TechnipFMC PLC at Barclays CEO Energy Power Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: John Anderson - Barclays - Analyst : Let's start with kind of a basic question, 2014 (sic - 2024) is shaping up pretty well from an order standpoint, pretty much like what you were looking for. How does 2025 starting to look? Any reason to think the pace of orders is changing at all? I know you've had some guidance out there for a bit.

Question: John Anderson - Barclays - Analyst : That was actually my next question, kind of what's beyond '25? So I know maybe, it has been one major area. Any other kind of areas that are sticking out to you? Or would you expect kind of more, I don't know, some of your traditional basins?

Question: John Anderson - Barclays - Analyst : We heard from [Jeff Miller] earlier, he was saying that the change, one of the things that he's seen in the offshore is a lot more IOCs are engaging him. I'm curious what you've been seeing on that front in the orders? Are you seeing more of these IOCs engaging you and kind of looking longer term? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 4:40PM, FTI.N - TechnipFMC PLC at Barclays CEO Energy Power Conference Because one of the things I think about a lot is back in kind of 2014, the marginal barrel was deepwater, and we're at $85 a barrel, and now it's structurally changed [sub-50] now. Is that kind of changing the mindset in your view of the IOCs in terms of the horizon in terms of what they're trying to do?

Question: John Anderson - Barclays - Analyst : So you are a big part of lowering that cost structurally. Do you feel that you have accrued enough value for what you have added for what you're bringing to the table? Are you being paid -- are you getting enough value from the customers or does is that cause still to come in the couple of years?

Question: John Anderson - Barclays - Analyst : On the flip side, the iEPCI model, it's been a really unique side of your business and it's really kind of enabled a lot of your smaller customers. And can you remind us how much of your business today is the iEPCI model? And what are typically the size of those projects? Are they all tend to be a little smaller in projects but very standardized? Is that the right way for investors to think about it?

Question: John Anderson - Barclays - Analyst : I think back to the last cycle, kind of subsea almost kind of became what it is today. Your big customer is whether Shell or Exxon or [Chev], they all have these big subsea engineering team. And they love to do all bespoke work, going to Subsea 2.0 is a big shift in totality from the IOCs. Are the IOCs going that way? Or do they -- I assume they be more convincing? So when you get IOCs into the subsea point?

Question: John Anderson - Barclays - Analyst : You've had a long-standing target of 18% subsea margins in 2025. You're clearly right on the path towards that. Now you just said, Subsea 2.0 is only about quarter of revenue conversion today. So as you kind of think going forward, is that going to be the primary driver for margin expansion from here? Is it going from 50% to 75% to some level? Is that where you're going to see the margin expansion for you?

Question: John Anderson - Barclays - Analyst : In pricing. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 4:40PM, FTI.N - TechnipFMC PLC at Barclays CEO Energy Power Conference

Question: John Anderson - Barclays - Analyst : So in terms of that conversion, in terms of the Subsea 2.0, what are some of the KPIs that you're kind of focused on? And has it been as efficient as you had hoped? Is it better? Just kind of curious what are you watching in terms of the success of it?

Question: John Anderson - Barclays - Analyst : Well, there certainly appear to be entering or having been in a sweet spot here, and it looks like it could last the next couple of years. What could derail this? We think of vessels, and certainly, one thing I've been hearing about is that there's not enough out there. I know you have different ways of dealing with that. But is there anything that's kind of bought that concerns you, that could change this pace or kind of slow this down at all?

Question: John Anderson - Barclays - Analyst : There's a couple of minutes left. I want to ask you about one thing that is on the horizon. Well, it's been on the horizon for a while, but now it's kind of here, is electrification. You talk about this, gosh, 10, 15 years. But now you now got some orders in electrification, but it has a lot of other benefits as well particularly in subsea tiebacks. Can you just talk about what electrification could mean in terms of kind of, I guess, your orders in terms of the market itself.

Question: John Anderson - Barclays - Analyst : When will the Northern Endurance project be in the water? When do you expect to install that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 03, 2024 / 4:40PM, FTI.N - TechnipFMC PLC at Barclays CEO Energy Power Conference

Question: John Anderson - Barclays - Analyst : Yeah. Great. Doug Pferdehirt, CEO of TechnipFMC.