Technip’s First Quarter 2011 Results

Regulatory News:

Technip (Paris:TEC) (ISIN:FR0000131708):
€ million   1Q 10   1Q 11   % change   % ex. FX impact
(except EPS)        
Revenue   1,318.4   1,436.2   8.9%   5.3%
EBITDA(1) 174.5 179.0 2.6% (0.7)%
EBITDA Margin   13.2%   12.5%   (77)bp    
Operating Income from recurring activities 139.2 144.8 4.0% 0.8%
Operating Margin 10.6% 10.1% (48)bp
Operating Income   139.2   144.8   4.0%    
Net Income 95.9 104.3 8.8%
EPS (€)   0.88   0.92   3.8%    
(1) Calculated as Operating Income from recurring activities before depreciation and amortization

On April 26, 2011, Technip’s Board of Directors approved the unaudited first quarter 2011 consolidated accounts. Chairman and CEO Thierry Pilenko commented: “In first quarter of 2011, Technip recorded 9% revenue growth year-on-year with strong margins and a robust order intake.

Group revenue growth was in line with our full year objectives with good contribution from recent contracts such as Jubail for Onshore/Offshore. The slight decrease in Subsea revenue reflects the partial shutdown at our Vitoria flexible plant in Brazil in part offset by steady progress on projects such as Pazflor in Angola. Completion of Jubilee in Ghana (Subsea) and numerous small and medium size contracts across all segments drove operating margins to 16.8% for Subsea and 7.4% for Onshore/Offshore combined. Overall, our results show the benefits of building our activity on a diversified backlog.

Commercial success was notable in the North Sea, and flexible pipe supply in Brazil for pre-salt & conventional developments. We recorded strong Subsea order intake of €736 million as a result. In Onshore/Offshore, our order intake was composed of a strategic contract to expand the Cubatão refinery in Brazil and several significant FEEDs in a variety of regions. Group order intake of €1.3 billion during the quarter assured a backlog of over €9 billion.

Accordingly, based on these encouraging first quarter results and order intake, we maintain our full year financial objectives.

Looking ahead, we remain confident in our ability to expand our business even if events in North Africa postponed the award of some expected projects. Activity has resumed slowly but steadily in the Gulf of Mexico, with the first drilling permits now being granted. Prospects for gas development worldwide also look better than a year ago. In general, we believe that the possible slowdown in nuclear projects combined with political uncertainties in major producing countries will encourage the oil and gas operators to diversify their geographical portfolio. This, combined with robust oil prices, could stimulate major investments in challenging and technology-intensive environments.

Thanks to Technip's expanding geographic footprint, focus on winning strategic FEED work, and investments in technology, our own pipeline of potential awards remains robust and we are actively discussing numerous potentially significant projects with clients across the world.

Strategically, we continue to build for the long term. In the first quarter 2011, we received confirmation of a government grant to help finance the expansion of our steel tube umbilicals capabilities in the UK and awarded the construction contracts for our new flexible pipelay vessel dedicated to the Asian market. We are now working on the tender for new pipelay vessels for Petrobras in Brazil. Our balance sheet remains strong, giving us substantial flexibility in making further investments to drive our profitable and sustainable growth.”

* at current exchange rates

I. FIRST QUARTER 2011 REPORT

1. Operational Highlights

Subsea business segment’s main events were:
  • In Ghana, Jubilee contract was completed and handed over to client,
  • In Egypt, offshore operations were completed on West Delta Deep Marine Phase 7, while Phase 8a project is moving forward again,
  • In Angola, offshore operations were successfully completed on Block 31 and continued well on Pazflor,
  • In the North Sea, Skarv flexible pipe supply project was successfully completed, while Pipe-in-Pipe installation started on Marulk, manufacturing of Electrically Trace Heated & Reeled Pipe-in-Pipe (ETH-PIP) progressed on Islay project, and started on smooth bore risers (Technip’s proprietary technology) for Gjøa project,
  • In the Gulf of Mexico, FEED for the Marine Well Containment System was delivered to client and manufacturing of the system has now started with initial work on the umbilical, riser and flowline components,
  • In Asia, offshore operations started on CWLH project in Australia and manufacturing of flexible pipe neared completion on Kitan, while preparation for offshore operations started in Timor Sea,
  • In Brazil, engineering work on Integrated Production Bundles (IPB) for the Papa-Terra field in the Campos Basin progressed. Production was impacted by the partial shutdown in Vitoria plant, whilst first flexible pipes for the pre-salt Tupi Pilot project were delivered,
  • Ramp-up of Asiaflex manufacturing plant continued in Malaysia with a good order flow,
  • Vessel utilization rate was 65% compared with 70% a year ago. Pipelay vessel utilization was high, while diving support & construction vessel utilization was impacted by a high number of dry dock days.

Onshore/Offshore business segment’s main events were:
  • Offshore Associated Gas (OAG) project in Abu Dhabi was successfully completed,
  • Detailed engineering for Gumusut floating facilities in Malaysia was completed,
  • Commissioning activities progressed well on Neste Oil biodiesel plant in Rotterdam, and on P-56 semi-submersible offshore facilities in Brazil,
  • On Block 1 Gas Development project in Turkmenistan, offshore installation of the gravity-based structure (GBS) and topside floatover were completed,
  • Civil and mechanical works progressed on Jubail Refinery in Saudi Arabia and Asab 3 in Abu Dhabi,
  • Engineering and procurement activities continued on PMP in Qatar, while early works started on site,
  • Engineering work and procurement of long lead items progressed well on offshore Khafji Crude Related project in the Neutral Zone between Kuwait and Saudi Arabia,
  • Engineering activities for P-58 and P-62 FPSOs units continued in Brazil,
  • FLNG FEED activities substantially progressed for Shell Prelude field offshore Australia and started for Petronas offshore Malaysia,
  • FEED package for Wheatstone gas processing platform in Australia was delivered to client and detailed engineering started subsequently.

2. Order Intake and Backlog

During first quarter 2011, Technip’s order intake was €1,293 million, in line with €1,338 million in first quarter 2010.

The breakdown by business segment for the first quarter was as follows:
€ million   1Q 2010   1Q 2011
Subsea   440.4   32.9%   735.6   56.9%
Offshore   114.9   8.6%   177.7   13.7%
Onshore   782.4   58.5%   379.5   29.4%
Total   1,337.7   100.0%   1,292.8   100.0%
       

Subsea order intake comprised of several contracts in the North Sea and Canada including diving support services and EPIC contracts (notably with Pipe-in-Pipe and smooth bore technologies); several contracts in Brazil, including a significant order for flexible pipes dedicated to pre-salt & conventional developments; components of the Marine Well Containment System for the Gulf of Mexico; and the first flexible supply contract dedicated to Malaysian fields for execution at Asiaflex manufacturing plant.

Onshore/Offshore order intake includes a contract for the expansion of Cubatão refinery in Brazil, several services contracts for offshore facilities in the UAE, Indonesia and Australia, as well as a FEED for the Ethylene XXI project in Mexico based on Technip’s proprietary design.

Listed in annex II (d) are the main contracts announced since January 2011 and their approximate value if publicly disclosed.

At the end of first quarter 2011, Technip’s backlog was €9,081 million, compared with €9,228 million at the end 2010 and €8,126 million at the end of first quarter 2010. Approximately 49% of the backlog is expected to be scheduled in the last nine months of 2011.

The backlog breakdown by business segment is as follows:
€ million   March 31, 2010   March 31, 2011
Subsea   2,893.0   35.6%   3,298.8   36.3%
Offshore   470.3   5.8%   1,089.8   12.0%
Onshore   4,762.6   58.6%   4,692.6   51.7%
Total   8,125.9   100.0%   9,081.2   100.0%
       

3. Capital Expenditures and Investments

Capital expenditure commitments for first quarter 2011 were €51 million compared with €61 million a year ago. We received confirmation of a government grant to part-finance the expansion of our steel tube umbilical manufacturing capabilities in Newcastle, UK, mentioned in the 2010 full year press release.

II. FIRST QUARTER 2011 FINANCIAL RESULTS

1. Revenue
€ million   1Q 2010   1Q 2011   % change
Subsea   631.8   593.8   (6.0)%
Onshore/Offshore   686.6  

842.4
  22.7%
Total   1,318.4   1,436.2   8.9%
     

Subsea major revenue contributors included Jubilee in Ghana, Pazflor and Block 31 in Angola, West Delta Deep Marine (WDDM) Phase 7 & 8a in Egypt, as well as various contracts in the North Sea and Brazil.

Offshore major revenue contributors included offshore Block 1 Gas Development in Turkmenistan and the P-56 semi-submersible contract in Brazil.

Onshore major revenue contributors were Jubail refinery in Saudi Arabia, Offshore Associated Gas (OAG) and Asab 3 contracts in Abu Dhabi, PMP contract in Qatar and onshore Block 1 Gas Development in Turkmenistan.

Foreign exchange had a positive impact estimated at €48 million on Technip’s first quarter 2011 revenue.

2. Operating Income from Recurring Activities

€ million   1Q 2010   1Q 2011   % change
Subsea   108.2   100.0   (7.6)%
Operating Margin*   17.1%   16.8%   (28)bp
Onshore/Offshore 38.6 62.3 61.4%
Operating Margin*   5.6%   7.4%   177bp

Corporate
  (7.6)   (17.5)   2.3x
Total 139.2 144.8 4.0%
Operating Margin*   10.6%   10.1%   (48)bp
* Operating margin from recurring activities
 

Subsea EBITDA margin was 21.5% for first quarter 2011 in line with first quarter 2010. Operating margin at 16.8% exceeded expectations mainly driven by good execution on Jubilee and Pazflor projects in West Africa.

Onshore/Offshore combined operating margin rose from 5.6% a year ago to 7.4% in first quarter 2011 reflecting good progress or delivery on several small and medium size projects.

In first quarter 2011 Corporate results reflected a higher cost for share-based compensation plans (a year ago cost was lower as targets were not fully achieved).

Foreign exchange had a positive impact estimated at €4 million on Technip’s first quarter 2011 operating income from recurring activities.

Financial income on projects accounted as revenue amounted to €4 million in first quarter 2011.

3. Operating Income

Operating income was €145 million in first quarter 2011 versus €139 million a year ago.

4. Net Income
€ million   1Q 2010   1Q 2011   % change
Operating Income   139.2   144.8   4.0%
Financial result   (3.2)   (1.6)   0.5x
Income from equity affiliates   1.0   -   nm
Income tax   (41.8)   (39.7)   (5.0)%
Minority Interests   0.7   0.8   14.3%
Net income   95.9   104.3   8.8%
     

Financial result in first quarter 2011 included a €7 million positive impact from currency variations and fair market value of hedging instruments, which was negligible a year ago.

Income tax was €40 million in first quarter 2011 giving an effective tax rate of 28%.

Diluted EPS were €0.92 in first quarter 2011, compared to €0.88 last year.

Average number of shares during first quarter 2011 on a diluted basis calculated as per IFRS was 116,496,167 versus 108,639,473 shares for the same quarter in 2010. The variation is mainly due to 6,618,532 shares related to the potential dilution of the OCEANE, and the stock options and performance shares granted by the Board of Directors to Technip’s employees.

5. Cash and Balance Sheet

€ million    
Net cash as of December 31, 2010   1,332.3
Net cash from operating activities   19.3
of which:  
Cash from operations 165.1
Change in working capital   (145.8)
Capital expenditures   (47.5)
Dividend payment   -
Others including FX impacts   (3.7)
Net cash as of March 31, 2011   1,300.4
 

As of March 31, 2011, the Group’s net cash position was €1,300 million compared with €1,332 million as of December 31, 2010 and €1,801 million as of March 31, 2010.

During first quarter 2011, cash from operations was €165 million compared with €102 million in first quarter 2010.

Shareholders’ equity as of March 31, 2011 was €3,347 million compared with €3,202 million as of December 31, 2010.

III. 2011 FULL YEAR OUTLOOK*

Full year 2011 outlook is unchanged:
  • Group revenue around €6,500 - 6,700 million
  • Subsea revenue around €2,600 - 2,700 million
  • Subsea operating margin above 15%
  • Onshore/Offshore combined operating margin between 6% and 6.5%

* at current exchange rates

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The information package on First Quarter 2011 results includes this press release and the annexes which follow, as well as the presentation published on Technip’s website: www.technip.com

NOTICE

Today, April 28, 2011, Chairman and CEO Thierry Pilenko, along with CFO Julian Waldron, will comment on Technip’s results and answer questions from the financial community during a conference call in English starting at 10:00 a.m. CET.

To participate in the conference call, you may call any of the following telephone numbers approximately 5 - 10 minutes prior to the scheduled start time:
France / Continental Europe:       + 33 (0)1 70 77 09 35
 
UK: + 44 (0)203 367 9457
 
USA: + 1 866 907 5923
 

The conference call will also be available via a simultaneous, listen-only audio-cast on Technip’s website.

A replay of this conference call will be available approximately two hours following the conference call for 90 days on the Technip’s website and for two weeks at the following telephone numbers:

      Telephone Numbers       Confirmation Code
 
France / Continental Europe: + 33 (0)1 72 00 15 00 272865#
 
UK:

+ 44 (0)203 367 9460
272865#
 
USA: + 1 877 642 3018 272865#
 

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 identified by the use of forward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”, “potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. 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 we are performing projects.

Some of these risk factors are set forth and discussed in more detail in our Annual Report. 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. 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. We cannot assure you that projected results or events will be achieved. 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 project management, engineering and construction for the energy industry.

From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 23,000 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

Technip shares are listed on the NYSE Euronext Paris exchange and the USA over-the-counter (OTC) market as an American Depositary Receipt (ADR: TKPPK).

OTC ADR ISIN: US8785462099

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ANNEX I (a)

CONSOLIDATED STATEMENT OF INCOME

IFRS, unaudited
  First Quarter
€ million
(except EPS, and number of shares)   2010   2011   % ∆
Revenue   1,318.4   1,436.2   8.9%
Gross Margin   253.7   279.6   10.2%
Research & Development Expenses (12.9)   (12.3)   (4.7)%
SG&A and Other Operating Expenses   (101.6)   (122.5)   20.6%
Operating Income from Recurring Activities   139.2   144.8   4.0%
Other Operating Income - - nm
Operating Income   139.2   144.8   4.0%
Financial Result (3.2) (1.6) 0.5x
Income from Equity Affiliates   1.0   -   nm
Profit Before Tax   137.0   143.2   4.5%
Income Tax (41.8) (39.7) (5.0)%
Tax on Sale of Activities - - nm
Minority Interests 0.7 0.8 14.3%
Net Income   95.9   104.3   8.8%
             
Number of Shareson a Diluted Basis   108,639,473   116,496,167   7.2%
             
EPS (€) on a Diluted Basis (1)   0.88   0.92   3.8%
 

(1) As per IFRS, Earnings Per Share (diluted) are calculated by dividing profit or loss attributable to the Parent Company’s Shareholders, retreated from financial interest related to dilutive potential ordinary shares, by the weighted average number of outstanding shares during the period, plus the effect of dilutive potential ordinary shares related to the convertible bond, dilutive stock options and performance shares calculated according to the “Share Purchase Method” (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 average market share price during the period.

ANNEX I (b)

CONSOLIDATED BALANCE SHEET

IFRS
   
€ million Dec. 31, 2010 Mar. 31, 2011
(audited)   (unaudited)
     
Fixed Assets 4,146.0 4,167.5
Deferred Taxes   324.6   308.1
NON-CURRENT ASSETS   4,470.6   4,475.6
         
Construction Contracts 378.6 447.1
Inventories, Trade Receivables and Others 2,267.1 1,952.6
Cash & Cash Equivalents   3,105.7   3,046.7
CURRENT ASSETS   5,751.4   5,446.4
         
TOTAL ASSETS   10,222.0   9,922.0
         
Shareholders’ Equity (Parent Company) 3,179.8 3,326.6
Minority Interests   22.3   20.6
SHAREHOLDERS’ EQUITY   3,202.1   3,347.2
         
Non-Current Financial Debts 1,092.1 1,057.4
Non-Current Provisions 110.2 109.6
Deferred Taxes and Other Non-Current Liabilities   144.7   171.0
NON-CURRENT LIABILITIES   1,347.0   1,338.0
         
Current Financial Debts 681.3 688.9
Current Provisions 236.7 254.5
Construction Contracts 694.9 655.9
Accounts Payable & Other Advances Received   4,060.0   3,637.5
CURRENT LIABILITIES   5,672.9   5,236.8
         
TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES   10,222.0   9,922.0
 
         
Net Financial Cash   1,332.3   1,300.4
 
Changes in Shareholders’ Equity (Parent Company), unaudited: € million
Shareholders’ Equity as of December 31, 2010   3,179.8
First Quarter 2011 Net Income 104.3
First Quarter 2011 Other Comprehensive Income 17.3
Capital Increases 9.4
Treasury Shares 13.5
Dividend Payment -
Others   2.3
Shareholders’ Equity as of March 31, 2011   3,326.6
 

ANNEX I (c)

CONSOLIDATED STATEMENT OF CASH FLOWS

IFRS, unaudited
 
First Quarter
€ million   2010   2011
     
Net Income 95.9 104.3
Depreciation of Fixed Assets 35.3 34.2
Stock Option and Performance Share Charges 0.6 12.5
Long-Term Provisions (including Employee Benefits) 3.9 -
Deferred Income Tax (31.6) 12.0
Capital (Gain) Loss on Asset Sale (0.3) (0.1)
Minority Interests and Other (1.7) 2.2
Cash from Operations 102.1 165.1
 
Change in Working Capital (77.7) (145.8)
 
Net Cash Generated from (Used in) Operating Activities 24.4 19.3
                 
 
Capital Expenditures (61.3) (47.5)
Cash Proceeds from Non-current Asset Disposal 0.3 0.1
Share Divestment (Acquisitions) - 12.6
Change of Scope of Consolidation - -
 
Net Cash Generated from (Used in) Investment Activities (61.0) (34.8)
                 
 
Increase (Decrease) in Debt 5.8 (18.9)
Capital Increase 2.1 9.3
Dividend Payment - -
Treasury Shares - 1.5
 
Net Cash Generated from (Used in) Financing Activities 7.9 (8.1)
                 
 
Foreign Exchange Translation Adjustment 55.1 (35.5)
 
Net Increase (Decrease) in Cash and Equivalents 26.4 (59.1)
                 
 
Bank Overdraft at Period Beginning (1.2) (0.1)
Cash and Equivalents at Period Beginning 2,656.3 3,105.7
Bank Overdraft at Period End (0.5) (0.2)
Cash and Equivalents at Period End 2,682.0 3,046.7
26.4 (59.1)
 

ANNEX I (d)

TREASURY AND FINANCIAL DEBT - CURRENCY RATES

IFRS
 
Treasury and Financial Debt
Dec. 31, 2010   Mar. 31, 2011
€ million   (audited)   (unaudited)
Cash Equivalents   2,326.8   2,414.9
Cash   778.9   631.8
Cash & Cash Equivalents (A)   3,105.7   3,046.7
Current Financial Debts   681.3   688.9
Non-Current Financial Debts   1,092.1   1,057.4
Gross Debt (B)   1,773.4   1,746.3
Net Financial Cash (Debt) (A - B)   1,332.3   1,300.4
 

€ versus Foreign Currency Conversion Rates
   
Balance Sheet as of   Statement of Income
    Dec. 31 2010   Mar. 31 2011   1Q 2010   1Q 2011
USD   1.34   1.42   1.38   1.37
GBP   0.86   0.88   0.89   0.85
   

ANNEX II (a)

REVENUE BY REGION

IFRS, unaudited
 
First Quarter
€ million   2010   2011   % Δ
Europe, Russia, C. Asia   266.0   398.0   49.6%
Africa   291.4   283.5   (2.7)%
Middle East   281.9   337.6   19.8%
Asia Pacific   166.3   173.5   4.3%
Americas   312.8   243.6   (22.1)%
TOTAL   1,318.4   1,436.2   8.9%
   

ANNEX II (b)

ADDITIONAL INFORMATION BY BUSINESS SEGMENT

IFRS, unaudited
     
€ million   1Q 10   1Q 11   % ∆
SUBSEA            
Revenue   631.8   593.8   (6.0)%
Gross Margin   155.1   152.5   (1.7)%
Operating Income from Recurring Activities   108.2   100.0   (7.6)%
Operating Margin From Recurring Activities   17.1%   16.8%   (28)bp
Depreciation and Amortization   (29.3)   (27.6)   (5.8)%
EBITDA(1)   137.5   127.6   (7.2)%
OFFSHORE            
Revenue   142.0   204.3   43.9%
Gross Margin   24.6   26.7   8.5%
Operating Income from Recurring Activities   11.0   10.1   (8.2)%
Operating Margin From Recurring Activities   7.7%   4.9%   (280)bp
Depreciation and Amortization   (2.2)   (2.9)   31.8%
ONSHORE            
Revenue   544.6   638.1   17.2%
Gross Margin   74.0   99.8   34.9%
Operating Income from Recurring Activities   27.6   52.2   89.1%
Operating Margin From Recurring Activities   5.1%   8.2%   311bp
Depreciation and Amortization   (3.8)   (3.3)   (13.2)%
             
CORPORATE            
Operating Income from Recurring Activities   (7.6)   (17.5)   2.3x
Depreciation and Amortization   -   (0.4)   nm
 

(1) Calculated as Operating Income from recurring activities before depreciation and amortization

ANNEX II (c)

ORDER INTAKE & BACKLOG

Unaudited
 
Order Intake by Business Segment
First Quarter
€ million   2010   2011   % Δ
Subsea   440.4   735.6   67.0%
Offshore   114.9   177.7   54.7%
Onshore   782.4   379.5   (51.5)%
TOTAL   1,337.7   1,292.8   (3.4)%
 
Backlog by Business Segment
As of   As of   % Δ
€ million   Mar. 31, 2010   Mar. 31, 2011  
Subsea   2,893.0   3,298.8   14.0%
Offshore   470.3   1,089.8   2.3x
Onshore   4,762.6   4,692.6   (1.5)%
TOTAL   8,125.9   9,081.2   11.8%
 
Backlog by Region
As of As of % Δ
€ million   Mar. 31, 2010   Mar. 31, 2011  
Europe, Russia, C. Asia   1,401.1   1,644.1   17.3%
Africa   1,257.9   1,479.0   17.6%
Middle East   3,316.2   2,651.0   (20.1)%
Asia Pacific   676.6   673.5   (0.5)%
Americas   1,474.1   2,633.6   78.7%
TOTAL   8,125.9   9,081.2   11.8%
 
March 31, 2011 Backlog Estimated Scheduling
€ million   Subsea   Offshore   Onshore   Group
For 2011 (9 months)   1,823.0   462.2   2,169.0   4,454.2
For 2012   962.2   499.5   1,962.0   3,423.7
For 2013 and beyond   513.6   128.1   561.6   1,203.3
TOTAL   3,298.8   1,089.8   4,692.6   9,081.2
     

ANNEX II (d)

ORDER INTAKE

Unaudited

In first quarter 2011, Technip’s order intake reached €1,293 million, compared with €1,338 million for the same period the year before. The main contracts that we announced during first quarter 2011 were:
  • Subsea was awarded a lump sum contract by Enbridge Offshore Facilities L.L.C. (Enbridge) for the development of the Walker Ridge gas gathering system in the Gulf of Mexico, at a water depth of 7,000 feet (2,100 meters),
  • Subsea was awarded umbilical contracts by Acergy Angola S.A. and Acergy West Africa S.A.S. for the CLOV field development. This field is located in Block 17 offshore Angola in water depths down to 1,410 meters. The development operator is Total E&P Angola,
  • Subsea was awarded a contract by Chevron North America Exploration and Production for the development of the Jack & St-Malo fields, located in the Walker Ridge area of the Gulf of Mexico at a water depth of approximately 7,000 feet (2,100 meters),
  • Onshore was awarded a lump-sum contract by Burgasnefteproekt EOOD (an engineering company belonging to Lukoil), worth approximately €70 million, for the Phase 1 of a heavy residue hydrocracking complex to be built at its refinery located in Burgas, Bulgaria,
  • Offshore, in a consortium with Daewoo Shipbuilding & Marine Engineering Co. Ltd., was awarded by Petroliam Nasional Berhad (PETRONAS) and MISC Berhad a front-end engineering and design contract (FEED) for a floating liquefied natural gas (FLNG) unit, which will have a capacity of one million-tonnes per annum and will be located in Malaysia,
  • Subsea was awarded by Statoil a contract, worth approximately €90 million, for the Gygrid field development located in the Norwegian Sea at a water depth of 265 - 330 meters,
  • Subsea was awarded by GDF SUEZ an engineering, procurement, construction and installation contract, worth approximately €45 million, for the Gjøa field development located in the Norwegian sector of the North Sea,
  • Subsea was awarded an installation contract, worth more than €20 million, by EOG Resources United Kingdom Limited, for the development of the Conwy field, located in the East Irish Sea,
  • Subsea was awarded by Marine Well Containment Company (MWCC) a contract for the design, procurement and fabrication of the umbilical, riser and flowline components of MWCC’s expanded well containment response system for the US Gulf of Mexico,
  • Subsea was awarded by TAQA Bratani Ltd. an installation contract for the development of the Falcon field, which is located in the North Sea approximately 560 kilometers north-east of Aberdeen, in 160 meters of water,
  • Offshore was awarded by Chevron Indonesia Company Ltd a front-end engineering design contract for two floating production units located offshore Indonesia in the Gendalo and Gehem fields at water depths of 3,500 to 6,000 feet (1,070 to 1,830 meters),
  • Offshore was awarded an engineering services contract by ZADCO for the UZ 750 project, one of the major offshore field development projects in the United Arab Emirates,
  • Onshore was awarded by Braskem-Idesa (the joint venture between the Brazilian Braskem and Mexican Group Idesa) a FEED contract for Ethylene XXI project in Mexico. Technip was chosen as technology provider for the development of 1,050 kilotons per year ethylene cracker based on ethane.

Since April 1, 2011, Technip has also announced the award of the following contract that were included in the backlog as of March 31, 2011:
  • Offshore was awarded a full EPIC contract by RWE Dea, for the Clipper South gas field development in the North Sea. The field is located 70 kilometers north-east of the Bacton gas terminal in 25 meters of water,
  • Onshore was awarded by Bluestar Adisseo Nanjing Company Limited a detailed engineering, procurement and project management services contract for a methionine plant in Nanjing, China,
  • Onshore was awarded by Petrobras a lump sum turnkey engineering, procurement and construction (EPC) contract in consortium with Tomé Engenharia, for five new units at the Presidente Bernardes Refinery in Cubatão, state of São Paulo (Brazil),
  • Onshore was awarded a purchase order by Snamprogetti Canada to design and supply ten Once Through Steam Generation (OTSG) units for the first Phase of the Sunrise Energy Project.

Copyright Business Wire 2010

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