% to $17 billion over the next 24 months. Looking beyond the strengthening of the traditional market, we believe that offshore will play a meaningful role in the new energy mix. Last quarter, I introduced the four pillars underpinning our approach toward new and novel energies. Wind, wave, hydrogen, and carbon transportation and storage. As we look at them today, We are making steady progress in our partnerships focused on wind and wave opportunities. The market momentum for wind development continues to support increased investment in this abundant source of renewable energy. And when combined with wave technology, we can generate even greater energy output and reduced intermittency utilizing the integrated offshore solutions. Our Deep Purple solution is centered around technology development and integration capabilities that convert this renewable energy into hydrogen, enabling economies of scale that were previously unattainable by offshore renewables projects. Our client conversations are now centered on commercial projects utilizing Deep Purple technologies. Last week, we announced our partnership with Portuguese Energy Utility, EDP, as well as several notable research partners in a concept study for the development of a new offshore system for green hydrogen production from offshore wind power. This project is called Beyond. Working with our consortium partners, we will leverage our extensive experience in subsea engineering, technologies developed on Deep Purple, and essential integration capabilities, with a goal to develop a standardized solution that can be implemented worldwide, allowing for large-scale hydrogen production from renewable wind resources. Lastly, while the energy industry is devoting significant attention to carbon reduction, there is still much work to be done. Importantly, the carbon has to be stored somewhere. We believe one of the safest and most efficient locations for the storage can be found offshore, where it can be maintained in naturally occurring reservoirs that exist in many regions around the world. We are well positioned to be the leading provider in subsea carbon transportation and storage. We have been investing in this space for some time and have also partnered with others in the development of new technologies. We look forward to further showcasing our progress, including several of the technologies and integration capabilities being utilized across the new energy space at our upcoming investor event scheduled for November 16th. With the development of new energy solutions, while the development of new energy solutions are still in their infancy, our fundamental belief is that clean energy will be increasingly sourced and stored offshore given the anticipated volume and scale required to meet future energy demand. As the subsea architect, we are building partnerships in support of new energy, leveraging our differentiated technologies, and capitalizing on subsea expertise and integrated project execution. Our four pillars are not mutually exclusive. and yet it is not clear which single pillar or combination will prove to be the market's preferred choice in the energy transition. Regardless, Technip FMC is well positioned to play a material and successful role in their development, driven by our core competencies, collaboration, innovation, and integration. I will now turn the call over to Elf to discuss our financial results and to provide an update to our full-year financial guidance.