Technip subsea orders boost first quarter revenues to €2.9bn

The French oil services giant has upgraded expectations for operating profit in its subsea division to €840m

The Technip building on the bank of the River Tyne at Wallsend
The Technip building on the bank of the River Tyne at Wallsend

Oil services firm Technip saw revenues rise to €2.9bn in the first quarter of 2015, driven by an increase in subsea orders.

The French giant, which operates its Technip Umbilicals business on the banks of the Tyne, built revenues 17% on the same period last year.

Revenue growth was most pronounced in its subsea division which landed key orders in the Amethyst Field in the Gulf of Mexico and the supply of flexible pipes to the Lula Alto project in Brazil.

Technip’s order intake during the period was €1.5bn, around €1.2bn of which was subsea related.

The firm cited its Walker Riverside base, which makes steel tubing and thermoplastic umbilicals, as a key component of its North Sea Canada operations.

Top projects in the territory included the Triton floating production storage and offloading vessel, the Edradour and Glenlivet fields in Scotland, and the Gullfaks field in Norway.

In a note to investors the firm set out its main aims for the remainder of the year, including maintaining momentum on subsea projects, continuation of cost reduction and work on early engagement with clients.

Expectations for operating profit were raised to €840m in the subsea division and lowered in the onshore/offshore division to around €250m.

Thierry Pilenko, chairman and chief executive officer, said: “Technip’s first quarter 2015 was solid despite industry headwinds: the Group’s adjusted revenue, operating profit (OIFRA) and net income grew respectively 17%, 43% and 28% compared to a year ago.

“As in the previous three quarters, performance was contrasted between our two segments. In subsea, adjusted revenue growth was at a high level — 28% — and there was a substantial improvement in both margin and absolute profit compared to first quarter last year.

“Order intake was robust at over €1bn including resilient demand for the Brazil pre-salt developments with a significant hi-tech flexible pipe award. Onshore/offshore was not satisfactory.”

Last year Technip’s subsea revenues reached €4.8bn across 12 months. The business employs more than 38,000 in 48 countries.


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