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PARIS--(BUSINESS WIRE)--
Regulatory News:
On October 27, 2015, Technip’s (Paris:TEC) (ISIN:FR0000131708)
(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’s fourth quarter
and full year 2014 results press release. These results reflect the
financial reporting framework used for management purposes.
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€ million
(except Diluted Earnings per Share)
|
|
3Q 14
|
|
3Q 15
|
|
Change
|
|
9M 14
|
|
9M 15
|
|
Change
|
|
Adjusted Revenue
|
|
2,824.7
|
|
3,108.9
|
|
10.1%
|
|
7,908.6
|
|
9,090.6
|
|
14.9%
|
|
Adjusted Underlying EBITDA1 |
|
305.1
|
|
371.8
|
|
21.9%
|
|
788.7
|
|
968.5
|
|
22.8%
|
|
Adjusted Underlying EBITDA Margin
|
|
10.8%
|
|
12.0%
|
|
116bp
|
|
10.0%
|
|
10.7%
|
|
68bp
|
|
Adjusted Underlying OIFRA2 |
|
241.5
|
|
292.0
|
|
20.9%
|
|
601.4
|
|
745.2
|
|
23.9%
|
|
Adjusted Underlying Operating Margin3 |
|
8.5%
|
|
9.4%
|
|
84bp
|
|
7.6%
|
|
8.2%
|
|
59bp
|
|
One-off Charge
|
|
-
|
|
(14.4)
|
|
nm
|
|
-
|
|
(584.8)
|
|
nm
|
|
Other including Tax and Financial Effects
|
|
(27.9)
|
|
(6.0)
|
|
nm
|
|
(35.8)
|
|
52.6
|
|
nm
|
|
Underlying Net Income4 |
|
159.5
|
|
184.3
|
|
15.5%
|
|
392.3
|
|
475.3
|
|
21.2%
|
|
Adjusted OIFRA5 |
|
241.5
|
|
292.0
|
|
20.9%
|
|
601.4
|
|
560.8
|
|
nm
|
|
Net Income of the Parent Company
|
|
131.6
|
|
163.9
|
|
24.5%
|
|
356.5
|
|
(56.9)
|
|
nm
|
|
Diluted Earnings per Share (€)
|
|
1.10
|
|
1.35
|
|
23.2%
|
|
2.98
|
|
(0.50)
|
|
nm
|
|
Order Intake
|
|
2,211
|
|
1,746
|
|
|
|
12,069
|
|
4,757
|
|
|
|
Backlog
|
|
19,306
|
|
17,459
|
|
|
|
19,306
|
|
17,459
|
|
|
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: “Technip’s 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 €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 €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’s yard for the SK316 and Malikai
projects. Order intake was better than one year ago in the segment at
€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’s leadership position in the industry.”
I. ORDER INTAKE AND BACKLOG
1. Third Quarter 2015 Order Intake
During third quarter 2015, Technip’s order intake was €1.7
billion. The breakdown by business segment was as follows:
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Order Intake1(€ million)
|
|
|
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3Q 2014
|
|
|
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3Q 2015
|
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Subsea
|
|
|
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1,272
|
|
|
|
530
|
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Onshore/Offshore
|
|
|
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939
|
|
|
|
1,216
|
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Total
|
|
|
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2,211
|
|
|
|
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 Açu 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’s 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’s backlog was €17.5
billion, compared with €18.8 billion at the end of second quarter 2015
and €19.3 billion at the end of third quarter 2014.
The geographic split of the backlog is set out in the table below:
|
Backlog1 (€ million)
|
|
June 30, 2015
|
|
September 30,
2015
|
|
Change
|
|
Europe, Russia, Central Asia
|
|
7,764
|
|
7,411
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(4.5)%
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Africa
|
|
3,535
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|
3,303
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(6.6)%
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Middle East
|
|
1,031
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|
896
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(13.1)%
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Asia Pacific
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2,511
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|
2,000
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|
(20.4)%
|
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Americas
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3,983
|
|
3,849
|
|
(3.4)%
|
|
Total
|
|
18,824
|
|
17,459
|
|
(7.3)%
|
|
|
|
|
|
|
|
|
3. Backlog Scheduling
|
Estimated Scheduling
as of September 30, 2015 (€ million)
|
|
Subsea
|
|
Onshore/Offshore
|
|
Group
|
|
2015 (3 months)
|
|
1,301
|
|
1,476
|
|
2,777
|
|
2016
|
|
4,231
|
|
4,422
|
|
8,653
|
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2017 and beyond
|
|
2,890
|
|
3,139
|
|
6,029
|
|
Total
|
|
8,422
|
|
9,037
|
|
17,459
|
|
|
|
|
|
|
|
|
1 Backlog includes all projects whose revenues are
consolidated in our adjusted financial statements.
II. THIRD QUARTER 2015 OPERATIONAL & FINANCIAL HIGHLIGHTS – 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, Sapinhoá
& Lula Nordeste and Sapinhoá Norte at our manufacturing plants in
Vitoria and Açu.
-
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 Åsgard 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:
|
€ million
|
|
3Q 2014
|
|
3Q 2015
|
|
Change
|
|
Subsea
|
|
|
|
|
|
|
|
Adjusted Revenue
|
|
1,348.3
|
|
1,547.0
|
|
14.7%
|
|
Adjusted EBITDA
|
|
246.5
|
|
302.4
|
|
22.7%
|
|
Adjusted EBITDA Margin
|
|
18.3%
|
|
19.5%
|
|
127bp
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*
|
|
193.0
|
|
232.0
|
|
20.2%
|
|
Adjusted Operating Margin
|
|
14.3%
|
|
15.0%
|
|
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 –
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’s 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:
|
€ million
|
|
3Q 2014
|
|
3Q 2015
|
|
Change
|
|
Onshore/Offshore
|
|
|
|
|
|
|
|
Adjusted Revenue
|
|
1,476.4
|
|
1,561.9
|
|
5.8%
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*
|
|
69.6
|
|
75.5
|
|
8.5%
|
|
Adjusted Operating Margin
|
|
4.7%
|
|
4.8%
|
|
12bp
|
* No one-off charge accounted in Onshore/Offshore adjusted operating
income from recurring activities in 3Q 2015.
3. Group
The Group’s adjusted operating income from recurring activities after
income/(loss) of equity affiliates, including Corporate charges of
€16 million, is set out in the following table:
|
€ million
|
|
3Q 2014
|
|
3Q 2015
|
|
Change
|
|
Group
|
|
|
|
|
|
|
|
Adjusted Revenue
|
|
2,824.7
|
|
3,108.9
|
|
10.1%
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*
|
|
241.5
|
|
292.0
|
|
20.9%
|
|
Adjusted Operating Margin
|
|
8.5%
|
|
9.4%
|
|
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 €183
million on adjusted revenue and a positive €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 €(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 €585
million out of the total estimated charge of €650 million.
Adjusted financial result in the third quarter of 2015 included
mainly €26 million of interest expense on long and short-term debt and a
non-current charge of €11 million taken against our investment in MHB1.
|
€ million (except Diluted Earnings per Share and Diluted Number of
Shares)
|
|
3Q 2014
|
|
3Q 2015
|
|
Change
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates*
|
|
241.5
|
|
292.0
|
|
20.9%
|
|
Adjusted Non-Current Operating Result
|
|
(33.8)
|
|
(14.0)
|
|
(58.6)%
|
|
Adjusted Financial Result
|
|
(19.1)
|
|
(39.2)
|
|
105.2%
|
|
Adjusted Income Tax Expense
|
|
(55.4)
|
|
(70.3)
|
|
26.9%
|
|
Adjusted Effective Tax Rate
|
|
29.4%
|
|
29.4%
|
|
6bp
|
|
Adjusted Non-Controlling Interests
|
|
(1.6)
|
|
(4.6)
|
|
187.5%
|
|
Net Income of the Parent Company
|
|
131.6
|
|
163.9
|
|
24.5%
|
|
Underlying Net Income
|
|
159.5
|
|
184.3
|
|
15.5%
|
|
Diluted Number of Shares
|
|
124,840,404
|
|
125,439,384
|
|
0.5%
|
|
Diluted Earnings per Share (€)
|
|
1.10
|
|
1.35
|
|
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
€1,301 million, compared with €1,415 million as of June 30, 2015.
|
Adjusted Cash2 as of June 30, 2015
|
|
|
|
3,976.2
|
|
Adjusted Cash Generated from/(used in) Operating Activities
|
|
|
|
40.3
|
|
Adjusted Cash Generated from/(used in) Investing Activities
|
|
|
|
(69.5)
|
|
Adjusted Cash Generated from/(used in) Financing Activities
|
|
|
|
(1.0)
|
|
Adjusted FX Impacts
|
|
|
|
(143.8)
|
|
Adjusted Cash2 as of September 30, 2015
|
|
|
|
3,802.2
|
|
|
|
|
|
|
Adjusted capital expenditures for the third quarter of
2015 were €74 million, compared with €77 million one year ago.
The Group’s balance sheet remains robust and liquid. Adjusted shareholders’
equity of the parent company as of September 30, 2015, was
€4,387 million, compared with €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 €5.5 billion, adjusted operating
income from recurring activities1 at around
€840 million
-
Adjusted Onshore/Offshore revenue over €6 billion, adjusted
underlying operating income from recurring activities2
between €210 and €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.
°
° °
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’s 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’s 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’s website.
A replay of this conference call will be available approximately two
hours following the conference call for three months on Technip’s
website and at the following telephone numbers:
|
|
|
|
|
Telephone Numbers
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|
|
|
Confirmation Code
|
|
France / Continental Europe:
|
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|
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+33 (0) 1 72 00 15 00
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|
|
|
296501#
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UK:
|
|
|
|
+44 (0) 203 367 9460
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|
|
|
296501#
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|
USA:
|
|
|
|
+1 877 642 3018
|
|
|
|
296501#
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|
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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 “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 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.
****
°
° °
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’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 Euronext Paris exchange, and its ADR is
traded in the US on the OTCQX marketplace as an American Depositary
Receipt (TKPPY).
OTC ADR ISIN: US8785462099
OTCQX: TKPPY
ISIN: FR0000131708
|
ANNEX I (a) 1
ADJUSTED CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
|
|
Third Quarter
Not audited
|
|
9 Months
Not audited
|
|
€ million (except Diluted Earnings per Share and Diluted Number of
Shares)
|
|
2014
|
|
2015
|
|
Change
|
|
2014
|
|
2015
|
|
Change
|
|
Revenue
|
|
2,824.7
|
|
3,108.9
|
|
10.1%
|
|
7,908.6
|
|
9,090.6
|
|
14.9%
|
|
Gross Margin
|
|
408.2
|
|
456.8
|
|
11.9%
|
|
1,121.6
|
|
1,059.4
|
|
(5.5)%
|
|
Research & Development Expenses
|
|
(21.2)
|
|
(19.4)
|
|
(8.5)%
|
|
(57.2)
|
|
(61.0)
|
|
6.6%
|
|
SG&A and Other
|
|
(149.4)
|
|
(150.9)
|
|
1.0%
|
|
(475.6)
|
|
(459.8)
|
|
(3.3)%
|
|
Share of Income/(Loss) of Equity Affiliates
|
|
3.9
|
|
5.5
|
|
41.0%
|
|
12.6
|
|
22.2
|
|
76.2%
|
|
OIFRA after Income/(Loss) of Equity Affiliates
|
|
241.5
|
|
292.0
|
|
20.9%
|
|
601.4
|
|
560.8
|
|
nm
|
|
Non-Current Operating Result
|
|
(33.8)
|
|
(14.0)
|
|
(58.6)%
|
|
(40.3)
|
|
(417.8)
|
|
nm
|
|
Operating Income
|
|
207.7
|
|
278.0
|
|
33.8%
|
|
561.1
|
|
143.0
|
|
nm
|
|
Financial Result
|
|
(19.1)
|
|
(39.2)
|
|
105.2%
|
|
(60.8)
|
|
(106.5)
|
|
75.2%
|
|
Income/(Loss) before Tax
|
|
188.6
|
|
238.8
|
|
26.6%
|
|
500.3
|
|
36.5
|
|
nm
|
|
Income Tax Expense
|
|
(55.4)
|
|
(70.3)
|
|
26.9%
|
|
(140.9)
|
|
(84.2)
|
|
nm
|
|
Non-Controlling Interests
|
|
(1.6)
|
|
(4.6)
|
|
187.5%
|
|
(2.9)
|
|
(9.2)
|
|
nm
|
|
Net Income/(Loss) of the Parent Company
|
|
131.6
|
|
163.9
|
|
24.5%
|
|
356.5
|
|
(56.9)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Number of Shares2 |
|
124,840,404
|
|
125,439,384
|
|
0.5%
|
|
125,006,534
|
|
114,325,725
|
|
nm
|
|
Diluted Earnings per Share (€)
|
|
1.10
|
|
1.35
|
|
23.2%
|
|
2.98
|
|
(0.50)
|
|
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’s 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 “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. 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
|
|
|
|
|
|
|
|
|
|
Third Quarter
Not audited
|
|
9 Months
Not audited
|
|
€ million
|
|
2014
|
|
2015
|
|
Change
|
|
2014
|
|
2015
|
|
Change
|
|
Revenue
|
|
2,695.1
|
|
2,608.6
|
|
(3.2)%
|
|
7,537.0
|
|
7,945.0
|
|
5.4%
|
|
Net Income/(Loss) of the Parent Company
|
|
131.6
|
|
163.9
|
|
24.5%
|
|
356.5
|
|
(56.9)
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNEX I (b)
FOREIGN CURRENCY CONVERSION RATES
|
|
|
|
|
|
|
|
|
|
Closing Rate as of
|
|
Average Rate of
|
|
|
|
Dec. 31, 2014
|
|
Sep. 30, 2015
|
|
3Q 2014
|
|
3Q 2015
|
|
9M 2014
|
|
9M 2015
|
|
USD for 1 EUR
|
|
1.21
|
|
1.12
|
|
1.33
|
|
1.11
|
|
1.36
|
|
1.11
|
|
GBP for 1 EUR
|
|
0.78
|
|
0.74
|
|
0.79
|
|
0.72
|
|
0.81
|
|
0.73
|
|
BRL for 1 EUR
|
|
3.22
|
|
4.48
|
|
3.01
|
|
3.94
|
|
3.10
|
|
3.52
|
|
NOK for 1 EUR
|
|
9.04
|
|
9.52
|
|
8.27
|
|
9.14
|
|
8.28
|
|
8.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNEX I (c) 1
ADJUSTED ADDITIONAL INFORMATION BY BUSINESS SEGMENT
|
|
|
|
|
|
|
|
|
|
Third Quarter
Not audited
|
|
9 Months
Not audited
|
|
€ million
|
|
2014
|
|
2015
|
|
Change
|
|
2014
|
|
2015
|
|
Change
|
|
SUBSEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,348.3
|
|
1,547.0
|
|
14.7%
|
|
3,590.1
|
|
4,388.4
|
|
22.2%
|
|
Gross Margin
|
|
255.3
|
|
301.0
|
|
17.9%
|
|
638.0
|
|
841.3
|
|
31.9%
|
|
OIFRA after Income/(Loss) of Equity Affiliates
|
|
193.0
|
|
232.0
|
|
20.2%
|
|
437.2
|
|
647.5
|
|
48.1%
|
|
Operating Margin
|
|
14.3%
|
|
15.0%
|
|
68bp
|
|
12.2%
|
|
14.8%
|
|
258bp
|
|
Depreciation and Amortization
|
|
(53.5)
|
|
(70.4)
|
|
31.6%
|
|
(159.5)
|
|
(194.1)
|
|
21.7%
|
|
EBITDA
|
|
246.5
|
|
302.4
|
|
22.7%
|
|
596.7
|
|
841.6
|
|
41.0%
|
|
EBITDA Margin
|
|
18.3%
|
|
19.5%
|
|
127bp
|
|
16.6%
|
|
19.2%
|
|
256bp
|
|
ONSHORE/OFFSHORE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,476.4
|
|
1,561.9
|
|
5.8%
|
|
4,318.5
|
|
4,702.2
|
|
8.9%
|
|
Gross Margin
|
|
152.9
|
|
155.8
|
|
1.9%
|
|
483.6
|
|
218.1
|
|
nm
|
|
OIFRA after Income/(Loss) of Equity Affiliates
|
|
69.6
|
|
75.5
|
|
8.5%
|
|
228.3
|
|
(32.2)
|
|
nm
|
|
Operating Margin
|
|
4.7%
|
|
4.8%
|
|
12bp
|
|
5.3%
|
|
(0.7)%
|
|
nm
|
|
Depreciation and Amortization
|
|
(10.1)
|
|
(9.4)
|
|
(6.9)%
|
|
(27.8)
|
|
(29.2)
|
|
5.0%
|
|
CORPORATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIFRA after Income/(Loss) of Equity Affiliates
|
|
(21.1)
|
|
(15.5)
|
|
(26.5)%
|
|
(64.1)
|
|
(54.5)
|
|
(15.0)%
|
|
Depreciation and Amortization
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
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
|
|
|
|
|
|
|
|
|
|
Third Quarter
Not audited
|
|
9 Months
Not audited
|
|
€ million
|
|
2014
|
|
2015
|
|
Change
|
|
2014
|
|
2015
|
|
Change
|
|
Europe, Russia, Central Asia
|
|
837.6
|
|
1,202.9
|
|
43.6%
|
|
2,547.2
|
|
3,385.6
|
|
32.9%
|
|
Africa
|
|
335.5
|
|
428.2
|
|
27.6%
|
|
815.2
|
|
1,371.9
|
|
68.3%
|
|
Middle East
|
|
290.3
|
|
193.0
|
|
(33.5)%
|
|
945.2
|
|
698.2
|
|
(26.1)%
|
|
Asia Pacific
|
|
543.5
|
|
581.6
|
|
7.0%
|
|
1,455.5
|
|
1,540.5
|
|
5.8%
|
|
Americas
|
|
817.8
|
|
703.2
|
|
(14.0)%
|
|
2,145.5
|
|
2,094.4
|
|
(2.4)%
|
|
TOTAL
|
|
2,824.7
|
|
3,108.9
|
|
10.1%
|
|
7,908.6
|
|
9,090.6
|
|
14.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANNEX II
ADJUSTED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2014
Audited
|
|
Sep. 30, 2015
Not audited
|
|
€ million
|
|
|
|
Fixed Assets
|
|
6,414.2
|
|
6,442.0
|
|
Deferred Tax Assets
|
|
391.0
|
|
454.8
|
|
Non-Current Assets
|
|
6,805.2
|
|
6,896.8
|
|
Construction Contracts – Amounts in Assets
|
|
756.3
|
|
973.1
|
|
Inventories, Trade Receivables and Other
|
|
3,297.0
|
|
3,458.2
|
|
Cash & Cash Equivalents
|
|
3,738.3
|
|
3,802.2
|
|
Current Assets
|
|
7,791.6
|
|
8,233.5
|
|
Assets Classified as Held for Sale
|
|
3.2
|
|
27.7
|
|
Total Assets
|
|
14,600.0
|
|
15,158.0
|
|
|
|
|
|
|
|
Shareholders’ Equity (Parent Company)
|
|
4,363.4
|
|
4,386.6
|
|
Non-Controlling Interests
|
|
11.8
|
|
16.7
|
|
Shareholders’ Equity
|
|
4,375.2
|
|
4,403.3
|
|
Non-Current Financial Debts
|
|
2,356.6
|
|
1,637.4
|
|
Non-Current Provisions
|
|
232.9
|
|
243.4
|
|
Deferred Tax Liabilities and Other Non-Current Liabilities
|
|
249.1
|
|
249.4
|
|
Non-Current Liabilities
|
|
2,838.6
|
|
2,130.2
|
|
Current Financial Debts
|
|
256.4
|
|
864.0
|
|
Current Provisions
|
|
328.3
|
|
399.9
|
|
Construction Contracts – Amounts in Liabilities
|
|
2,258.2
|
|
1,954.8
|
|
Trade Payables & Other
|
|
4,543.3
|
|
5,405.8
|
|
Current Liabilities
|
|
7,386.2
|
|
8,624.5
|
|
Total Shareholders’ Equity & Liabilities
|
|
14,600.0
|
|
15,158.0
|
|
|
|
|
|
|
|
Net Cash Position
|
|
1,125.3
|
|
1,300.8
|
|
|
|
|
|
|
|
Adjusted Statement of Changes in Shareholders’ Equity (Parent
Company)
|
|
Not audited (€ million):
|
|
Shareholders’ Equity as of December 31, 2014
|
4,363.4
|
|
Net Income
|
(56.9)
|
|
Other Comprehensive Income
|
121.4
|
|
Capital Increase
|
158.2
|
|
Treasury Shares
|
3.7
|
|
Dividends Paid
|
(225.8)
|
|
Other
|
22.6
|
|
Shareholders’ Equity as of September 30, 2015
|
4,386.6
|
|
|
|
|
ANNEX III (a)
ADJUSTED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
9 Months
Not audited
|
|
€ million
|
|
2014
|
|
2015
|
|
Net Income/(Loss) of the Parent Company
|
|
356.5
|
|
|
|
(56.9)
|
|
|
|
Depreciation & Amortization of Fixed Assets
|
|
187.3
|
|
|
|
266.1
|
|
|
|
Stock Options and Performance Share Charges
|
|
29.1
|
|
|
|
19.9
|
|
|
|
Non-Current Provisions (including Employee Benefits)
|
|
14.6
|
|
|
|
145.3
|
|
|
|
Deferred Income Tax
|
|
25.3
|
|
|
|
(72.8)
|
|
|
|
Net (Gains)/Losses on Disposal of Assets and Investments
|
|
6.8
|
|
|
|
(28.3)
|
|
|
|
Non-Controlling Interests and Other
|
|
15.6
|
|
|
|
13.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Generated from/(used in) Operations
|
|
635.2
|
|
|
|
286.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Working Capital Requirements
|
|
(225.8)
|
|
|
|
123.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Operating Activities
|
|
|
|
409.4
|
|
|
|
409.7
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
(263.0)
|
|
|
|
(218.2)
|
|
|
|
Proceeds from Non-Current Asset Disposals
|
|
29.6
|
|
|
|
5.2
|
|
|
|
Acquisitions of Financial Assets
|
|
(35.6)
|
|
|
|
(2.3)
|
|
|
|
Acquisition Costs of Consolidated Companies, Net of Cash Acquired
|
|
(5.9)
|
|
|
|
(31.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Investing Activities
|
|
|
|
(274.9)
|
|
|
|
(247.0)
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Borrowings
|
|
185.2
|
|
|
|
(102.7)
|
|
|
|
Capital Increase
|
|
11.5
|
|
|
|
21.3
|
|
|
|
Dividends Paid
|
|
(206.5)
|
|
|
|
(88.9)
|
|
|
|
Share Buy-Back and Other
|
|
(41.8)
|
|
|
|
(5.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Financing Activities
|
|
|
|
(51.6)
|
|
|
|
(176.1)
|
|
|
|
|
|
|
|
|
|
|
|
Net Effects of Foreign Exchange Rate Changes
|
|
|
|
99.1
|
|
|
|
78.2
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents
|
|
|
|
182.0
|
|
|
|
64.8
|
|
|
|
|
|
|
|
|
|
|
|
Bank Overdrafts at Period Beginning
|
|
(2.4)
|
|
|
|
(0.9)
|
|
|
|
Cash and Cash Equivalents at Period Beginning
|
|
3,205.4
|
|
|
|
3,738.3
|
|
|
|
Bank Overdrafts at Period End
|
|
(2.4)
|
|
|
|
-
|
|
|
|
Cash and Cash Equivalents at Period End
|
|
3,387.4
|
|
|
|
3,802.2
|
|
|
|
|
|
|
|
182.0
|
|
|
|
64.8
|
|
|
|
|
|
|
|
|
|
|
|
ANNEX III (b)
ADJUSTED CASH & FINANCIAL DEBTS
|
|
|
|
|
|
|
|
€ million
|
|
Dec. 31, 2014
Audited
|
|
Sep. 30, 2015
Not audited
|
|
Cash Equivalents
|
|
1,809.4
|
|
1,968.4
|
|
Cash
|
|
1,928.9
|
|
1,833.8
|
|
Cash & Cash Equivalents (A)
|
|
3,738.3
|
|
3,802.2
|
|
Current Financial Debts
|
|
256.4
|
|
864.0
|
|
Non-Current Financial Debts
|
|
2,356.6
|
|
1,637.4
|
|
Gross Debt (B)
|
|
2,613.0
|
|
2,501.4
|
|
Net Cash Position (A – B)
|
|
1,125.3
|
|
1,300.8
|
|
|
|
|
|
|
|
ANNEX IV (a)
BACKLOG BY BUSINESS SEGMENT
|
|
|
|
|
|
|
|
|
|
€ million
|
|
As of
Dec. 31, 2014
Audited
|
|
As of
Sep. 30, 2015
Not audited
|
|
Change
|
|
Subsea
|
|
9,727.8
|
|
8,422.0
|
|
(13.4)%
|
|
Onshore/Offshore
|
|
11,208.4
|
|
9,036.9
|
|
(19.4)%
|
|
Total
|
|
20,936.2
|
|
17,458.9
|
|
(16.6)%
|
|
|
|
|
|
|
|
|
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’’ 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 “bottom of the barrel” 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’ 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’s 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 Açu, 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
|
|
|
|
|
|
|
|
€ million
|
|
Third Quarter
|
|
9 Months
|
|
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
Net Income of the Parent Company
|
|
163.9
|
|
(56.9)
|
|
One-off charges in OIFRA
|
|
-
|
|
184.4
|
|
Charges from Non-Current Activities
|
|
14.4
|
|
400.4
|
|
Other
|
|
(0.4)
|
|
17.4
|
|
Taxes & Financial Result
|
|
6.4
|
|
(70.0)
|
|
Underlying Net Income
|
|
184.3
|
|
475.3
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006792/en/
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