Paris-based LNG engineer Technip on Thursday posted a 9.2 percent lower second-quarter revenue due to the oil and gas industry downturn.
Technip’s adjusted revenue stood at 2.81 billion euros ($3.12 billion) in the second quarter of 2016, as compared to 3.1 billion euros in the same period the year before.
However, due to “solid” second-quarter results, the engineering company’s plans to cut spending in a low oil price environment were “ahead of schedule.”
“Our cost reduction program is ahead of schedule and expected to deliver 900 million euros already by 2016, demonstrating our ability to build a leaner business faster,” said Thierry Pilenko, Chairman and CEO of Technip.
During the second quarter, Technip’s order intake was 1.5 billion euros, in line with the previous year.
The rise in the oil price and the deflation across the supply chain in oil and gas has seen market participants plan for long term. However, Technip still expects a slow rate of new orders for some time as the competitive pressure across the industry continues.
Earlier in May Technip and FMC Technologies agreed to merge combining the two in an all-stock transaction. Technip noted in its report the merger is on track and during June, the two companies signed the official merger agreement and received the conclusion of the U.S. antitrust review.