Technip
| File:Technip.svg | |
| Company type | Société Anonyme |
|---|---|
| Industry | Engineering |
| Founded | 1958 |
| Defunct | Template:End date and age |
| Fate | Merged with FMC Technologies |
| Successor | TechnipFMC |
| Headquarters | Paris, France |
Key people | |
| Products | Project management, engineering and construction for the energy industry |
| Revenue | Increase €10.7 billion (end 2014) |
| Decrease €825 million (end 2014) | |
| Decrease €437 million (end 2014) | |
| Total assets | Increase €14.6 billion (end 2014) |
| Total equity | Increase €4.4 billion (end 2014) |
Number of employees | 37,500 (July 2015) |
Technip S.A. was recognized globally as a leading provider of project management, engineering, and construction services within the energy industry. In early 2017, it combined operations with FMC Technologies, resulting in the creation of TechnipFMC. The company’s headquarters were situated in the 16th arrondissement of Paris, employing nearly 38,000 staff members across operations in 48 countries.
Overview
TechnipFMC’s business activities predominantly focus on the energy sector, structured around three principal divisions: Subsea, Offshore, and Onshore. By the end of 2014, the company managed a fleet comprising 21 vessels, with an additional six under construction. That year, Technip reported revenues surpassing €10.7 billion alongside an operating profit close to €825 million.
History
Established in 1958 by the French Petroleum Institute (IFP) under the name Compagnie française d'études et de construction Technip, the firm embarked on international expansion during the 1960s, entering markets in Africa and Asia. The subsequent decade was marked by growth through acquisitions and the establishment of subsidiaries such as Technip Geoproduction, which specialized in equipment for hydrocarbon fields.
Coflexip, another IFP initiative focused on designing and manufacturing flexible subsea flowlines, developed manufacturing plants in France as well as offices located in Houston, Aberdeen, and Rio de Janeiro. Throughout the 1980s, Technip extended its presence to Kuala Lumpur and Abu Dhabi, while Coflexip launched a Brazilian production facility and ventured into umbilicals manufacturing via its Duco site in Newcastle, UK.
Key strategic acquisitions included Coflexip’s purchase of Stena Offshore and Technip’s acquisition of technology-driven companies like Speichim, Krebs, and KTI. The latter acquisition enabled Technip to establish a foothold in North America; meanwhile, Coflexip expanded operations into Australia and Norway.
In the early years of the new millennium, Technip merged with Coflexip—recently bolstered by acquiring Aker Maritime’s Deepwater Division—positioning the combined entity among the top five global engineering and services providers within the energy sector. The company secured major contracts across LNG, ethylene production, and refining projects throughout the Middle East.
By 2010, Technip’s vessel fleet had grown to include 17 ships equipped with sophisticated pipelay technology such as Apache II and Skandi Vitoria aimed at Brazil’s pre-salt oil fields. The launch of Asiaflex Products’ flexible pipe manufacturing plant in Malaysia further increased production capabilities.
The acquisition of Global Industries in 2011 significantly expanded Technip’s footprint within subsea markets. In addition, acquiring Stone & Webster Process Technologies from The Shaw Group in 2012 enhanced its oil and gas engineering expertise.
Merger with FMC
In 2017, FMC Technologies Inc. combined with Technip to establish TechnipFMC, a significant entity in the energy industry during a sustained period of low crude oil prices. This all-stock transaction resulted in a company valued near $13 billion.
TechnipFMC maintains three main offices located in Houston, Paris, and London, with Houston-based Doug Pferdehirt, formerly FMC’s chief operating officer, serving as CEO. Thierry Pilenko, the previous chairman and CEO of Technip, took on the role of executive chairman.
In August 2019, Pferdehirt revealed intentions to divide TechnipFMC into two separate engineering companies. This division was finalized by mid-2020, with the former Technip segment being rebranded as Technip Energies, while the subsea division was excluded.
Listings
Technip was publicly traded on the Paris Stock Exchange during the 1990s, while Coflexip appeared on the New York Stock Exchange. In September 2009, Technip became part of the CAC40 French stock market index.
Controversies
In June 2010, Technip S.A. agreed to pay a $338 million criminal fine to settle allegations under the Foreign Corrupt Practices Act (FCPA) concerning bribery of Nigerian officials for engineering, procurement, and construction (EPC) contracts.
The US Securities & Exchange Commission (SEC) filed a lawsuit in 2011 accusing Technip of insider trading activities.
Organization
Technip received Global Top-Employer 2015 certification from the Top Employers Institute in recognition of its outstanding global human resources practices.
The firm was also honored as a Top Employer across 24 countries—including Australia, Brazil, China, France, Germany, India, and the United States—and across three major regions: Asia-Pacific, Europe, and Latin America.
Facing industry challenges in July 2015, Technip announced workforce reductions affecting 6,000 employees to cut expenses.
Financial and stock market information
| Years | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 6,926.5 | 7,886.5 | 7,481.4 | 6,456.0 | 6,081.9 | 6,813.0 | 8,203.9 | 9,336.1 | 10,724.5 |
| Operating income from recurring activities | 333.2 | 247.0 | 656.9 | 676.7 | 620.3 | 709.5 | 821.7 | 844.5 | 825 |
| Net income | 201.9 | 128.0 | 454.3 | 170.4 | 417.6 | 507.3 | 539.7 | 563.1 | 436.6 |
Technip’s shares were traded on Euronext Paris as well as on the American over-the-counter market.
- ISIN: FR0000131708
- Nominal value: euro
| Years (at December 31) | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|---|---|---|---|---|---|---|
| Number of outstanding shares (millions) (a) | 109 | 109 | 110 | 111 | 113 | 113 | 114 |
| Market capitalization (€ millions) (closing price) | 2,380 | 5,400 | 7,600 | 8,040 | 9,816 | 7,941 | 5,631 |
Technip was listed on indexes including the Dow Jones Sustainability Index, the Low Carbon 100 index, and the ASPI Eurozone.
(a) Does not account for options from existing share purchase or subscription programs.