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Technip announces 3Q16 results

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World Pipelines,

On 25 October, Technip’s board of directors approved the condensed interim consolidated financial statements for the first nine month period of 2016, ending on 30 September.

Thierry Pilenko, Chairman and CEO of Technip, commented: “A robust operational performance associated with strong cost reduction measures enabled Technip to record a solid third quarter, including an adjusted margin on recurring operations nearing 10%. In addition, we have made considerable progress towards our merger with FMC Technologies passing major regulatory milestones. Last, we recorded a first project win for our alliance.”

In Subsea operations, Technip has begun handover to clients on a range of projects, including T.E.N. in Ghana, ahead of schedule. Vessel utilisation remained at 86%, reflecting efficient management of Technip’s fleet, including in Brazil where the company have 5 vessels on charter.

The company has been continually busy also across its flexible manufacturing plants. In onshore/offshore on the Yamal project, Technip completed the sail away of all 78 modules planned for the first phase of the project and their delivery on the Sabetta site in Siberia is ahead of schedule. Mobilisation on site has also been impressive this year, with over 10 000 people now active on the site construction and hook-up.

The company’s cost reduction efforts have continued as planned and enabled it to sustain its adjusted group margins at 9.7% (compared to 9.4% last year) despite revenues being down 6.1% year-on-year.

Technip's adjusted OIFRA was €285 million, compared to €260 million in 2Q16 and €292 million a year ago. Net income rose 12.4% to €184 million. Thus, cash-flow showed the expected outflow of working capital as applied contract advances to project progress but net cash was resilient at €1.8 billion.

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