Technip Swings to Profit Despite Revenue Drop

French oil services provider, Technip, has bounced back in the second quarter 2016 as its cost reduction plan moves ahead of schedule.

In the second quarter 2016, Paris-based subsea major generated adjusted revenue of €2.8 billion, down some 9% compared to €3.1 billion in 2Q 2015. Subsea revenues were roughly 12% lower for the quarter, at €1.37 billion. Half-year 2016 adjusted revenue decreased by close to 7% to €5.57 billion.

The company’s net income for the 2Q 2016 was €123.3 million (diluted EPS 1.03 euros) versus €307 million loss (diluted EPS -2,71 euros) in the corresponding period in 2015. Net income for the half year ended June 30, 2016, was €237.7 million, against a roughly €221 million loss from the prior-year comparable period.

For the second quarter 2016, Technip’s order intake was €1.5 billion, out of which €754 million was subsea related.

At the end of this quarter, Technip’s backlog stood at €13.5 billion, compared with €18.8 billion at the end of second quarter 2015.

The company said its adjusted revenue objectives for the full-year 2016 are aimed at up to €5 billion in subsea, with operating income from recurring activities around €680 million, and €6 billion onshore/offshore, with OIFRA at €280 million.

Subsea World News Staff