Technip Announces Operating Income Results (France)

Technip Announces Operating Income Results (France)

On July 24, 2012, Technip’s Board of Directors approved the second quarter and first half 2012 consolidated accounts. Technip reported a net operating income of €134 million for the second quarter 2012.

Thierry Pilenko, Chairman and CEO, commented: “Technip’s second quarter revenue and profit were fully in line with our objectives. In Subsea, activity was strong across all our regions and revenue jumped almost 50% year-on-year. In Onshore/Offshore, major projects continued to move through their construction phases and revenue grew by almost 7%.

“Second quarter order intake was again at a high level, reflecting our strong positions in key regions and technologies, and so our backlog grew to €12.7 billion. Order intake in Subsea was diversified geographically and by size. The North Sea and Asia Pacific were notably strong. In Onshore/Offshore, we took a substantial EPC project with high technology content in the Middle East and, in Malaysia, we won our second FLNG project.

“The proposed acquisition of the Stone & Webster Process Technologies business that we announced in May is intended to reinforce the range of skills, technologies and services Technip offers. This move would strengthen our ability to provide services from the very start of onshore project life cycle and roughly double the flow of our revenues built around technologies.

“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. Our customers remain focused on solving technology and resource challenges to meet their production objectives. Hence, we are investing to enhance our position, continuously recruiting talents and ramping up our capex program.

“In summary, whilst remaining rightly cautious about the economic uncertainties around us, we reiterate our 2012 financial objectives, and are confident in benefiting from the robust growth prospects of our industry.”

Second Quarter 2012 Order Intake

During second quarter 2012, Technip’s order intake was €2,516 million.

Subsea order intake in the North Sea included several small and medium size contracts as well as a larger EPCI (engineering, procurement, construction & installation) contract to install pipe-in-pipe with our leading reel-lay method for the Bøyla field development in Norway.

Subsea main operations for the quarter were:

– In the North Sea, offshore operations continued on Goliat, north of the Arctic Circle in the Barents Sea, as well as on Gryphon Area Reinstatement Program and Causeway development in the UK. To support our operations in the region, the North Sea Giant vessel was chartered for several years, as was a new vessel to be built in Norway, which will be delivered to Technip in 2014,

– In the Americas: In Brazil, the Papa Terra Integrated Production Bundle (IPB) topside module was delivered to Petrobras, fabrication of flexible pipes for the Baleia Azul development progressed, and the Deep Capixaba export pipeline project was delivered to the client ahead of schedule; In the Gulf of Mexico, pipelay works for the L56-57 project were completed in Mexican waters, while fabrication of flexible pipes with 3,000 meters water depth design capacity for the MWCS continued to progress; In Venezuela, work progressed on the Mariscal Sucre accelerated development,

– In Africa, offshore operations completed on GirRi project in Angola, offshore operations continued in Congo & Gabon for CoGa, and procurement activities started on Jubilee 1A project in Ghana,

– In Asia Pacific, the G1201 vessel started her first S-lay project for the Liwan shallow water project, while offshore operations continued on Liuhua 11-1 in China. Fabrication of Fletcher Finucane’s flexible pipes started at the Asiaflex manufacturing plant, in Malaysia.

Overall Group vessel utilization rate for the second quarter was 74%, compared with 62% for the first quarter 2012.

Subsea World News Staff , July 26, 2012;  Image: Technip