Technip’s Revenue Above Expectations, CEO Says

Technip’s Board of Directors approved the first quarter 2014 consolidated financial statements. 

Revenue increased by 23% year-on-year, to $3.46 billion (+10% in Subsea and +34% in Onshore/Offshore).

The Group’s backlog at the end of the first quarter is stable compared to the end of 2013 taking into account the orders received less impact of currency movements. Backlog has been restated for the first time application of IFRS 10, 11 & 12. The year-end 2013 backlog after adjustment is $21.4 billion ($23 billion before adjustment).

During first quarter 2014, Technip’s order intake was $3.9 billion.

At the end of the first quarter 2014, Technip’s backlog was $21.3 billion, compared with restated figures; $21.4 billion at the end of 2013, and $20 billion at the end of first quarter 2013. Currency movements reduced the backlog substantially in the quarter. Approximately 43% of the backlog is estimated to be scheduled for execution in 2014.

Overall the Group vessel utilization rate for the first quarter of 2014 was 69%, compared with 72% for the first quarter 2013. The fleet maintenance operations went according to plan in the first quarter. In South Korea, the naming ceremony has been held for the two 550 ton flexible pipelay vessels Coral Do Atlántico and Estrela Do Mar, for long-term charter in Brazil with Petrobras.

Net income was $92.6 million compared to last year’s Q1 of $116 million.

Thierry Pilenko, Chairman and CEO, commented: “Revenue in both Subsea and Onshore/Offshore segments was above expectations in the first quarter and operating margins were in line.”

“In Subsea, we started commercial production at our new flexible pipe facility in Agu, Brazil. We continued to complete the series of projects in the Gulf of Mexico and ramp-up activity on newer, large projects worldwide. In Onshore/Offshore, we handed some older projects over to clients and also started an intensive period of critical execution phases on newer projects which will continue over the next several quarters.”

“Since the quarter-end, we have been awarded along with our alliance partner, Heerema, a very major Subsea scope on the Kaombo project, Angola, worth more than US$3.5 billion to the alliance. Therefore, we continue to have good visibility embedded in our Subsea backlog which enables us to be selective in our project targeting and to sustain our business should award momentum slow.”

Press Release, April 24, 2014