France’s Technip today reported a 21.5 percent rise in its 2011 net profit.
FULL YEAR 2011 RESULTS
FULL YEAR 2012 OUTLOOK
Thierry Pilenko, Chairman and CEO , commented: “ 2011 was a year of significant achievement for Technip. We confirmed our growth potential, increasing our backlog by over €1.1 billion, launched key new capex projects and completed three strategic acquisitions, including Global Industries in December. We delivered strong profitability, beyond our initial expectations, with a record net profit of €507 million.
In Onshore/Offshore, we are building on a successful strategy of securing early involvement in projects with strong partners to grow and diversify our project portfolio. In Subsea, we capitalized on our technology leadership and worldwide footprint to build a record backlog of over €4 billion, comprised of a mix of project types and sizes.
Looking ahead to 2012, our clients show confidence in oil and gas prices and continue investing to meet challenging production targets. Success in their exploration programs, notably in apparently mature areas, is stimulating fast-track offshore developments and requirements for new technology solutions.
In the North Sea, the market remains very active with increasingly large and complex projects, whilst the Gulf of Mexico is catching up after two years of slow activity, creating subsea and platform opportunities. Brazil continues to grow steadily whilst large new subsea developments are planned in West and East Africa, the Mediterranean and Asia, markets where Technip has a strong presence. The low gas price in North America is creating downstream opportunities including petrochemicals whilst in Asia the high gas price and sustained long-term demand are strong drivers for traditional or floating LNG projects.
In summary, whilst the general economic and political uncertainties should not be ignored, we continue to see opportunities in nearly all the markets in which we operate.
One of our main objectives for 2012 is to integrate Global Industries into our organization. We are making good progress and our first project wins involving Global Industries’ assets confirm the positive reaction of both our clients and our teams to the combination of our businesses. Although we will bear costs in the first year of operations, for the medium term we have identified more opportunities utilizing Global Industries’ flagship assets than originally anticipated. Accordingly, we are able to reaffirm the financial targets for the acquisition made in September 2011.
In 2012, using our strong balance sheet, we will sustain our investments in key assets and local content to meet growing demand. Our Subsea and Onshore/Offshore segments are both expected to deliver revenue growth and we target operating margins of around 15% for Subsea including Global Industries and between 6% and 7% for Onshore/Offshore.
Thanks to our people, technology, assets and market positions, we enter 2012 well-placed to take Technip further. We remain confident that we can deliver successful projects to our customers and that our shareholders can see another year of profitable and sustainable growth .”
[mappress] LNG World News Staff, February 16, 2012