Technip revenue rises over 20% for the quarter
Increased order intake leads to strong growth in Q3 for Technip
Technip has announced a 22.8% increase in revenue for the third quarter from $2.19 billion to $2.69 billion.
The Paris-based company, which operates in the subsea, offshore and onshore segments by providing project management, engineering, and construction services to the oil and gas industry saw net income rise 20.9% year-on-year from $156.16 million to $188.81 million.
Order intake increased from $3.04 billion to $3.68 billion from the same time last year, partly due to a contract for the first EPC project of the Upper Zakum 750K development in the UAE, on which Technip performed the Front End Engineering Design.
The company’s main operations for the quarter in the Middle East’s onshore/offshore segments was the mechanical completion of the Aasb 3 in Abu Dhabi, in which Technip was responsible for the installation of a new booster compression station, transfer lines, de-bottlenecking of existing ASAB 0 facilities and diverting feed flow from ASAB 0 to ASAB I/II by installing a new compressor, transfer lines and other associated facilities.
Technip also operated on the pre-commissioning activities progressed on the Jubail refinery and in Qatar on the construction works continued on PMP.
The company’s backlog also grew over the quarter, reaching $17.42 billion of which $7.87 billion was from subsea contracts including one with Dubai Petroleum for the south west Fatah and Falah fields located 90 kilometers offshore Dubai, UAE at a water depth up to 53 meters. The contract scope includes the replacement of a 12 inch gas pipeline and six 18-inch water injection pipelines.
Technip will also be working with Al-Jubail petrochemical company, a joint venture between SABIC and Exxon Chemical Arabia, an affiliate of ExxonMobil Chemical Company on a contract for the engineering, procurement and construction of an Halobutyl facility, located in Al-Jubail, Saudi Arabia. This project is part of the Saudi Elastomers Program undertaken by KEMYA to set up a world-scale specialty elastomers facility to serve local markets, the Middle East and Asia.
It will also be working in consortium with National Petroleum Construction Company by Zakum Development Company a lump sum engineering, procurement, fabrication, installation, commissioning and start up contract for the Upper Zakum 750K Project in Abu Dhabi, UAE.
Forecasting into the rest of 2012, Technip predicts that group revenue will be towards $10.32 billion, with Subsea revenue at least $4.52 billion and onshore/offshore revenue around $5.5 billion.