How Does TechnipFMC Company Work?

This segment designs, engineers, procures, manufactures, fabricates, installs, and provides life-of-field services for subsea systems. It encompasses field infrastructure and pipe systems crucial for oil and gas extraction and transport.

Specialized manufacturing of umbilical cables and flexible pipes occurs in plants across multiple continents. The company also utilizes a fleet of 21 specialized vessels for subsea installation projects.

The company's proprietary integrated Engineering, Procurement, Construction, and Installation (iEPCI™) model streamlines project execution and accelerates time to first production. This model allows for the delivery and installation of the entire water column, from topside to seabed.

This segment serves onshore and shallow water markets, providing wellheads, surface trees, and equipment for drilling, completions, and production. It also offers frac and flowback services, with technologies like the iComplete™ system designed to reduce costs and carbon intensity.

The 2017 merger of FMC Technologies and Technip SA was a transformative event, establishing TechnipFMC as a major integrated player in the energy services sector. The company's introduction of the integrated Engineering, Procurement, Construction, and Installation (iEPCI™) model and Subsea 2.0® technology has revolutionized subsea project execution. These innovations have significantly reduced time to first production and improved overall project profitability for clients.

In 2024, TechnipFMC saw record performance in its iEPCI™ projects and Subsea 2.0® orders, with iEPCI™ awards increasing by nearly 25% and Subsea 2.0® tree inbound growing by over 50% year-over-year. Notable 2024 iEPCI™ awards include the Mero 3 HISEP® project for Petrobras and the Shell Sparta project, which features a 20,000-psi production system. The company also secured the first all-electric subsea system for carbon capture and storage for the Northern Endurance Partnership.

TechnipFMC effectively navigates market challenges, such as fluctuating oil prices and the energy transition, by leveraging its technological leadership and integrated solutions. Its primary competitive advantage lies in its vertical integration within the subsea domain, enabling it to offer end-to-end solutions from topside to seabed. This integrated approach is a core aspect of how TechnipFMC works, ensuring seamless project delivery.

The company benefits from strong brand recognition and economies of scale, operating in 48 countries with a workforce of approximately 21,000 employees. TechnipFMC is actively expanding into new energy sectors, including carbon capture and storage (CCS), floating offshore renewables, and hydrogen production, utilizing technologies like HISEP® and Deep Purple. Strategic alliances, such as its collaboration with Talos Energy for offshore carbon storage and Vår Energi for subsea developments on the Norwegian Continental Shelf, further enhance its competitive edge and drive innovation in the evolving energy landscape. Understanding TechnipFMC's approach to the energy transition reveals its forward-thinking strategy.

TechnipFMC holds a leading position as a global technology provider for both traditional and emerging energy industries, with a particular strength in the subsea sector. The company's customer loyalty is a key factor, as evidenced by recurring contracts and direct awards that have consistently represented at least 70% of Subsea inbound orders for three consecutive years through 2024.

The company faces several risks, including geopolitical instability, currency fluctuations, and potential supply chain disruptions. Volatility in oil and gas prices also poses a challenge, as does the significant investment required for the energy transition, which necessitates adapting existing business models and adopting new technologies.

TechnipFMC anticipates robust activity through the end of the decade, driven by strong offshore markets and its energy transition initiatives. The company projects over $10 billion in Subsea inbound orders for 2025, with Subsea revenue guided between $8.4 billion and $8.8 billion and adjusted EBITDA margins of 19-20%.

The company is strategically focusing on three key areas within the energy transition: greenhouse gas removal (such as CCS), floating offshore renewables, and hydrogen production. This approach leverages TechnipFMC's existing competencies to capitalize on future energy infrastructure needs.