Newly-formed oil and gas services firm TechnipFMC reported Thursday a $190.8 million net profit in its first quarter following the merger between the French oilfield services provider Technip and the U.S. company FMC Technologies.
Announced last year, the merger between two giants was completed in January.
The company reported first quarter 2017 revenues of $3.4 billion, versus $2.4 billion in the prior-year quarter.
First quarter 2017 revenues from the company’s subsea sector amounted to $1.4 billion, down 42% due to a reduction in project activity within Europe and Africa, partially offset by increased project activity in Asia Pacific. Prior-year declines in inbound orders continue to impact near-term revenues.
Revenues from the onshore/offshore sector in 1Q 2017 were $1.8 billion, a 19 percent decline from the prior-year quarter as a result of reduced project activity, notably in the Middle East and Americas.
Surface Technologies reported first quarter revenue of $248.4 million, down 29 percent from the prior-year quarter, due in part to the exclusion of the first sixteen days of the current year quarter. In addition, the favorable impact from the continuing recovery in North America was partially offset by competitive pricing in international markets and lower product sales.
During the first quarter of 2017, the company’s order intake was $1.6 billion. This includes subsea order intake of $666 million; onshore/offshore order intake of $682 million; and surface technologies order intake of $241.5 million.
At the end of the first quarter 2017, the company’s backlog was $16.1 billion, composed of subsea backlog of $6.6 billion; onshore/offshore backlog of $9.1 billion; and surface technologies backlog of $0.4 billion.
Doug Pferdehirt, CEO of TechnipFMC, said: “Although the global energy market remains challenged, we benefit from the recovery of the short-cycle North America market as well as strong execution on our backlog of longer cycle projects.”
Offshore Energy Today Staff