French firm Technip has posted a strong second quarter, in keeping with the trend of the market in general. Revenue was stable at €1.8 billion, and increased 6.1% excluding any exchange rates translation impact. Net income increased by 29.4% to €103 million. The 2008 year-end group revenue is expected to be approximately €7.4 billion, with subsea revenue of €2.7 billion. Below are second quarter operational highlights.
The firm's Subsea business segment project execution remains very good. Main events included:
- High vessel utilization rate of 82% during the second quarter 2008
- Technip’s flexible pipe manufacturing plants continue to work at full capacity
- Successful completion in June of the MA-D6 phase I project, offshore India
- Offshore Nigeria the Agbami field project was slowed down by security events which occurred during the second quarter
- Engineering is progressing well and procurement has started on Pazflor (Angola).
The Offshore business segment has several projects nearing completion:
- Perdido Spar hull is currently in Texas being fitted with belly-side strakes and prepared for wet tow for hand over to Shell in the coming weeks
- Akpo FPSO sailed away from Korea on June 26th and is expected in Nigeria this October
- In Brazil the P-51 semi-submersible is nearing completion and sail-away is planned for October, P-56 engineering and procurement are progressing inline with plans
Diversification of the Pori yard (Finland) is advancing quickly, as previously subcontracted projects are brought in-house including reels, buoyancy cans and pressure vessels.
On the Tahiti Spar project, Technip and Chevron are continuing their discussions to resolve their contractual differences relative to the shackles replacement. Arbitration as per the contract cannot be excluded. The replacement of mooring shackles on the other Spar project is progressing according to plan.
The large projects are ongoing in the Onshore business segment:
- In Qatar the LNG and Gas treatment projects are progressing according to plan. QatarGas II first train, number 4, to be delivered at summer end. Negotiations on Qatargas III & IV project are progressing between the client and Chiyoda/Technip joint venture
- LNG Project in Yemen is inline with plan,
- In Saudi Arabia, the Khursaniyah field development is delayed for reasons outside Technip’s responsibility and thus has no material financial impact; on the Yansab project, most of the ethylene and propylene production plant systems will be handed over during the second half of 2008,
- Dung Quat refinery in Vietnam is progressing according to plan,
- CNRL Horizon project in Canada, the hydrogen plant and the heavy oil upgrader units are nearing completion,
- In Poland the Gdansk refinery for Grupa Lotos is progressing well,
- In UAE, delivery and installation of the first OAG modules on Das Island are advancing according to schedule.