France: Technip Releases Second Quarter Results

On July 23, 2013, Technip’s Board of Directors approved the second quarter and first half 2013 consolidated accounts.

Thierry Pilenko, Chairman and CEO, commented: “Technip’s second quarter results enable us to maintain our 2013 full year revenue and profit objectives. In Subsea, progress and close-out on projects allowed revenue to grow by 12% with a 15.9% operating margin. Onshore/Offshore revenue was up 23% with operating margin in line with our objectives, at 6.7%. Overall, the Group grew net income and EPS by respectively 19% and 18%.

Order intake reflected the strong activity we see in nearly all our markets and was composed in both segments of a diversified mix of projects. Subsea order intake was characterized by flexible supply contracts and smaller and medium-sized installation contracts: Snohvit and Nome in the North Sea, and South White Rose Extension in Canada. After the award in the first quarter of Moho Nord in Congo, momentum in West Africa continued in the second quarter with awards to supply umbilicals and flexibles for the Egina field development in Nigeria.

Onshore/Offshore order intake included the engineering, procurement and fabrication contract for the P-76 FPSO topsides in Brazil, as well as the definitive award for the Heidelberg Spar which is being built in our yard in Pori, Finland. We won contracts to perform Project Management Consultancy (PMC) services for our clients, including on the Karbala refinery in Iraq. Technip also secured early stage involvement in a number of important potential developments worldwide, notably in FLNG and LNG, for example with the Pacific NorthWest LNG FEED in Canada.

Our clients remain active, looking to us to design facilities and developments that can be cost- and schedule-effective in more complex and harsh environment situations. We have not seen any meaningful change in our clients’ drive to sanction projects in the last few months.

Technip has grown its workforce in the last six months, and we now number nearly 38,000 people in 48 countries worldwide. Their relentless efforts to devise the best engineering and project execution strategies for our customers are central to enable Technip to win projects and execute them safely and profitably.

Our Capex program progressed as regards the major assets under construction: Deep Energy pipelay vessel, A<?u flexible pipe manufacturing plant in Brazil, Newcastle umbilical manufacturing plant in the UK. The new Deep Orient pipelay vessel met a major milestone with a good performance on Asgard and Goliat, her first projects, and she will head to Asia Pacific in the Autumn. Later this year, the Deep Energy will start work on her first projects in the Gulf of Mexico where she will lay umbilicals, rigid and flexible pipes as part of an important and busy schedule of work for Technip in the US.

We enter the second half of the year with a diversified backlog of €15.2 billion, of which €4.4 billion is estimated to be carried out by year-end. We will be active on projects entering important construction and offshore phases during this period in both segments and, accordingly, Technip’s collective focus remains first and foremost on executing those projects in order to deliver our second half objectives, and for the longer term, continued sustainable and profitable growth.”

[mappress]
Press Release, July 25, 2013