Subsea cable maker TechnipFMC says a steep drop in orders and profits are not symptoms of a declining market and that it is using its expertise to support the 海角视频 energy transition.
New accounts for the Tyneside-based firm, which employs about 300 staff at its Walker factory, saw operating profits fall from £48.9m in 2021 to £3.3m in last year, though revenue increased 3% to £95.5m. Bosses said order intake was down 53% on 2021 levels but that was down to the timing of orders and was not reflective of the market.
Technip pointed out it had closed out a number of contracts in 2021 that involved products manufacturer in prior years - a benefit not felt in the 2022 numbers. And a contract for a 海角视频 customer had to be cancelled in the wake of sanctions against Russia.
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The accounts do not include a major contract from Equinor worth up to $1bn, which the firm secured earlier this year and will see it make and install pipes and cables for the energy firm's Rosebank oil field project.
Technip's Tyneside operation specialises in manufacturing hydraulic and electro-hydraulic control and chemical injection cables - or umbilicals as they are known in the sector - for the offshore oil and gas industry. The Walker base is a research and development centre for the wider TechnipFMC group where it develops systems suitable for increasingly deep waters and harsh environments.
While the firm has pointed to increasing long-term demand for crude oil and gas, and despite uncertainties about the global move to clean energy, it says its products are suited to the renewables market. It said energy transition contracts would make up a significant portion of the work it does in the 海角视频 and that it is focusing on carbon capture and storage, hydrogen and floating offshore renewables.
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In a review accompanying the accounts, director Helen Urquhart said: "TechnipFMC, with our proprietary technologies and production systems, integrated expertise, and comprehensive solutions, are transforming our clients' project economics. We are the first to adopt a new approach that enables better, more sustainable industry economics through lower costs and greater efficiency. We create innovative solutions that respond to changing market dynamics and challenge existing industry conventions and our breadth and depth of expertise uniquely position us to reshape practices and enable the change that the energy industry needs.
"Subsea StudioTM is transforming the conventional concept, FEED, and tender into ultra-fast digital field development. A system that combines our Subsea expertise and digital technologies to design, optimize and select the best field development, thereby increasing quality and reliability and accelerating time to first oil for our clients."
She added: "The effects of the United Kingdom's fiscal regime, political policy and environmental approvals amidst a Regional and Global energy security focus continues to be evaluated for any issues on our portfolio, however this remains a vast and ongoing matter which will be continually monitored by the business and the industry. There are a number of these factors which could have a material adverse effect on our business, financial condition, or results of operations."