EQUITY METHOD INVESTMENTS

6 Months Ended

Jun. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS

Our income from equity affiliates is included in our Subsea segment. During the three and six months ended June 30, 2021, our income from equity affiliates was $12.8 million and $20.5 million, respectively. Our income from equity affiliates during the three and six months ended June 30, 2020 was $15.7 million and $36.8 million, respectively.

Investment in Technip Energies

As discussed in Note 2, immediately following the completion of the Spin-off, we owned 49.9% of the outstanding shares of Technip Energies. On January 7, 2021, Bpifrance Participations SA (“BPI”) entered into the Share Purchase Agreement with us pursuant to which BPI agreed to purchase a portion of our retained stake in Technip Energies N.V. (the “BPI Investment”) for $200.0 million (the “Purchase Price”), subject to certain adjustments. On March 31, 2021, BPI ultimately purchased 7.5 million shares in Technip Energies from us for $100.0 million. Accordingly, on April 8, 2021, we refunded $100.0 million to BPI as a result of their revised level of investment.

On April 30, 2021, we further reduced our ownership in Technip Energies and agreed to sell Technip Energies shares, representing approximately a total of 15% of Technip Energies’ share capital, through a private placement and a concurrent sale to Technip Energies. Following the acquisition of the shares by Technip Energies we owned 55.5 million shares, representing 31.1% of the issued and outstanding shares of Technip Energies as of June 30, 2021. We do not intend to remain a long-term shareholder of Technip Energies and will exit our ownership stake in an orderly manner within a year.

At the Spin-off date, on initial recognition of the investment, we elected to account for our investment in Technip Energies at fair value with all subsequent changes in fair value for the investment reported in our consolidated statement of income.

For the three and six months ended June 30, 2021, we recognized a $146.8 million loss and $323.3 million income related to our investment in Technip Energies, respectively. The amount recognized comprises a purchase price discount on the sales of shares and a fair value revaluation gain/(loss) of our investment. The carrying amount of the investment as of June 30, 2021 was $760.0 million.