What happened
Shares of TechnipFMC (FTI) surged more than 13% by 2:30 p.m. EST on Thursday. Fueling the energy stock was its fourth-quarter results and outlook for 2021 and beyond.
So what
TechnipFMC reported an adjusted loss of $0.05 per share during the fourth quarter, which missed the analysts' consensus estimate by $0.16 per share. However, that's mainly due to an expense related to increased liability to joint venture partners, which cost it $0.12 per share during the quarter. Further, the quarter included the results of Technip Energies, which the company spun off earlier this month. That transaction transformed both companies into industry-leading pure plays.
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While 2020 was a challenging year for TechnipFMC due to all the turbulence in the oil market, it expects 2021 to be much better, thanks to improving market conditions. The company anticipates that growth in international activity will fuel full-year revenue growth in its surface technologies segment. Meanwhile, it expects to book more than $4 billion of orders within its subsea technologies group, which should support solid results in that segment and more order growth in 2022. Longer term, the company believes it's well-positioned for the energy transition to cleaner fuel sources, noting it sees significant opportunities in subsea, including wind, wave energy, carbon storage, and green hydrogen.
Now what
TechnipFMC expects to benefit from a recovery in the oil market, which should fuel higher activity levels and orders over the next two years. Meanwhile, it sees new opportunities emerging as a result of the energy transition to cleaner fuel sources. If that future materializes, and TechnipFMC captures an outsized portion of the available opportunities, it could give its stock the power to continue rising in the coming years.