Technip Swings to Loss As Oil Industry Downturn Lasts

Technip supplies equipment and builds plants for oil and natural gas producers including Total SA, which are reducing spending after warning that some projects are no longer sustainable after the slump in crude prices.

A large part of the restructuring is in the company’s onshore/offshore operations, which builds refineries and offshore installations like platforms.

Technip’s order intake over the quarter fell to 1.5 billion euros from 7.1 billion euros a year ago bringing the contract backlog to 18.8 billion euros from 20.6 billion euros at the end of the first quarter, the group said.

The group’s adjusted operating margin narrowed to 3.1 percent from 9.2 percent a year ago while the measure was a negative 8.5 percent from 5.3 percent for onshore/offsore and 16.1 percent from 15.3 percent for subsea, according to the statement.

The company affirmed a 2015 forecast given earlier this month for adjusted onshore/offshore revenue of around 6 billion euros, and cut its expectations for adjusted operating income from recurring activities to 210 million to 230 million euros.

Adjusted operating income from recurring activities for sub-sea operations will be about 840 million euros and adjusted revenue will be between 5.2 billion and 5.5 billion euros.

To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net. To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net Geraldine Amiel


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