Technip Sees Strong 2014 amid Stricter Capex Discipline among Majors
French oilfield services firm Technip stated Thursday that it has a strong, diversified book of business that will drive revenue growth in 2014. This is despite the firm's CEO saying that he sees a more strict "discipline" from its oil and gas major clients in terms of capital expenditure.
Reporting its third quarter results for 2013, Technip revealed it generated revenue of $3.3 billion during the three months to September 30. This was 15.6 percent greater than the revenues the firm made during 3Q 2013. 3Q 2013 profit on the EBITDA level was 5.1 percent greater at $390 million.
Technip said it experienced strong order intake during the quarter, with more than $4.3 billion of business booked that included major project wins in the Middle East and Brazil. This order intake was 10.3 percent greater than the $3.9 billion booked in 3Q 2012.
For the rest of this year, the firm expects to see its Subsea business carry out a busier schedule of installation operations in the US Gulf of Mexico than it had originally planned – a consequence of which it is actively working with its customers in the region to better manage schedule conflicts.
Although Technip CEO Thierry Pilenko was reported by Reuters as saying that he sees a stricter "discipline" from the firm's oil major clients in terms of capital spending, he also stated that he expected global oil and gas exploration and production investment to grow by around eight percent in 2014.
"There's a rather strong effort by majors for more discipline on capex (capital expenditure)," Pilenko said during an earnings call Thursday.
"That being said, I think this discipline will be applied to investments (in the downstream), and that it remains still very positive for investments in exploration and production."
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