Technip Shares Post Record Gain as Oil-Services Orders IncreaseDylan Griffiths
Quarterly orders of 2.8 billion euros beat estimates: Kepler
Company increases cost-savings target to 1 billion euros
Technip SA climbed the most on record in Paris trading after orders received by Europe’s largest oilfield-services provider exceeded analyst expectations.
The order intake was 2.8 billion euros ($3.1 billion) in the fourth quarter, bringing its backlog to 17 billion euros at the end of the year, Paris-based Technip said Thursday in a statement. The company kept its dividend unchanged while increasing its net cash position to 1.94 billion euros.
“The positive surprise from this publication comes from the backlog,” Kevin Roger, an analyst at Kepler Cheuvreux in Paris, said in a note to clients. The order intake was almost triple Kepler’s forecast of 1 billion euros.
Technip rose as much as 17 percent, the biggest intraday gain on record, and was trading 15 percent higher at 44.01 euros as of 12:02 p.m. in Paris. That pared the stock’s decline this year to 3.9 percent.
Last July, Technip unveiled a plan to take a 650 million-euro writedown and cut 6,000 jobs amid an industry slowdown that Chief Executive Officer Thierry Pilenko called “prolonged and harsh.” On Thursday Technip increased its cost-savings target to 1 billion euros through 2017, from 830 million euros.
Fourth-quarter net income increased 27 percent to 102 million euros from a year earlier, while revenue climbed 11 percent to 3.12 billion euros, the company said.