French subsea and offshore EPC specialist Technip has booked a company record backlog of €12.7 billion ($15.4 billion), as it released its results for the second quarter of the year. Backlog stood at €10.4 billion ($12.6 billion) at the end of 2011.
The group boasted net income of €134 million ($162 million), up from €132 million ($159 million) in Q2 2011, with an operating margin of 9.9%, slightly down from 10.6% a year ago.
Earnings per share are slightly down on 2011 at €1.13 from €1.15.
Revenue for the period was €2 billion ($2.4 billion), up from €1.66 billion ($2 billion) for the same period last year.
The group’s backlog in the Middle East grew 7.8%, from €1.65 billion ($1.9 billion) to €1.78 billion ($2.15 billion), 14% of the group total, down from 24% at the same time in 2011. Technip boasts 1,900 staff in the region, where it has been active since 1984.
Operational highlights included electrical & instrumentation works starting on the Plateau Maintenance Project in Qatar, continuing work at the Satah gas development project offshore Abu Dhabi, and the nearing completion of engineering and procurement activities at the Jubail refinery in Saudi Arabia.
Technip is also nearing completion on the Asab 3 project, which will see an additional 150 MMSCFD of associated gas from the existing Asab, Shah and Sahil oil fields processed for Asab’s upgraded gas handling facilities.
Technip has won several EPC contracts in the GCC recently, including work at South West Fatah & Falah for Dubai Petroleum and the first phase of the Upper Zakum full field development, with the former booked in Q2.
Technip says it remains on target for group-wide revenue between €7.65 and €8.00 billion ($9.26 billion, $9.69 billion) for the year.
Thierry Pilenko, Chairman and CEO, commented: “Technip’s second quarter revenue and profit were fully in line with our objectives. In Subsea, activity was strong across all our regions and revenue jumped almost 50% year-on-year. In Onshore/Offshore, major projects continued to move through their construction phases and revenue grew by almost 7%.
“Looking ahead, we continue to see strong bidding activity in nearly all our markets, with no impact as yet from either the lower market price of oil or economic issues affecting Europe. Our customers remain focused on solving technology and resource challenges to meet their production objectives. Hence, we are investing to enhance our position, continuously recruiting talents and ramping up our capex program.”
