Technip Sees Onshore/Offshore Lagging in 2015, Better Subsea
PARIS, April 23 (Reuters) - French oil services provider Technip struck a less optimistic tone for its onshore/offshore division on Thursday, as reduced investments by oil company clients continued to hurt, although its subsea division was seen outperforming this year.
Capital spending cuts by oil companies following the more than 50 percent drop in crude prices have made life harder for oil equipment and service suppliers worldwide.
Technip said it was now expecting adjusted operating profit in offshore/onshore, which builds oil rigs, refineries and liquefied natural gas (LNG) plants and accounts for more than half its revenue, around the bottom of a previously indicated range of 250 million-290 million euros in 2015.
"We continue to expect the slowdown to be prolonged and harsh. The sharp fall in oil prices has had a substantial impact on our clients' behaviour, NOCs and IOCs alike," Chief Executive Thierry Pilenko said in a statement.
In its subsea division however, which provides pipelines, umbilicals and riser systems for the offshore industry, it now expects the adjusted operating profit around the top of a 810-840 million euro range for this year.
In the first three months of the year, Technip's adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 34.9 percent to 243.7 million euros ($260.81 million), giving an EBITDA margin of 8.5 percent, up from 7.3 percent a year ago.
Reported revenue rose 16.8 percent to 2.883 billion euros and underlying net profit rose 60.7 percent to 108 million euros.
Analysts had expected on average 2.59 billion euros in sales and a net profit of 123 million euros, according to a Thomson Reuters I/B/E/S consensus.
In its underperforming onshore/offshore division, which bears the brunt of the capital expenditure cuts of oil companies, adjusted operating profit fell by 72.6 percent to 23.5 million euros, which Technip said was "not satisfactory".
($1 = 0.9344 euros)
(Reporting by Michel Rose; Editing by Andrew Callus)
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