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UPDATE 1-Technip: downstream business crimped by global downturn
September 13, 2012 / 10:01 AM / 5 years ago

UPDATE 1-Technip: downstream business crimped by global downturn

OSLO, Sept 13 (Reuters) - French oil services group Technip’s downstream business has been hurt a little by the economic downturn, as some smaller refineries and petrochemical firms have had problems financing projects, its chief executive said on Thursday.

Thierry Pilenko on Thursday also repeated the builder of oil rigs and refineries’ outlook for revenue of 7.65 to 8 billion euros this year but said it was still too soon to make forecasts for 2013.

“The downstream business... is probably the only area where we have seen any effect of the global downturn,” he said in a presentation at an industry conference. “Other than that, we haven’t seen a single customer complaining.”

Pilenko said he was not worried about seeing too much impact from downstream project delays, which have occurred mainly in Africa and Asia, as the company’s portfolio is strong, he told Reuters on the sidelines of the conference.

“These are generally customers that rely heavily on external financing, that could be some smaller-scale private companies that do not have the balance sheets to do it with their own funds, to get their financing together,” he said.

Technip also still expects its subsea revenue to grow to between 3.35 billion and 3.50 billion euros in 2012, with an operating margin around 15 percent. It expects revenue from its onshore/offshore activities this year to reach 4.3 billion to 4.5 billion with an operating margin of 6 to 7 percent. (Editing by Hugh Lawson)

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