TechnipFMC PLC at JPMorgan Energy, Power & Renewables Conference (Virtual) Transcript

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

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Thanks, Doug. Thanks for the introduction. It goes out without saying, obviously, that we hope that you and your team have stayed healthy through the pandemic. We've seen with a number of global businesses, the logistical challenges of COVID-19 have been pretty tough to manage. It would be really good to just get an update from you about what are you seeing in the field. We're 6 months into 2021, are things getting a little bit easier? Feel like projects are kind of moving to time now. And just how things are progressing as really as we kind of exit from the restrictions?

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Yes, I mean, as you said, you've already got $1.5 billion in hand, this year. I mean 2020 was a tough year for many oilfield services. I think, you did a pretty good job of, if you like, covering yourselves off in terms of what 2021 was going to look like from a revenue perspective. Looking at the sort of future, you were very confident about exceeding $4 billion of orders. You've already got $1.5 billion in hand. What is it that drives that confidence? What are you seeing in the market that makes you hang your hat on the $4 billion type order intake number for subsea? And I guess, where is the upside case from there?

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Interesting. I'm very interested to hear about high tendering because I think there's a perception from the outside that oil and gas CapEx is going to lag forever because of the energy transition. But high tendering would certainly go against that. And I think we've seen from the inbound from yourselves and other companies actually year-to-date that it's on the up. What do you think is driving that from your customers? Do you think it's a concern about their own reserve inventories? Do you think it's -- they can see the cash flow opportunity company -- coming, sorry, what do you think is driving that high tendering? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 22, 2021 / 3:50PM, FTI.N - TechnipFMC PLC at JPMorgan Energy, Power & Renewables Conference (Virtual)

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Interesting stuff. I mean, I guess, that leads me on to -- if you're talking about scheduling and outer years, high levels of tendering, is there anything to be done on price now? I think that's what we're looking for, for those services, it's kind of a little bit of a return of pricing power. Maybe get a little bit back from the oil companies who I think certainly, it looks like it's been in their favor in the downturn. That's for sure.

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Okay. Last question, I think, before moving on to what everyone is talking about, ESG and renewables, et cetera. But just maybe putting you in the spot a little bit, thinking about this improving market, how do you think about the profitability of both the Subsea and actually, your surface business REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 22, 2021 / 3:50PM, FTI.N - TechnipFMC PLC at JPMorgan Energy, Power & Renewables Conference (Virtual) longer term when you're thinking about the cycle and the ability to kind of capture margin as a business and generate cash. Can peak cycle this time be anything like last cycle?

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Okay, very good. So I think I'll shift gears here. Just before I do, just to remind everyone on the call, if you want to ask a question, do use the

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : That's pretty clear. We're running short of time, unfortunately. I mean I've got a whole sheet of more questions actually here, which I could definitely carry on with. So I'm just going to change track a little bit. I mean it's been pleasing, you must have been pleased to see that both FTI and TE have performed pretty well since the spin actually. And the market has been very accepting of that, which I think is a very good result. You sort of made the first move there in terms of the pathway to monetizing that remaining stake. I've done the math. Clearly, there's a significant balance sheet improvement, assuming you do exit that full position meaningfully below 1x levered. I guess the question is, other than how much of that stake you're going to monetize, but it's really what's next for FTI? You're going to have a very strong balance sheet. You've got a market-leading brand, kind of where do you take that? Do you consolidate more? What's the kind of goal post monetizing that stake? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 22, 2021 / 3:50PM, FTI.N - TechnipFMC PLC at JPMorgan Energy, Power & Renewables Conference (Virtual)

Question: James Thompson - JPMorgan Chase & Co, Research Division - Analyst : Great. We are, unfortunately, out of time here, Doug. Really appreciate your time. Thank you very much for this discussion. It's been really interesting. And thanks, again, for supporting the conference again this year. Thanks, everybody.