Technip takes profit dive in 1H 2014
On July 22, 2014 Technip’s Board of Directors approved the second quarter and first half 2014 consolidated financial statements.
Technip’s second quarter results were highlighted by an order intake of 7.1 billion euros, revenues of 2.6 billion euros, compared to 2.4 billion same time last year (9% rise) and net income of 158 million euros, compared to 162 million euros in Q2 2013.
Subsea delivered revenue growth of 12.4%, with an operating margin at 15.3%, the top end of the indicated range. As expected, the business confirmed a sharp recovery after the low first quarter.
Onshore/Offshore delivered revenue growth of 5.4% and €73 million of operating profit, but had a more challenging second quarter.
At the end of the second quarter 2014, Technip’s backlog rose to €19.9 billion, compared with €15.4 billion at the end of first quarter 2014 and €14.9 billion at the end of second quarter 2013.
Overall, the Group vessel utilization rate for the second quarter of 2014 was 88%, compared with 84% for the second quarter 2013, and substantially up on the 69% in the first quarter of 2014.
Thierry Pilenko, Chairman and CEO, commented: “Technip’s second quarter was characterized by a substantial improvement in Subsea profitability, exceptionally strong order intake, and the start-up of the Yamal LNG project in Onshore/Offshore. These elements enable us to improve the 2014 outlook for Subsea and give details on the expected level of operating profit in Onshore/Offshore for this year. Above all, our performance this year to date confirms the long-term visibility we have in critical parts of our business.”
Technip recorded net income of 225 million euros in the first half of 2014, a 19% drop compared to 278 million in the first half of 2013.