Pre-tax profits at newly-formed TechnipFMC rose by more than 50% to $298million in the first quarter of 2017 despite a drop in subsea revenues.
TechnipFMC said the reduction in subsea project activity in Europe and Africa was partially offset by a thriving Asia Pacific region, but the segment’s revenues were still down 42% year-on-year.
The firm’s onshore/offshore business reported first quarter revenues of $1.8billion, down 19% year-on-year due to a lack of demand in the Middle East and Americas.
Major projects included Yamal LNG in Russia and Shell Prelude FLNG in Australia.
Vessel utilization rate for the first quarter of 2017 was 68%, down from the 78% rate in the fourth quarter of 2016.
But the company managed to take in orders worth $1.6billion during the quarter and group revenues climbed 40% to $3.4billion.
The firm’s board has sanctioned a share repurchase program of up to $500 million of the Company’s stock to be completed by the end of 2018.
TechnipFMC chief executive Doug Pferdehirt said: “Although the global energy market remains challenged, we benefit from the recovery of the short-cycle North America market as well as strong execution on our backlog of longer cycle projects.”
“In subsea, market acceptance of our combined offering has been demonstrated by an acceleration of front-end studies. These studies are being converted to iEPCI™ awards including the Shell Kaikias project. Other recent project awards, including our award of ExxonMobil Liza, further illustrate returning confidence in the subsea market.”
The merger between France-based Technip and US firm FMC Technologies was announced last year and completed in January.
Recommended for you
