TechnipFMC plc

Good day. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the TechNIP FMC third quarter 2021 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. I would now like to turn the call over to Mr. Matt Seinsheimer. Please go ahead, sir.

Thank you, Lisa. Good morning and good afternoon, and welcome to Technip FMC's third 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. Results in the quarter reflect continued strength in operational performance and further support our confidence in achieving full-year financial guidance. Total company revenue in the period was $1.6 billion. Total company adjusted EBITDA was $141 million, with an adjusted EBITDA margin of 8.9%. Total company inbound orders in the quarter were $1.3 billion. Subsea inbound orders were $1.1 billion, bringing the year-to-date segment total to $3.9 billion. The strength of our inbound in the quarter was driven by direct awards, subsea services, alliance partners, and several long-term vessel charters. Additionally, our subsea opportunity list expanded for the fourth consecutive quarter and now shows project opportunities totaling $19 billion for potential award over the next 24 months, when assuming the midpoint of the project ranges. Inbound orders for surface technologies were $250 million in the third quarter. It is important to note that we expect a significant increase in order activity in the fourth quarter as we anticipate several multi-year awards will be made in the Middle East. Subsea inbound growth in 2021 partly reflects the momentum we are seeing in Brazil. This has always been an important region for Technip FMC. We have been present in the country for over five decades with a well-established supply chain and over 98% local content contributing significantly to our success. Additionally, an important part of our global research and development is carried out at our technology center in Rio de Janeiro. This year, our Brazil teams have achieved several impressive milestones. We received two contract awards from Petrobras. The first for the Marlam and Vador fields, where we will provide subsea manifolds utilizing our second generation all-electric robotic valve controller. and the second award to supply equipment and services for the Buzio 6 through 9 fields, extending our backlog well beyond the first scheduled delivery in 2023. Karun Energy awarded us with our first IEPCI project in Brazil, another significant step in the global adoption of our integrated model. And we delivered our 700th tree manufactured in country reflecting a leadership position that has been built upon a long history of innovation and strong project execution. During the quarter, we also signed three long-term vessel charter contracts with Petrobras. These awards will serve the Brazilian market for the next three-plus years. The first two charters were for pipe-lay support vessels owned and operated through our joint venture with Dof Subsea. The third was for a wholly owned vessel that provides us with the ability to install flexible pipe in any water depth up to 3,000 meters, and one that has consistently been awarded the client's highest rating for operational performance, quality of work, and health, safety, and environment. These awards also serve as a leading indicator of the strong demand for the flexible pipe market in Brazil. For decades, flexible pipe has been the preferred solution in Brazil. The pipe's versatility has allowed the technology to evolve with the industry, adapting from shallow water to deep and ultra-deep water. Technip FMC has been a pioneer in flexible since the early 1970s. We are constantly improving quality and reliability in increasingly harsh environments. and our assumed facility is a showcase for advanced manufacturing automation. More than 11,000 kilometers have been installed across the region, more than half of which was supplied by Technip FMC, and we remain the market leader today. High concentrations of CO2 in pre-sold fields has posed industry challenges for some applications of flexible pipe, particularly pre-salt gas injection risers, leading to a reduction in flexible volumes since the market peak in 2017. Outside of these limited applications, the low CO2 flexibles market in Brazil remains robust, supported by recent industry awards and tendering activity, which we believe will result in annualized volumes over the next three years that are more than double the current levels. In 2018, to address the high CO2 industry challenge, we created a strategic alliance and made a minority investment in Magma Global, a leader in advanced composite technologies. With the ongoing success of this technology alliance, we were pleased to announce we acquired the remaining interest in Magma, and we are excited to welcome them to the Technip FMC family. By combining their proprietary technology with our flexible pipe, we are advancing the development of a hybrid flexible pipe solution for use in the Brazilian pre-salt fields. Our long history in Brazil, our research capabilities, our investment in disruptive technologies, our leadership in flexibles, our high performing fleet, and most notably, the women and men that continue to drive our success, positions us well in what is expected to be the strongest subsea market this decade. We have previously outlined our focus areas of wind, wave, hydrogen, and carbon transportation and storage, and we are making real progress in all of these areas. Additionally, we believe that composite technologies from magma will be a critical enabler to the new energy transportation system. We were also pleased to announce a long-term strategic alliance with Talos Energy to develop and deliver solutions for carbon capture and storage, or CCS. This is an important step for both companies, combining Talos's offshore operational strength and subsurface experience with our long history in subsea engineering, system integration, and automation and controls. The Alliance will initially focus on the U.S. Gulf Coast, which is a major source of CO2 emissions, with a heavy concentration of refineries, liquefied natural gas plants, and emerging blue hydrogen facilities. The Alliance provides a platform to address this growing market need, and we look forward to working with Talos in the conversion of these identified opportunities. This type of collaboration Innovation and Integration will position Technip FMC to be a leading provider in carbon transportation and storage. I will now turn the call over to Elf to discuss our financial results.