Amid steep declines in oil prices, tumbling stock markets and global economic uncertainty caused by the coronavirus (Covid-19) pandemic, subsea technology and engineering firm TechnipFMC has decided to delay its planned separation into two companies
When the separation does take place, TechnipFMC will be a fully integrated subsea technology and services provider headquartered in Houston and listed on the NYSE and Euronext Paris exchanges. Technip Energies, headquartered in Paris and listed on the Euronext Paris exchange, will focus on engineering and construction, with a focus on LNG projects, biofuels and alternative energy.
One of the largest players in the subsea market, NYSE-listed TechnipFMC experienced over 50% order growth in subsea projects in Q4 2019. In discussing the company’s Q4 2019 results, TechnipFMC chairman and chief executive Doug Pferdehirt said he had expected the momentum to continue in 2020 buoyed by activity for small- to mid-sized brownfield subsea projects and a continued healthy outlook for greenfield projects.
“Strength in project activity, as well as our expectation for double-digit revenue growth in subsea services, provides the framework for 2020 subsea orders to approach the level achieved in 2019.”
The combination of the Covid-19 pandemic, new travel restrictions imposed by the US and Europe and a flood of new oil from Saudi Arabia resulting from the OPEC+ falling out have roiled global stock markets and sent shares of energy companies plunging.
Brent crude closed on 16 March at US$30.05, after trading as low as US$29.52 earlier in the day. Traded under the symbol FTI on the New York Stock Exchange, TechnipFMC dropped 19.64% on 16 March, closing at US$5.73, after starting 2020 at a price of US$21.44 per share.