Technip's 1Q 2013 Order Intake Falls 32%

French oilfield services provider Technip announced Thursday first quarter results that showed the company's order intake for the first three months of the year declined to EUR 2.9 billion ($3.8 billion) from EUR 3.3 billion ($4.3 billion) in 1Q 2012.

Order intake for Technip's onshore/offshore business declined by 32.4 percent to EUR 980.2 million ($1.3 billion) for 1Q 2013, although the firm's subsea business fared better with EUR 1.93 billion ($2.5 billion) of orders compared with EUR 1.86 billion ($2.4 billion) in 1Q 2012.

The firm's order backlog improved by 19.7 percent to EUR 14.8 billion ($19.4 billion) by March 31 compared to a year earlier.

Technip said its order intake during the quarter included a major EPCI contract for Moho Nord, offshore Congo, which combines two field developments. The firm also an offshore project in India, the Heera Redevelopment platform, which is to be installed offshore Mumbia, while Shell's Prelude Floating LNG project offshore Western Australia also contributed to its order intake.

Technip improved its net income for the quarter by 3.6 percent to EUR 116.2 million ($152 million) on the back of revenues that increased 14.2 percent to EUR 2 billion ($2.6 billion).

Technip CEO Thierry Pilenko commented in a company statement:

“In the first quarter we grew revenue in both our segments, reflecting the strong project awards over the last two years. Subsea performance reflected the early phases of recently won large contracts, the absence of major projects completing and some disruptions to offshore operations including for weather. In Onshore/Offshore there was steady progress on projects, including those in later phases such as the Lucius Spar and the Jubail refinery."

Pileno added that the next few months "are important in terms of operations", noting that in its Subsea business Technip is continuing to ramp up its newer projects and it is in the critical phases of its 2013 subsea projects in several regions, including Venezuela, the North Sea, Mexico and Australia.

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