Long-Term Solid Partner

Transcription

1 Long-Term Solid Partner Thierry Pilenko, Chairman and CEO UBS Oil and Gas Services Conference November 16, 2009 Photos: Technip Photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, all rights reserved

2 Safe Harbor T his 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 forwardlooking 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 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. 2

3 Contents I. II. III. IV. Technip at a Glance Year-to-Date Performance Differentiating Strengths & Attributes Looking Forward 3

4 I. Technip at a glance 4

5 Technip Today Worldwide leader in engineering, project management and technologies, serving the oil & gas industry for 50 years 23,000 employees in 46 countries, Industrial assets on 5 continents, a fleet of 17 vessels (19 vessels by 2011) 2008 revenues: 7.5 billion Offshore Onshore Subsea Solutions across the value chain 5

6 A Diversified and Well-Balanced Portfolio of Businesses Subsea Offshore Onshore Pipelay Installation Floaters Refining Hydrogen Flexible & Rigid Pipes Umbilicals Topsides & Fixed Platforms LNG / Gas Processing Ethylene Deepwater Engineering Floatover Furnaces Heavy Oil Upgrades 6

7 Two Complementary Business Models SUBSEA Capital intensive: fleet and manufacturing units OFFSHORE Low fixed assets ONSHORE Low working capital Vertical integration from engineering to manufacturing & construction Negative working capital High degree of outsourcing & sub-contracting Project management skills Proprietary technologies & know-how Solid Balance Sheet Strong footprint with both IOCs, NOCs & Independents 7

8 II. Year-to-Date Performance 8

9 million, except EPS (not audited) September Year-to-Date Results Income Statement Revenue 5,573 5,012 (10.1)% % 611 EBITDA (1) % Operating Income (2) 473 Net Income % EPS % Sept. YTD 2008 Sept. YTD 2009 (1) Calculated as Operating Income from recurring activities pre depreciation and amortization (2) From recurring activities 9

10 Backlog Renewal: Development of Jubilee field in Ghana Jubilee Two contracts for Engineering, Fabrication and Installation Ghana Client: Tullow Ghana Limited; Technical Operator - Kosmos Energy Water depth between 1,200 and 1,700 meters Jubilee Field Project execution involves Technip s centers in Paris, Houston and West Africa Fabrication of flexible pipes in Le Trait, France Mobilization of Deep Blue and Deep Pioneer for offshore campaign 10

11 Backlog Renewal: First Mid-Size LNG in China Yinchuan, Ningxia LNG 2 trains of 400,000 tons per year each Air Products liquefaction technology Beijing 9,000 Yinchuan 6,000 4,000 Domestic distribution of LNG by road 2,500 1,500 Shanghai meter Engineering, procurement and construction management (EPCM) + supply of key equipment Largest LNG in China km 11

12 Backlog Renewal: New Jubail Export Refinery in Saudi Arabia Al Jubail Contract strategy: Well-known client and country Conducted front-end engineering design (FEED) for past 3 years Early commitment for major equipment and materials Early mobilization of construction subcontractor Al Jubail Al Riyadh Refinery with high technological content, where technologies are reliable and well known to Technip Project execution by Technip s operating centers in Rome and Paris, with assistance from Middle East offices Order intake of ~US$3.2 billion 12

13 Backlog Renewal: Floating LNG Synergies of Technip s broad ranging strengths in all three business segments Floating Liquefied Natural Gas: An innovative solution FLNG is a commercially attractive and environmentally sensitive approach of offshore gas field Contract awarded by Shell Consortium: Technip (leader) and Samsung FEED on a reimbursable basis Master agreement for design, construction, installation of multiple FLNG, facilities including riser system interface, for up to 15 years Unique Combination of Skills and Technology: LNG process Offshore facilities Subsea infrastructures 13

14 Backlog: Segments, Regions and Markets Segments Regions Markets Sept. 30, Sept. 30, ,541 million Sept. 30, ,541 million Onshore Offshore 48% 6% 56% Europe / Russia Central Asia Asia Pacific 12% 8% Africa 19% 20% Petrochems 4% Refining 41% Other 1% Deepwater 34% Subsea 46% 6% 38% Middle East 41% Americas 10% Gas / LNG 10% Shallow Water 7,717 7,541 14

15 III. Differentiating Strengths & Attributes 15

16 Technip s Worldwide Presence Calgary Los Angeles Houston Monterrey Bogota Caracas Orkanger Pori Evanton Aberdeen Oslo St. Petersburg Newcastle Stavanger The Hague St. John s London Le Trait Düsseldorf Paris Lyon Barcelona Rome Baku Athens Barra do Riacho Lagos Dande Luanda Lobito Port Harcourt Abu Dhabi Doha Mumbai New Delhi Chennai Kuala Lumpur Singapore Jakarta Bangkok Shanghai Tanjung Langsat (operational in 2010) Balikpapan Vitória Rio de Janeiro Angra Porto Perth Regional Headquarters / Operating centers Manufacturing plants (flexible pipelines) Manufacturing plants (umbilicals) Construction yard Services base Spoolbases 16

17 Technip s Strong Relationships with both IOCs & NOCs Subsea Offshore facilities Gas processing / LNG Refining, Hydrogen, Heavy oils Petrochems Recent projects examples Block 31, Shah Deniz, Greater Plutonio, Secco PE Tahiti, Greater Gorgon, Ras Laffan Ethylene North Belut, Q Chem, Qatargas 3 & 4 East Area, Qatargas 2, Rasgas 3 FLNG, Perdido, Na Kika, Qatargas 3 & 4 PazFlor, Akpo, Yemen LNG, Qatargas 2 Das Island Gas, NEB, Takreer refinery Akpo, Agbami, Bonny Island Cascade & Chinook, P51, P52 & P56, Canapu Kikeh, Cili Padi, Petlin & Kertheh LDPE Al Shaheen, Qatargas & Rasgas Khursaniyah, Al Jubail Gimboa, Dalia, Kizomba C Source: Technip 17

18 Continuous Investment in Key Assets Skandi Vitoria NPV New deepwater flexlay vessel (delivery by 2010) New deepwater rigid/umbical/flexible lay vessel (delivery by 2011) First such Brazilian built vessel Long Term Contract with Petrobras (charter 4 years + option 4 years) High transit speed for rapid deployment worldwide (20 knots) Exceptional product storage capacities (twin reels of 2,800 tons each) 18

19 Accelerating our Fleet Renewal Apache II: State-of-the-art rigid pipelay & construction vessel: strengthening Technip s abilities in harsh environments & deepwater Reinforce our competitiveness and leadership with our liquid balance sheet 19

20 Vertical Integration: offering Seamless Services and Leading Technology Cascade & Chinook: Petrobras Gulf of Mexico World record depth for Hybrid Free Standing Riser in 2,500 2,640 meters of water Broad geographical reach: Engineering teams from Offshore and Subsea divisions from Technip s offices in Houston, Brazil, Paris, Canada & UK Fabrication of buoyancy cans, stress joints and suction piles at Pori Fabrication of the flexible pipes at Le Trait Technically challenging: High-pressure dynamic flexible pipes 5 buoyancy cans. 700 ton net uplift Installation before arrival of the FPSO Multi-vessel installation (incl. Deep Blue / Deep Pioneer) Only 28 months from award to completion Status: Installation ongoing on schedule 20

21 Technological Solutions to address ever Deeper Water Perdido SPAR: Shell Spar operating at the deepest water depths: 2,350 meters Subsea pipelines from our spool base in Mobile, Alabama and umbilicals manufactured at Channelview, all installed by the Deep Blue to 2,961 meters depth Technical Objectives Extend flexible risers water depth and pressure capability to 3,000 meters and beyond through innovative solutions Qualify up to 11 flexible pipe with offshore testing ongoing Towards 3,000 meters and beyond Source: Technip 21

22 Continuous develop of our Onshore technologies Reinforcing our proprietary technology New tube design that augments Ethylene plant efficiency Developed Advanced Reactor Tube & regenerative reforming increasing Hydrogen unit capacity Boosting refining efficiency and enhancing Hydrogen and CO 2 management Acquiring new technologies Improving Ethylene furnace technology: HeliSwirl Further developing our alliances Air Products: 15 year global agreement on Hydrogen, renewed in 2009 Ineos: new polystyrene technologies alliance Geogreen: Carbon Capture and Storage 22

23 IV. Looking Forward 23

24 Full Year 2009 Outlook* Group revenue towards 6.4 billion at current exchange rates Subsea revenue to show moderate growth Subsea operating margin towards 18% Confirm year-on-year improvement of the Onshore / Offshore combined operating margin *based upon current exchange rates 24

25 Sept. 30, 2009 Backlog Estimated Scheduling million Subsea Offshore Onshore Group 2009 (3 months) , , , , , ,378.2 Total 2, , ,

26 Technip s differentiating attributes Well balanced: regions, clients and markets First class technology, engineering and project management skills Subsea vertically integrated Proximity to local clients Strong balance sheet with 1,676 million Net Cash Continuous investment in key assets and R&D Technip is a Long-Term Solid Partner 26

27 For more information, please contact: Investor Relations Kimberly Stewart Tel.: +33 (0) Antoine d Anjou Tel.: +33 (0) adanjou@technip.com 27

28 Technip ISIN: FR Bloomberg: TEC FP Reuters: TECF.PA SEDOL: OTC ADR ISIN: US ADR: TKPPK 28

29 Subsea Quarterly Figures 789 Revenue million (not audited) 658 Order intake Q 08 1Q 09 2Q 09 3Q 09 EBITDA % 24% 24% 28% 3Q 08 1Q 09 2Q 09 3Q 09 Backlog 3Q 08 1Q 09 2Q 09 3Q 09 3Q 08 Operating Income* 1Q 09 2Q 09 3Q 09 3,565 3,423 3,116 2, % 19% 19% 18% Sept Mar June Sept Q 08 1Q 09 2Q 09 3Q 09 * from recurring activities 3Q 08 1Q 09 2Q 09 3Q 09 29

30 Onshore / Offshore Combined Quarterly Figures million (not audited) 1,144 Revenue Order intake 2, Q 08 1Q 09 2Q 09 3Q 09 3Q 08 1Q 09 2Q 09 3Q 09 Operating Income* Backlog % 5% 5% 5% 4,152 3,505 2,950 4,700 3Q 08 1Q 09 2Q 09 3Q 09 * from recurring activities 3Q 08 1Q 09 2Q 09 3Q 09 Sept Mar June Sept

31 Financial Risk Management Strong cash position as of September, Total Cash 2,530.7 million Net Cash 1,675.9 million Debt financing has a long horizon 650 million straight bond maturing May 2011 Unused confirmed credit facilities of 1,433 million Security of cash deposits Only cash and term deposits Highly liquid: nearly all invested for less than three month tenor Mostly invested in deposit banks (majority of European banks) Monitor allocation per bank on a regular basis 31

32 Shareholding Structure 32

33 Shareholding structure Treasury Shares 2.8% Employees 2.4% Others 2.2% French Institutional Investors 19.6% Individual shareholders 6.4% IFP 2.8% Other Institutional Investors 63.8% Listed on Euronext Paris 33

34 Long-Term Solid Partner Photos: Technip Photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, all rights reserved