Year End 2017: Highlights from FCS

For FCS, 2017 was unquestionably a year of evolution. New leadership, a new growth strategy, new brands and investments helped the company forge a new path ahead. 

Before the calendar officially turns to 2018, let’s look back at a few of our most notable moments from the last 12 months:

Highlights full year:

• Successful restructuring completed
• Discontinued unprofitable business
• EBIT margin increased due to strong improvement in our services
• Cost reduction and performance improvement stepped up
• Outlook 2018: positive cash flow and maintain reduction of cost base in a challenging market with continuing pressure on margins.

Highlights are:

Operational review

• Overall, FCS revenue increased driven by a high level of activity in service and rental
• Soluforce, Sanccus, and Flexlife joined FCS’ roster of leading representative Brands
• OEMs Weir, a market leader in high-pressure flow control equipment and Parker a premium hose manufacturer re-established FCS’ agreements as Distributor
• This year was an extraordinary one for our subsea hose deployment units with increased activities for hose maintenance services and rental
• In June, Halliburton Norway awarded FCS the hose spooling and maintenance contract
• FCS added specialty units to its rental fleet. The rental of these new units performed very well
• Cost levels have been actively addressed throughout the year and performance improvement measures were stepped up. In 2018, FCS will continue with adjusting its resource base to match the market

Strategy

• Successful implementation of our ‘Growth through Focus’ strategy has been essential to driving FCS forward
• The rental business provided a sound core to FCS. To meet evolving client needs, we are in the process of broadening and expanding our rental pool into adjacent market segments
• During 2017, we pursued alignment of our portfolio of activities with our strategy by divesting non-core assets. In 2018 we will continue pursuing more opportunities but more selectively
• In 2017, we launched several new solutions. SoluForce is a cost-effective reinforced thermoplastic hose manufactured in Holland. We also partnered with Flexlife, a specialized provider of technology and services in subsea flowlines and risers

Safety

Safety at work is a priority for FCS. It is a responsibility that extends across the entire chain of operations. In 2017, we focused on safety awareness and behavior; and achieved zero lost-time accidents. We are convinced that accidents can be prevented in our organization, and we will continue to fully commit ourselves to that challenge in 2018.

Capital expenditure

Key investments were the purchase of additional Subsea deployment hose units, which significantly broadened our rental fleet.

Financial position

The company is financially sound. Thanks to the positive trend in operational cash flows.

Outlook

The slow growth in our market has put pressure on prices and reduced market volume. FCS expects market conditions to remain difficult in 2018. On a positive note, several key contracts have been awarded to our clients this year, we are optimistic about possibilities of increased market volume. Overall, we are confident about the future, thanks to the company’s strong financial position.

Wishing everyone the best holiday week and an amazing new year!