Mixed Results for European Oilfield Services Sector: Increase in Backlog, Workforce Cut

Mixed news for European oilfield services sector, as France’s Technip and Norway’s Aker Solutions' results hinted at two simultaneous trends: an increase in backlog, and plans to cut  workforce. 

On Wednesday, Technip reported 4Q order intake of €3.2 billion, a 13/7% increase in adjusted revenues in the last three months of the year with respect to the same period of 2013, and a record backlog of €20.9 billion.

“Technip starts 2015 in a strong position. During 2014, Technip won a record amount of new work with order intake of €15.3 billion resulting in a €21 billion backlog of high quality and diversified projects” Thierry Pilenko, Chairman and CEO, commented in a note released on Wednesday. 

The French company also reported a 40.4% slump in the net income of the Parent Company.  

“Since then the oil price fall has added to these concerns and our clients are putting increasing pressure on their supply chains. This implies a prolonged, harsh slowdown in many parts of our industry” Pilenko commented.

Also on Wednesday, Aker Solutions reported a 17% increase in backlog, in light of its subsea contracts in Brazil and Angola. Nonetheless, the company announced that the decline in activity levels will bring about a cutdown of workforce. 

‘About 300 engineering and project management employees in the Norwegian MMO business may be affected. Necessary adjustments will be made through normal employee turnover, reassignments to other parts of the company and dismissals. As previously communicated, an additional 70 MMO employees may be temporarily laid off in central Norway’ reads a note released by the company.