TechnipFMC Puts Planned Split on Hold

UK-registered TechnipFMC’s plan to separate into two independent and publicly traded companies has been put on hold due to uncertain market conditions linked to Covid-19 outbreak, it said March 15 in a statement.

“Market conditions have changed materially due to the Covid-19 pandemic, the sharp decline in commodity prices, and the heightened volatility in global equity markets. The impacts of these events have created a market environment that is not currently conducive to the company’s planned separation into TechnipFMC and Technip Energies,” the company said.

The decision to split was announced in August last year, three years after the merger of Technip and FMC Technologies, which established TechnipFMC as the only fully-integrated subsea provider.

However, the company reiterated that the strategic rationale for the separation remains unchanged. “The company is committed to the transaction and continues its preparations to ensure that the two companies are ready for separation when the markets sufficiently recover,” it said.

Oil prices have dropped sharply this month due to a global outbreak of Covid-19, which is expected to cut demand. Prices have also been impacted by Saudi Arabia's decision to hike output and go for market share.