PARIS, Feb 21 (Reuters) - TechnipFMC’s shares slumped on Thursday, after the oil services company posted a loss during the fourth quarter.
TechnipFMC’s main stock market listing is in New York, but its Paris-listed shares dropped by around 10 percent at the start of trading on Thursday.
Traders and analysts pointed to a weak performance at TechnipFMC’s subseas division.
“Subsea adjusted EBITDA fell short as $1.2 billion of revenues missed our $1.4 billion estimate and the $1.45 billion consensus. EBITDA margins slid 355 basis points to 12 percent,” wrote brokerage Cowen in a note.
The company also reported pre-tax asset impairment charges totalling $1.775 billion in its Subsea segment.
It said the non-cash charges resulted from its annual fair value assessment of business and assets. These include impairments to goodwill and fixed assets, including a reduction in the carrying values of certain vessels within its fleet.
TechnipFMC was formed in 2016 by the merger between French company Technip and its U.S. peer FMC. (Reporting by Sudip Kar-Gupta; Editing by Bate Felix)
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