TechnipFMC (FTI) investor relations material

Industry transformation and structural change

• Offshore energy sector is undergoing a structural change, moving away from cyclical patterns seen in previous decades.

• Shift from a fixed asset mentality to a model where both providers and customers benefit, reducing cyclicality.

• Offshore projects have become more attractive as break-even costs dropped from $65–$70 per barrel in 2014 to below $35, while U.S. shale costs have risen.

• Integration of equipment manufacturing and installation has reduced project delays and improved certainty for clients.

• 80% of business is now direct awarded, bypassing competitive tenders due to integrated offerings and reduced cycle times.

Regional developments and capital flows

• Capital is increasingly flowing from U.S. onshore to offshore projects, supported by improved offshore economics and certainty.

• South America, especially Brazil and Guyana, remains a major growth driver, with Africa emerging as the next frontier, particularly in Namibia and Mozambique.

• Mature basins in West Africa (Ghana, Nigeria, Angola) are seeing renewed investment, leveraging existing infrastructure for faster project execution.

• Eastern Africa is focused on gas developments, with projects aimed at supplying Asian LNG markets.

Technology, innovation, and operational efficiency

• Transitioned from engineer-to-order to configure-to-order manufacturing (Subsea 2.0), cutting engineering time by 9–12 months and reducing waste.

• Subsea 2.0 now represents the majority of orders, with no customers reverting to the old model.

• Future plans include extending configure-to-order principles to umbilicals, risers, pipelines, and installation, aiming to further reduce cycle times.

• Company operates with a two-year backlog, providing strong visibility and supporting margin expansion.