Technip Raises Targets After Third-Quarter Net Income Jumps 21%
Technip SA (TEC), Europe’s second-largest oilfield-services provider, reported a 21 percent increase in third-quarter profit and raised targets for the full year after oil companies pushed ahead with projects.
Net income rose to 146.3 million euros ($190 million), in line with analyst expectations, from 121 million euros a year earlier, the Paris-based company said today in a statement. Sales gained 23 percent to 2.08 billion euros.
Order intake was better than expected for the quarter at 2.85 billion euros.
Chief Executive Officer Thierry Pilenko said “growth in subsea was particularly strong.” The business had the most momentum in the offshore areas of the North Sea, Brazil and the Gulf of Mexico, he said.
Technip raised full-year financial targets published in February. It’s seeking revenue “towards” 8 billion euros compared with a previous range of of 7.65 billion to 8 billion euros. The company expects a subsea operating margin of around 15 percent and a margin for onshore-offshore of 6.5 percent to 7 percent.
The subsea operating margin was 15.1 percent in the third quarter, compared with 16.9 percent a year earlier. The combined onshore/offshore margin was 7.1 percent, steady from a year earlier.
Technip had an order backlog of 13.5 billion euros at the end of the last quarter, compared with 12.7 billion euros at the end of the previous one.
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