Progress on key initiatives in a challenging market
THIRD QUARTER 2015 RESULTS
Order intake of 鈧�1.7 billion; backlog at 鈧�17.5 billion
10% growth in adjusted revenue to 鈧�3.1 billion
Adjusted operating income from recurring activities2 up 21% to 鈧�292 million, with 鈧�232 million in Subsea and 鈧�76 million in Onshore/Offshore
Net income rose to 鈧�164 million
2015 OBJECTIVES: OPERATING PROFIT CONFIRMED, REVENUE INCREASED
Adjusted Subsea revenue over 鈧�5.5 billion, adjusted operating income from recurring activities5 at around 鈧�840 million
Adjusted Onshore/Offshore revenue over 鈧�6 billion, adjusted underlying operating income from recurring activities2 between 鈧�210 and 鈧�230 million
October 29, 2015 02:00 AM Eastern Daylight Time
PARIS--(BUSINESS WIRE)--Regulatory News:
鈥淭echnip鈥檚 focus in the third quarter was first and foremost on execution: of the projects in our backlog and of our restructuring plan. The results of the quarter demonstrate progress on both fronts. Our revenues and profits grew and we are accordingly on track to deliver our full year objectives. 鈥�
Tweet this
On October 27, 2015, Technip鈥檚 (Paris:TEC) (ISIN:FR0000131708) (ADR:TKPPY) Board of Directors approved the third quarter adjusted consolidated financial statements.
Note: The third quarter 2015 result presented in this press release was prepared on the adjusted basis described in Technip鈥檚 fourth quarter and full year 2014 results press release. These results reflect the financial reporting framework used for management purposes.
鈧� million
(except Diluted Earnings per Share)
听听听 听3Q 14听听 听 听听 听3Q 15听听 听 听听 听Change听听 听 听听 听9M 14听听 听 听听 听9M 15听听 听 听听 听Change
Adjusted Revenue听听 听 听听 听2,824.7听听 听 听听 听3,108.9听听 听 听听 听10.1%听听 听 听听 听7,908.6听听 听 听听 听9,090.6听听 听 听听 听14.9%
Adjusted Underlying EBITDA1听听 听 听听 听305.1听听 听 听听 听371.8听听 听 听听 听21.9%听听 听 听听 听788.7听听 听 听听 听968.5听听 听 听听 听22.8%
Adjusted Underlying EBITDA Margin听听 听 听听 听10.8%听听 听 听听 听12.0%听听 听 听听 听116bp听听 听 听听 听10.0%听听 听 听听 听10.7%听听 听 听听 听68bp
Adjusted Underlying OIFRA2听听 听听听 听241.5听听 听听听 听292.0听听 听听听 听20.9%听听 听听听 听601.4听听 听听听 听745.2听听 听听听 听23.9%
Adjusted Underlying Operating Margin3听听 听听听 听8.5%听听 听听听 听9.4%听听 听听听 听84bp听听 听听听 听7.6%听听 听听听 听8.2%听听 听听听 听59bp
One-off Charge听听 听听听 听-听听 听听听 听(14.4)听听 听听听 听nm听听 听听听 听-听听 听听听 听(584.8)听听 听听听 听nm
Other including Tax and Financial Effects听听 听听听 听(27.9)听听 听听听 听(6.0)听听 听听听 听nm听听 听听听 听(35.8)听听 听听听 听52.6听听 听听听 听nm
Underlying Net Income4听听 听 听听 听159.5听听 听 听听 听184.3听听 听 听听 听15.5%听听 听 听听 听392.3听听 听 听听 听475.3听听 听 听听 听21.2%
Adjusted OIFRA5听听 听听听 听241.5听听 听听听 听292.0听听 听听听 听20.9%听听 听听听 听601.4听听 听听听 听560.8听听 听听听 听nm
Net Income of the Parent Company听听 听 听听 听131.6听听 听 听听 听163.9听听 听 听听 听24.5%听听 听 听听 听356.5听听 听 听听 听(56.9)听听 听 听听 听nm
Diluted Earnings per Share (鈧�)听听 听 听听 听1.10听听 听 听听 听1.35听听 听 听听 听23.2%听听 听 听听 听2.98听听 听 听听 听(0.50)听听 听 听听 听nm
Order Intake听听 听 听听 听2,211听听 听 听听 听1,746听听 听 听听 听 听听 听 听听 听12,069听听 听 听听 听4,757听听 听 听听 听听
Backlog听听 听 听听 听19,306听听 听 听听 听17,459听听 听 听听 听 听听 听 听听 听19,306听听 听 听听 听17,459听听 听 听听 听听
1 Adjusted operating income from recurring activities after Income/(loss) of equity affiliates excluding exceptional items, depreciation and amortization. No exceptional items in 3Q15.
2 Adjusted operating income from recurring activities after Income/(loss) of equity affiliates excluding exceptional items. No exceptional items in 3Q15.
3 Adjusted operating income from recurring activities after Income/(loss) of equity affiliates excluding exceptional items, divided by adjusted revenue. No exceptional items in 3Q15.
4 Net income of the parent company excluding exceptional items. See annex V.
5 Adjusted operating income from recurring activities after Income/(loss) of equity affiliates.
Thierry Pilenko, Chairman and CEO, commented: 鈥淭echnip鈥檚 focus in the third quarter was first and foremost on execution: of the projects in our backlog and of our restructuring plan. The results of the quarter demonstrate progress on both fronts. Our revenues and profits grew and we are accordingly on track to deliver our full year objectives.
Performance in the quarter
In Subsea, execution ramped up on our major West African projects, which will occupy a large part of our fleet for the coming quarters. Adjusted revenues were up roughly 15% with adjusted operating income from recurring activities at 鈧�232 million. In a slow market, order intake was at a low level and we also continued to seek to balance business opportunities and risks. Flexible pipe demand in Brazil remains robust and we have just announced the first order for the Libra field, to execute the extended well test program, reflecting the investments we have made in R&D towards this significant pre-salt opportunity.
Onshore/Offshore delivered 鈧�76 million of adjusted operating income from recurring activities on revenues up 6%, with project performance in line with our assumptions at the end of the second quarter. We successfully delivered all modules scheduled for shipment in 2015 for Yamal. Key milestones were achieved at MMHE鈥檚 yard for the SK316 and Malikai projects. Order intake was better than one year ago in the segment at 鈧�1.2 billion with a number of significant new awards for downstream facilities as well as the contribution of PMC and other reimbursable projects in our portfolio.
We pursued our restructuring plan in the quarter delivering results which underpin our savings objectives.
Overall, therefore, we reiterate our profit objectives for the full year 2015 and expect higher revenues than before in both segments.
Market environment and strategy
The expectation of a low oil price for longer means our clients continue to reduce their new capex. Price deflation in all parts of oil services, as well as in our supply chain and in raw materials, will help bring down costs on new projects. While there are pockets of resilience in offshore and subsea markets, we see more opportunities at the moment in onshore - in North America as well as in Eastern Europe and in Africa / Middle East. Overall, we reiterate our expectations for a prolonged and harsh downturn.
Equally, our clients are closely focused on how to make new projects viable in this low oil price environment. For Technip, this is reflected in the strong client response to our initiatives to introduce value-added technologies and to drive optimization and standardization into project designs. Clients have also reacted very positively to our alliance with FMC Technologies: the Forsys Subsea joint venture has been awarded two integrated front-end studies, thus exceeding our objectives for 2015 and preparing the ground for an EPCI award in 2016.
Looking forward, we will remain relentlessly focused on our projects, on reducing our costs and on our core principles around quality and safety. The coming period will continue to be tough for oil services; however we remain confident that our strategy will enable us to resist its worst effects, add value to clients with a broader portfolio of solutions and so reinforce Technip鈥檚 leadership position in the industry.鈥�
I. ORDER INTAKE AND BACKLOG
1. Third Quarter 2015 Order Intake
During third quarter 2015, Technip鈥檚 order intake was 鈧�1.7 billion. The breakdown by business segment was as follows:
Order Intake1 (鈧� million)听听 听 听听 听 听听 听 听听 听3Q 2014听听 听 听听 听 听听 听 听听 听3Q 2015
Subsea听听 听 听听 听 听听 听 听听 听1,272听听 听 听听 听 听听 听 听听 听530
Onshore/Offshore听听 听听听 听听听 听听听 听939听听 听听听 听听听 听听听 听1,216
Total听听 听 听听 听 听听 听 听听 听2,211听听 听 听听 听 听听 听 听听 听1,746
1 Order intake includes all projects whose revenues are consolidated in our adjusted financial statements.
Subsea order intake included new orders for highly technological flexible pipes and associated equipment, which will be produced in our Vitoria and A莽u manufacturing plants.
In the US Gulf of Mexico, a contract was awarded for the development of the subsea infrastructure for the Stones project, covering two production tie-backs, for which flowlines will be welded at our spoolbase in Mobile, Alabama and installed by the Deep Blue vessel.
Onshore/Offshore order intake included early works related to an EPC contract in Egypt to modernize and expand the MIDOR refinery, aiming at improving the production quality of the plant, considered the most advanced on the continent.
In the Czech Republic, Technip was also awarded an important EPC contract for a new polyethylene plant, based on INEOS technology, which will have a capacity of 270,000 tons per year of high density polyethylene.
This quarter鈥檚 order intake included a significant amount of work orders received from clients on various contracts such as PMC and other service contracts.
Listed in annex IV (b) are the main contracts announced since July 2015 and their approximate value if publicly disclosed.
2. Backlog by Geographic Area
At the end of third quarter 2015, Technip鈥檚 backlog was 鈧�17.5 billion, compared with 鈧�18.8 billion at the end of second quarter 2015 and 鈧�19.3 billion at the end of third quarter 2014.
The geographic split of the backlog is set out in the table below:
Backlog1 (鈧� million)听听 听 听听 听June 30, 2015听听 听 听听 听
September 30,
2015
听听听 听Change
Europe, Russia, Central Asia听听 听 听听 听7,764听听 听 听听 听7,411听听 听 听听 听(4.5)%
Africa听听 听听听 听3,535听听 听听听 听3,303听听 听听听 听(6.6)%
Middle East听听 听听听 听1,031听听 听听听 听896听听 听听听 听(13.1)%
Asia Pacific听听 听听听 听2,511听听 听听听 听2,000听听 听听听 听(20.4)%
Americas听听 听听听 听3,983听听 听听听 听3,849听听 听听听 听(3.4)%
Total听听 听 听听 听18,824听听 听 听听 听17,459听听 听 听听 听(7.3)%
听
3. Backlog Scheduling
Estimated Scheduling
as of September 30, 2015 (鈧� million)
听听听 听Subsea听听 听 听听 听
Onshore/Offshore
听听听 听Group
2015 (3 months)听听 听 听听 听1,301听听 听 听听 听1,476听听 听 听听 听2,777
2016听听 听听听 听4,231听听 听听听 听4,422听听 听听听 听8,653
2017 and beyond听听 听听听 听2,890听听 听听听 听3,139听听 听听听 听6,029
Total听听 听 听听 听8,422听听 听 听听 听9,037听听 听 听听 听17,459
听
1 Backlog includes all projects whose revenues are consolidated in our adjusted financial statements.
II. THIRD QUARTER 2015 OPERATIONAL & FINANCIAL HIGHLIGHTS 鈥� ADJUSTED BASIS
On July 6th, the Group announced the launch of a restructuring plan addressing the downturn in the oil and gas market. Further details of the charge taken in the third quarter are given in note II.4, with additional comments where appropriate in the segment highlights.
1. Subsea
Subsea main operations for the quarter were as follows:
In the Americas:
In the US Gulf of Mexico, the Deep Blue successfully completed the third installation trip for the Julia project and the tieback to the Pompano fixed platform in the Amethyst field; meanwhile welding activities continued on the Kodiak project.
In Brazil, flexible pipe production continued for the pre-salt fields of Lula Alto, Iracema Norte, Iracema Sul, Sapinho谩 & Lula Nordeste and Sapinho谩 Norte at our manufacturing plants in Vitoria and A莽u.
In the North Sea, the North Sea Atlantic completed the pre-installation of new risers for the Quad 204 project, before it arrived in Australia, where it will work on the Wheatstone project. Very good progress was also observed on Kraken with umbilicals delivered on time. In Norway, the North Sea Giant completed installation of 脜sgard Subsea Compression modules.
In Asia Pacific, the G1201 progressed on the Malikai project in Malaysia, while the Deep Energy successfully completed its offshore campaign on the Prelude project in Australia and transited to West Africa. Engineering and procurement phases continued on the Jangkrik and Bangka projects in Indonesia, for which manufacturing of flexible pipes is progressing at Asiaflex.
In West Africa, the Deep Energy started working on the Block 15/06 development in Angola, installing rigid pipes welded at our spoolbase in Dande, while the Deep Pioneer and the Deep Orient completed their offshore campaigns, moving respectively to Moho Nord and Wheatstone. In Congo, the G1200 was mobilized on Moho Nord, while engineering and procurement continued on T.E.N. in Ghana and Kaombo in Angola.
Overall, the Group vessel utilization rate for the third quarter of 2015 was 89%, compared with 86% for the third quarter of 2014, and in line with the 89% seen in the second quarter of 2015.
Subsea financial performance is set out in the following table:
鈧� million听听 听 听听 听3Q 2014听听 听 听听 听3Q 2015听听 听 听听 听Change
Subsea听听 听 听听 听听听 听 听听 听听听 听 听听 听
Adjusted Revenue听听 听听听 听1,348.3听听 听听听 听1,547.0听听 听听听 听14.7%
Adjusted EBITDA听听 听听听 听246.5听听 听听听 听302.4听听 听听听 听22.7%
Adjusted EBITDA Margin听听 听听听 听18.3%听听 听听听 听19.5%听听 听听听 听127bp
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*听听 听听听 听193.0听听 听听听 听232.0听听 听听听 听20.2%
Adjusted Operating Margin听听 听 听听 听14.3%听听 听 听听 听15.0%听听 听 听听 听68bp
* No one-off charge accounted in Subsea adjusted operating income from recurring activities.
2. Onshore/Offshore
Onshore/Offshore main operations for the quarter were as follows:
In the Middle East, construction for the Halobutyl elastomer facility in Saudi Arabia neared completion; fabrication of the FMB platforms for Qatar continued and activity ramped up on the Umm Lulu complex in Abu Dhabi. Additionally, PMC activity progressed, notably for Nasr Phase II Full Field Development in Abu Dhabi and for upgrading the Basra refinery in Iraq.
In Asia Pacific, the topsides of the central processing platform sailed away for Block SK316, while Malikai tension leg platform (TLP) topsides were successfully mated onto the hull at the MMHE yard in Malaysia. On the RAPID project, also in Malaysia, our PMC team was fully mobilized to support the construction of the project installations. In Korea, the turret-mooring system was successfully installed onto the Prelude FLNG hull. Meanwhile, in India, construction continued on the Mangalore purified terephthalic acid (PTA) plant and we neared completion of the Heera Redevelopment (HRD) process platform.
In Europe and Russia, the first pipe rack module for the initial LNG train was successfully shipped and installed onto its foundations for the Yamal LNG project, while electrical substations safely navigated to Sabetta after transit through the Bering Strait 鈥� an industry first. They are now on their foundations. Process modules are under construction in Chinese yards. Overall, we successfully delivered all modules scheduled for shipment in 2015. Elsewhere, engineering continued on the Duslo ammonia plant in Slovakia, while in Bulgaria, the Burgas H-Oil project was handed over to the client.
In the Americas, engineering and procurement activities progressed for Sasol鈥檚 world-scale ethane cracker and derivative complex near Lake Charles, Louisiana, while construction continued for the CPChem polyethylene plant in Texas and neared completion for the Ethylene XXI petrochemical complex in Mexico. At the same time, the construction of topsides ramped up on the Juniper project in Trinidad and Tobago.
This quarter, no one-off charge linked to the restructuring plan was taken in Onshore/Offshore operating income from recurring activities. All restructuring costs were booked in non-current operating result (see note II.4).
Onshore/Offshore financial performance is set out in the following table:
鈧� million听听 听 听听 听3Q 2014听听 听 听听 听3Q 2015听听 听 听听 听Change
Onshore/Offshore听听 听 听听 听听听 听 听听 听听听 听 听听 听
Adjusted Revenue听听 听听听 听1,476.4听听 听听听 听1,561.9听听 听听听 听5.8%
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*听听 听听听 听69.6听听 听听听 听75.5听听 听听听 听8.5%
Adjusted Operating Margin听听 听 听听 听4.7%听听 听 听听 听4.8%听听 听 听听 听12bp
* No one-off charge accounted in Onshore/Offshore adjusted operating income from recurring activities in 3Q 2015.
3. Group
The Group鈥檚 adjusted operating income from recurring activities after income/(loss) of equity affiliates, including Corporate charges of 鈧�16 million, is set out in the following table:
鈧� million听听 听 听听 听3Q 2014听听 听 听听 听3Q 2015听听 听 听听 听Change
Group听听 听 听听 听听听 听 听听 听听听 听 听听 听
Adjusted Revenue听听 听听听 听2,824.7听听 听听听 听3,108.9听听 听听听 听10.1%
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*听听 听听听 听241.5听听 听听听 听292.0听听 听听听 听20.9%
Adjusted Operating Margin听听 听 听听 听8.5%听听 听 听听 听9.4%听听 听 听听 听84bp
* No one-off charge accounted in adjusted operating income from recurring activities in 3Q 2015.
In the third quarter of 2015, compared to a year ago, the estimated translation impact from foreign exchange was a positive 鈧�183 million on adjusted revenue and a positive 鈧�25 million on adjusted operating income from recurring activities after income/(loss) of equity affiliates.
4. Adjusted Non-Current Items and Group Net Income
Adjusted non-current operating items of 鈧�(14) million were booked in the quarter, reflecting the restructuring plan announced on July 6th, taking total one-off charges booked in respect to the plan to 鈧�585 million out of the total estimated charge of 鈧�650 million.
Adjusted financial result in the third quarter of 2015 included mainly 鈧�26 million of interest expense on long and short-term debt and a non-current charge of 鈧�11 million taken against our investment in MHB1.
鈧� million (except Diluted Earnings per Share and Diluted Number of Shares)听听 听 听听 听3Q 2014听听 听 听听 听3Q 2015听听 听 听听 听Change
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*听听 听 听听 听241.5听听 听 听听 听292.0听听 听 听听 听20.9%
Adjusted Non-Current Operating Result听听 听听听 听(33.8)听听 听听听 听(14.0)听听 听听听 听(58.6)%
Adjusted Financial Result听听 听听听 听(19.1)听听 听听听 听(39.2)听听 听听听 听105.2%
Adjusted Income Tax Expense听听 听听听 听(55.4)听听 听听听 听(70.3)听听 听听听 听26.9%
Adjusted Effective Tax Rate听听 听听听 听29.4%听听 听听听 听29.4%听听 听听听 听6bp
Adjusted Non-Controlling Interests听听 听听听 听(1.6)听听 听听听 听(4.6)听听 听听听 听187.5%
Net Income of the Parent Company听听 听听听 听131.6听听 听听听 听163.9听听 听听听 听24.5%
Underlying Net Income听听 听听听 听159.5听听 听听听 听184.3听听 听听听 听15.5%
Diluted Number of Shares听听 听听听 听124,840,404听听 听听听 听125,439,384听听 听听听 听0.5%
Diluted Earnings per Share (鈧�)听听 听 听听 听1.10听听 听 听听 听1.35听听 听 听听 听23.2%
* No one-off charge accounted in adjusted operating income from recurring activities in 3Q 2015.
5. Adjusted Cash Flow and Statement of Consolidated Financial Position
As of September 30, 2015, the adjusted net cash position was 鈧�1,301 million, compared with 鈧�1,415 million as of June 30, 2015.
Adjusted Cash2 as of June 30, 2015听听 听 听听 听 听听 听 听听 听3,976.2
Adjusted Cash Generated from/(used in) Operating Activities听听 听 听听 听 听听 听 听听 听40.3
Adjusted Cash Generated from/(used in) Investing Activities听听 听听听 听听听 听听听 听(69.5)
Adjusted Cash Generated from/(used in) Financing Activities听听 听听听 听听听 听听听 听(1.0)
Adjusted FX Impacts听听 听 听听 听 听听 听 听听 听(143.8)
Adjusted Cash2 as of September 30, 2015听听 听 听听 听 听听 听 听听 听3,802.2
听
Adjusted capital expenditures for the third quarter of 2015 were 鈧�74 million, compared with 鈧�77 million one year ago.
The Group鈥檚 balance sheet remains robust and liquid. Adjusted shareholders鈥� equity of the parent company as of September 30, 2015, was 鈧�4,387 million, compared with 鈧�4,363 million as of December 31, 2014.
1 MHB: Malaysia Marine and Heavy Engineering Holdings Berhad listed in Malaysia on Bursa Malaysia, of which Technip holds 8.5%.
2 Adjusted cash and cash equivalents, including bank overdrafts.
III. 2015 OBJECTIVES: OPERATING PROFIT CONFIRMED, REVENUE INCREASED
Adjusted Subsea revenue over 鈧�5.5 billion, adjusted operating income from recurring activities1 at around 鈧�840 million
Adjusted Onshore/Offshore revenue over 鈧�6 billion, adjusted underlying operating income from recurring activities2 between 鈧�210 and 鈧�230 million
1 Adjusted operating income from recurring activities after Income/(Loss) of Equity Affiliates.
2 Adjusted operating income from recurring activities after Income/(Loss) of Equity Affiliates excluding exceptional items.
掳
掳 掳
The information package on Third Quarter 2015 results includes this press release and the annexes which follow, as well as the presentation published on Technip鈥檚 website: www.technip.com
NOTICE
Today, Thursday, October 29, 2015, Chairman and CEO Thierry Pilenko, along with Group CFO Julian Waldron, will comment on Technip鈥檚 results and answer questions from the financial community during a conference call in English starting at 10:00 a.m. Paris time.
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 43
UK: +44 (0) 203 367 9461
USA: +1 855 402 7762
The conference call will also be available via a simultaneous, listen-only audio-cast on Technip鈥檚 website.
A replay of this conference call will be available approximately two hours following the conference call for three months on Technip鈥檚 website and at the following telephone numbers:
听听听 听 听听 听 听听 听Telephone Numbers听听 听 听听 听 听听 听 听听 听Confirmation Code
France / Continental Europe:听听 听听听 听听听 听听听 听+33 (0) 1 72 00 15 00听听 听听听 听听听 听听听 听296501#
UK:听听 听听听 听听听 听听听 听+44 (0) 203 367 9460听听 听听听 听听听 听听听 听296501#
USA:听听 听听听 听听听 听听听 听+1 877 642 3018听听 听听听 听听听 听听听 听296501#
听
Cautionary note regarding forward-looking statements
This press release 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 鈥渂elieve鈥�, 鈥渁im鈥�, 鈥渆xpect鈥�, 鈥渁nticipate鈥�, 鈥渋ntend鈥�, 鈥渇oresee鈥�, 鈥渓ikely鈥�, 鈥渟hould鈥�, 鈥減lanned鈥�, 鈥渕ay鈥�, 鈥渆stimates鈥�, 鈥減otential鈥� 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 press release 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.
****
掳
掳 掳
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 36,000 people are constantly offering the best solutions and most innovative technologies to meet the world鈥檚 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 Euronext Paris exchange, and its ADR is traded in the US on the OTCQX marketplace as an American Depositary Receipt (OTCQX: TKPPY).
OTC ADR ISIN: US8785462099
OTCQX: TKPPY
ISIN: FR0000131708
ANNEX I (a) 1
ADJUSTED CONSOLIDATED STATEMENT OF INCOME
听听听 听听听 听 听听 听
Third Quarter
Not audited
9 Months
Not audited
鈧� million (except Diluted Earnings per Share and Diluted Number of Shares)听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change
Revenue听听 听 听听 听2,824.7听听 听 听听 听3,108.9听听 听 听听 听10.1%听听 听 听听 听7,908.6听听 听 听听 听9,090.6听听 听 听听 听14.9%
Gross Margin听听 听 听听 听408.2听听 听 听听 听456.8听听 听 听听 听11.9%听听 听 听听 听1,121.6听听 听 听听 听1,059.4听听 听 听听 听(5.5)%
Research & Development Expenses听听 听听听 听(21.2)听听 听 听听 听(19.4)听听 听 听听 听(8.5)%听听 听听听 听(57.2)听听 听 听听 听(61.0)听听 听 听听 听6.6%
SG&A and Other听听 听听听 听(149.4)听听 听听听 听(150.9)听听 听听听 听1.0%听听 听听听 听(475.6)听听 听听听 听(459.8)听听 听听听 听(3.3)%
Share of Income/(Loss) of Equity Affiliates听听 听 听听 听3.9听听 听 听听 听5.5听听 听 听听 听41.0%听听 听 听听 听12.6听听 听 听听 听22.2听听 听 听听 听76.2%
OIFRA after Income/(Loss) of Equity Affiliates听听 听 听听 听241.5听听 听 听听 听292.0听听 听 听听 听20.9%听听 听 听听 听601.4听听 听 听听 听560.8听听 听 听听 听nm
Non-Current Operating Result听听 听听听 听(33.8)听听 听听听 听(14.0)听听 听听听 听(58.6)%听听 听听听 听(40.3)听听 听听听 听(417.8)听听 听听听 听nm
Operating Income听听 听 听听 听207.7听听 听 听听 听278.0听听 听 听听 听33.8%听听 听 听听 听561.1听听 听 听听 听143.0听听 听 听听 听nm
Financial Result听听 听听听 听(19.1)听听 听听听 听(39.2)听听 听听听 听105.2%听听 听听听 听(60.8)听听 听听听 听(106.5)听听 听听听 听75.2%
Income/(Loss) before Tax听听 听 听听 听188.6听听 听 听听 听238.8听听 听 听听 听26.6%听听 听 听听 听500.3听听 听 听听 听36.5听听 听 听听 听nm
Income Tax Expense听听 听听听 听(55.4)听听 听听听 听(70.3)听听 听听听 听26.9%听听 听听听 听(140.9)听听 听听听 听(84.2)听听 听听听 听nm
Non-Controlling Interests听听 听听听 听(1.6)听听 听听听 听(4.6)听听 听听听 听187.5%听听 听听听 听(2.9)听听 听听听 听(9.2)听听 听听听 听nm
Net Income/(Loss) of the Parent Company听听 听 听听 听131.6听听 听 听听 听163.9听听 听 听听 听24.5%听听 听 听听 听356.5听听 听 听听 听(56.9)听听 听 听听 听nm
听听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听听
Diluted Number of Shares2听听 听 听听 听124,840,404听听 听 听听 听125,439,384听听 听 听听 听0.5%听听 听 听听 听125,006,534听听 听 听听 听114,325,725听听 听 听听 听nm
Diluted Earnings per Share (鈧�)听听 听 听听 听1.10听听 听 听听 听1.35听听 听 听听 听23.2%听听 听 听听 听2.98听听 听 听听 听(0.50)听听 听 听听 听nm
1 Note that statements disclosed in annex I(a) and I(c) do not report underlying OIFRA. Please refer to annex V, page 18, for the underlying net income reconciliation.
2 As per IFRS, diluted earnings per share are calculated by dividing profit or loss attributable to the Parent Company鈥檚 Shareholders, restated for 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 bonds, dilutive stock options and performance shares calculated according to the 鈥淪hare Purchase Method鈥� (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. As the Group net income is a loss at 9 months, share subscription options, performance shares and convertible bonds have an anti-dilutive effect.
CONSOLIDATED REVENUE AND NET INCOME
听听听 听 听听 听 听听 听听
Third Quarter
Not audited
听听听 听9 Months
Not audited
鈧� million听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change
Revenue听听 听听听 听2,695.1听听 听 听听 听2,608.6听听 听 听听 听(3.2)%听听 听听听 听7,537.0听听 听 听听 听7,945.0听听 听 听听 听5.4%
Net Income/(Loss) of the Parent Company听听 听 听听 听131.6听听 听 听听 听163.9听听 听 听听 听24.5%听听 听 听听 听356.5听听 听 听听 听(56.9)听听 听 听听 听nm
听
ANNEX I (b)
FOREIGN CURRENCY CONVERSION RATES
听听听 听 听听 听 听听 听听
Closing Rate as of听听 听 听听 听Average Rate of
听听听 听 听听 听Dec. 31, 2014听听 听 听听 听Sep. 30, 2015听听 听 听听 听3Q 2014听听 听 听听 听3Q 2015听听 听 听听 听9M 2014听听 听 听听 听9M 2015
USD for 1 EUR听听 听 听听 听1.21听听 听 听听 听1.12听听 听 听听 听1.33听听 听 听听 听1.11听听 听 听听 听1.36听听 听 听听 听1.11
GBP for 1 EUR听听 听 听听 听0.78听听 听 听听 听0.74听听 听 听听 听0.79听听 听 听听 听0.72听听 听 听听 听0.81听听 听 听听 听0.73
BRL for 1 EUR听听 听 听听 听3.22听听 听 听听 听4.48听听 听 听听 听3.01听听 听 听听 听3.94听听 听 听听 听3.10听听 听 听听 听3.52
NOK for 1 EUR听听 听 听听 听9.04听听 听 听听 听9.52听听 听 听听 听8.27听听 听 听听 听9.14听听 听 听听 听8.28听听 听 听听 听8.81
听听听 听听听 听听听 听听听 听 听听 听听听 听 听听 听听听 听 听听 听
ANNEX I (c) 1
ADJUSTED ADDITIONAL INFORMATION BY BUSINESS SEGMENT
听听听 听 听听 听 听听 听听
Third Quarter
Not audited
听听听 听9 Months
Not audited
鈧� million听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change
SUBSEA
听听听 听听听 听 听听 听听听 听听听 听听听 听 听听 听听听 听 听听 听
Revenue听听 听听听 听1,348.3听听 听听听 听1,547.0听听 听听听 听14.7%听听 听听听 听3,590.1听听 听听听 听4,388.4听听 听听听 听22.2%
Gross Margin听听 听听听 听255.3听听 听听听 听301.0听听 听听听 听17.9%听听 听听听 听638.0听听 听听听 听841.3听听 听听听 听31.9%
OIFRA after Income/(Loss) of Equity Affiliates听听 听听听 听193.0听听 听听听 听232.0听听 听听听 听20.2%听听 听听听 听437.2听听 听听听 听647.5听听 听听听 听48.1%
Operating Margin听听 听听听 听14.3%听听 听听听 听15.0%听听 听听听 听68bp听听 听听听 听12.2%听听 听听听 听14.8%听听 听听听 听258bp
Depreciation and Amortization听听 听听听 听(53.5)听听 听听听 听(70.4)听听 听听听 听31.6%听听 听听听 听(159.5)听听 听听听 听(194.1)听听 听听听 听21.7%
EBITDA听听 听听听 听246.5听听 听听听 听302.4听听 听听听 听22.7%听听 听听听 听596.7听听 听听听 听841.6听听 听听听 听41.0%
EBITDA Margin听听 听 听听 听18.3%听听 听 听听 听19.5%听听 听 听听 听127bp听听 听 听听 听16.6%听听 听 听听 听19.2%听听 听 听听 听256bp
ONSHORE/OFFSHORE
Revenue听听 听听听 听1,476.4听听 听听听 听1,561.9听听 听听听 听5.8%听听 听听听 听4,318.5听听 听听听 听4,702.2听听 听听听 听8.9%
Gross Margin听听 听听听 听152.9听听 听听听 听155.8听听 听听听 听1.9%听听 听听听 听483.6听听 听听听 听218.1听听 听听听 听nm
OIFRA after Income/(Loss) of Equity Affiliates听听 听听听 听69.6听听 听听听 听75.5听听 听听听 听8.5%听听 听听听 听228.3听听 听听听 听(32.2)听听 听听听 听nm
Operating Margin听听 听听听 听4.7%听听 听听听 听4.8%听听 听听听 听12bp听听 听听听 听5.3%听听 听听听 听(0.7)%听听 听听听 听nm
Depreciation and Amortization听听 听 听听 听(10.1)听听 听 听听 听(9.4)听听 听 听听 听(6.9)%听听 听 听听 听(27.8)听听 听 听听 听(29.2)听听 听 听听 听5.0%
CORPORATE
OIFRA after Income/(Loss) of Equity Affiliates听听 听听听 听(21.1)听听 听听听 听(15.5)听听 听听听 听(26.5)%听听 听听听 听(64.1)听听 听听听 听(54.5)听听 听听听 听(15.0)%
Depreciation and Amortization听听 听 听听 听-听听 听 听听 听-听听 听 听听 听-听听 听 听听 听-听听 听 听听 听-听听 听 听听 听-
1 Note that statements disclosed in annex I(a) and I(c) do not report underlying OIFRA. Please refer to annex V, page 18, for the underlying net income reconciliation.
ANNEX I (d)
ADJUSTED REVENUE BY GEOGRAPHICAL AREA
听听听 听 听听 听 听听 听听
Third Quarter
Not audited
听听听 听9 Months
Not audited
鈧� million听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change听听 听 听听 听2014听听 听 听听 听2015听听 听 听听 听Change
Europe, Russia, Central Asia听听 听 听听 听837.6听听 听 听听 听1,202.9听听 听 听听 听43.6%听听 听 听听 听2,547.2听听 听 听听 听3,385.6听听 听 听听 听32.9%
Africa听听 听 听听 听335.5听听 听 听听 听428.2听听 听 听听 听27.6%听听 听 听听 听815.2听听 听 听听 听1,371.9听听 听 听听 听68.3%
Middle East听听 听 听听 听290.3听听 听 听听 听193.0听听 听 听听 听(33.5)%听听 听 听听 听945.2听听 听 听听 听698.2听听 听 听听 听(26.1)%
Asia Pacific听听 听 听听 听543.5听听 听 听听 听581.6听听 听 听听 听7.0%听听 听 听听 听1,455.5听听 听 听听 听1,540.5听听 听 听听 听5.8%
Americas听听 听 听听 听817.8听听 听 听听 听703.2听听 听 听听 听(14.0)%听听 听 听听 听2,145.5听听 听 听听 听2,094.4听听 听 听听 听(2.4)%
TOTAL听听 听 听听 听2,824.7听听 听 听听 听3,108.9听听 听 听听 听10.1%听听 听 听听 听7,908.6听听 听 听听 听9,090.6听听 听 听听 听14.9%
听听听 听听听 听 听听 听听听 听听听 听听听 听 听听 听听听 听 听听 听
ANNEX II
ADJUSTED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
听听听 听听听 听 听听 听
Dec. 31, 2014
Audited
Sep. 30, 2015
Not audited
鈧� million听听 听 听听 听听
Fixed Assets听听 听听听 听6,414.2听听 听听听 听6,442.0
Deferred Tax Assets听听 听 听听 听391.0听听 听 听听 听454.8
Non-Current Assets听听 听 听听 听6,805.2听听 听 听听 听6,896.8
Construction Contracts 鈥� Amounts in Assets听听 听听听 听756.3听听 听听听 听973.1
Inventories, Trade Receivables and Other听听 听听听 听3,297.0听听 听听听 听3,458.2
Cash & Cash Equivalents听听 听 听听 听3,738.3听听 听 听听 听3,802.2
Current Assets听听 听 听听 听7,791.6听听 听 听听 听8,233.5
Assets Classified as Held for Sale听听 听 听听 听3.2听听 听 听听 听27.7
Total Assets听听 听 听听 听14,600.0听听 听 听听 听15,158.0
听听听 听 听听 听 听听 听 听听 听听
Shareholders鈥� Equity (Parent Company)听听 听听听 听4,363.4听听 听听听 听4,386.6
Non-Controlling Interests听听 听 听听 听11.8听听 听 听听 听16.7
Shareholders鈥� Equity听听 听 听听 听4,375.2听听 听 听听 听4,403.3
Non-Current Financial Debts听听 听听听 听2,356.6听听 听听听 听1,637.4
Non-Current Provisions听听 听听听 听232.9听听 听听听 听243.4
Deferred Tax Liabilities and Other Non-Current Liabilities听听 听 听听 听249.1听听 听 听听 听249.4
Non-Current Liabilities听听 听 听听 听2,838.6听听 听 听听 听2,130.2
Current Financial Debts听听 听听听 听256.4听听 听听听 听864.0
Current Provisions听听 听听听 听328.3听听 听听听 听399.9
Construction Contracts 鈥� Amounts in Liabilities听听 听听听 听2,258.2听听 听听听 听1,954.8
Trade Payables & Other听听 听 听听 听4,543.3听听 听 听听 听5,405.8
Current Liabilities听听 听 听听 听7,386.2听听 听 听听 听8,624.5
Total Shareholders鈥� Equity & Liabilities听听 听 听听 听14,600.0听听 听 听听 听15,158.0
听听听 听 听听 听 听听 听 听听 听听
Net Cash Position听听 听 听听 听1,125.3听听 听 听听 听1,300.8
听
Adjusted Statement of Changes in Shareholders鈥� Equity (Parent Company)
Not audited (鈧� million):
Shareholders鈥� Equity as of December 31, 2014听听 听4,363.4
Net Income听听 听(56.9)
Other Comprehensive Income听听 听121.4
Capital Increase听听 听158.2
Treasury Shares听听 听3.7
Dividends Paid听听 听(225.8)
Other听听 听22.6
Shareholders鈥� Equity as of September 30, 2015听听 听4,386.6
听
ANNEX III (a)
ADJUSTED CONSOLIDATED STATEMENT OF CASH FLOWS
听听听 听
9 Months
Not audited
鈧� million听听 听 听听 听2014听听 听 听听 听2015
Net Income/(Loss) of the Parent Company听听 听听听 听356.5听听 听 听听 听听听 听 听听 听(56.9)听听 听 听听 听
Depreciation & Amortization of Fixed Assets听听 听听听 听187.3听听 听听听 听听听 听听听 听266.1听听 听听听 听
Stock Options and Performance Share Charges听听 听听听 听29.1听听 听听听 听听听 听听听 听19.9听听 听听听 听
Non-Current Provisions (including Employee Benefits)听听 听听听 听14.6听听 听听听 听听听 听听听 听145.3听听 听听听 听
Deferred Income Tax听听 听听听 听25.3听听 听听听 听听听 听听听 听(72.8)听听 听听听 听
Net (Gains)/Losses on Disposal of Assets and Investments听听 听听听 听6.8听听 听听听 听听听 听听听 听(28.3)听听 听听听 听
Non-Controlling Interests and Other听听 听听听 听15.6听听 听听听 听听听 听听听 听13.4听听 听听听 听
听
Cash Generated from/(used in) Operations听听 听听听 听635.2听听 听听听 听听听 听听听 听286.7听听 听听听 听
听
Change in Working Capital Requirements听听 听听听 听(225.8)听听 听听听 听听听 听听听 听123.0听听 听听听 听
听
Net Cash Generated from/(used in) Operating Activities听听 听听听 听听听 听听听 听409.4听听 听听听 听听听 听听听 听409.7
听听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听听
Capital Expenditures听听 听听听 听(263.0)听听 听听听 听听听 听听听 听(218.2)听听 听听听 听
Proceeds from Non-Current Asset Disposals听听 听听听 听29.6听听 听听听 听听听 听听听 听5.2听听 听听听 听
Acquisitions of Financial Assets听听 听听听 听(35.6)听听 听听听 听听听 听听听 听(2.3)听听 听听听 听
Acquisition Costs of Consolidated Companies, Net of Cash Acquired听听 听听听 听(5.9)听听 听听听 听听听 听听听 听(31.7)听听 听听听 听
听
Net Cash Generated from/(used in) Investing Activities听听 听听听 听听听 听听听 听(274.9)听听 听听听 听听听 听听听 听(247.0)
听听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听听
Net Increase/(Decrease) in Borrowings听听 听听听 听185.2听听 听听听 听听听 听听听 听(102.7)听听 听听听 听
Capital Increase听听 听听听 听11.5听听 听听听 听听听 听听听 听21.3听听 听听听 听
Dividends Paid听听 听听听 听(206.5)听听 听听听 听听听 听听听 听(88.9)听听 听听听 听
Share Buy-Back and Other听听 听听听 听(41.8)听听 听听听 听听听 听听听 听(5.8)听听 听听听 听
听
Net Cash Generated from/(used in) Financing Activities听听 听听听 听听听 听听听 听(51.6)听听 听听听 听听听 听听听 听(176.1)
听听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听听
Net Effects of Foreign Exchange Rate Changes听听 听听听 听听听 听听听 听99.1听听 听听听 听听听 听听听 听78.2
听
Net Increase/(Decrease) in Cash and Cash Equivalents听听 听听听 听听听 听听听 听182.0听听 听听听 听听听 听听听 听64.8
听听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听 听听 听听
Bank Overdrafts at Period Beginning听听 听听听 听(2.4)听听 听听听 听听听 听听听 听(0.9)听听 听听听 听
Cash and Cash Equivalents at Period Beginning听听 听听听 听3,205.4听听 听听听 听听听 听听听 听3,738.3听听 听听听 听
Bank Overdrafts at Period End听听 听听听 听(2.4)听听 听听听 听听听 听听听 听-听听 听听听 听
Cash and Cash Equivalents at Period End听听 听听听 听3,387.4听听 听听听 听听听 听听听 听3,802.2听听 听听听 听
182.0听听 听听听 听听听 听听听 听64.8
听
ANNEX III (b)
ADJUSTED CASH & FINANCIAL DEBTS
听听听 听听听 听 听听 听
鈧� million听听 听 听听 听Dec. 31, 2014
Audited
听听听 听Sep. 30, 2015
Not audited
Cash Equivalents听听 听听听 听1,809.4听听 听听听 听1,968.4
Cash听听 听听听 听1,928.9听听 听听听 听1,833.8
Cash & Cash Equivalents (A)听听 听 听听 听3,738.3听听 听 听听 听3,802.2
Current Financial Debts听听 听听听 听256.4听听 听听听 听864.0
Non-Current Financial Debts听听 听听听 听2,356.6听听 听听听 听1,637.4
Gross Debt (B)听听 听 听听 听2,613.0听听 听 听听 听2,501.4
Net Cash Position (A 鈥� B)听听 听 听听 听1,125.3听听 听 听听 听1,300.8
听
ANNEX IV (a)
BACKLOG BY BUSINESS SEGMENT
听听听 听听听 听 听听 听听听 听 听听 听
鈧� million听听 听 听听 听As of
Dec. 31, 2014
Audited
听听听 听As of
Sep. 30, 2015
Not audited
听听听 听Change
Subsea听听 听听听 听9,727.8听听 听听听 听8,422.0听听 听听听 听(13.4)%
Onshore/Offshore听听 听听听 听11,208.4听听 听听听 听9,036.9听听 听听听 听(19.4)%
Total听听 听 听听 听20,936.2听听 听 听听 听17,458.9听听 听 听听 听(16.6)%
听
ANNEX IV (b)
CONTRACT AWARDS
Not audited
The main contracts we announced during third quarter 2015 were the following:
Subsea Segment:
Engineering, procurement, construction, installation and commissioning contract for the tie-in of PETRONAS first Floating Liquefied Natural Gas (PFLNG1) facility to KAKG-A platform, covering the procurement and installation of a 3.2-kilometer flexible flowline from the existing KAKG-A central processing platform in Kanowit field to the PFLNG1 riser: PETRONAS Carigali, Kanowit field, 200 kilometers offshore Bintulu, East Malaysia,
Engineering, procurement, installation and commissioning contract for D18 Project, part of the five-year Framework Agreement signed with PETRONAS in late 2014. The project covers the procurement and installation of two 8鈥欌�� water injection flexible pipes totaling 9.5 kilometers: PETRONAS Carigali Sdn Bhd (PCSB), East Malaysia.
Onshore/Offshore Segment:
Browse floating liquefied natural gas (FLNG) project, which covers the realization and installation of three FLNG units. The contract awarded covers the front-end engineering design (FEED) elements of the Browse FLNG project. A second contract covering the engineering, procurement, construction and installation, awarded to Technip Samsung Consortium, is subject to a final investment decision by the client: Shell Gas & Power Developments BV & Woodside Energy Limited, Brecknock, Calliance and Torosa fields in the Browse Basin, 425 kilometers North of Broome, Western Australia,
Project Management Consultancy (PMC) contract for a project designed to transport gas from the Shah Deniz field to the European market. The services will include the overall project and site management, procurement and subcontracting for all the EPC packages throughout the engineering, procurement and construction phases, as well as warranty management and project close-out: Trans Adriatic Pipeline (TAP) AG, Italy, Albania and Greece,
Contract for a project to modernize and expand the MIDOR refinery, aiming at improving the production quality of the plant, considered the most advanced on the African continent: Midor (Middle East Oil Refinery), near Alexandria, Egypt,
Contract for the modernization project of the Assiut refinery, designed to refine the 鈥渂ottom of the barrel鈥� and aiming at maximizing diesel production: Egyptian General Petroleum Corporation (EGPC) and Assiut Oil Refining Company (ASORC), Upper Egypt,
Important contract covering the engineering, procurement and construction (EPC) of a new Polyethylene Plant (PE3). Based on INEOS technology, the new unit will have a capacity of 270,000 t/y of high density polyethylene: Unipetrol, Czech Republic.
Since September 30, 2015, Technip has also announced the award of the following contracts, which were included in the backlog as of September 30, 2015:
Subsea Segment:
Supply contract to the Block 15/06 East Hub Development at a water depth of 450-600 meters, covering 15 kilometers of dynamic and static steel tube umbilicals: ENI S.p.A., 350 kilometers north of Luanda, Angola,
Contract for the development of subsea infrastructure for the Stones project, including two subsea production tie-backs to the Floating Production, Storage and Offloading (FPSO) vessel: Shell Offshore Inc., Walker Ridge area, US Gulf of Mexico,
Important contract covering the engineering, procurement, fabrication, installation and commissioning of three flexible pipes totaling 9.9 kilometers. The flexible pipes consist of two production risers and flowlines and one gas export riser and flowline, connecting shallow water platforms to a new FPSO in the Layang Field: JX Nippon Oil and Gas Exploration Ltd, offshore Sarawak, Malaysia.
Onshore/Offshore Segment:
Contract to supply three hydrogen reformers as part of the hydrogen production facility at PETRONAS鈥� Refinery and Petrochemical Integrated Development (RAPID) project: PETRONAS, state of Johor, Malaysia,
Contract to supply proprietary ethylene technology and Process Design Package (PDP) for a 1,000 KTA grassroots ethane cracker for which a final investment decision by client expected in 2016 or 2017: PTTGC America LLC (PTTGCA), a subsidiary of PTT Global Chemical Thailand鈥檚 largest integrated petrochemical and refining company, the cracker will be located in Belmont County, Ohio, USA.
Since September 30, 2015, Technip has also announced the award of the following contract, which was not included in the backlog as of September 30, 2015:
Subsea Segment:
Substantial contract covering the supply of high-end flexible pipes for the Libra Extended Well Test field including: 8" oil production, 6" service and 6" gas injection flexible pipes. This project is one of the first steps of the Libra giant field development. The highly technological flexible pipes will be produced at Technip's manufacturing sites in Vitoria and A莽u, Brazil: Libra Oil & Gas BV, a consortium led by Petrobras Netherland BV (PNBV, 40%) and partners: Shell (20%), Total (20%), CNOOC (10%) and CNPC (10%), located in the Santos Basin pre-salt area, Brazil.
ANNEX V
UNDERLYING NET INCOME RECONCILIATION
Not audited
听听听 听听听 听 听听 听
鈧� million听听 听听听 听Third Quarter听听 听听听 听9 Months
2015听听 听 听听 听2015
听听听 听听听 听 听听 听 听听 听听
Net Income of the Parent Company听听 听听听 听163.9听听 听 听听 听(56.9)
One-off charges in OIFRA听听 听听听 听-听听 听听听 听184.4
Charges from Non-Current Activities听听 听听听 听14.4听听 听听听 听400.4
Other听听 听听听 听(0.4)听听 听听听 听17.4
Taxes & Financial Result听听 听听听 听6.4听听 听 听听 听(70.0)
Underlying Net Income听听 听听听 听184.3听听 听 听听 听475.3
听
Contacts
Analyst and Investor Relations
Kimberly Stewart, +33 (0) 1 47 78 66 74
kstewart@technip.com
or
Aur茅lia Baudey-Vignaud, +33 (0) 1 85 67 43 81
abaudeyvignaud@technip.com
or
Mich猫le Schant茅, +33 (0) 1 47 78 67 32
mschante@technip.com
or
Public Relations
Laure Montcel, +33 (0)1 49 01 87 81
Delphine Nayra, +33 (0)1 47 78 34 83
press@technip.com
or
Technip鈥檚 website http://www.technip.com
Technip鈥檚 IR website http://investors-en.technip.com
Technip鈥檚 IR mobile website http://investors.mobi-en.technip.com