Technip net profit rises; lower oil price yet to impact outlook

French company Technip has reported a 1.3% rise in net profits for Q2 and lower oil prices have yet to take their toll on the company’s outlook for the rest of the year.

The company’s net income, supported by success in the subsea business, hit €134.2 million, with sales rising more than 23% to €2.052 billion euros.

Chief Executive, Thierry Pilenko said, “In subsea, activity was strong across all our regions and revenue jumped almost 50% year-on-year … Order intake in subsea was diversified geographically and by size. The North Sea and Asia Pacific were notably strong.”

Higher oil prices earlier in the year, helped make many previously uneconomical fields, suitable for exploration. One area in which the industry has seen particular expansion is in offshore operations, as higher oil prices made the increased expenditures involved in operating in ultra deepwater environments financially acceptable.

Although prices have come down from the inflated values prevelant earlier in the year and have since begun to hover around US$ 100 per bbl, Technip is still expecting group revenue to climb up to somewhere in between €7.65 billion and €8 billion over the course of the rest of the year.

Edited from various sources by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/26072012/technip_net_profit_rises_lower_oil_price_yet_to_impact_outlook/