LNG engineer TechnipFMC reported an increase in profit for the first six months of the year reaching $189.1 million, 26 percent up from $150.1 million in the corresponding period in 2017.
Revenue decreased $1.13 billion or 15.7 percent in the first six months of 2018 compared to the prior-year period, primarily as a result of declining project activity.
The company’s Onshore/Offshore revenue decreased $661.1 million year-over-year.
“The decrease was primarily driven by major projects, including Yamal LNG and BP Juniper, that progressed towards completion,” the company said in its report.
This decrease was partially offset by achieving progress on Enoc’s Jebel Ali refinery expansion project, Shell’s Prelude FLNG and Socar’s Azerikimya petrochemical projects.
Looking at the future, TechnipFMC said the offshore market faces many constraints due to lingering industry challenges to improve project economics.
Meanwhile, onshore market activity continues to provide a tangible set of opportunities, and in particular for natural gas projects, as natural gas continues to take a larger share of global energy demand.
Activity in LNG is fueled by the potential for growing demand and the expectation for sustained, modest natural gas prices, representing an important opportunity set for our business.
“We remain confident that the pace of LNG investments will continue to grow in the near and intermediate term,” the company said.