Bouygues Offshore Reports 1st Half 1999 Results.MONTIGNY-LE-BRETONNEUX, France--(BUSINESS WIRE)--Sept. 14, 1999-- OPERATING INCOME Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. : + 27% NET INCOME: + 59% EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. : Euro 0.97 (per ADR ADR - Astra Digital Radio ) Bouygues Offshore S.A. (NYSE NYSE See: New York Stock Exchange : BWG BWG Bankwesengesetz (Federal Law on Banking, Austria) BWG Beam Waveguide (antenna) BWG Bundesamt für Wasser und Geologie (Federal Office for Water and Geology, Switzerland) ) reported financial results for the half year ended June 30, 1999. As previously reported, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight (1) grew to Euro 480.6 million (US$ 522.8(2) million), up 29% from last year's net sales of Euro 372.9 million. Net income for the half year was Euro 32.3 million (US$ 35.1 million), a 59% increase compared to the half year ended June 30, 1998. Earnings per share, calculated on the basis of 16,779,412 million shares outstanding (33,558,824 million American Depository The place where a deposit is placed and kept, e.g., a bank, savings and loan institution, credit union, or trust company. A place where something is deposited or stored as for safekeeping or convenience, e.g., a safety deposit box. Shares -ADR's-), were Euro 1.93 (US$ 1.05 per ADR) (each ADR represents one half of one share). Following a proposal from the Audit Committee, the Company decided to modify its method of recording the withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. encountered in certain countries. These taxes, which were previously recorded in Cost of Sales, will now be recorded under the heading Income tax, which will better reflect the economics of the operations. 1998 accounts presented in the Appendix are restated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with this new presentation. Operating income for the half year was Euro 27.8 million (US$ 30.2 million), a 27% increase over operating income for the comparable period in 1998 (Euro 21.9 millions). The first half was characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by a solid level of utilization of the Company's barges and yards and the delivery of major projects. Administrative expenses remained at a monitored level of Euro 30.3 million, increasing only 12% compared to the 29% increase in Net Sales. Financial income reached Euro 7.0 million. This result includes a foreign exchange gain of Euro 3.6 million arising from the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of cash deposits in foreign currencies, and interest income of Euro 3.4 million. Other income (Euro 1.7 million) is mainly comprised of a gain on the sale of the Company's Australian subsidiary BOS Australia. Income tax expense of Euro 4.5 million includes withholding tax for an amount of Euro 2.3 million. The Company also announced today that the Board of Directors has elected Herve Le Bouc Chairman. Herve Le Bouc, 47, joined Bouygues Offshore in 1989 and has served as Chief Executive Officer since 1996. He succeeds Ivan Replumaz, 48, who has held the position of Chairman since 1994 and who will remain a member of the Board of Directors. Ivan Replumaz, who was appointed to the Board of Bouygues SA in June 1998 and was named Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bouygues Batiment in June 1999, resigned as Chairman of Bouygues Offshore so that he would have more time to devote to his increased responsibilities within the Bouygues organization. In addition, the Company announced the appointment of Yves Lesage, 62, to the Board. Yves Lesage, who was named Chairman of Compagnie Generale de Geophysique in 1995 and now serves as its Chairman Emeritus e·mer·i·tus adj. Retired but retaining an honorary title corresponding to that held immediately before retirement: a professor emeritus. n. pl. , spent most of his career with Elf Aquitaine Elf Aquitaine was a French oil company which merged with TotalFina to form TotalFinaElf. The new company changed its name to Total in 2003 . Elf has been maintained as a major brand of Total. . The number of board members remains unchanged. Herve Le Bouc, Chairman and C.E.O., commented : "With the highest backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. (Euro 1,072 million) in the Company's history and strong prospects throughout the remainder of 1999, we have increased our revenue projection for the year to Euro 1,020 million. This includes an anticipated Euro 85 million generated by Sofresid, which we acquired in May. Overall, our Company will grow more than 20% compared to 1998." -0-
Business segment analysis
In million Euro 1st half 1998 1st half 1999
Net sales
Oil & Gas Contracting 270.3 374.5
Maintenance Services 63.1 63.8
Maritime and River Works 26.7 38.5
Liquefied Gases 12.8 3.8
Operating income*
Oil & Gas Contracting 18.6 29.8
Maintenance Services (0.8) 0.6
Maritime and River Works 1.0 0.2
Liquefied Gases 3.1 (2.8)
-0-
(a) Operating income is presented reajusted of withholding tax
(Euro 2.3 million in the first half of 1999 and Euro 3.5 million in
the first half of 1998.)
Oil & Gas Contracting represented 78% of total net sales during
the first half and registered a strong increase in the operating
margin. This increase mainly comes from a good yard and barge
utilization during the first half as well as the favorable phasing and
good progress of ongoing contracts.
The Maintenance Services segment returned to profitability during
the first half of 1999. Efforts to improve competitiveness continue to
be made.
The progress of contracts in Maritime and River Works was as
scheduled. Nevertheless, the good result generated was offset by a
provision for bad debt recognized during the first half.
Following the Asian crisis, the Liquefied Gases segment decreased
from Euro 12.8 million in the year-ago period to Euro 3.8 million in
the 1999 first half. The operating loss for the 1999 period reflected
expenses associated with a strong level of bid activity. Furthermore,
a provision was set aside in the course of the first half of 1999 for
late delivery penalties on a project underway.
Capital expenditures
Consolidated capital expenditures for the first half 1999 totaled
Euro 65.6 million, increasing from Euro 11.1 million in 1998. 1999
capital expenditures included Euro 45.8 million related to the
purchase of the former Kvaerner subsidiary Sofresid, and Euro 13.2
million for the investment in the Field Development Ship. The
remaining portion represents maintenance related investments.
Balance sheet highlights
The consolidated balance sheet of June 30, 1999 includes
Sofresid.
Cash and cash equivalents stood at Euro 262.4 million at June 30,
1999, a 42% increase compared to the end of June 1998. They include
Euro 32 million coming from Sofresid.
Bouygues Offshore S.A. is a leading international contractor
serving the oil and gas industry, specializing in providing integrated
solutions for the design, construction, installation and management of
offshore and onshore oil and gas turnkey projects. The Company also
provides maintenance services to the oil industry, engages in maritime
and river-related civil work projects and provides design, engineering
and construction in : liquefied natural gas (LNG), chemical and
refining, and energy and industry.
Note: All amounts disclosed in Euro have been calculated using
an exchange rate of Euro 1 = FF 6.55957
The Company's comments concerning its estimated net sales for the
full year 1999 and 2000 are forward-looking statements that involve a
number of risks and uncertainties. Although the Company believes that
backlog is a reasonably reliable indicator of future net sales,
postponements or cancellations of previously awarded contracts or
delays in the completion of ongoing projects could negatively impact
net sales. In addition, other factors that could cause the Company's
net sales to differ materially include the following : fluctuations in
the level of oil and gas industry spending; the Company's ability to
obtain additional contracts in 1999 and 2000; risks involved in doing
business abroad (such as civil disturbances, adverse government
actions, currency fluctuations and devaluations and economic and
governmental instability); risks of loss or damage of its two largest
barges; adverse weather conditions at offshore locations; and
fluctuations in exchange rates (primarily the US dollar versus the
Euro); and technical and other risks involved in the execution of
contracts.
-0-
summarized unaudited consolidated interim financial statements (French gaap) Consolidated Income Statements consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. 1st half 1998 1st half 1999 In millions, except per share data Euro Euro Net sales 372.9 480.6 Cost of sales (312.7) (411.3) Gross Margin 60.2 69.3 Research and Development costs (1.9) (2.2) Selling expenses (9.4) (9.0) Administrative expenses (27.0) (30.3) Income from operations 21.9 27.8 Financial income 2.3 7.0 Other income 1.7 Income tax (4.7) (4.5) Share in net income of equity affiliates 0.8 0.5 Minority interests (0.2) Net income 20.3 32.3 Net income per share (a) 1.19 1.93 Net income per ADR 0.6 0.97 (a) based on the weighted average number of shares outstanding in the period (17,000,000 shares in the first half of 1998, 16,779,412 shares in the first half of 1999. Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in million Euro) Assets 6/30/98 6/30/99 euro euro Fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → 85.6 137.7 Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 296.0 437.2 Treasury shares 8.1 Cash and cash equivalent 184.2 262.4 Total Assets 565.8 845.4 Liabilities 6/30/98 6/30/99 euro euro Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. 123.2 154.6 Minority interests (0.1) (0.1) Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. contract costs 59.1 118.0 and other provisions Financial debt 33.2 34.2 Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 350.4 538.7 Total Liabilities 565.8 845.4 Consolidated Cash Flow Statement (in million Euro) First half First half 1998 1999 Net cash provided by (used in) operating activities 1.3 94.1 Net cash provided by (used in) investing activities (8.3) (34.0) Net cash provided by (used in) financing activities (10.2) (17.6) Net effect of exchange rate changes 0.5 10.7 Net increase (decrease) in cash and cash equivalent (16.7) (53.2) BACKLOG (in million Euro) 6/30/1998 6/30/1999 Oil & Gas Contracting 262.5 914.7 Maintenance Services 39.0 26.1 Maritime INTEREST, MARITIME. By maritime interest is understood the profit of money lent on bottomry or respondentia, which is allowed to be greater than simple interest because the capital of the lender is put in jeopardy. & River Works 84.5 59.0 Liquefied Gases 11.6 5.6 Chemical and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar 9.6 Energy and industry 57.3 Total 397.6 1 072.3 -0- (1) Including amounts of approximately Euro 30.5 million in 1999 and Euro 16.1 million in 1998, that represent operating costs operating costs npl → gastos mpl operacionales billed directly to single project joint ventures or reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. expenses billed to customers, neither of which generate operating income. (2) using a conversion rate of US$ 1 = FF 1.0878 which is the average of the noon buying rate of the Euro from January 1, 1999 to June 30, 1999. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion