TechnipFMC (market cap $10.8 billion) announced its 2018 results and included a charge for $280 million as a probable estimate to settle bribery allegations. The company had previously disclosed that it was co-operating with authorities in the US, Brazil and France. The allegations relate to contracts in Brazil, Equatorial Guinea, and Ghana.
The charge also covers contracts with Unaoil, which is a Monaco-based consultancy run by British nationals of Iranian descent. A number of well known companies including KBR are under investigation for using Unaoil executives as middle men in deals around the world. Rolls-Royce has already paid $800m in fines and SBM Offshore paid $238 million.
Officially the company has its head office in London but it also has corporate offices in Houston and Paris. It was formed from the merger of Technip and FMC Technologies in January 2017.
The bribery allegations relate to contracts awarded prior to the merger. Both Technip and FMC were being investigated by the Department of Justice regarding the Unaoil contracts. The projects in Brazil, Equatorial Guinea and Ghana were performed by Technip.
It should be noted that no formal settlement has yet been made and the final amount could be more than the $280 million included in the 2018 results.
Back in 2010, Technip paid $338 million to settle bribery allegations in Nigeria related to the Bonny Island LNG project. KBR was part of that consortium too, and paid a $402 million fine related to the project.
TechnipFMC’s 2018 results also included a $1.7 billion asset impairment charge for goodwill and other fixed assets.