Technip: Third Quarter Results
THIRD QUARTER 2008
- Revenue of听鈧�1.9 billion, of which听鈧�789 million in Subsea
- Strong operating performance in Subsea: EBITDA margin rose to 27.4%
- Improvement in Onshore/Offshore combined operating margin of 4.2%
- Net Income rose to听鈧�121 million
- Backlog of听鈧�7.7 billion
- Total net cash of听鈧�1,555 million
FULL YEAR 2008 OUTLOOK
- Group revenue听~听鈧�7.3 billion
- Subsea revenue at听~听鈧�2,650 million
- Revise upward Group operating margin to above 8%
- Subsea operating margin well above 18%
- Onshore/Offshore combined operating margin of 3.8% reaffirmed
November 13, 2008 01:00 AM Eastern Standard Time
PARIS--()--
Regulatory News:
Technip (Paris:TEC) (ISIN:FR0000131708):
| 听 | 听 | 3Q 07 | 听 | 3Q 08 | 听 | % change | 听 |
ex. FX |
听 | 9m 07 | 听 | 9m 08 | 听 | % change | 听 |
ex. FX |
| 鈧齣n millions, (except EPS) | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Revenue | 听 | 2,166.0 | 听 | 1,932.9 | 听 | (10.8)% | 听 | (5.7)% | 听 | 5,785.3 | 听 | 5,573.4 | 听 | (3.7)% | 听 | 2.6% |
| EBITDA(1) | 听 | 154.9 | 听 | 244.9 | 听 | 58.1% | 听 | 66.5% | 听 | 462.2 | 听 | 611.1 | 听 | 32.2% | 听 | 37.7% |
| EBITDA Margin | 听 | 7.2% | 听 | 12.7% | 听 | 552 bp | 听 | 听 | 听 | 8.0% | 听 | 11.0% | 听 | 298 bp | 听 | 听 |
| Operating Income(2) | 听 | 119.0 | 听 | 179.0 | 听 | 50.4% | 听 | 56.4% | 听 | 355.0 | 听 | 473.4 | 听 | 33.4% | 听 | 37.5% |
| Operating Margin | 听 | 5.5% | 听 | 9.3% | 听 | 377 bp | 听 | 听 | 听 | 6.1% | 听 | 8.5% | 听 | 236 bp | 听 | 听 |
| Net Income | 听 | 76.1 | 听 | 121.1 | 听 | 59.1% | 听 | 听 | 听 | 223.8 | 听 | 314.0 | 听 | 40.3% | 听 | 听 |
| EPS (鈧�) | 听 | 0.72 | 听 | 1.15 | 听 | 59.5% | 听 | 听 | 听 | 2.13 | 听 | 2.98 | 听 | 40.2% | 听 | 听 |
(1)听Calculated as Operating Income from recurring activities before depreciation and amortization
(2)听From recurring activities
On November 12, 2008, Technip鈥檚 Board of Directors approved the non-audited third quarter 2008 consolidated accounts. Thierry Pilenko, Chairman and CEO, commented:听鈥淚n the third quarter, we continued to perform in line with our goals. Operating income increased 50% compared to last year, reflecting good execution on our projects, strong margins in Subsea and continuing improvement in Onshore/Offshore combined margins. We had robust activity, notably in the North Sea, Brazil and Europe, which helped to offset the impact of Hurricane Ike on our third and fourth quarter revenues this year. We end the third quarter with a balanced backlog between Subsea at 46%, and Onshore/Offshore at 54%. Key new Subsea projects won in the quarter include Angola Block 31 and a two-year charter in Brazil for the pipelay vessel Normand Progress. We end the quarter with net cash on the balance sheet of听鈧�1,555 million. Technip's cash is invested in non-speculative, short-term, liquid instruments.
Our full year forecast is for around听鈧�7.3 billion of revenues, with a Group operating margin above 8% reflecting a Subsea margin well above our previous 18% target and an Onshore/Offshore combined operating margin on target at 3.8%.
Looking forward it is too early to determine the effect that the rapid deterioration of the financial markets may have on our customers鈥櫶�2009 and 2010 investment plans: ongoing projects which are well advanced in terms of procurement and construction are likely to proceed normally whereas future investments in new projects are more likely to be reassessed. In the Onshore market, as prices of commodities and raw materials are notably declining, our customers are looking to reduce their total costs in the new environment by delaying or slowing down projects, leading to the extension of FEED studies and to the re-definition of execution timelines. For Technip, the award of medium-to-large contracts to our Subsea business over 2007 - 2008 gives us good visibility into 2010. In Onshore and Offshore, we are continuing to focus on margin protection and enhancement actions as evidenced in our third quarter numbers.
Longer-term, the fundamentals of the E&C industry remain robust: the rapid depletion of existing reservoirs will require continuous and significant investments, particularly upstream. Technip has first class technology, project management skills and a strong balance sheet. These attributes make us a solid partner for our customers.鈥�
I. THIRD QUARTER 2008
1. Operational Highlights
The听Subsea听business segment project execution remains very good. Main events were:
- High vessel utilization rate of 86% during the third quarter 2008,
- Hurricane Ike in the Gulf of Mexico pushed work into the fourth quarter 2008 and 2009. Full year 2008 revenue was impacted by roughly听鈧�14 million,
- Strong activity in North Sea as expected,
- Flexible pipe production units continue to work at full capacity,
- Catch-up on the Agbami field project offshore Nigeria. Main installation is nearing completion,
- Engineering for Pazflor, Angola is progressing well and procurement is ongoing.
The听Offshore听business segment has several projects nearing completion:
- Perdido SPAR hull was handed over to Shell on August 8th,
- Akpo FPSO has arrived on site in Nigeria,
- P-51 was christened by President Lula of Brazil for Petrobras; P-56 execution on going,
- Diversification of the Pori yard in Finland continues.
On the Tahiti Spar project, Technip and Chevron have satisfactorily resolved their contractual differences related to the shackles replacement. The replacement of mooring shackles on the other Spar project has been completed. No material financial impact for Technip.
The large projects are ongoing in the听Onshore听business segment:
- Discussions on QatarGas III & IV are ongoing. QatarGas II first train, number 4, utilities were handed over to the client in August and the inlet facilities in September,
- LNG Project in Yemen is inline with plan,
- Ethylene plant in Shuaiba, Kuwait has been delivered to the client,
- Several units have been turned over to the client on Saudi Arabian Khursaniyah project. Completion is expected in first half 2009. No material financial impact from delays,
- Saudi Yansab project will be Ready for Start-up in the first quarter 2009,
- Dung Quat refinery in Vietnam is progressing according to plan,
- CNRL Horizon project in Canada:
| - Hydrogen plant field operations completed and awaiting final acceptance |
| 听 |
| - Primary heavy oil upgrader has been turned over to the client, |
- In Poland the Gdansk refinery for Grupa Lotos is progressing well,
- Delivery and installation of OAG modules continues on Das Island, United Arab Emirates and are advancing according to schedule,
- Biodiesel plant for Neste Oil in Rotterdam and Singapore are progressing well.
2. Order intake and Backlog
During the third quarter 2008, Technip鈥檚听order intake听was听鈧�1,551.7 million compared to听鈧�1,930.3 million during the third quarter 2007. This is in addition to the听鈧�1,592.3 million booked during the first quarter 2008 and听鈧�1,407.6 million during the second quarter 2008. Subsea enjoyed a strong order intake in particular with the signature of the two first call-off contracts signed under the frame agreements with BP for the development of Block 31 offshore Angola and a two-year charter in Brazil for the pipelay vessel Normand Progress. Many small and medium-sized Onshore projects were awarded, whilst no major EPC lumpsum contracts were awarded during the quarter in either Onshore or Offshore. Listed in annex II (d) are the main contracts that came into force during the third quarter 2008 along with their approximate value (Technip鈥檚 share) if publicly disclosed. The breakdown of the order intake by business segment for the third quarter is as follows:
| 听 | 听 | 3Q 2007 | 听 | 3Q 2008 |
| Subsea(1) | 听 | 38.7% | 听 | 53.7% |
| Offshore | 听 | 5.5% | 听 | 5.9% |
| Onshore | 听 | 55.8% | 听 | 40.4% |
At the end of the third quarter 2008 Group听backlog听amounted to听鈧�7,717.0 million, compared to听鈧�9,411.3 million at the end of the third quarter 2007 and听鈧�8,053.2 million at the end of the second quarter 2008. The backlog breakdown by business segment is as follows:
| 听 | 听 | Sept. 30, 2007 | 听 | Sept. 30, 2008 |
|
Subsea(1) |
听 | 28.0% | 听 | 46.2% |
| Offshore | 听 | 5.5% | 听 | 5.4% |
| Onshore | 听 | 66.5% | 听 | 48.4% |
(1)听Concerning long term frame agreement for offshore inspection repair and maintenance, Technip books in its backlog the estimated expected value of these activities for the current year only.
3. Capex
Technip鈥檚 capex for the third quarter 2008 amounted to听鈧�108.1 million (cash impact) compared to听鈧�76.3 million for the same quarter 2007, in line with the full year expectation of roughly听鈧�400 million.
II. THIRD QUARTER 2008 FINANCIAL RESULTS
1.听Revenue
Third quarter 2008 Group听revenue听was听鈧�1,932.9 million, a 10.8% decrease year-on-year. At constant currency, excluding exchange rate translation impacts, revenue decreased 5.7% compared to last year. This negative foreign exchange impact of听鈧�110.3 million on Group revenue was primarily due to the 10% depreciation of the US dollar and associated currencies relative to the Euro compared to last year.
- Subsea听revenue was听鈧�789.3 million, up 21.8% compared to听鈧�648.2 million for the same period last year. Activity was high on projects in the North Sea and in Brazil as well as Africa with the Agbami project nearing completion. Other major contributing projects were Gimboa in Angola and Kupe in New Zealand, which are both almost completed.
- Offshore听revenue was听鈧�155.4 million, down 3.5% compared to the same period last year, with a good contribution from the Akpo FPSO in Nigeria and P-56 in Brazil.
- Onshore听revenue was听鈧�988.3 million, down 27.2% compared to听鈧�1,356.9 million for the same period last year. Main contributors were the Khursaniyah project in Saudi Arabia, the three LNG projects in Qatar, the three large ethylene steam-cracker projects in Qatar, Kuwait and Saudi Arabia as well as the Dung Quat refinery in Vietnam.
2.听Operating Income from Recurring Activities
Third quarter 2008 Group听operating income from recurring activities听was听鈧�179.0 million, up 50.4% compared to听鈧�119.0 million in the third quarter 2007. Excluding foreign exchange translation impact, operating income year-over-year was up 56.4%. Operating margin from recurring activities continues to improve at 9.3% compared to 5.5% for the same quarter a year ago.
- Subsea听operating income from recurring activities was听鈧�161.2 million during the third quarter 2008, up 45.6% compared to the same period a year ago. EBITDA margin was strong at 27.4% versus 21.6% for the same quarter last year. Operating margin from recurring activities reached 20.4%, compared to 17.1% during the third quarter 2007, thanks to good project execution and successful closeout of certain projects, offset by an accelerated depreciation of assets now scheduled for refit as part of the capex program.
- Offshore听operating income from recurring activities was flat at听鈧�8.5 million, compared to听鈧�8.6 million during the third quarter 2007. The associated margin was 5.5% during the third quarter 2008 with a good contribution from the Perdido Spar project compared to 5.3% a year ago.
- Onshore听operating income from recurring activities during the third quarter 2008 was听鈧�39.3 million, compared to听鈧�4.6 million a year ago, which included a听鈧�50 million charge for a petrochemical project in Saudi Arabia. The margin was 4.0% during the third quarter 2008 compared to 0.3% a year ago.
The combined operating margin for Onshore/Offshore was 4.2%.
Financial income on projects accounted as revenue amounted to听鈧�20.4 million during the third quarter 2008 (third quarter 2007:听鈧�23.0 million), of which听鈧�14.1 million for Onshore (third quarter 2007:听鈧�16.9 million).
3.听Income from Sale of Activities
There was no income from the sale of activities in the third quarter 2008. During the third quarter 2007, income from the disposal of activities amounted to听鈧�6.3 million.
4.听Operating Income
Accordingly third quarter 2008 Group operating income amounted to听鈧�179.0 million, up 42.9% compared to听鈧�125.3 million recorded a year ago. Corporate operating income was a loss of听鈧�30 million compared to a loss of听鈧�4.9 million a year ago. The decision to choose a new Enterprise Resource Planning (ERP) system requiring less customization and lower maintenance costs resulted in a听鈧�20 million non-cash charge against prior investments.
5.听Results
Net financial听charges听for the quarter were听鈧�1.5 million including a听鈧�1.7 million positive impact of foreign currency exchange rate variations.
Income tax听was听鈧�55.8 million. The effective tax rate in the quarter was 31.4% compared to 29.2% one year ago reflecting inter alia higher profit in higher effective tax rate areas.
Net income听was up 59.1% at听鈧�121.1 million, compared to听鈧�76.1 million during the third quarter 2007.
Diluted EPS听was听鈧�1.15 in the third quarter 2008, an increase of 59.5%, compared to听鈧�0.72 one year ago.
Average number of shares during the period on a diluted basis is calculated as per IFRS. For the third quarter 2008 this number of shares stood at 105,515,406 versus 105,749,881 shares for the third quarter 2007.
6.听Cash and Balance Sheet
At the end of September 2008, the Group鈥檚听net cash听position increased to听鈧�1,554.9 million compared to听鈧�1,465.9 million as of June 30, 2008.
During the first nine months of 2008, cash generated from operations amounted to听鈧�451.6 million a 68% increase compared to the same period a year ago. Working capital declined by听鈧�208.0 million in line with the progress of the main projects. Capital expenditures for the first nine months of 2008 amounted to听鈧�255.9 million compared to听鈧�142.1 million for the same period a year ago.
Cash generated from operations increased 184.6% during third quarter 2008 to听鈧�182.7 million and during the same period, working capital declined by听鈧�35.7 million inline with the progress of the main projects. Capital expenditure amounted to听鈧�108.1 million.
Shareholders鈥櫶齟quity,听excluding minority interests, as of September 30, 2008 was听鈧�2,341.6 million compared to听鈧�2,178.4 million as of December 31, 2007.
7.听2008 Full Year Outlook
Revenue
- Subsea听revenue at around听鈧�2,650 million
- Onshore/Offshore听combined revenue of around听鈧�4,650 million consistent with backlog scheduling,
- Group听revenue of around听鈧�7,300 million
Operating margin
- Subsea: well above 18.0%
- Onshore/Offshore: combined margin maintained at 3.8%
- Therefore听Group听operating margin revised upward to above 8%
Net Cash听situation:听At the upper end of the previously indicated range of听鈧�1.1 to 1.3 billion at year end 2008
|
The third quarter 2008 results information package includes this press release and the annexes that follow as well as a presentation published on the Group鈥檚 web site:听 |
Cautionary note regarding forward-looking statements
This presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be听identified by the use of forward-looking words such as听鈥渂elieve鈥�,听鈥渁im鈥�,听鈥渆xpect鈥�,听鈥渁nticipate鈥�,听鈥渋ntend鈥�,鈥渇oresee鈥�,听鈥渓ikely鈥�,听鈥渟hould鈥�,听鈥減lanned鈥�,听鈥渕ay鈥�,听鈥渆stimates鈥�,听鈥減otential鈥澨齩r other similar words.听Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements.听These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material (especially steel) as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due to underdeveloped infrastructure in some countries where are performing projects.
Some of these risk factors are set forth and discussed in more detail in our Annual Report.听Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements.听These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release.听We cannot assure you that projected results or events will be achieved.听We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances.
This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The information contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities.
This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly or indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions of the United States or of other jurisdictions.
Technip is a world leader in the fields of project management, engineering and construction for the oil & gas industry, offering a comprehensive portfolio of innovative solutions and technologies.
With 23,000 employees around the world, integrated capabilities and proven expertise in underwater infrastructures (Subsea), offshore facilities (Offshore) and large processing units and plants on land (Onshore), Technip is a key contributor to the development of sustainable solutions for the energy challenges of the 21st century.
Present in 46 countries, Technip has operating centers and industrial assets (manufacturing plants, spoolbases, construction yard) on five continents, and operates its own fleet of specialized vessels for pipeline installation and subsea construction.
The Technip share is listed on Euronext Paris exchange and over the counter (OTC) in the USA.
| ANNEX I (a) | ||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||
| IFRS, Not Audited | ||||||||
| 听 | 听 | 听 | 听 | 听 | ||||
| 鈧齣n millions | 听 | Third Quarter | 听 | 9 months | ||||
| (except EPS, E/ADS and number of shares) | ||||||||
| 听 | 听 | 2008 | 听 | 2007 | 听 | 2008 | 听 | 2007 |
| Revenue | 听 | 1,932.9 | 听 | 2,166.0 | 听 | 5,573.4 | 听 | 5,785.3 |
| Gross Margin | 听 | 319.8 | 听 | 211.2 | 听 | 815.2 | 听 | 648.1 |
|
Research & Development Expenses |
听 | (11.5) | 听 | (10.1) | 听 | (31.0) | 听 | (29.3) |
| SG&A & Other Operating Expenses | 听 | (129.3) | 听 | (82.1) | 听 | (310.8) | 听 | (263.8) |
| Operating Income from Recurring activities | 听 | 179.0 | 听 | 119.0 | 听 | 473.4 | 听 | 355.0 |
| Income from Sale of Activities | 听 | 0.0 | 听 | 6.3 | 听 | 0.0 | 听 | 20.7 |
| Operating Income | 听 | 179.0 | 听 | 125.3 | 听 | 473.4 | 听 | 375.7 |
| Financial Income (Charges) | 听 | (1.5) | 听 | (19.4) | 听 | (23.8) | 听 | (53.5) |
| Income of Equity Affiliates | 听 | 1.5 | 听 | 0.4 | 听 | 1.9 | 听 | 2.1 |
| Profit Before Tax | 听 | 179.0 | 听 | 106.3 | 听 | 451.5 | 听 | 324.3 |
| Income Tax | 听 | (55.8) | 听 | (29.1) | 听 | (134.8) | 听 | (88.5) |
| Tax on Sale of Activities | 听 | 0.0 | 听 | (1.8) | 听 | 0.0 | 听 | (9.0) |
| Minority Interests | 听 | (2.1) | 听 | 0.7 | 听 | (2.7) | 听 | (3.0) |
| Net Income | 听 | 121.1 | 听 | 76.1 | 听 | 314.0 | 听 | 223.8 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Number of shares on a diluted basis | 听 | 105,515,406 | 听 | 105,749,881 | 听 | 105,333,591 | 听 | 105,219,474 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| EPS (鈧�) on a Diluted Basis听(1) | 听 | 1.15 | 听 | 0.72 | 听 | 2.98 | 听 | 2.13 |
|
E/ADS ($) on a Diluted Basis听(2) |
听 | 1.62 | 听 | 1.02 | 听 | 4.24 | 听 | 3.02 |
1) As per IFRS, the Earnings Per Share (diluted) is calculated by dividing profit or loss attributable to the Parent Company鈥檚 Shareholders by the weighted average number of outstanding shares during the period, plus the effect of dilutive stock options and performance shares calculated according to the听鈥淪hare Purchase Method鈥澨�(IFRS 2), less treasury shares. In conformity with this method, anti dilutive stock options are ignored in calculating EPS. Dilutive options are taken into account if the subscription price of the stock options plus the future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end of the stock option plan) is lower than the share average market price during the period.
2) Earnings per American Depositary Share (E/ADS) are in U.S. dollars and, for all periods, are calculated based upon diluted EPS in euros converted into US dollars using the Federal Reserve Bank of New York noon buying rate (USD/EUR) of 1.4081 as of September 30, 2008.
| ANNEX I (b) | ||||
| CONSOLIDATED BALANCE SHEET | ||||
| IFRS | ||||
| 听 | 听 | 听 | 听 | 听 |
| 鈧齣n millions | 听 | Sept. 30, 2008 | 听 | Dec. 31, 2007 |
| (not audited) | 听 | (audited) | ||
| 听 | 听 | 听 | 听 | 听 |
| Fixed Assets | 听 | 3,364.9 | 听 | 3,280.4 |
| Deferred Taxes | 听 | 231.1 | 听 | 183.4 |
| NON-CURRENT ASSETS | 听 | 3,596.0 | 听 | 3,463.8 |
| 听 | 听 | 听 | 听 | 听 |
| Construction Contracts | 听 | 166.5 | 听 | 280.6 |
| Inventories, Trade Receivables and Others | 听 | 2,214.3 | 听 | 1,953.4 |
| Cash & Cash Equivalents | 听 | 2,222.2 | 听 | 2,401.5 |
| CURRENT ASSETS | 听 | 4,603.0 | 听 | 4,635.5 |
| 听 | 听 | 听 | 听 | 听 |
| TOTAL ASSETS | 听 | 8,199.0 | 听 | 8,099.3 |
| 听 | 听 | 听 | 听 | 听 |
| Shareholders鈥櫶鼸quity (Parent Company) | 听 | 2,341.6 | 听 | 2,178.4 |
| Minority Interests | 听 | 17.8 | 听 | 18.4 |
| SHAREHOLDERS鈥櫶鼸QUITY | 听 | 2,359.4 | 听 | 2,196.8 |
| 听 | 听 | 听 | 听 | 听 |
| Non-Current Debts | 听 | 652.2 | 听 | 653.3 |
| Non-Current Provisions | 听 | 116.9 | 听 | 109.7 |
| Deferred Taxes and Other Non-Current Liabilities | 听 | 167.2 | 听 | 174.2 |
| NON-CURRENT LIABILITIES | 听 | 936.3 | 听 | 937.2 |
| 听 | 听 | 听 | 听 | 听 |
| Current Debts | 听 | 15.1 | 听 | 43.9 |
| Current Provisions | 听 | 181.5 | 听 | 123.0 |
| Construction Contracts | 听 | 1,365.4 | 听 | 1,860.2 |
| Accounts Payable & Others | 听 | 3,341.3 | 听 | 2,938.2 |
| CURRENT LIABILITIES | 听 | 4,903.3 | 听 | 4,965.3 |
| 听 | 听 | 听 | 听 | 听 |
| TOTAL SHAREHOLDERS鈥櫶鼸QUITY & LIABILITIES | 听 | 8,199.0 | 听 | 8,099.3 |
| Changes in Shareholders鈥櫶鼸quity (Parent Company), Not Audited | ||
| Shareholders鈥櫶鼸quity as of December 31, 2007 | 听 | 2,178.4 |
| 9 months 2008 Net Income | 听 | 314.0 |
| Capital Increases | 听 | 9.0 |
| IAS 32 and 39 Impacts | 听 | (30.2) |
| Dividend Payment | 听 | (125.1) |
| Treasury Shares | 听 | 0.0 |
| Translation Adjustments and Others | 听 | (4.5) |
| Shareholders鈥櫶鼸quity as of September 30, 2008 | 听 | 2,341.6 |
| ANNEX I (c) | ||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| IFRS | ||||||||
| Not audited | ||||||||
| 听 | 听 | 听 | ||||||
| 鈧齣n millions | 听 | Nine Months | ||||||
| 听 | 听 | 2008 | 听 | 2007 | ||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Net Income | 听 | 314.0 | 听 | 听 | 听 | 223.8 | 听 | 听 |
| Depreciation of Property, Plants & Equipment | 听 | 137.7 | 听 | 听 | 听 | 107.2 | 听 | 听 |
| Stock Option and Performance Share Charges | 听 | 15.6 | 听 | 听 | 听 | 3.5 | 听 | 听 |
| Long-Term Provisions (including Employee Benefits) | 听 | 7.6 | 听 | 听 | 听 | 1.5 | 听 | 听 |
| Reduction of Goodwill Related to Realized Income Tax Loss Carry Forwards not previously Recognized | 听 | 听 | 听 | 听 | 听 | 2.5 | 听 | 听 |
| Deferred Income Tax | 听 | (44.0) | 听 | 听 | 听 | (50.0) | 听 | 听 |
| Capital (Gain) Loss on Asset Sale | 听 | 18.8 | 听 | 听 | 听 | (20.9) | 听 | 听 |
| Minority Interests and Other | 听 | 1.9 | 听 | 听 | 听 | 1.2 | 听 | 听 |
| Cash from Operations | 听 | 451.6 | 听 | 听 | 听 | 268.8 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Change in Working Capital | 听 | (208.0) | 听 | 听 | 听 | 406.6 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Net Cash Provided by (Used in) Operating Activities | 听 | 听 | 听 | 243.6 | 听 | 听 | 听 | 675.4 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Capital Expenditures | 听 | (255.9) | 听 | 听 | 听 | (142.1) | 听 | 听 |
| Cash Proceeds from Asset Sales | 听 | 2.2 | 听 | 听 | 听 | 20.4 | 听 | 听 |
| Acquisitions of Investments, net of cash acquired | 听 | (14.9) | 听 | 听 | 听 | 听 | 听 | 听 |
| Change of scope of consolidation | 听 | - | 听 | 听 | 听 | 67.4 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Net Cash Provided by (Used in) Investment Activities | 听 | 听 | 听 | (268.6) | 听 | 听 | 听 | (54.3) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Increase (Decrease) in Debt | 听 | (33.5) | 听 | 听 | 听 | (161.6) | 听 | 听 |
| Capital Increase | 听 | 9.0 | 听 | 听 | 听 | 33.3 | 听 | 听 |
| Dividend Payment | 听 | (125.1) | 听 | 听 | 听 | (274.7) | 听 | 听 |
| Treasury Shares | 听 | 听 | 听 | 听 | 听 | (86.2) | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Net Cash Provided by (Used in) Financing Activities | 听 | 听 | 听 | (149.6) | 听 | 听 | 听 | (489.2) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Foreign Exchange Translation Adjustment | 听 | 听 | 听 | (4.7) | 听 | 听 | 听 | (107.5) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Net Increase (Decrease) in Cash and Equivalents | 听 | 听 | 听 | (179.3) | 听 | 听 | 听 | 24.4 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Bank overdraft at Period Beginning | 听 | (1.1) | 听 | 听 | 听 | 0.0 | 听 | 听 |
| Cash and Equivalents as Period Beginning | 听 | 2,401.5 | 听 | 听 | 听 | 2,402.8 | 听 | 听 |
| Bank overdraft at Period End | 听 | (1.1) | 听 | 听 | 听 | 0.0 | 听 | 听 |
| Cash and Equivalents at Period End | 听 | 2,222.2 | 听 | 听 | 听 | 2,427.2 | 听 | 听 |
| 听 | 听 | 听 | 听 | (179.3) | 听 | 听 | 听 | 24.4 |
| ANNEX I (d) | ||||||
| TREASURY AND FINANCIAL DEBT - CURRENCY RATES | ||||||
| IFRS | ||||||
| 听 | 听 | 听 | ||||
| 鈧齣n millions | 听 | Treasury and Financial Debt | ||||
| 听 | 听 |
Sept. 30, 2008 |
听 |
Dec. 31, 2007 |
听 | Sept. 30, 2007 |
| 听 |
(not audited) |
听 | (audited) | 听 | (not audited) | |
| Cash Equivalents | 听 | 1,769.5 | 听 | 1,815.9 | 听 | 2,005.9 |
| Cash | 听 | 452.7 | 听 | 585.6 | 听 | 421.3 |
| Cash & Cash Equivalents (A) | 听 | 2,222.2 | 听 | 2,401.5 | 听 | 2,427.2 |
| Current Debts | 听 | 15.1 | 听 | 43.9 | 听 | 60.1 |
| Non Current Debts | 听 | 652.2 | 听 | 653.3 | 听 | 655.5 |
| Gross Debt (B) | 听 | 667.3 | 听 | 697.2 | 听 | 715.6 |
| Net Financial Cash (Debt) (A - B) | 听 | 1,554.9 | 听 | 1,704.3 | 听 | 1,711.6 |
|
鈧�听versus Foreign Currency Conversion Rates |
||||||||||||
| 听 | 听 | 听 | 听 | 听 | ||||||||
| 听 | 听 | Statement of Income | 听 | Balance Sheet as of | ||||||||
| 听 | 听 | 3Q 08 | 听 | 3Q 07 | 听 | 9m 08 | 听 | 9m 07 | 听 |
Sept. 30 |
听 |
Dec. 31 |
| USD | 听 | 1.50 | 听 | 1.37 | 听 | 1.52 | 听 | 1.34 | 听 | 1.43 | 听 | 1.47 |
| GBP | 听 | 0.80 | 听 | 0.68 | 听 | 0.78 | 听 | 0.68 | 听 | 0.79 | 听 | 0.73 |
| ANNEX II (a) | ||||||||||||
| REVENUE BY REGION | ||||||||||||
| IFRS | ||||||||||||
| Not audited | ||||||||||||
| 听 | 听 | 听 | 听 | 听 | ||||||||
| 鈧齣n millions | 听 | Third Quarter | 听 | 9 months | ||||||||
| 听 | 听 | 2008 | 听 | 2007 | 听 | Change | 听 | 2008 | 听 | 2007 | 听 | Change |
| Europe, Russia, C. Asia | 听 | 554.3 | 听 | 363.2 | 听 | 52.6% | 听 | 1,235.7 | 听 | 910.3 | 听 | 35.8% |
| Africa | 听 | 200.1 | 听 | 204.7 | 听 | (1.9)% | 听 | 564.3 | 听 | 752.4 | 听 | (25.0)% |
| Middle East | 听 | 521.3 | 听 | 899.8 | 听 | (42.1)% | 听 | 1,749.6 | 听 | 2,314.4 | 听 | (24.4)% |
| Asia Pacific | 听 | 237.4 | 听 | 292.4 | 听 | (19.1)% | 听 | 779.5 | 听 | 734.2 | 听 | 6.2% |
| Americas | 听 | 419.8 | 听 | 405.9 | 听 | 3.4% | 听 | 1,244.3 | 听 | 1,074.0 | 听 | 15.9% |
| TOTAL | 听 | 1,932.9 | 听 | 2,166.0 | 听 | (10.8)% | 听 | 5,573.4 | 听 | 5,785.3 | 听 | (3.7)% |
| ANNEX II (b) | ||||||
| ADDITIONAL INFORMATION BY BUSINESS SEGMENT | ||||||
| IFRS | ||||||
| Not audited | ||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 鈧齣n millions | 听 | 3Q 08 | 听 | 3Q 07 | 听 | Change |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| SUBSEA | 听 | 听 | 听 | 听 | 听 | 听 |
| Revenue | 听 | 789.3 | 听 | 648.2 | 听 | 21.8% |
| Gross Margin | 听 | 212.2 | 听 | 148.6 | 听 | 42.8% |
| Operating Income from Recurring Activities | 听 | 161.2 | 听 | 110.7 | 听 | 45.6% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Depreciation | 听 | (55.2) | 听 | (29.5) | 听 | 87.3% |
| EBITDA(1) | 听 | 216.4 | 听 | 140.2 | 听 | 54.4% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| OFFSHORE | 听 | 听 | 听 | 听 | 听 | 听 |
| Revenue | 听 | 155.4 | 听 | 161.0 | 听 | (3.5)% |
| Gross Margin | 听 | 24.8 | 听 | 21.3 | 听 | 16.4% |
| Operating Income from Recurring Activities | 听 | 8.5 | 听 | 8.6 | 听 | (1.2)% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Depreciation | 听 | (2.3) | 听 | (2.4) | 听 | (4.2)% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| ONSHORE | 听 | 听 | 听 | 听 | 听 | 听 |
| Revenue | 听 | 988.3 | 听 | 1,356.9 | 听 | (27.2)% |
| Gross Margin | 听 | 82.9 | 听 | 42.3 | 听 | 96.0% |
| Operating Income from Recurring Activities | 听 | 39.3 | 听 | 4.6 | 听 | 8.5x |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Depreciation | 听 | (5.8) | 听 | (3.4) | 听 | 70.6% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| CORPORATE | 听 | 听 | 听 | 听 | 听 | 听 |
| Operating Income | 听 | (30.0) | 听 | (4.9) | 听 | 6.1x |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| Depreciation | 听 | (2.6) | 听 | (0.6) | 听 | 4.3x |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
|
(1)听Calculated as Operating Income from recurring activities pre depreciation and amortization |
||||||
| ANNEX II (c) | ||||||
| ORDER INTAKE & BACKLOG | ||||||
| Not audited | ||||||
| 听 | 听 | 听 | ||||
| 鈧齣n millions | 听 | Order Intake by Business Segment | ||||
| 听 | 听 | Third Quarter | ||||
| 听 | 听 | 2008 | 听 | 2007 | 听 | Change |
| Subsea | 听 | 834.3 | 听 | 747.7 | 听 | 11.6% |
| Offshore | 听 | 91.1 | 听 | 106.9 | 听 | (14.8)% |
| Onshore | 听 | 626.3 | 听 | 1,075.7 | 听 | (41.8)% |
| TOTAL | 听 | 1,551.7 | 听 | 1,930.3 | 听 | (19.6)% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | Backlog by Business Segment | ||||
| 听 | 听 |
As of |
听 |
As of |
听 |
As of |
| 听 | 听 | 听 | 听 | |||
| Subsea | 听 | 3,564.6 | 听 | 3,477.1 | 听 | 2,630.5 |
| Offshore | 听 | 420.6 | 听 | 550.9 | 听 | 521.5 |
| Onshore | 听 | 3,731.8 | 听 | 5,361.5 | 听 | 6,259.3 |
| TOTAL | 听 | 7,717.0 | 听 | 9,389.5 | 听 | 9,411.3 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | Backlog by Region | ||||
| 听 | 听 |
As of |
听 |
As of |
听 |
As of |
| 听 | 听 | 听 | 听 | |||
| Europe, Russia, C Asia | 听 | 1,672.3 | 听 | 1,691.8 | 听 | 1,598.0 |
| Africa | 听 | 1,747.1 | 听 | 1,623.3 | 听 | 950.1 |
| Middle East | 听 | 1,695.1 | 听 | 3,198.0 | 听 | 3,994.8 |
| Asia Pacific | 听 | 635.3 | 听 | 944.0 | 听 | 1,144.6 |
| Americas | 听 | 1,967.2 | 听 | 1,932.4 | 听 | 1,723.8 |
| TOTAL | 听 | 7,717.0 | 听 | 9,389.5 | 听 | 9,411.3 |
| 听 | 听 | Sept. 30, 2008 Backlog Estimated Scheduling | ||||||
| 听 | 听 | SUBSEA | 听 | OFFSHORE | 听 | ONSHORE | 听 | GROUP |
|
2008 (3 months) 听 |
听 | 682 | 听 | 88 | 听 | 807 | 听 | 1,577 |
| 2009 | 听 | 1,726 | 听 | 224 | 听 | 2,050 | 听 | 4,000 |
| 2010 and Beyond | 听 | 1,156 | 听 | 109 | 听 | 875 | 听 | 2,140 |
| TOTAL | 听 | 3,564 | 听 | 421 | 听 | 3,732 | 听 | 7,717 |
|
ANNEX II (d) |
|
ORDER INTAKE |
|
Not audited |
Third quarter 2008, Technip鈥檚 order intake reached听鈧�1,552 million compared to听鈧�1,930 million in 2007, a decrease of 19.6% year-on-year. Listed below are the main contracts that came into force during the third quarter 2008 along with their approximate value (Group share) if publicly disclosed:
- Major framework agreement for the engineering, procurement of equipment, construction and installation (EPCI) of subsea flowlines, flexible pipes and umbilicals and associated equipment for BP鈥檚 development of Block 31 offshore Angola; the first call-off contract signed under the frame agreement has an estimated value of听鈧�460 million
- Agreement with Geogreen to offer clients carbon capture (CO2), transport and storage chain integrated solution studies
- Engineering and procurement contract, worth roughly听鈧�130 million, for an upgrader for Canadian Natural Resources Ltd. (CNRL), expanding the Horizon project Tranche 2, located north of Fort MacMurray, Alberta, Canada. Construction management will be provided on a reimbursable basis
- Engineering, procurement, construction and management (EPCM) contract for Premcor Refining Group, Inc. (a Valero subsidiary) for two processing units: saturate gas recovery unit and an amine treatment unit and offsites associated with the refinery expansion in Port Arthur, Texas, USA.
Since October 1st, 2008,听Technip also announced the award of the following contracts听which are included听in the backlog as of September 30, 2008:
- Engineering, procurement and construction (EPC) contract, worth approximately听鈧�20 million, for the Skarv field development located on the Norwegian continental shelf for BP Norge AS
- Project management, design, fabrication and installation LSTK (EPC) contract, worth around听鈧�32 million, for the development of the Babbage gas field in the UK Southern North Sea for E.ON Ruhrgas
- Lumpsum engineering and procurement (LS EP) contract for Sibur Neftehim, worth approximately听鈧�45 million, to expand an ethylene plant in Kstovo, Russia
- Lumpsum turnkey (LSTK) contract, worth roughly听鈧�35 million, for the supply of two new furnaces for an existing steamcracker located in Sines, Portugal for Repsol Polimeros
- Lumpsum contract for the development of the E-18 and P-9 gas fields in the Dutch sector of the North Sea for Wintershall Noordzee B.V.
- Engineering and procurement services lumpsum contract, worth around听鈧�70 million, for the Grupa Lotos refinery in Gdansk, Poland
- Two year charter of the Normand Progress, a vessel specializing in flexible pipe installation, worth more than US$100 million. This contract includes engineering and support services, plus an additional two-year option for Petrobras in Brazil.
听
Contacts
Technip
Investor and Analyst Relations:
Kimberly Stewart, +33 (0) 1 47 78 66 74
kstewart@technip.com
or
Antoine d鈥橝njou, +33 (0) 1 47 78 30 18
adanjou@technip.com
or
Public Relations:
Yves Gautier, +33 (0) 1 47 78 25 33
or
Floriane Lassalle-Massip, +33 (0) 1 47 78 32 79
press@technip.com
or
Group website