BAKU, Azerbaijan, April 26. TechnipFMC’s Surface Technologies division saw a 6.9% drop in first-quarter revenue, totaling $297.4 million, compared to the previous quarter, Trend reports.
The decline was primarily due to project delays in the Middle East and reduced activity in Africa and Asia Pacific, the producer explained. However, the decrease in international markets was somewhat offset by stronger performance in North America.
The division’s operating profit also fell by 17.3% to $30.2 million, reflecting the downturn in international market activity, despite a $5.1 million net reduction in charges and credits that provided some relief. Operating profit margin decreased by 120 basis points, dropping to 10.2%.
Adjusted EBITDA for the quarter came in at $46.6 million, a 12.9% decrease from the fourth quarter. This drop was again driven by lower international market activity, with North American growth not fully compensating for the declines elsewhere. Adjusted EBITDA margin decreased to 15.7%, down 110 basis points from the previous quarter.
On a positive note, the division saw a significant increase in inbound orders, which rose by 34.9% to $303.6 million. The backlog at the end of the quarter stood at $870.4 million, indicating a solid pipeline for future work in the coming months.
