TechnipFMC PLC at JPMorgan Energy, Power & Renewables Conference Transcript

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

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : All right. Doug, let's get started a little bit on the subsea kind of macro kind of picture. How would you characterize spending patterns in your core traditional deep water markets? Obviously, a lot of commodity price volatility, but I was wondering if we could maybe start with some of the core traditional markets, the US, Gulf, Brazil, and West Africa.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Yeah. Doug, we talked a little bit about the traditional core call it the golden triangle. What are opportunities to grow kind of the deep water pie and talk about some of the emerging basins globally?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Great. I want to talk a little bit about order trends. A few years ago, Doug, you outlined the company's expectations. They could book, I believe, $30 billion of subsea orders between 2023 and 2025. You obviously hit your key criteria for the last couple of years, and that would imply about $10 billion or more subsea orders in 2025. So my question here is you booked 2.8 billion of orders in 1Q, 1.4 times book to bill. So you're ahead of kind of the trend. One of the things we do is we approach the end of the quarter, me and my team as we look at press releases from FTI, and we haven't noted any press release, orders. So I was wondering if you could maybe provide some thoughts. You hate to focus so much on the near term, but thoughts on 2Q or maybe just a cadence of orders for the balance of the year, and do you still have confidence on hitting that $10 billion number this year?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : You talked about some of the longer term opportunities for FTI and some of the emerging basins and growth and even the traditional basins like the Paleogene. What type of visibility do you have in terms of 2026? One of the questions we get is you've announced so many orders over the last three years or so. Can you keep that pace of order activity in the '26?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Yeah. Next question is maybe, could you briefly describe your subsea 2.0 offering?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Could you maybe elaborate on this concept of an integrated project? There's projects where, FTI does -- the lion's share of the surf work, but there's projects perhaps like, Suriname where I think you're partnering with Saipem. Give us a sense of the differences.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Great. Subsea services is something you highlighted. I believe last year, you generated about $1.65 billion of revenue being precise here. What is your forward expectations for growth kind of in the segments and how do margins generally compare to call your equipment types of margin than just the subsea equipment?

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Let's talk a little bit about margins and one of your customers just walked in the facts. So just maybe be careful with this one. Your 2025 guide implies about 19.5% EBITDA margins. One of the things that we learned at the dinner last night is only about a third of your throughput today is subsea 2.0. And broadly, talk to us on where you're at in terms of this margin journey.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : Yeah. I was wondering if you could talk a little bit about the flexible pipe market and maybe the steps the company's taken to commercialize a new composite flexible pipe solution which could have some really interesting market in Brazil.

Question: Arun Jayaram - J.P. Morgan Securities LLC - Analyst : We have time for one question. Unidentified Participant Regarding the Petrobras contracts, you have a new technology that's in place being deployed in the next three years. That's the high set that looks -- when we look at the what means the engineering, what it seems kind of a bit a breakthrough in order to expand into fields with higher CO2 and higher, I mean, problems with gas. So if you could talk a little bit about it, how it's being developed, and when should it start to operate I believe in metal field, but what size of breakthrough because price says that it could be used in much other fields in order to revamp the production since you can see bed and separate the CO2. So it looks good, but we can't understand what it could mean for the whole offshore industry.