Today’s call will run for one hour. And with that, I’ll hand over to Jean.Jean Cahuzac Thank you, Karen and good afternoon to everybody. I would like to comment briefly on our second quarter results, what we are seeing in today’s market and looking forward how are we positioning for future growth. Simon will then run through our financials before we take your questions. I am very pleased with our second quarter results. We have delivered once more a solid performance. For continuing operation, revenue of $581 million and adjusted EBITDA of $121 million which correspond to 20.9% adjusted EBITDA margin and net income of $63 million and $0.28 diluted earnings per share. The strength of this performance reflects in particular execution of contracts signed prior to 2009 with good profit margins, outstanding performance on several major contracts around the world and the continued strength of conventional activity in West Africa. I would like now to comment on the market outlook. As we said in April, the more stable oil price underpins confidence in our business. This translates into positive indicators. In the SURF market, we continue to see strong tendering activity worldwide. We expect some of the delayed major SURF contracts, particularly, in West Africa and Australia to proceed to market award this year with CLOV in Angola likely to be the next significant one to come to market award. Given the size and complexity of this project the offshore installation of most of these new large SURF projects is likely to commence beyond 2011. We expect the conventional market in West Africa to remain strong in the short-term and medium-term, driven by the volume of work required to upgrade today’s existing infrastructure. Our substantial local presence is a competitive strength in this market, which provides continuity and good margins and we expect to see further activity this year and in 2011.
As we said back in April, visibility on North Sea activity remains somewhat limited. The industry has seen a significant increase in tendering in the first half of the year in the U.K. Some of these projects have been slow to come to award and for shorter term SURF work, the pricing environment remains competitive.It’s likely that this project when awarded will create a headwind on margins in the North Sea for the remainder of this year and maybe through 2011. So again, no change here. Since our last call in April, the tragic event surrounding the Macondo incident in the Gulf of Mexico has raised question within the industry. So what does it mean for Acergy? We have very limited exposure to the Gulf of Mexico today with less than 1% backlog and therefore we do not anticipate a direct impact on our financial performance in the short or medium-term. However, we anticipate that some the deepwater projects in the Gulf of Mexico due to come to market award over the next 12 months may be delayed until late ‘11 or possibly later. That said I do not see anything today that would lead me to change my view on the market in the short-term and medium-term. So overall, we are confident in the future. We continue to perform strongly and to deliver excellent execution for our clients. Our view on the market remains unchanged and while our order intake in the quarter has been relatively low resulting in our backlog falling to 2.3 billion excluding joint ventures, I remain comfortable with the project in the pipeline which would be awarded to the industry in the remaining part of the year. Read the rest of this transcript for free on seekingalpha.com