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7/26/2010 - TECHNIP POSTS Q2 2010 RESULTS |
| Technip reported Q2 2010 revenue of EUR1,484.5 million, down from Q2 2009 revenue of EUR1,732.0 million. The company’s operating profit for Q2 2010 was EUR160.5 million, down from Q2 2009 operating income of EUR196.0 million. Technip’s net income for Q2 2010 totaled EUR106.1 million, down from EUR116.2 million in Q2 2009.
Technip’s Subsea segment reported revenue of EUR688 million for Q2 2010, down from EUR848 million in Q2 2009. The segment operating income was EUR116 million for Q2 2010, down from EUR159 million in Q2 2009.
Thierry Pilenko, Technip Chairman and CEO, noted that some of the company’s dive support vessels had lower activity levels this quarter. Vessel utilization was 70% for Q2 2010, down from 83% in Q2 2009. Meanwhile, Pilenko highlighted the good activity the company experienced at its flexible pipe production sites in France and Brazil.
During Q2 2010, the company snared a variety of small and medium-sized projects for its Subsea division. Pilenko notes that the company saw good tendering activity in the North Sea. The company believes that this will continue into the second half of 2010.
Pilenko observed that the Middle East and North African operators are continuing to make substantial strategic investments, while bidding for both offshore and onshore work is picking up in the West Africa region. Specifically, Pilenko noted that the pace in Angola is more sustained than in Nigeria, and that the company expects, longer term, to see deepwater opportunities in West Africa.
Concerning the Gulf of Mexico, Pilenko stated in Technip’s Q2 2010 investor conference call, “I think it’s still difficult to predict all the repercussion from the Macondo tragic incident, but at this stage we don’t have any direct adverse impact on our 2010 operations or forecast. Nonetheless, the drilling moratorium will likely delay near term final investment decisions for Subsea and Offshore. However, and that’s interesting, FEEDs and studies for deepwater developments continue to be awarded with the same pace. And in the longer term I am absolutely convinced that operators will prefer to work with the strongest contractors in this deepwater environment, contractors that have been investing in safety and operational integrity.”
The company’s Offshore/Onshore combined segment reported revenue of EUR797 million for Q2 2010, down from EUR884 million in Q2 2009. The segment reported operating income of EUR57 million for Q2 2010, up from operating income of EUR47 million in Q2 2009.
At the end of Q2 2010, Technip had a total backlog of EUR8,263 million. Of the company’s total backlog, 23% is for deepwater work, while 22% is for shallow water work. The remainder is related to Refining/Heavy Oil, Gas/LNG, Petrochemicals and other types of projects.
1EUR = US$1.29034 |
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