Mar 16 | 2020
(Europe) Market Conditions ‘Changed Materially’
Engineering services firm TechnipFMC said it will delay plans for its new pure-play engineering and construction spinout.
“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 firm said in a statement.
The split had been expected to complete in the first half of 2020 and was to have created a new spin-off, Technip Energies, to be headquartered in Paris, France. Despite the delay, the company reiterates that "the strategic rationale for the separation" remains unchanged.
TechnipFMC employs 44,000 staff in 48 countries focusing on offshore oil and gas exploration and extraction platforms, rigs, crude oil refinery and petrochemical plant projects.
“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 firm said in a statement.
The split had been expected to complete in the first half of 2020 and was to have created a new spin-off, Technip Energies, to be headquartered in Paris, France. Despite the delay, the company reiterates that "the strategic rationale for the separation" remains unchanged.
TechnipFMC employs 44,000 staff in 48 countries focusing on offshore oil and gas exploration and extraction platforms, rigs, crude oil refinery and petrochemical plant projects.
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