Technips Q2 revealed strong Q2 earnings and raised its annual profitability targets as the oil services group saw oil and gas companies spending more to acquire new reserves.
Technip posted an operating profit of US$252.6mn for the second quarter against US$230.39mn in the same period last year. Net income rose to US$190.2mn from US$152.7mn a year earlier
Technip raised its full-year profit margin goal to 16.5-17 per cent from a previous target of at least 15 percent, in its subsea business. The company also expects a combined operating margin of 6.5-7.0 per cent in its onshore and offshore businesses, up from a previous forecast of 6.0-6.5 per cent.
Chairman and CEO Thierry Pilenko commented: "Technip delivered a robust second quarter. Our revenue grew, our margins were strong, and we are therefore raising our full year profit objectives."
In the Middle East arena Technip saw its subsea offshore operations continued on the West Delta Deep Marine Phase 8A in Egypt.
The oil services company had a variety of onshore and offshore projects in the region. In Saudi Arabia, delivery of equipment and construction works ramped-up on Jubail refinery. In Abu Dhabi, civil and mechanical works progressed with the involvement of Eletech (joint venture between Technip and Eleco Chinese construction company) on Asab 3 in Abu Dhabi,
In Qatar, engineering and procurement activities progressed well on PMP with early works successfully completed during the first maintenance window of the plant.
Finally, detailed engineering and purchasing of main equipment progressed on offshore Khafji crude related project in the ex-neutral zone between Kuwait and Saudi Arabia.
Pilenko added: "Looking forward, we see opportunities to expand in nearly all our markets. A high and fairly stable oil price combined with an increasing demand for gas is driving upstream investments, while strategic and regional imperatives are supporting downstream spending."
