France: Technip Publishes Q3 Results
On October 23, 2012, Technip’s Board of Directors approved the third quarter 2012 consolidated financial statements.
Third Quarter 2012 Results:
- Order intake of €2.8 billion
- Record backlog of €13.5 billion, of which €6.1 billion in Subsea
- Revenue of €2.1 billion
- Operating margin of 10.3%
- Net income of €146 million
Full Year 2012 Outlook:
- Group revenue towards €8.0 billion (formerly between €7.65 and €8.0 billion)
- Subsea revenue at least €3.50 billion (formerly between €3.35 and €3.50 billion), with operating margin around 15% (unchanged)
- Onshore/Offshore revenue around €4.3 billion (formerly between €4.3 and €4.5 billion), with operating margin between 6.5% and 7% (formerly between 6% and 7%)
Thierry Pilenko, Chairman and CEO, commented: “Revenues and profits for the third quarter were in line with our expectations. Our projects in Onshore/Offshore and Subsea continued to move forward and growth in Subsea was particularly strong.
Order intake in the third quarter was, as in the first half, better than we anticipated. It was diversified geographically and by size reflecting Technip’s strong positions in key regions and range of skills, technologies and services. The projects we are taking are long-duration, with offshore phases in Subsea projects for example 24 to 36 months out. This gives us good long-term visibility on our workload. This is an important trend in today’s markets as our clients seek to lock-in key resources for their developments.
We have made two strategic moves. First, we completed the acquisition of the Stone & Webster Process Technologies business and have now combined it with our technology units into a worldwide organization dedicated to providing our clients with the best range of technologies for downstream applications. Second, we signed an alliance with Heerema Marine Contractors to serve our clients in ultra-deepwater subsea developments. This alliance furthers Technip’s strategic objective to broaden its portfolio of capabilities in Subsea, building on our capex program and last year’s acquisition of Global Industries to cover environments from ultra-deepwater to shore. The alliance also fulfills our near-term requirements for high-tension vessel capabilities.
Despite the uncertain economic context, our clients remain focused on delivering existing developments and launching new ones, a backdrop which underpins a promising medium- term future for the oil services sector. Technip’s 2013 guidance will be given, as usual, with our annual results in February 2013 taking into account market conditions and following completion of our budgeting process. In this context, the volume of subsea tenders continues at a high level, especially for larger multi-year EPCI projects. As noted previously, the North Sea, Brazil and Gulf of Mexico markets currently have the most momentum, whereas Asia Pacific and West Africa continue to be the most competitive. For the remainder of this year, our focus continues as usual on completing our manufacturing plant and vessel schedules, and preparing the start-up phases of those capex projects scheduled for delivery in 2013.”
Press release, October 25, 2012; Image: Technip