Technip Swings to Profit Despite Revenue Drop
- Business & Finance
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