Third Quarter 2010 Results. October 28, 2010

Transcription

1 October 28, 2010

2 Contents I. II. III. Operational & Financial Highlights Strategy & Outlook Annex 2

3 I. Third Quarter 2010 Operational & Financial Highlights 3

4 Third Quarter Subsea Operational Highlights Successfully completed offshore operations: Brazil: Pipelay phase of the Tupi gas export pipeline Gulf of Mexico: Caesar/Tonga North Sea: Broom field Trinidad & Tobago: Angostura field Offshore operations in progress: Jubilee field in Ghana and several projects in the North Sea Block 31 in Angola and West Delta Deep Marine Phase VII in Egypt Pazflor offshore campaign preparation in progress Asset activity Vessel utilization rate was 81% compared with 85% a year ago Good activity continued at flexible pipe production units Brazilian-flagged Skandi Vitoria delivered to Petrobras 4

5 Third Quarter Onshore/Offshore Operational Highlights Projects delivered to client: Qatargas 3&4 Train 6 & 7 delivered to client in Qatar Pre-commissioning/Commissioning & start-up activities in progress Biodiesel plant for Neste Oil in Singapore completed Completed commissioning on OAG modules, Dàs Island in United Arab Emirates Pre-commissioning completed and commissioning progressed well on Gdansk refinery, Grupa Lotos in Poland Work in progress: Saudi Arabia: Jubail refinery United Arab Emirates: Asab 3 Turkmenistan: Block 1 Gas development Qatar: PMP China: Yinchuan, Ningxia LNG Brazil: Preparation for P-56 floatover operation The Netherlands: Biodiesel plant for Neste Oil in Rotterdam FEED activities in progress: Floating LNG FEED for Shell's Prelude field near Australia Floating LNG FEED for Petrobras in Brazil Gas processing platform for Wheatstone, offshore Australia 5

6 Third Quarter Order Intake & Backlog Highlights million Subsea Order Intake 1st IPB* in Brazil: Papa Terra 1st reeled heated pipe-in-pipe: Islay, UK Marine Well Containment System (MWCS) FEED for the Gulf of Mexico Order intake ,053 Backlog 3,057 3,141 1Q 10 2Q 10 3Q 10 Dec. 31 June 30 Sept Order intake Backlog Onshore/Offshore Order intake KJO in Neutral Zone between Saudi Arabia and Kuwait Two Hydrogen plants in the USA Several small and medium-sized projects in Asia Pacific & Americas ,965 5,206 5, Q 10 2Q 10 3Q 10 Dec. 31 June 30 Sept * Integrated Production Bundle 6

7 Subsea Third Quarter Figures million Revenue (6)% 3Q 09 3Q EBITDA 28.3% 22.0% (27)% 3Q 09 3Q 10 3Q 09 3Q 10 Operating income* (14)% 18.2% 16.7% Margin (155)bp 3Q 09 3Q 10 3Q 09 3Q 10 * from recurring activities 7

8 Onshore/Offshore Combined Third Quarter Figures million Revenue (16)% 3Q 09 3Q 10 Operating income* % 5.1% Margin +2% +105bp 3Q 09 3Q 10 3Q 09 3Q 10 * from recurring activities 8

9 Third Quarter Figures Group Financial Highlights million EBITDA margin Operating Income (2) Operating margin (2) Other Operating Income Financial Charges Income of Equity Affiliates Profit Before Tax Income Tax Minority Interests Net Income Diluted EPS ( ) 3Q % % 0.2 (14.8) (48.5) (2.8) Q 10 Revenue 1, ,512.1 EBITDA (1) % % 0.4 (8.9) (43.3) (0.5) Selling & tendering costs remain high Higher interest income, lower IFRS impacts 29.4% effective tax rate (1) calculated as operating income from recurring activities before depreciation and amortization (2) from recurring activities 9

10 Third Quarter Figures Net Cash Flow Statement million Net Cash as of June 30, months 1,497.9 Operating Cash Flow Working Capital (126.3) Includes $158 million TSKJ payments Capex Dividend Payment (126.4) - Milestone payment on Skandi Niteroi Around 500 million expected for FY10 Others (35.0) Essentially currency effects Net Cash as of September 30, ,

11 September 30, 2010 Backlog Estimated Scheduling million Subsea Offshore Onshore Group 2010 (3 months) , , ,396 4, ,315 2,286 Total 3, ,454 8,502 11

12 II. Strategy & Outlook 12

13 Strategy Execution in 2010 Strategic Priorities 3Q Execution Balanced, profitable backlog 1.6 billion order intake, split 44:56 between Subsea & Onshore/Offshore Key differentiating assets Delivery: Brazilian-flagged Skandi Vitoria Local content Partnership with Petronas: MHB Technology Islay: Reeled heated pipe-in-pipe Papa-Terra: 1st IPB* flexible pipe in Brazil Vertical integration Expansion of logistics in Brazil Execution capability Investment in people and processes * Integrated Production Bundle 13

14 Well-diversified portfolio of new contracts YTD 2010 Strategic FEEDs / Services Diversified / medium-sized Project Client Country Project Client Country Cienfuegos Refinery PDVSA / Cupet Lt. Am. Mc Kee & Memphis Valero USA Artificial Island Zadco UAE Visakh refinery HPCL India Prelude FLNG Logistic support contracts MWCS Project PMP Shell Petrobras 5 IOCs Flagship / Large Client Qatargas 1 Australia Brazil Gulf of Mexico Country Qatar Block 1 Gas Development KJO Kitan Devenick Broom Petronas Khafji Joint Operations ENI BP Lundin Turkmenistan Neutral Zone between Saudi Arabia and Kuwait Timor Sea UK UK Marulk Islay Statoil Total Norway UK Several Frame Agreements BP, BG, Statoil North Sea Tupi Pilot Petrobras Brazil WDDM Phase 8a Burullus Egypt IPB Papa-Terra Petrobras Brazil 14

15 Reeled Heated Pipe-in-Pipe Technip s ETH* technology Flow assurance: heated pipe-in-pipe Fibre optic temperature monitoring Fast installation: reeled pipe-in-pipe Built-in directly onshore, at our spoolbases Higher insulation efficiency: lower power requirements Islay Project, UK North Sea 6 km tie-back in 122 meters of water Major challenge: hydrates formation EPCI project, valued in excess of 60 million Offshore deployment in mid-2011 with Technip s fleet *ETH: Electrical Trace Heating 15

16 Technip s Asia Pacific Regional Hub Technip s priorities Enhance local content and client proximity Provide proven technology, world class engineering and execution Reinforce regional capability: Onshore / Offshore / Subsea Asiaflex 1 st and only Asian flexible/umbilical manufacturing plant Offshore logistic base Dedicated local installation capacity Technip in Asia Pacific 3,750 people Founded in 1982 Shanghai Investment in MHB Major fabrication yard in South East Asia Centrally located Strong platform fabrication track record Support from MISC / PETRONAS Collaboration agreement to provide EPCI capability and technology to PETRONAS Bangkok Kuala Lumpur Singapore Balikpapan Jakarta Perth Technip s Operating Centers Flexible/Umbilical manufacturing plant MHB s yard 16

17 Today s view: Business Environment North America Some activity in Canadian oil sands and US onshore Gulf of Mexico Visibility improving post Macondo Momentum in major projects North Sea Recovery trend continues Tendering turning to awards Europe Onshore market still very slow Middle East Strategic investments continue across region Heavier weight towards Saudi Arabia going forward Lt. America Multiple opportunities both in up & downstream Brazil Petrobras IPO completed Non pre-salt work active Flexible pipe technologies used for both pre-salt & traditional fields Strong focus on logistics & local content High level of tendering Africa Strong activity in North Africa Activity across the Gulf of Guinea recovering Continued tendering in Angola Asia Pacific / India Investment in refining and petrochemicals for local markets Promising market for flexible pipe solutions Strong momentum in Australian gas-related projects 17

18 2011: Initial View* Market New project momentum has grown during the year Many projects have slipped into 2011 Uncertainties persist and competition remains intense Relative oil price stability & strategic investments are both positive drivers Technip in 2011* Look to start growing Group revenue Subsea operating margin objective around 15% Onshore/Offshore operating margin sustained year-on-year * view as of September 30, 2010 at third quarter average exchange rates 18

19 2010 Full Year Outlook* Subsea operating margin around 16.5% (previous outlook: above 15%) Onshore/Offshore combined operating margin close to 6% (previous outlook: around 5.3%) Group revenue around billion - unchanged Subsea revenue around billion - unchanged *at third quarter average exchange rates 19

20 October 28, 2010 Photos: Technip Photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, all rights reserved

21 III. Annex 21

22 Offshore Third Quarter Figures million Revenue % 3Q 09 3Q 10 Operating income* % 4.8% 3Q 09 3Q 10 3Q 09 3Q 10 * from recurring activities 22

23 Onshore Third Quarter Figures million Revenue (26)% 3Q 09 3Q 10 Operating income* % 6.6% 3Q 09 3Q 10 3Q 09 3Q 10 * from recurring activities 23

24 Technip s Backlog by Geography and Activity 8,502 million as of September 30, 2010 By geography Market Split Americas 19% 21% Europe / Russia Central Asia Petrochems 7% Other (1%) 23% Deepwater* Asia Pacific 8% 14% Africa Refining / Heavy Oil 32% 25% Middle East 38% 12% Gas / LNG Shallow Water * Contracts operated strictly below 1,000 meter water depth 24

25 Malaysia: promising deepwater oil & gas market Asia Pacific Oil Proved Reserves at end 2009 China Thousand million barrels 3rd largest regional crude oil reserves Growing energy demand Increasing spending in domestic production Deepwater oil & gas developments 7 deepwater fields being explored/developed 16 other fields discovered Local players to benefit of nationalization program India Malaysia Vietnam Indonesia Australia Other Asia Pacific Asia Pacific Oil Demand, million barrels per day China Other Asia (Non-OECD) Pacific (OECD) 25

26 Technip Today 26

27 Technip: bringing innovative solutions to clients in 3 segments Subsea Vertical integration In-house technologies Worldwide leadership First class assets: Manufacturing plants High performing vessels Offshore TPG 500 Unideck Semi-submersible Spar EDP FPSO/FLNG Innovative capabilities Proprietary platform design Proven track record in engineering & construction Onshore Project management know-how Strong process engineering capabilities Proprietary technologies (Hydrogen, Ethylene ) 27

28 Two complementary business models driving financial structure and performance Subsea Offshore Negative working capital Onshore Capital intensive: fleet and manufacturing units Vertical integration from engineering to manufacturing & construction Negative capital employed: low fixed assets High degree of outsourcing & sub-contracting Operating Income* Operating Margin* Combined Operating Income* Combined Operating Margin* million million % 18.6 % % 5.3% FY 08 FY 09 FY08 FY 09 FY 08 FY 09 FY08 FY 09 * from recurring activities 28

29 Large diversified customer base balanced between National Oil Companies and International Oil Companies 29

30 Technip s worldwide presence Seven empowered regions 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 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 30

31 Seamless execution Subsea, a unique vertically integrated business model 1 R&D Design & Project Management 2 World-class R&D facilities Le Trait (France) Aberdeen (UK) Newcastle (UK) Rio & Vitoria (Brazil) Close to production sites Proprietary technology Strategic locations Paris Aberdeen Oslo Houston Kuala Lumpur Perth Rio de Janeiro Dedicated engineering teams around the world 4 Installation Manufacture & Fabricate 3 State-of-the-art fleet designed to: Install pipes Heavy construction Diving support Flexible plants: France, Brazil, Malaysia Rigid spoolbases: UK, Norway, USA, Angola Logistic bases: Brazil Umbilical plants: UK, USA, Angola Manufacturing plants on all continents 31

32 Jubilee, an example of a seamless project execution Fabrication of the flexible pipes at Le Trait Le Trait Jubilee Houston Coordinated Engineering teams from the Subsea Division Paris The first offshore field in Ghana Engineering, Fabrication and Installation projects involving Technip s centers in Paris, Houston and Angola Fabrication of flexible pipes in Le Trait, France Multi vessel installation (Incl. Deep Blue/ Deep Pioneer) Angola Mobilization of Deep Blue and Deep Pioneer for offshore campaign 32

33 State-of-the-art fleet Pipelay vessels Deep Blue Apache II Deep Energy 3 units Heavy Construction Vessels (HCV) Deep Pioneer Deep Constructor Sunrise 2000 Skandi Vitoria Skandi Niteroi 5 units Diving Support Vessels (DSV) Alliance 2 major vessel upgrades Seamec 1 Seamec 2 Orelia Seamec Princess 2 new assets 10 units Wellservicer Venturer Seamec 3 Skandi Arctic Skandi Achiever 33

34 State-of-the-art technology in all business segments Subsea Offshore Onshore Unrivalled high technological assets Numerous proprietary technologies and partnerships with licensors Ultra Deepwater Flow-assurance Cryogenic Rigid Pipe-in-Pipe Ethylene Increased efficiency 3,000m (7-11 ) Flexible Pipes Heated and monitored Flexible Pipes Heated Rigid Pipe-in-Pipe Design, manufacture & qualify flexible pipes for 3,000 m water depth Integration of gas lift tubes, electrical cables or optic fibers in the production riser New Electrical Trace Heating technology qualified by major clients LNG unloading/ long distance applications Increasing ethylene and refining efficiency 34

35 Example: FLNG 1, an innovative solution for our customers Shell in Australia Synergies of Technip s broad ranging strengths in all three business segments FLNG is a commercially attractive and environmentally sensitive approach for offshore gas fields in remote locations Technip s unique combination of skills and technology: LNG process Offshore facilities Subsea infrastructures Shell s Prelude field specific FEED awarded in first quarter 2010 Petrobras FEED awarded at the end of ,476 x 230 feet, (450 x 75 meters), 3.5 mtpa LNG capacity 1: Floating Liquified Natural Gas 35

36 Shareholding structure, June 2010 UK & Ireland 11.2% Rest of World 16.9% North America 29.2% Institutional Investors 82.8% Employees 2.3% IFP 2.7% Treasury Shares 2.8% Others 3.7% Individual shareholders 5.7% French Institutional Investors 20.1% FSI 5.4% Listed on NYSE Euronext Paris Source: Ipreo June

37 October 28, 2010 Photos: Technip Photo library, Jean Gaumy/Magnum, Harry Gruyaert/Magnum, Patrick Zachmann/Magnum, all rights reserved