Energy Club NT - TechnipFMC votes to split into two companies

Home
News
TechnipFMC votes to split into two companies

TechnipFMC votes to split into two companies

28 Aug 2019 2:15 PM | Sonia Harvey (Administrator)

GLOBAL oilfield service provider and tech developer TechnipFMC will separate into two independent, publicly-traded companies following a unanimous decision by the board of directors.

It has been two years since the formation of TechnipFMC following an initial merger of Technip and FMC Technologies, however on Monday the company said it would spin off its engineering and construction operations into a separate company called SpinCo.

SpinCo will focus on LNG, downstream and petrochemicals, building on the legacy Technip position in those areas.

The second company, RemainCo, will be a technology and services provider focused on energy development.

According to analysis from Wood Mackenzie, the demerger is a "bold move" that is less about ‘correcting' something but a "proactive positioning move for a longer-term market shift."

"The upstream company, termed RemainCo for now, will be in essence, the legacy FMC Technologies' equipment and services business, plus Technip's subsea, umbilical, riser and flowline manufacturing business," WoodMac principle analyst Mhairidh Evans said.

"The demerger provides focus and flexibility for each of its divisions, which were already fairly distinct. We'd expect the subsea division to build on its market leadership - perhaps by considering other acquisitions or strategic directions that the wider TechnipFMC couldn't support."

Source: Energy News Bulletin

Read more here

Add comment

Energy Club NT is an Incorporated Association

The information contained in this website is for general information purposes only. The information is provided by Energy Club NT Inc and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

Through this website you are able to link to other websites and files which may not be owned, authored or under the control of Energy Club NT Inc. We have no control over the nature, content and availability of other websites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.