Seeking Alpha: The Beginning Of The End, Or The End Of The Beginning For Technip?

Investors have turned on cautious on capex-sensitive energy service and engineering companies, and that has sent the shares of Technip (OTCQX:TKPPY) down more than 10% over the past year. The concerns are not without some basis, as several major projects were delayed in 2013 and major oil and gas companies have issued modest capex growth guidance.

That Technip is in good company with offshore rivals like Saipem (OTCPK:SAPMY) and Subsea 7 (OTCPK:SUBCY), as well as onshore oil & gas engineering companies like McDermott (MDR), is cold comfort. Although Technip has established a reputation as a superior project and risk manager, weak guidance in late 2013 rattled investor confidence and the shares are trading as if oil and gas capital spending growth will be quite modest from here. It is likely true that capex growth will be lower than the bulls expect, but it looks like the bears have taken things a bit far with Technip.

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The Beginning Of The End, Or The End Of The Beginning For Technip?