TechnipFMC (FTI)

Risks

• Risks Related to Our Business and Industry
• Risks Related to Our Operations
• Risks Related to Legal Proceedings, Tax, and Regulatory Matters
• Demand for our products and services depends on oil and gas industry activity and expenditure levels, which are directly affected by trends in the demand for and price of crude oil and natural gas.
• We operate in a highly competitive environment and unanticipated changes relating to competitive factors in our industry, including ongoing industry consolidation, may impact our results of operations.
• The COVID-19 pandemic has reduced demand for our products and services, and has had, and may continue to have, an adverse impact on our financial condition, results of operations, and cash flows.
• Our success depends on our ability to develop, implement, and protect new technologies and services and the intellectual property related thereto.
• Due to the types of contracts we enter into and the markets in which we operate, the cumulative loss of several major contracts, customers, or alliances may have an adverse effect on our results of operations, and the credit and commercial terms of certain contracts may subject us to further risks.
• Disruptions in the political, regulatory, economic, and social conditions of the countries in which we conduct business could adversely affect our business or results of operations.
• The United Kingdom’s withdrawal from the European Union may have a negative effect on global economic conditions, financial markets, and our business.
• Our existing and future debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our obligations under our outstanding debt.
• The terms of the agreements governing our existing indebtedness restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
• Our acquisition and divestiture activities involve substantial risks.
• We may lose money on fixed-price contracts.
• Our failure to timely deliver our backlog could affect future sales, profitability, and relationships with our customers.
• We face risks relating to our reliance on subcontractors, suppliers, and our joint venture partners.
• A failure or breach of our IT infrastructure or that of our subcontractors, suppliers or joint venture partners, including as a result of cyber-attacks, could adversely impact our business and results of operations.
• Pirates endanger our maritime employees and assets.
• The industries in which we operate or have operated expose us to potential liabilities, including the installation or use of our products, which may not be covered by insurance or may be in excess of policy limits, or for which expected recoveries may not be realized.
• Our operations require us to comply with numerous regulations, violations of which could have a material adverse effect on our financial condition, results of operations, or cash flows.
• Compliance with environmental and climate change-related laws and regulations may adversely affect our business and results of operations.
• Existing or future laws and regulations relating to greenhouse gas emissions and climate change may adversely affect our business.
• As an English public limited company, we must meet certain additional financial requirements before we may declare dividends or repurchase shares and certain capital structure decisions may require stockholder approval which may limit our flexibility to manage our capital structure. We may not be able to pay dividends or repurchase our ordinary shares in accordance with our announced intent, or at all.
• Uninsured claims and litigation against us, including product liability and claims and intellectual property litigation, could adversely impact our financial condition, results of operations, or cash flows.
• We are subject to governmental regulation and other legal obligations related to privacy, data protection, and data security. Our actual or perceived failure to comply with such obligations could harm our business.
• The IRS may not agree that we should be treated as a foreign corporation for U.S. federal tax purposes and may seek to impose an excise tax on gains recognized by certain individuals.
• U.S. tax laws and/or guidance could affect our ability to engage in certain acquisition strategies and certain internal restructurings.
• We are subject to the tax laws of numerous jurisdictions; challenges to the interpretation of, or future changes to, such laws could adversely affect us.
• We may not qualify for benefits under tax treaties entered into between the United Kingdom and other countries.
• We intend to be treated exclusively as a resident of the United Kingdom for tax purposes, but French or other tax authorities may seek to treat us as a tax resident of another jurisdiction.
• Our businesses are dependent on the continuing services of our key managers and employees.
• Seasonal and weather conditions could adversely affect demand for our services and operations.
• Currency exchange rate fluctuations could adversely affect our financial condition, results of operations, or cash flows.
• We are exposed to risks in connection with our defined benefit pension plan commitments.