Technip Reports Above Expectations Revenues, Drop in EBITDA

France’s Technip reported a 23.3% increase in first quarter of the year to 2,468 million euros, proving that its strategy is partially paying out. 

“Revenue in both Subsea and Onshore/Offshore segments was above expectations in the first

Quarter and operating margins were in line,” Thierry Pilenko, Chairman and CEO, commented in a note released on Thursday.

Technip’s EBITDA registered a year-on-year 18.5% decrease, with operating income from activities before depreciation and amortization of 5.5% in the Subsea segment, and 5.9% in the Onshore/Offshore segment.

‘The first quarter Subsea performance (both execution of the current project portfolio and the order intake) underpins our expectation of a sharp improvement in margins in the second quarter. As a result, we remain confident in our ability to deliver our 2014 and 2015 Subsea objectives,’ added Pilenko.

The company also said that its objectives for 2014 and 2015 remain unchanged. According to the note, the 2014 operating margin should be at least 12% for Subsea and 6-7% for Onshore/Offshore.

The company recently said it intends to concentrate on its core competencies involving deepest subsea complex, deepwater oil and gas developments.