27 October 2016 07:41 GMT
French engineering company Technip booked a 12.4% rise in third quarter net income while also increasing its full-year revenue guidance for its subsea division.
Technip’s net income for the September quarter totaled €184.3 million ($200.1 million), up from €163.9 million in the same quarter last year.
The increased profit comes despite a 6.1% drop in third quarter revenue, year-on-year, from nearly €3.2 billion to just over €2.9 billion as a fall in revenue from the Middle East, Asia Pacific and the Americas offset a rise in revenue from Europe, Russia, Central Asia and Africa.
Helping improve the bottom line was a reduction in expenses and costs, with Technip saying Thursday it was on track to deliver €900 million in savings by year-end 2016.
“A robust operational performance associated with strong cost reduction measures enabled Technip to record a solid third quarter including an adjusted margin on recurring operations nearing 10%,” Technip chief executive Thierry Pilenko said.
“Our cost reduction efforts continued as planned and enabled us to sustain our adjusted group margins at 9.7% (compared to 9.4% last year) despite revenues being down 6.1% year-on-year.”
Technip also upgraded its full-year objectives on Thursday, with adjusted revenue from its subsea division now expected to top €5 billion, up from a previous guidance of between €4.7 billion and €5 billion.
The company maintained its previous guidance for adjusted revenue from its onshore/offshore division to range between €5.7 billion and €6 billion.
Order intake for the three months to 30 September totaled $1.5 billion, down slightly on the €1.7 billion in orders gained in the third quarter of 2015.
As of 30 September, Technip’s backlog stood at €12.3 billion, compared to €17.5 billion at the same point last year.