NEWCASTLE & HOUSTON - TechnipFMC plc (NYSE:FTI), a global provider of technology solutions to the energy industry, has announced a quarterly cash dividend of $0.05 per share, scheduled for payment on December 4, 2024, to shareholders on record as of November 19, 2024. The energy services company also revealed an expansion of its stock repurchase program by an additional $1 billion, raising the total authorization to $1.2 billion.
The company's latest financial strategy aims to return capital to shareholders, a commitment underscored by the more than $740 million already returned through stock repurchases and dividends since July 2022. TechnipFMC's Chair and CEO, Doug Pferdehirt, expressed confidence in the company's outlook, anticipating a near doubling of shareholder distributions in 2024.
The share repurchases are expected to occur sporadically via open market purchases, privately negotiated transactions, or other methods in compliance with securities laws. It's important to note that the repurchase program is not binding and may be halted or discontinued at the company's discretion.
TechnipFMC is known for its integrated projects, products, and services across the traditional and new energy sectors. The company prides itself on proprietary technologies and solutions that enhance project economics and support the transition to lower carbon intensity.
This announcement, based on a press release statement, contains forward-looking statements which involve risks, uncertainties, and assumptions. Actual results could differ materially from the company's historical performance and current expectations. For detailed risk factors, investors are advised to consult the company's filings with the United States Securities and Exchange Commission.
TechnipFMC operates through two business segments, Subsea and Surface Technologies, and employs approximately 21,000 people worldwide. The company utilizes its website as a primary channel for distributing significant company information.
In other recent news, TechnipFMC, a global technology solutions provider for the energy industry, secured a significant contract from bp for the Kaskida development in the Gulf of Mexico. The contract, valued between $250 million and $500 million, involves integrated Engineering, Procurement, Construction, and Installation services. Additionally, TechnipFMC won two substantial contracts from Petrobras for offshore work in Brazil, further strengthening its financial position.
Citi maintained its Buy rating on TechnipFMC, projecting above-consensus FY25 EBITDA, while Benchmark upgraded the price target from $30.00 to $35.00, also maintaining a Buy rating. JPMorgan (NYSE:JPM) reiterated their Overweight rating on the company, emphasizing its growth trajectory.
TechnipFMC plans to provide updated revenue and margin guidance for fiscal year 2025 during their third-quarter earnings call. Citi's current estimates for the company in FY25 include revenues of $8.65 billion, surpassing the consensus of $8.46 billion, and EBITDA matching the consensus at $1.6 billion. These recent developments suggest a robust financial position and potential for continued growth for TechnipFMC.
InvestingPro Insights
TechnipFMC's recent announcement of an expanded stock repurchase program and continued dividend payments aligns well with its strong financial performance. According to InvestingPro data, the company's revenue growth stands at an impressive 19.08% over the last twelve months as of Q2 2024, with quarterly revenue growth of 17.92% in Q2 2024. This robust top-line growth supports the company's ability to return capital to shareholders.
InvestingPro Tips highlight that analysts expect TechnipFMC's sales to grow in the current year, and net income is also projected to increase. These positive forecasts provide context for the company's confidence in nearly doubling shareholder distributions in 2024.
The company's EBITDA growth of 60.5% over the last twelve months further underscores its improving financial health, which is crucial for sustaining and potentially increasing shareholder returns. Additionally, TechnipFMC's operating income margin of 10.0% suggests efficient operations, supporting its ability to fund the expanded stock repurchase program.
It's worth noting that TechnipFMC currently trades at a P/E ratio of 24.04, which investors may want to consider in light of the company's growth prospects and capital return initiatives. For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context for TechnipFMC's financial strategy and market position.
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