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Released April 25, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Despite a downturn in most financial metrics during the first quarter, upstream services firm TechnipFMC (NYSE:FTI) (London, England)
said its revenue stream was diverse and it was somewhat insulated from the impact of U.S. tariffs.
The multinational services provider on Thursday reported net income over the three-month period ending March 31 of $142 million, a 37% decline from the prior period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), an alternative method of measuring profit, was $344 million. That's 2% lower than fourth quarter levels, but up 36% from first-quarter 2024.
The services sector is facing headwinds amid slumping profits from major energy companies and a blow to demand from aggressive tariffs pursued by U.S. President Donald Trump. Last week, the International Monetary Fund warned of a significant blow to the global economy due to Trump's policies.
On Thursday, the price for Brent crude oil, the global benchmark, was trading at around $66 per barrel. It was April 2021, roughly a year into the COVID-19 pandemic, the last time prices were this low.
Doug Pferdehirt, the chairman and chief executive officer at TechnipFMC, said he believed his company would nevertheless weather the storm.
"When thinking about our potential exposure to the recently announced tariffs, it is largely confined to product-related revenue from our operations across U.S. land and the U.S. Gulf," he said. "Given our mitigation efforts, we anticipate the impact to total Company adjusted EBITDA to be less than $20 million in 2025."
Despite the hit to financials, the company said it was busy during the first quarter, with engineering, procurement, construction and installation contracts ranging from the third phase of the giant Johan Sverdrup oil field off the coast of Norway (see project reports), to the Gato do Mato development offshore Brazil (see project reports).
Pferdehirt added that 95% of its revenue this year will come from activity outside the U.S. land market, focusing instead on offshore opportunities.
"We continue to believe that offshore will remain a preferred investment of operators, with deepwater attracting a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources," he said.
Rivals have already reported poor performance during the first quarter. Baker Hughes Company (NASDAQ:BKR) (Houston, Texas) said Tuesday that its outlook was "tempered by broader macro and trade policy uncertainty," with net income of $402 million during the first quarter, marking a 66% decline from the same period last year.
"We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value," said Lorenzo Simonelli, the company's chairman and chief executive officer.
On Monday, Halliburton Company (NYSE:HAL) (Houston, Texas) reported that its North American revenue was down 12% to $2.2 billion due to lower activity in U.S. shale basins and in the Gulf of Mexico, renamed by the Trump administration to the Gulf of America.
The slump for Halliburton follows signs of a slowdown in the U.S. energy sector. Drillers are already doing more with less by using miles-long laterals and multi-bore wells, though the economy is slowing down and dragging upstream activity with it.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The multinational services provider on Thursday reported net income over the three-month period ending March 31 of $142 million, a 37% decline from the prior period. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), an alternative method of measuring profit, was $344 million. That's 2% lower than fourth quarter levels, but up 36% from first-quarter 2024.
The services sector is facing headwinds amid slumping profits from major energy companies and a blow to demand from aggressive tariffs pursued by U.S. President Donald Trump. Last week, the International Monetary Fund warned of a significant blow to the global economy due to Trump's policies.
On Thursday, the price for Brent crude oil, the global benchmark, was trading at around $66 per barrel. It was April 2021, roughly a year into the COVID-19 pandemic, the last time prices were this low.
Doug Pferdehirt, the chairman and chief executive officer at TechnipFMC, said he believed his company would nevertheless weather the storm.
"When thinking about our potential exposure to the recently announced tariffs, it is largely confined to product-related revenue from our operations across U.S. land and the U.S. Gulf," he said. "Given our mitigation efforts, we anticipate the impact to total Company adjusted EBITDA to be less than $20 million in 2025."
Despite the hit to financials, the company said it was busy during the first quarter, with engineering, procurement, construction and installation contracts ranging from the third phase of the giant Johan Sverdrup oil field off the coast of Norway (see project reports), to the Gato do Mato development offshore Brazil (see project reports).
Pferdehirt added that 95% of its revenue this year will come from activity outside the U.S. land market, focusing instead on offshore opportunities.
"We continue to believe that offshore will remain a preferred investment of operators, with deepwater attracting a growing share of global capital flows, driven by much-improved economic returns and broad access to these resources," he said.
Rivals have already reported poor performance during the first quarter. Baker Hughes Company (NASDAQ:BKR) (Houston, Texas) said Tuesday that its outlook was "tempered by broader macro and trade policy uncertainty," with net income of $402 million during the first quarter, marking a 66% decline from the same period last year.
"We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value," said Lorenzo Simonelli, the company's chairman and chief executive officer.
On Monday, Halliburton Company (NYSE:HAL) (Houston, Texas) reported that its North American revenue was down 12% to $2.2 billion due to lower activity in U.S. shale basins and in the Gulf of Mexico, renamed by the Trump administration to the Gulf of America.
The slump for Halliburton follows signs of a slowdown in the U.S. energy sector. Drillers are already doing more with less by using miles-long laterals and multi-bore wells, though the economy is slowing down and dragging upstream activity with it.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
