Technip Posts Solid Q1, Revenue Totaling EUR 1.8B
Thierry Pilenko, Chairman and CEO, commented: “In a quarter that is seasonally lower, our Subsea business performed very well with an EBITDA margin of 23%, the result of good project execution across all regions."
"The Oil & Gas market continues to be robust for our three business segments and although no large projects have been awarded this quarter, a significant number of smaller projects were awarded to Technip, which increased our order intake by 7.5% compared to last year. Many of these projects are FEEDs or early studies that will position Technip well for the subsequent award and execution of the main projects."
Ongoing projects progressed well for the Subsea business segment. The first production flexible flowlines were installed on the Agbami project, offshore Nigeria. MA-D6, offshore India, is nearing completion. The Group’s fleet utilization rate was 71% during the first quarter, as several vessels were in dry dock. Meanwhile the flexible pipe manufacturing plants produced at full capacity.
The Offshore business segment advanced on a multitude of projects: Akpo FPSO module interconnection has been completed at the yard in Korea, and the Perdido Spar hull is expected to sail away from the Pori yard in Finland to the Gulf of Mexico, during the second quarter.
Concerning the Tahiti Spar project, the replacement of mooring shackles has been completed. Technip and Chevron have entered into discussions to resolve contractual differences related to this matter, yet arbitration cannot be excluded. On the other SPAR project affected by metallurgical problems on certain mooring shackles, Technip’s solution to the client, including replacement shackles, continues to progress. The replacement costs for shackles are usually covered by the insurance policies of either the customer, the manufacturer (or any other party involved) or Technip.
A large number of projects are on course in the Onshore business segment: the Yemen and Qatar LNG and gas treatment projects, Khursaniyah gas treatment project in Saudi Arabia, three Ethylene projects in the Middle East (Kuwait, Saudi Arabia and Qatar) and Dung Quat refinery in Vietnam, as well as Horizon heavy oil upgrader in Canada. Among other contracts, two smaller projects are now practically completed in North America and Asia Pacific.
Following the agreement signed on QatarGas II project end of January, 2008, another agreement was signed on RasGas III / AKG2 projects in March 2008. Technip, along with its joint venture partner, Chiyoda, continues to negotiate with the customer on Qatargas III&IV project.
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