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Technip's second-quarter net income climbs 1.3 per cent

Order intake improves in sub-sea and onshore/offshore business segments.

The French oil services company Technip has reported a net income of €134.2m for the second quarter of 2012, an increase of 1.3 per cent compared to €132.5m for the same period last year.

Revenue increased by 23.3 per cent to €2.05bn (2011: €1.66bn), while EBITDA increased by 19.4 per cent to €253.8m (2011: €212.6m).

During the quarter, the company’s total order intake was €2.52bn. Its sub-sea business segment generated an order intake of €1.33bn (2011: €1.01bn), while its onshore/offshore segment generated €1.18bn (2011: €1.07bn).

At the end of the quarter, the company’s backlog rose to €12.72bn (2011: €9.41bn).

Thierry Pilenko, chairman and CEO of Technip, said:

Technip’s second-quarter revenue and profit were fully in line with our objectives. In sub-sea, activity was strong across all our regions and revenue jumped almost 50 per cent year on year. In onshore/offshore, major projects continued to move through their construction phases and revenue grew by almost 7 per cent.

Second-quarter order intake was again at a high level, reflecting our strong positions in key regions and technologies and so our backlog grew to €12.7bn. Order intake in sub-sea was diversified geographically and by size. The North Sea and Asia Pacific were notably strong. In onshore/offshore, we took a substantial EPC project with high technology content in the Middle East and, in Malaysia, we won our second FLNG project.

The proposed acquisition of the Stone & Webster Process Technologies business that we announced in May is intended to reinforce the range of skills, technologies and services Technip offers. This move would strengthen our ability to provide services from the very start of onshore project life cycle and roughly double the flow of our revenues built around technologies.

Looking ahead, we continue to see strong bidding activity in nearly all our markets, with no impact as yet from either the lower market price of oil or economic issues affecting Europe. Our customers remain focused on solving technology and resource challenges to meet their production objectives. Hence, we are investing to enhance our position, continuously recruiting talents and ramping up our capex programme.

In summary, while remaining rightly cautious about the economic uncertainties around us, we reiterate our 2012 financial objectives, and are confident in benefiting from the robust growth prospects of our industry.