Photo: Courtesy Photo / TechnipFMC

Global oilfield service giant TechnipFMC is poised to become the latest energy sector company to report a multibillion dollar loss in 2019.

The company, which has headquarters in Paris and a large presence in Houston, warned investors Monday to brace for a $2.4 billion hit to the value of its assets when it releases its fourth-quarter and 2019 financial reports Feb. 26.

Citing greater geopolitical uncertainty and lower crude-oil prices, TechnipFMC said it’s reducing the value of its equipment and services for underwater projects by $1.7 billion and is reducing the estimated value of its onshore assets by $700 million.

TechnipFMC attributed the write down for the offshore assets to “reduced market capitalization,” while the reduction in value for the company's onshore assets is being attributed to an expected decrease in activity for shale plays in the United States and Canada.

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TechnipFMC reported a combined $140 million in profit during the first three quarters of 2019, meaning that the write downs could result in the company reporting a $2.2 billion loss for the year.

Several oilfield service companies have done the same amid oil prices stuck around $50 per barrel and a dramatic reduction in exploration, drilling and oil-well completion activity. Write downs handed Schlumberger, the world’s largest oilfield service company, a $10.1 billion loss in 2019 and a $1.1 billion yearly loss for Houston-based oilfield service giant Halliburton.

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Created by the January 2017 merger of Paris-based Technip and Houston-based FMC Technologies, the company reported a $1.9 billion loss in 2018.

Last year, the company said it would split into two independent, publicly traded companies, Houston-based TechnipFMC and Paris-based Technip Energies.

The new TechnipFMC will focus on production equipment and services for offshore, shale and other onshore projects while Technip Energies will become an engineering, procurement and construction company specializing in onshore and offshore liquefied natural gas facilities.

sergio.chapa@chron.com

@SergioChapa on Twitter