Technip proving ‘resilient’

Revenue for 2015 at French-based energy contractor Technip was up 14% to €12.2 billion while its year-end backlog totalled €17 billion, following €2.8 billion of order intake in the fourth quarter.

Thierry Pilenko, chairman and CEO, said, “In 2015, Technip showed itself to be resilient and proactive in an unprecedented market environment, executing on key projects for our clients, progressing on our cost reduction programme and advancing our strategy.”

He added, “We closed 2015 successfully with revenue and underlying operating profit from recurring activities in line with our guidance.”

The company reported full-year underlying operating income from recurring activities up 20% to €987 million – €851 million in subsea and €218 million in onshore/offshore.

The outlook for 2016 suggested adjusted onshore/offshore revenue of between €5.7 and €6.0 billion.

Pilenko said, “Order intake was €2.8 billion in the fourth quarter and €7.6 billion in 2015.

“Our operations generated more than €1 billion of cash flow over the year, supported by the strong profitability of subsea.”

He said that an accelerated cost reduction plan announced in July 2015 had already delivered some €270 million of savings, while investment in research and development (R&D) had increased and the performance of the onshore/offshore segment improved after a difficult start to the year

He added, “Our diversified backlog of €17 billion, with €7.3 billion in subsea and €9.7 billion in onshore/offshore, combined with higher cost savings, focus on working capital management and lower net capex (capital expenditure) will help protect our margins and cash flow in the coming years.”