Technip’s revenue up in first quarter 2015

LNG engineer Technip said its revenue rose 17 percent to EUR 2.9 billion in the first quarter of 2015, as compared to the same period a year before.

Thierry Pilenko, Chairman and CEO of Technip said the company’s first quarter was solid despite industry headwinds, “the Group’s adjusted revenue, operating profit (OIFRA) and net income grew respectively 17%, 43% and 28% compared to a year ago.”

“As in the previous three quarters, performance was contrasted between our two segments. In Subsea, adjusted revenue growth was at a high level – 28% – and there was a substantial improvement in both margin and absolute profit compared to first quarter last year. Order intake was robust at over €1 billion including resilient demand for the Brazil pre-salt developments with a significant hi-tech flexible pipe award. Onshore/Offshore was not satisfactory.

Although adjusted revenue grew thanks to the new projects (such as Yamal) won last year, adjusted operating profit fell to €24 million. Order intake was solid in terms of services contracts with early stage work and PMC contracts, but slower in EPC awards resulting in a low total value booked as order intake,” Pilenko said.

Talking about Technip’s 2015 objectives, Pilenko said expectations for the Group overall remain unchanged but, recognizing that at this point Subsea is outperforming and Onshore/Offshore underperforming, the company raises its expectation for adjusted operating profit for Subsea to the top of the announced range at around €840 million and lower Onshore/Offshore to around the bottom of the announced range, so around €250 million.

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Image: Technip