TechnipFMC (FTI) Barclays 38th Annual CEO Energy-Power Conference 2024 summary

Market outlook and order pipeline

• Order targets remain on track, with $30 billion targeted from 2023–2025 and strong confidence in achieving this goal.

• Demand is robust, driven by clients seeking capacity and repeat orders due to strong delivery and execution performance.

• Beyond 2025, growth is expected from mature basins, new horizons within existing basins, and emerging regions like Namibia, Mozambique, Suriname, and Colombia.

• Advancements in technology, such as all-electric and subsea processing, are expanding tieback opportunities and reducing costs.

• International oil companies (IOCs) are increasingly engaging, with improved project economics and greater visibility into future project pipelines.

Subsea 2.0 and iEPCI innovation

• Subsea 2.0 and iEPCI models enable project delivery up to a year earlier, with about 50% of new orders now using Subsea 2.0.

• Configure-to-order approach standardizes components, reducing engineering time and enabling faster assembly and testing.

• Once clients adopt Subsea 2.0, they remain committed due to shorter cycle times and certainty; large IOCs have fully embraced the model.

• Subsea 2.0 projects now include some of the largest in the backlog, exceeding $1 billion.

• Only about 25% of current revenue conversion is from Subsea 2.0, but this is expected to grow substantially.

Margin expansion and operational efficiency

• Margin expansion is driven by the transition from legacy backlog to higher-quality Subsea 2.0 and iEPCI projects.

• Market conditions are favorable, with improved pricing and economic value.

• Structural changes in operations and capital requirements are expected to deliver sustainable, through-cycle returns.

• Subsea 2.0 is exceeding efficiency expectations, with takt times improving and the ability to increase plant throughput without additional capital.

• Competitive advantage is expected to widen as efficiency gains continue, potentially reducing project delivery times even further.