Technip Down on Restructure Charge
Paris-based subsea major Technip has slipped into the red in the second quarter as the company booked one-off restructuring charges on market adjusting plans, announced earlier in June.
Namely, on July 6, Technip announced the launch of a restructuring plan with a total one-off charge of €650 million. Of this total, €570 million was booked in the second quarter.
Technips’ net income for the second quarter was a negative €306.9 million ($336.7 million), after one-off charges, compared with a profit of 158 million euros in the year-ago period.
In the second quarter of 2015, Technip as a group generated 18% growth in adjusted revenue to €3.1 billion compared with €2.6 billion the previous year.
As for the company’s subsea division, revenue grew 26%, and adjusted operating income from recurring activities of €250 million demonstrated a robust operating margin of 16.1%.
Furthermore, Technip’s vessel utilization rate for the quarter was 89%, compared with 88% in the corresponding period in 2014, and up on the 68% in the first quarter of 2015. In addition, the flexible lay vessel, Sunrise 2000 in Brazil was demobilized and left the Technip fleet.