LNG engineer TechnipFMC reported an increase in half-year revenue as its project activity picked up.
The company reported a revenue of $6.36 billion, 4.3 percent above the $6 billion reported during the corresponding period last year.
Subsea revenue increased year-over-year with higher project-related activity and increased demand in services. Onshore/Offshore revenue declined as projects progressed towards completion, driven primarily by Yamal LNG, partially offset by an increase in project activity in the Middle East and Asia Pacific regions.
Surface Technologies revenue increased primarily as a result of improving order backlog from international markets, primarily in the Asia Pacific and Middle East regions, TechnipFMC said.
The company reported a 59.9 percent slide in profit for the period under review, reporting earning of $75.9 million, compared to $189.1 million in 2018.
However, the company is expecting long-term demand to rise, and it believes the macroeconomic backdrop will provide its customers with greater confidence to increase their investments in new sources of oil and natural gas production.
Onshore market activity continues to provide a set of opportunities, TechnipFMC said, particularly for natural gas monetization projects, as natural gas continues to take a larger share of global energy demand. Market conditions for liquefied natural gas (LNG) have improved as rising demand continues to rebalance an oversupplied market.
This is driving an improved outlook for TechnipFMC’s business, and the company sees the potential for significant new liquefaction and regasification capacity to be sanctioned in the near and intermediate term.
The first project award to materialize in 2019 was the Arctic LNG 2 contract. This project will bring on-stream three LNG trains with a total capacity of nearly 20 million metric tonnes per annum.