French oil services provider, Technip, has boosted its third quarter 2016 result as it continues its cost reduction plan due to extended oil industry slowdown.

In the second quarter 2016, Paris-based subsea major generated adjusted revenue of €2.9 billion, down some 6% compared to €3.1 billion in 3Q 2015. Subsea revenues were roughly 10% lower for the quarter, at €1.4 billion. For the nine months of 2016 adjusted revenue decreased by close to 7% to €8.5 billion. Subsea revenue declined 5.5% versus the nine months of 2015.

The company’s net income for the 3Q 2016 was €184.3 million (diluted EPS 1.46 euros) versus €164 million loss (diluted EPS 1.35 euros) in the corresponding period in 2015. Net income for the nine months ended September 30, 2016, was €422 million, against a €57 million loss from the prior-year comparable period.

For the third quarter 2016, Technip’s order intake was €1.5 billion, of which some €500 million was subsea.

At the end of this quarter, Technip’s backlog stood at €12.3 billion, compared with €17.5 billion at the end of third quarter in 2015.

The company said its adjusted revenue objectives for the full-year 2016 are aimed at €5 billion in subsea, with operating income from recurring activities around €700 million, and €6 billion onshore/offshore, with OIFRA at €280 million.

Subsea World News Staff