The Tyneside operation of offshore cable maker TechnipFMC has grown revenue and profits on the back of a resurgence in orders.
New accounts for the Walker Riverside-based subsea umbilicals specialist, which is part of the French-American offshore tech giant, show revenue reached more than £98m last year, up from £95.5m, and operating profit increased to £4.4m, from £3.3m. The gains came as bosses talked of a rebound in orders - up 352% on 2022's low levels - which was said to be down to timing of order placements.
Last year brought a string of sizeable contracts to the business, which runs its main research and development and manufacturing site on the Tyne. The orders included work said to be worth between $75m and $250m with energy giant Equinor for its operations on the Norwegian Continental Shelf, and another deal with Aker BP in the same region, worth between $500m and $1bn.
In May, a major $1bn project was announced with Equinor Energy do Brasil Ltda, a subsidiary of Equinor, following its study into the viability of the BM-C-33 field offshore Brazil, which is in waters of up to 2,900m deep. That project involved all of Technip's products, including tree systems, manifolds, jumpers, risers and flowlines, umbilicals, pipeline end terminations, subsea distribution and topside control equipment, with TechnipFMC also responsible for services during the life of the gas field.
Last year, most of the 287-strong firm's revenue - which represents long-term projects - came from Europe (£47.8m), followed by the º£½ÇÊÓƵ (£24.7m) and North America (£15.4m). The business also benefited from £118,000 in Government grants and £355,000 research and development tax credits.
Further revenue rises are anticipated this year, with TechnipFMC having announced work on projects closer to home including the £4bn East Coast Cluster carbon capture scheme, for which the Newcastle plant will build an offshore subsea injection system. Directors talked of how a 'New Energy' business unit has been set up to drive work created by the energy transition in the º£½ÇÊÓƵ. They cited key areas of focus as carbon capture and transportation, hydrogen and floating offshore renewables.
Within the accounts, directors said: "The outlook for crude oil and gas has improved and the long-term demand for energy is forecast to rise significantly. Regardless of the oil price level, clients continue to emphasise their need to reduce costs throughout the supply chain and to improve the viability of their existing projects and future developments.
"More than ever, clients will need close relationships and early interaction with suppliers able to offer optimisation of design, cost reduction and competitive new technologies. Uncertainties with respect to the energy transition to renewables may adversely affect our business however we will believe our assets are well suited to providing solutions for the renewables market."
TechnipFMC Umbilicals Ltd specialises in steel and thermoplastic hydraulic and electro-hydraulic control and chemical injection umbilicals for the offshore oil and gas industry. The equipment connects subsea points with platforms and floating production systems, allowing control from the surface.
