X
<

Could Guidance Change Affect TechnipFMC in 2017?

PART:
1 2 3 4 5 6
Part 4
Could Guidance Change Affect TechnipFMC in 2017? PART 4 OF 6

Linking TechnipFMC’s Margin to Upstream Operators’ Capex

TechnipFMC’s EBITDA margin

From 2Q17 to 3Q17, TechnipFMC’s (FTI) EBITDA (earnings before interest, tax, depreciation, and amortization) margin (or EBITDA as a percentage of revenues) fell from 13.7% to 10.1%. An EBITDA margin is a measure of a company’s operating earnings.

TechnipFMC makes up 1.0% of the Vanguard Energy ETF (VDE). From September 29, 2017, to November 8, 2017, VDE rose 2% compared to a ~4% rise in FTI stock for the same period.

Linking TechnipFMC’s Margin to Upstream Operators’ Capex

Interested in FTI? Don't miss the next report.

Receive e-mail alerts for new research on FTI

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Upstream operators’ capex 

From 2Q17 to 3Q17, 20 of the top upstream companies by market capitalization in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) increased their capex (capital expenditure) by 21% in aggregate, as you can see in the above graph.

EBITDA margin for FTI’s peers

Basic Energy Services’ (BAS) EBITDA margin was 9.7% in 3Q17. Schlumberger’s (SLB) EBITDA margin was 22.7% in 3Q17, while Patterson-UTI Energy’s (PTEN) EBITDA margin was 24.5%.

Rig count

As of the week ended November 3, 2017, the US rig count was 898, which was 4% lower than the count on September 29, 2017. The international rig count, on the other hand, rose 2% in October 2017 compared to the previous month. Acceleration or deceleration in the rig count could affect FTI’s revenues and earnings growth in 4Q17.

Next, we’ll take a look at TechnipFMC’s net debt.

X

Please select a profession that best describes you: