Subsea orders boost Technip revenue

by on July 26, 2012 7:51 am BST

The company’s second quarter results reported a group revenue of about €2 billion (US$2.4 billion) and an operating income of €201 million (up from €176 million a year ago).

“In subsea, activity was strong across all our regions and revenue jumped almost 50% year-on-year,” Technip chief executive Thierry Pilenko said in a statement.

The company recorded an order intake for the quarter of about €2.5 billion and a backlog of more than €12.7 billion, with subsea accounting for almost half.

“Order intake in subsea was diversified geographically and by size. The North Sea and Asia Pacific were notably strong,” Pilenko said.

He also noted substantial orders in Technip’s onshore and offshore division, including an engineering, procurement and construction project in Saudi Arabia and fabrication contracts for the Petronas floating liquefied natural gas project in Malaysia, and the Ichthys floating production, storage and offloading vessel in Australia.

Almost a third of the company’s backlog is scheduled for execution by the end of this year.

Technip’s net income for the quarter remained on par with last year, at €134 million.

However, the group’s cash position at the end of June had dropped to €252 million, almost two and a half times lower than the end of the first quarter.

Technip explained that it was negatively impact by €12 million from changes in foreign exchange rates and fair market value of hedging instruments.

In addition, capital expenditures for the quarter had increased to €152 million, mainly due to payments relating to the fabrication of the Deep Orient vessel, two Brazilian 550-tonne Flex-lay vessels, and works to adapt the newly chartered North Sea Giant vessel.

The company said it now expected its full year capital expenditure to exceed €400 million.

Pilenko said Technip’s second quarter revenue and profit was in line with its objectives: “Looking ahead, we continue to see strong bidding activity in nearly all our markets, with no impact as yet from either the lower market price of oil or economic issues affecting Europe.”

Technip has forecasted a group revenue of between €7.65 and €8.00 billion for the full year.