Technip announced third quarter 2011 consolidated accounts.
THIRD QUARTER 2011 RESULTS
• Revenue of €1,699 million, of which €754 million in Subsea
• Group operating margin4 of 10.6%: 16.9% in Subsea and 7.1% in Onshore/Offshore
• €2,352 million of order intake taking the backlog to €10,118 million
• Net income of €121 million
• Total net cash position at €1,313 million
Chairman and CEO Thierry Pilenko commented: “ The third quarter was active for Technip. Our order intake accelerated to over €2.3 billion, reflecting the positive trends in our industry that we highlighted at the first half of 2011. New orders were well spread across Subsea and Onshore/Offshore segments. They contained a mix of medium-sized projects, as in previous quarters, and some larger contributions, notably the Mariscal Sucre field development in Venezuela and an additional milestone on the Prelude FLNG. Despite the volatile economic backdrop, activity in the month of October has remained robust, as illustrated by the recent letter of award received for the charter and operation in Brazil of two Flex-Lay vessels with a top tension capacity of 550 tons.
We announced the proposed acquisition of Global Industries on September 12th . The reaction from clients and internal teams to the prospect of the two companies working together was very encouraging. The preliminary proxy statement was filed in the US as part of the merger process, all technical aspects of the transaction are proceeding as planned and therefore it is possible that we will close the acquisition earlier than expected. Within legal constraints, Technip and Global teams have started to discuss the integration process.
We also maintained our focus on current operations and project delivery, and the performance of our teams is reflected in a good quarter for revenue and profit. Our revenue increased by 12.3% year-on-year, reflecting growth in all our segments. Our Group profit margin was 10.6%, slightly above the level a year ago, with Subsea at 16.9% and Onshore/Offshore just over 7%. We raised our full year profit expectations in July and are therefore able to maintain this positive outlook and to raise slightly our Subsea revenue expectations.
Looking ahead, our clients continue to invest in projects, through both FEED works and larger final investment decisions, and we therefore continue to see opportunities to expand in nearly all our markets. The risks to this outlook remain the same: the strength of competition should not be underestimated, and general economic and widespread political uncertainties will continue to impact the timetable for some projects, notably those which require financing. Nonetheless, the high oil price, combined with an increasing demand for gas, is driving upstream investments, while strategic and regional imperatives support downstream spending.
In this context, we seek to maintain our focus on strong operational performance and sustained and diversified order intake, as well as on organic and external growth underpinned by a solid balance sheet, to deliver value to both customers and shareholders .”
[mappress] Source: Technip, October 27, 2011