French oilfield services company Technip, soon to merge with the U.S.-based provider FMC Technologies, posted a higher profit for the third quarter of 2016 despite lower revenues.
The company on Thursday reported that its 3Q 2016 net income was 12.4% higher when compared to 3Q 2015. The net income in this year’s quarter amounted to 184.3 million euros, compared to 163.9 million euros in the prior-year quarter.
Technip’s revenues, on the other hand, were 2.3 billion euros for the third quarter of 2016, a decrease compared to revenues of 3.1 billion euros in the same period last year.
The company noted that its cost reduction efforts continued as planned and enabled it to sustain the adjusted group margins at 9.7%, compared to 9.4% last year, despite revenues being down 6.1% year-on-year.
During the third quarter 2016, Technip’s order intake was 1.5 billion euros. At the end of third quarter 2016, Technip’s backlog was 12.3 billion euros, compared with 17.5 billion euros at the end of third quarter 2015.
Regarding its full year 2016 objectives, Technip’s subsea guidance is upgraded with adjusted revenues expected above 5 billion euros and adjusted Operating Income From Recurring Activities around 700 million euros, while its onshore/offshore guidance remains unchanged.
Following an announcement on Wednesday that shareholders of both Technip and FMC Technologies would vote about the duo’s pending merger in December, Technip stated in its financial report on Thursday this would enable the merger to close in January, earlier than originally planned.
Offshore Energy Today Staff