Post on 14-Jul-2018
Long-Term Solid Partner
Thierry Pilenko, Chairman and CEO UBS Oil and Gas Services Conference – November 16, 2009
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Safe Harbor
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 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 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.
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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.
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Technip at a Glance
Year-to-Date Performance
Differentiating Strengths & Attributes
Looking Forward
Contents
I.
II.
III.
IV.
4
Technip at a glanceI.
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
Subsea
Offshore
Onshore
Solutions across the value chain
6
A Diversified and Well-Balanced Portfolio of Businesses
Onshore
LNG / Gas Processing Ethylene
Heavy OilUpgradesFurnaces
HydrogenRefining
Offshore
Topsides &Fixed Platforms
Floaters
Floatover
Subsea Pipelay
Installation
Flexible & Rigid PipesUmbilicals
DeepwaterEngineering
7
Two Complementary Business Models
Project management skillsProprietary technologies & know-howSolid Balance SheetStrong footprint with both IOCs, NOCs & Independents
OFFSHORE ONSHORE
Low fixed assets
Negative working capital
High degree of outsourcing & sub-contracting
SUBSEA
Capital intensive: fleet and manufacturing units
Low working capital
Vertical integration from engineering to manufacturing & construction
8
Year-to-Date PerformanceII.
9
September Year-to-Date ResultsIncome Statement
EPS +1.4%€2.98 €3.02
Revenue(10.1)%
5,5735,012
EBITDA(1)+12.3%611
686
Operating Income(2)
+10.4%473
522
Net Income+2.9%314
323
Sept. YTD 2008 Sept. YTD 2009
(1) Calculated as Operating Income from recurring activities pre depreciation and amortization(2) From recurring activities
€ million, except EPS (not audited)
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Jubilee
Backlog Renewal:Development of Jubilee field in Ghana
► Two contracts for Engineering, Fabrication and Installation
► Client: Tullow Ghana Limited; Technical Operator - Kosmos Energy
► Water depth between 1,200 and 1,700 meters
► Project execution involves Technip’scenters in Paris, Houston and West Africa
► Fabrication of flexible pipes in Le Trait, France
► Mobilization of Deep Blue and DeepPioneer for offshore campaign
Jubilee Field
Ghana
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Backlog Renewal:First Mid-Size LNG in China
0 meter505001,5002,5004,0006,0009,000
0 500 km
Beijing
Shanghai
Yinchuan, Ningxia LNG
► 2 trains of 400,000 tons per year each
► Air Products liquefaction technology
► Domestic distribution of LNG by road
► Engineering, procurement and construction management (EPCM) +supply of key equipment
► Largest LNG in China
Yinchuan
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
► 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
Al Riyadh
Al Jubail
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Synergies of Technip’s broad ranging strengths in all three business segments
Backlog Renewal: Floating LNG
Floating Liquefied Natural Gas: An innovative solution
► FLNG is a commercially attractive and environmentally sensitive approach of offshore gas field
► Contract awarded by ShellConsortium: 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
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Segments Regions Markets
Backlog: Segments, Regions and Markets
Subsea
Offshore
Onshore
2008
€7,541
48% 56%
46%38%
6%6%
Sept. 30, 2009 €7,541 million
Sept. 30, 2009 €7,541 million
2009
€7,717
Europe / Russia Central Asia
Africa
AsiaPacific
Americas
Middle East
41%
19%
20%
8%12%
1%
34%
4%
41%
10%
10%
Deepwater
Petrochems Other
Gas / LNG
Refining
ShallowWater
Sept. 30, 2009
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Differentiating Strengths & Attributes
III.
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Technip’s Worldwide Presence
Aberdeen
ParisSt. John’s
Luanda
Rio de Janeiro
Houston
Mumbai
Kuala Lumpur
Perth
Lagos
Vitória
Los Angeles
Barra do Riacho
Caracas
Dande
Lobito
Port Harcourt
BarcelonaLyon
RomeAthens
The HagueDüsseldorf
St. PetersburgEvanton
LondonNewcastle
Abu DhabiDoha
Chennai Bangkok
Singapore
JakartaBalikpapan
Shanghai
Pori
Le Trait
Bogota
New Delhi
Regional Headquarters / Operating centers
Spoolbases
Manufacturing plants (flexible pipelines)Manufacturing plants (umbilicals)Construction yard
Tanjung Langsat(operational in 2010)
Calgary
Monterrey
Oslo
Orkanger
Stavanger
Services base
Baku
Angra Porto
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Technip’s Strong Relationships with both IOCs & NOCs
Source: Technip
Recent projects examples
PazFlor, Akpo, Yemen LNG, Qatargas 2
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
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
Gasprocessing /
LNG
Refining,Hydrogen,Heavy oils PetrochemsSubsea
Offshorefacilities
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Continuous Investment in Key Assets
Skandi Vitoria
► New deepwater flexlay vessel (delivery by 2010)
► First such Brazilian built vessel
► Long Term Contract with Petrobras(charter 4 years + option 4 years)
NPV
► New deepwater rigid/umbical/flexible lay vessel (delivery by 2011)
► High transit speed for rapid deployment worldwide (20 knots)
► Exceptional product storage capacities (twin reels of 2,800 tons each)
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Accelerating our Fleet Renewal
Reinforce our competitiveness and leadership with our liquid balance sheet
Apache II: State-of-the-art rigid pipelay & construction vessel: strengthening Technip’s abilities in harsh environments & deepwater
20
Vertical Integration: offering Seamless Services and Leading Technology
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Cascade & Chinook: PetrobrasGulf 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
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Technical ObjectivesPerdido SPAR: Shell
Technological Solutions to address ever Deeper Water
• 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
Towards 3,000 meters and beyondSource: Technip
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
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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 CO2 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
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Looking ForwardIV.
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
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7,540.74,241.3458.32,841.1Total
2,378.21,717.4126.1534.72011+
3,785.11,883.9196.81,704.42010
640.0
Onshore
1,377.4135.4602.02009 (3 months)
GroupOffshoreSubsea
Sept. 30, 2009 Backlog Estimated Scheduling
€ million
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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
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Investor Relations
For more information, please contact:
► Kimberly Stewart
Tel.: +33 (0)1 47 78 66 74e-mail: kstewart@technip.com
► Antoine d’Anjou
Tel.: +33 (0)1 47 78 30 18e-mail: adanjou@technip.com
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Technip
ISIN: FR0000131708Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160
OTC ADR ISIN: US8785462099ADR: TKPPK
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Operating Income*
Backlog
Order intake
Subsea Quarterly Figures€ million (not audited)
* from recurring activities
594631529
658
1Q 09 2Q 09 3Q 093Q 08
Mar. 312009
Sept. 302008
June. 302009
3,1163,4232,841
3,565
Sept. 302009
Revenue848
616746789
1Q 09 2Q 09 3Q 093Q 08
EBITDA
242191
254245
1Q 09 2Q 09 3Q 093Q 08
24%24%28%27%
1Q 09 2Q 09 3Q 093Q 08
159118 136161
1Q 09 2Q 09 3Q 093Q 08
19%19% 18%20%
1Q 09 2Q 09 3Q 093Q 08
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Onshore / Offshore Combined Quarterly Figures€ million (not audited)
Revenue
884953 9651,144
1Q 09 2Q 09 3Q 093Q 08
Operating Income*
* from recurring activities
4743 4948
1Q 09 2Q 09 3Q 093Q 08
5%5% 5%4%
1Q 09 2Q 09 3Q 093Q 08
Order intake
344558
2,738
717
1Q 09 2Q 09 3Q 093Q 08
Backlog
Mar. 312009
Sept. 302008
June. 302009
2,9503,505
4,7004,152
Sept. 302009
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Financial Risk Management
► Strong cash position as of September, 30 2009• 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
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Shareholding Structure
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Shareholding structure
Listed on Euronext Paris
Treasury Shares2.8%Employees2.4%
IFP2.8%
Other Institutional Investors63.8%
French Institutional Investors19.6%
Individual shareholders6.4%
Others2.2%
Long-Term Solid Partner
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