French oil services provider, Technip, posted higher first-quarter (1Q 2015) net income backed by an increase in subsea activity.
In the first quarter 2015, Technip generated adjusted revenue of €2.9 billion, an increase of 17% compared to €2,5 billion in 1Q 2014. Subsea revenues were 27% higher for the quarter, at €1.3 billion.
The company’s adjusted net income for the 1Q 2015 was €86.1 million (diluted EPS 0.73 euros )or 28% higher than €67.2 million ( diluted EPS 0.57 euros) in the corresponding period in 2014.
During first quarter 2015, Technip’s order intake was €1.5 billion, out of which €1 billion was subsea related, such as Lua Alto project, Amethyst field gig and Triton brownfield contract.
At the end of first quarter 2015, Technip’s backlog was €20.6 billion, compared with €20.9 billion at the end of fourth quarter 2014 and €15.4 billion at the end of first quarter 2014.
Thierry Pilenko , Chairman and CEO, commented: “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 €1 billion including resilient demand for the Brazil pre-salt developments with a significant hi-tech flexible pipe award. Onshore/Offshore was not satisfactory.
“Although adjusted revenue grew thanks to the new projects (such as Yamal) won last year, adjusted operating profit fell to €24 million. Order intake was solid in terms of sen/ices contracts with early stage work and PMC contracts, but slower in EPC awards resulting in a low total value booked as order intake.”
Furthermore, the company said its objectives and expectations for 2015, overall remain unchanged, however, recognizing that at this point subsea is outperforming and onshore/offshore underperforming, Technip raised its expectation for adjusted operating profit for subsea at around €840 million and lower Onshore/Offshore to around €250 million. Technip expects adjusted subsea revenue between €5.2 and €5.5 billion.