Technip Shares Up After Order Book Rise, Dividend Increase

But he added: "The average in the industry could be slightly higher thanks to national oil companies and independent ones, they remain rather bullish on investments."

Exemplifying Technip's challenges, French oil major Total confirmed earlier this month it would start a "soft landing" in capital expenditure in 2014.

COST INFLATION

Total and other companies have been trying to put a brake on costs which have swollen the bill for major projects in recent years, and Technip said it was working with majors to find cheaper solutions.

"We see a slowdown in overall wage costs, even if we continue to raise salaries in hot spots, areas where demand is the strongest," Pilenko said.

"We are working with clients more and more ahead of projects to see how to optimize costs. That doesn't mean necessarily to cut supply-chain cost by x percent, but rather look at more suited solutions for more complex or smaller fields," he added.

Societe Generale analysts noted three metrics could drive a rally in Technip shares: "a strong order intake in Q4, a much stronger cash position than expected and a higher than expected 2013 dividend."


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