French oilfield services provider Technip saw its net income rise, despite the drop in adjusted revenue.
Adjusted revenue for the first quarter of the year was 2.76 billion euros, down $4.2 percent from 2.88 billion euros a year ago, and according to Reuters, the adjusted revenue was better than expected by the analysts.
However, net income was 114.4 million euros, up almost 33 percent, from 86 million earned in the first quarter 2015.
Thierry Pilenko, Chairman and CEO, said: “At the start of the year, Technip set out to execute our projects, sustain our balance sheet strength, reduce our costs and progress our strategy – all in response to the harsh and prolonged downturn in our industry. The first quarter shows that our teams are following through on these objectives.
Technip’s vessels in the subsea segment of its business reached a record utilization level of 82%, above the 68% in the first quarter of 2015 and 74% in the fourth quarter of 2015, with operations in Asia Pacific and West Africa counterbalancing the effects of the traditional winter season in North Sea.
During first quarter 2016, Technip’s order intake was €930 million, down from €1.5 billion in the first quarter of 2015.
At the end of first quarter 2016, Technip’s backlog was €14.9 billion, compared with €17.0 billion at the end of fourth quarter 2015 and €20.6 billion at the end of first quarter 2015.
Pilenko said Technip’s views on the market outlook were unchanged compared to mid-February. He said that with a low and volatile oil price and their cashflows under pressure, Technip’s clients were more than ever focused on cutting their capex and costs to substantially below 2014 levels.
“Project awards are therefore being postponed and even cancelled, putting visible strain on some parts of our industry. Overall, we are seeing continued interest worldwide in investing, revamping and upgrading Downstream, but Upstream – even if we may see momentum on a few strategic developments – will be less resilient with front-end work only gaining momentum from late 2016 into 2017,” Pilenko said.
Offshore Energy Today Staff