Technip Rises on Subsea Tide
28 October 2011French engineering contractor Technip boosted net income by 17% in the third quarter, buoyed by a revenue surge in its subsea business.
The company reported profits of €121 million ($170 million) in the period, compared with €103.4 million a year ago, on 12.3% higher revenue of €1.7 billion.
A €2.35 billion order intake during the quarter took Technip’s total order backlog to €10.1 billion, versus €8.5 billion at the end of the third quarter of 2010. About 17% of this backlog work is scheduled for the final quarter of 2011.
Chief executive Thierry Pilenko said ordering activity during the last quarter had been "robust”, despite the "volatile economc backdrop”.
He remained optimistic about the market outlook going forward for the company’s subsea and onshore/offshore segments, where he sees further expansion, targeting full-year revenue relatively unchanged at €6.5 billion to €6.7 billion.
He said "the high oil price, combined with an increasing demand for gas, is driving upstream investments”.
However, he cautioned that widespread economic and political uncertainty "will continue to impact the timetable for some projects, notably those which require financing”.
Pilenko said Technip’s proposed acquisition of US-based Global Industries is on track, stating that "all technical aspects of the transaction are proceeding as planned” and that it could be completed earlier than expected.