French oil services company Technip has seen its subsea division outperforming this year as it revealed its first quarter results.
The company said it was expecting an adjusted operating profit in its offshore and onshore division, which it had previously estimated would be between €250million and €290million this year.
The company’s offshore and onshore division builds oil rigs, refineries and liquefied natural gas (LNG) plants and accounts for more than half of its revenue.
Chief executive Thierry Pilenko said: “We continue to expect the slowdown to be prolonged and harsh. The sharp fall in oil prices has had a substantial impact on our clients’ behaviour, NOCs and IOCs alike.”
Technip’s adjusted earnings before EBITDA (earnings before interest, tax, depreciation and amortisaton) rose 34.9% to €243.7million.
Its subsea division expects its operating profits to top around €840million for this year.
Reported revenue rose 16.8% to 2.883 billion euros and underlying net profit rose 60.7% to 108 million euros.
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