Technip "resilient and proactive"Company News // February 26, 2016
Thierry Pilenko, Chairman and CEO of Technip, says the company "showed itself to be resilient and proactive" in what he described as "an unprecedented market environment" in 2015, executing key projects clients, progressing its cost reduction programme and advancing its long term strategy.
Announcing the comapny's fourth quarter and full year 2015 results, Mr Pilenko said: "We closed 2015 successfully with revenue and underlying operating profit from recurring activities (OIFRA) in line with our guidance. Order intake was €2.8 billion in the fourth quarter and €7.6 billion in 2015. Most importantly, the quality and diversity of these orders have been maintained and we are positioned for the years ahead as lead contractor at FEED stage on a number of important projects.
"Our operations generated more than €1 billion of cashflow over the year, supported by the strong profitability of subsea. We ended the year with €1.9 billion of net cash supported by discipline in capex (€272 million net) and strong working capital management (positive €562 million).
"The accelerated cost reduction plan announced in July 2015 has already delivered some €270 million of savings whilst investment in R&D is up and the performance of our onshore/offshore segment improved after a difficult start to the year. We are able to increase our cost saving target to €1 billion (from €830 million)."
Mr Pilenko said the company had a diversified backlog of €17 billion, with €7.3 billion in subsea and €9.7 billion in onshore/offshore, combined with higher cost savings, focus on working capital management and lower net capex will help protect our margins and cash flow in the coming years.