Fortunes improve at Technip

Fortunes have improved for oilfield services provider Technip for the second quarter of 2014, as the company posted revenue of €2.6 billion, up 9% on 2013’s figure of €2.4 billion.

The Paris-based firm recorded order intake for the quarter of €7.1 billion, swelling its backlog to €19.8 billion, a considerable increase on the second quarter of 2013, which saw a backlog at €14.9 billion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter of this year stood at €303 million, up 5.5% on second quarter 2013. However, net income did report a decline of 2.9% from €157.7 million for the second quarter of 2014 compared with €162.4 million for the year previous.

Technip posted a consolidated second quarter and first half statement, in which it reported first half 2014 revenue of €5.1 billion, up 15.3% on the first half of 2013. However, EBITDA and net income both dropped in the first half, effected largely by a poor first quarter.

First half EBITDA sat at €483.6 million, down 5% on 2013’s first half figure of €508.9 million. Net income dropped 19.3% to €224.9 million, from 2013’s figure of €278.9.

Thierry Pilenko, chairman and CEO, said, “Technip’s second quarter was characterised by a substantial improvement in subsea profitability, exceptionally strong order intake, and the start up of the Yamal LNG project in onshore/offshore.

“These elements enable us to improve the 2014 outlook for subsea and give details on the expected level of operating profit in onshore/offshore for this year. Above all, our performance this year to date confirms the long-term visibility we have in critical parts of our business.”

Technip updated its guidance for its two segments, with Subsea revenue expectations for 2014 increased to between €4.6 and €4.9 billion, reflecting the positive performance of the segment in the first half. Onshore/Offshore revenue expectations for 2014 are increased to between €5.55 and €5.80 billion.