Technip Denies Report on Suspension of Bonuses

Technip SA (TEC), Europe’s second-largest oilfield-services provider, denied a report that a profit-sharing bonus will be suspended for all employees because of insufficient orders.

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 tpatel2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.