Technip Second-Quarter Profit Rises as Explorers Start Projects
Technip SA (TEC), Europe’s second-largest oilfield-services provider, reported a 19 percent increase in second-quarter profit and said oil and natural gas companies continue to start new projects.
Net income rose to 162.4 million euros ($214 million) in the period from 136 million euros a year earlier, the Paris-based company said in a statement. Technip, which maintained its full-year financial targets, plans to complete about 4 billion euros of projects by the end of the year.
“We have not seen any meaningful change in our clients’ drive to sanction projects in the last few months,” Chief Executive Officer Thierry Pilenko said today in a statement.
Technip, which supplies pipes, platforms and equipment to the oil and gas industry, has said spending plans by oil companies remain “robust” even as some projects in the Gulf of Mexico and Australia have been delayed on costs. The company is seeking to develop petrochemical factories in the U.S. to profit from the shale boom.
Technip’s contract backlog reached a record at 15.2 billion euros at the end of the latest quarter, according to today’s statement. It kept a target to increase revenue as much as 16 percent to 9.5 billion euros this year.
The company said it expects the operating margin in its subsea division to hold steady at about 15 percent this year, while the onshore-offshore margin will be 6 percent to 7 percent, compared with 7 percent in 2012.