The bonus will only be halted for employees of the French division to improve competitiveness, Christophe Belorgeot, a Technip spokesman, said today in a statement. The Paris-based company reported a record backlog of orders at the end of June.
Le Lettre de L’Expansion said in today’s edition that Technip had suspended profit-sharing for its employees this year amid a low order intake. The company, due to publish third-quarter earnings on Oct. 31, reported a 19 percent increase in second-quarter profit as energy companies stepped up investment.
The French division will pay employees other forms of bonuses and performance-linked compensation, Belorgeot said. It reported revenue of 1.59 billion euros ($2.2 billion) last year, compared with 8.2 billion euros for the parent company, according to its annual report.
Technip dropped 2.1 percent today to close at 87.80 euros in Paris trading.
Technip, Europe’s largest oil-services provider after Saipem SpA (SPM), supplies pipes, platforms and equipment to oil producers. The company’s contract backlog reached a record 15.2 billion euros at the end of the second quarter, with an intake of 2.8 billion euros during the period.
To contact the reporter on this story: Tara Patel in Paris at email@example.com