TechnipFMC could consider sale of onshore/offshore operations – report (translated)
TechnipFMC [EPA:FTI] [NYSE:FTI], the listed French-US specialist in subsea, onshore/offshore, and surface projects, is understood to be willing to consider a potential sale of its onshore/offshore division, French daily Les Echos reported. The report referred to information from newsletter “La Lettre A” claiming that the board of TechnipFMC could examine the option during its next meeting scheduled in December.
According to the report, the onshore/offshore division represents the core operations of Technip before the merger with FMC, 15,000-16,000 employees, and about 50% if the total revenues of the TechnipFMC group. The report cited insider sources as saying that the potential sale, which could be viewed as a spin off, would not be “that surprising” since the onshore/offshore division has few synergies with the other activities of the group and is focused on managing infrastructure projects.
TechnipFMC expects 2017 revenues of more than EUR 7.3bn for its onshore/offshore division, with an EBITDA margin of more than 8%. The French government indirectly owns 6.5% of TechnipFMC, the report noted.