Full Year 2002 Results in Line with Expectations; Strong Progress in Backlog -- Improved Financial Structure; Dividend Unchanged.Business Editors PARIS--(BUSINESS WIRE)--Feb. 21, 2003 Technip-Coflexip (NYSE NYSE See: New York Stock Exchange :TKP TKP Türkiye Komünist Partisi (Communist Party of Turkey; formerly Sosyalist Iktidar Partisi, Party of Socialist Power) TKP Tulajdonképpen (Hungarian) TKP Tausender-Kontaktpreis TKP Tamarind Kernel Powder )(Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] :13170)
-- The relocation of the Paris region staff from four locations to one. This move involves the sale of the current headquarters and the lease of newly-completed office space in Paris-La Defense. Both the sale and the lease have recently been finalized; -- A vigorous development of synergies and cost savings, specifically in the areas of procurement, information technology and overhead; -- A second round of non-strategic asset sales; -- The merger of Technip-Coflexip and Coflexip SA which should reduce costs associated with the Coflexip listing and allow various affiliate and corporate reorganizations; -- The streamlining of management structure. Shareholders will be asked to amend the by-laws, by replacing the current dual structure (Management Board and Supervisory Board) with a single Board of Directors structure; Technip-Coflexip (NYSE:TKP)(Euronext:13170) today announced that the Management Board has approved the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: accounts for the fourth quarter and full year 2002 (audited), which have been reviewed by the Supervisory Board Supervisory board The board of directors that represents stakeholders in the governance of the corporation. . On full year revenues of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4,452 million, Group adjusted net income* came to EUR 110.9 million. 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. increased during the year from EUR 4.9 billion to EUR 5.8 billion (equivalent to 15.7 months of revenues). A strong increase in free cash flow allowed for the reduction of the gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. from about 40% at the beginning of 2002 to 25% at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. Valot, Chairman of the Management Board, commented: "During a year which was extremely challenging for our industry, Technip-Coflexip displayed a good level of resilience resilience (r  ·zilˑ·yens),n , with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become margin ratios standing, on a comparable basis, at 8% versus 9.1% in 2001. "Our teams are now fully integrated. We generated enough cash flow in 2002 to cover our capital expenditures, reduce our net debt to an easily manageable level and pursue a buy-back program involving both shares and convertible bonds. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite difficult market conditions, the Group managed to increase significantly its order intake intake /in·take/ (in-tak´) the substances, or the quantities thereof, taken in and utilized by the body. intake, n the substance or quantities thereof taken in and used by the body. without compromising risk and profitability criteria criteria (krītēr´ē  ),n. . The year-end backlog stands at a high level, both in terms of volume and quality. As a result, Technip-Coflexip is anticipating a new period of profitable growth in the next few years. "On this basis, the Management Board has decided to submit for shareholder approval that the dividend be maintained at last year's level of EUR 3.30 per share (before tax credit)." * Net income excluding goodwill amortization, exceptional items and after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. convertible bond financial costs. OPERATIONAL HIGHLIGHTS Order intake during the fourth quarter of 2002 came to EUR 1,115 million compared with EUR 1,526 million for the third quarter 2002 and EUR 1,093 million for the fourth quarter of 2001. Order intake for full year 2002 was up 9.2% at EUR 5,553 million.
Fourth Quarter Full Year
--------------------------------------
Order Intake Business Segment 2001*
(Euro in millions) Change (pro- Change
2002 2001 2002 forma)
--------------------------------------
Offshore 358 648 -44.8%1,706 2,644 -35.5%
----------------------------------------------------------------------
Onshore/Downstream 547 370 47.8%3,317 2,088 +58.9%
----------------------------------------------------------------------
Industries 210 75 n.m. 530 354 +49.7%
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Total 1,115 1,093 +2.0%5,553 5,086 +9.2%
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* Unaudited 2001 pro-forma results are provided for comparison purposes only and reflect the Group's scope of consolidation as of the fourth quarter of 2001resulting from the merger of Technip Technip is a French engineering company, headquartered in La Défense, Paris. It has a workforce of over 21,000 people worldwide, and annual revenues of over 5.3 billion euros (2005, IFRS). and Isis Isis, in Egyptian religion Isis (ī`sĭs), nature goddess whose worship, originating in ancient Egypt, gradually extended throughout the lands of the Mediterranean world during the Hellenistic period and became one of the chief and this merged entity's majority stake holding (98.23%) in Coflexip. As of December December: see month. 31, 2002, the backlog was EUR 5,776 million, which is equivalent to 15.7 months of 2002 revenues. At the end of 2001, consolidated backlog was equivalent to 11.9 months of 2001 revenues. Within the Offshore Branch, the SURF surf: see wave, in oceanography; beach. backlog was up by 5%. The floater Floater A bond or other type of debt whose coupon rate changes with market conditions (short-term interest rates). Also known as "floating-rate debt". Notes: For example, a floater bond may have the coupon rate set at "T-bill rate plus 0.5%". and topside facility backlog was down 44% due to severe competitive pressures. It should also be noted that the execution of Spar orders booked in 2001 was delayed into 2002, thus inflating the actual value of the 2001 backlog. Revenues of EUR 1,145 million for the fourth quarter of 2002 remained essentially unchanged sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and decreased year-on-year by 15.3%. Full year revenues totaled EUR 4,452 million in 2002, down 10.1% compared to pro-forma EUR 4,950 million for the same period one year ago.
Fourth Quarter Full Year
Revenues by Business --------------------------------------------
Segment 2001*
(Euro in millions) Change (pro- Change
2002 2001 2002 forma)
--------------------------------------------
Offshore 533.4 554.0 -3.7% 2,125.0 2,125.8 0.0%
----------------------------------------------------------------------
Onshore/Downstream 523.1 690.0 -24.2% 1,938.6 2,352.0 -17.6%
----------------------------------------------------------------------
Industries 88.4 108.0 -18.2% 388.7 472.0 -17.7%
----------------------------------------------------------------------
Total 1,144.9 1,352.0 -15.3% 4,452.3 4,949.8 -10.1%
----------------------------------------------------------------------
* Unaudited 2001 pro-forma results are provided for comparison purposes only and reflect the Group's scope of consolidation as of the fourth quarter of 2001resulting from the merger of Technip and Isis and this merged entity's majority stake holding (98.23%) in Coflexip. The year-on-year decline in quarterly and full year total revenues was due to the impact of low order intake during 2000 and 2001 for the Onshore/Downstream branch and was exacerbated by implementation delays which affected several new contracts. The Offshore Branch full year 2002 revenues were unchanged despite the negative impact of vessel VESSEL, mar. law. A ship, brig, sloop or other craft used in navigation. 1 Boul. Paty, tit. 1, p. 100. See sup. 2. By an act of congress, approved July 29, 1850, it is provided that any person, not being an owner, who shall on the high seas, willfully, with. downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. during the first and fourth quarters of the year. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one-third of the year-on-year revenue decline was due to the impact of the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the U.S. dollar and other currencies
against the euro (estimated to be EUR 130 million) and to foregone fore·gonev. Past participle of forego1. adj. Having gone before; previous. Usage Note: The word foregone has recently developed a new meaning as a truncation of the phrase revenue (EUR 34 million) resulting from the disposal of non-strategic assets. On a like-for-like basis, the year-on-year revenue decline would have been 6.7%. EBITDA for the fourth quarter of 2002 amounted to EUR 92.3 million, up 1.4% compared to EUR 91 million for the third quarter of 2002. EBITDA for the full year 2002 totaled EUR 347.6 million compared to pro-forma EUR 449.6 million during 2001.
Fourth Quarter Full Year
-------------------------------------
EBITDA by Business Segment 2001*
(Euro in millions) Change (pro- Change
2002 2001 2002 forma)
-------------------------------------
Offshore 69.7 69.9 -0.3% 250.1 251.4 -0.5%
----------------------------------------------------------------------
Onshore/Downstream 20.5 53.1 -61.4% 85.3 189.3 -54.9%
----------------------------------------------------------------------
Industries 2.1 1.5 40.0% 12.2 9.1 34.1%
----------------------------------------------------------------------
Total 92.3 124.5 -25.7%3 47.6 449.8 -22.7%
----------------------------------------------------------------------
* Unaudited 2001 pro-forma results are provided for comparison purposes only and reflect the Group's scope of consolidation as of the fourth quarter of 2001 resulting from the merger of Technip and Isis and this merged entity's majority stake holding (98.23%) in Coflexip. The EBITDA margin in the Offshore Branch was 13% in the fourth quarter and averaged 11.8% for the full year, unchanged from the average margin in 2001. On a comparable basis (with the same scope of consolidation and same currency exchange rates as in 2001), the full year 2002 EBITDA margin would have been 12.1%. In the Onshore/Downstream Branch, the EBITDA margin was 3.9% in the fourth quarter and 4.4% for the full year (compared to 8% for 2001). This evolution reflects the fact that a number of large contracts are in their initial stages when little margin is recognized from an accounting standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the . The Industries Branch EBITDA margin was down sequentially in the fourth quarter of 2002 due to provisions taken in relation to a few difficult contracts. For the full year 2002, the average EBITDA margin for this business segment reached 3.1% versus 1.9% for 2001. For all onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. activities (Onshore/Downstream and Industries), the average EBITDA margin in 2002 was 4.2%, in line with expectations. On a comparable basis (with the same scope of consolidation and same currency exchange rates as in 2001), the Group EBITDA margin in 2002 would have been 8%, compared to 9.1% in 2001. Depreciation was EUR (34.4) million for the fourth quarter and EUR (143.0) million for the full year. A majority of the Group's depreciation expense, EUR (123.2) million, is concentrated in the Offshore branch which has the largest concentration of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , mainly vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. . The remaining amounts of EUR (16.4) million and EUR (3.4) million are split between the Onshore/Downstream and Industries branches, respectively. The Group's EBITA EBITA Earnings Before Interest Taxes Amortization margin for the full year was 4.6%.
Fourth Quarter Full Year
------------------------------------
EBITA by Business Segment 2001*
(Euro in millions) Change (pro- Change
2002 2001 2002 forma)
------------------------------------
Offshore 39.5 39.5 0.0% 126.9 135.2 -6.1%
----------------------------------------------------------------------
Onshore/Downstream 17.3 49.8 -65.3% 68.9 174.2 -60.4%
----------------------------------------------------------------------
Industries 1.1 1.1 0.0% 8.8 6.1 +44.3%
----------------------------------------------------------------------
Total 57.9 90.4 -36.0% 204.6 315.5 -35.2%
----------------------------------------------------------------------
* Unaudited 2001 pro-forma results are provided for comparison purposes only and reflect the Group's scope of consolidation as of the fourth quarter of 2001 resulting from the merger of Technip and Isis and this merged entity's majority stake holding (98.23%) in Coflexip. Goodwill amortization for the fourth quarter 2002 amounted to EUR (29.8) million, essentially unchanged from EUR (29.6) million for the previous quarter. For the full year of 2002, goodwill amortization totaled EUR (117.8) million. The goodwill asset value as of December 31, 2002 was validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by the usual year-end impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. test. The net financial result amounted to EUR (23.3) million for the fourth quarter of 2002 and EUR (50.0) million for the full year. In addition, a non-cash provision for the redemption premium redemption premium See call premium. on convertible bonds amounts to EUR 16.9 million. As of January January: see month. 1, 2003, the Group affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. has switched its functional currency from the U.S. dollar to the Real. This measure should help to reduce future potential foreign exchange losses (the associated 2002 loss was EUR 6.2 million). Non-operating income (loss) for the fourth quarter of 2002 amounted to EUR (4.4) million and EUR (6.9) million for the full year, excluding any capital gains on the sales of various ex-Coflexip assets during 2002 amounting to EUR 78.8 million. The after-tax amount of these capital gains did not flow through the profit and loss accounts of the Group but was accounted for as a reduction of goodwill. The income tax charge for the fourth quarter of 2002 amounted to EUR (11.7) million for a tax rate of 30%. Income tax for full year 2002 totaled EUR (46.3) million for an annual tax rate of 30%. Net income amounted to EUR (9.6) million for the fourth quarter of 2002 and EUR (29.4) million for the full year. Adjusted net income used for the purpose of calculating fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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. amounted to EUR 24.4 million(1) for the fourth quarter of 2002 and EUR 110.9 million(2) for full year 2002. Fourth quarter and full year 2002 fully diluted adjusted EPS were EUR 0.86 and EUR 3.91, respectively. During the year, the Group cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. 3.5 million shares, which resulted in a relutive effect of 12% on EPS. (1) Net income (EUR)(9.6) million + goodwill amortization (EUR)29.8 million + non-operating loss (EUR)4.4 million + after tax convertible bond financial costs (EUR)(0.2) million. (2) Net income (EUR)(29.4) million + goodwill amortization (EUR)117.8 million + non-operating loss (EUR)6.9 million + after tax convertible bond financial costs (EUR)15.6 million. Full year 2002 net income reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to U.S. generally applied accounting principles (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) amounted to EUR 91.1 million (unaudited), compared to EUR 114.8 million at the end of 2001. The main adjustment to reported French GAAP full year 2002 net income of EUR (29.4) million is the non-inclusion of goodwill amortization of EUR (117.8) million. LIQUIDITY AND DEBT During 2002, cash flow from operating activities was EUR 432.8 million and included: -- The relocation of the Paris region staff from four locations to one. This move involves the sale of the current headquarters and the lease of newly-completed office space in Paris-La Defense. Both the sale and the lease have recently been finalized; -- A vigorous development of synergies and cost savings, specifically in the areas of procurement, information technology and overhead; -- A second round of non-strategic asset sales; -- The merger of Technip-Coflexip and Coflexip SA which should reduce costs associated with the Coflexip listing and allow various affiliate and corporate reorganizations; -- The streamlining of management structure. Shareholders will be asked to amend the by-laws, by replacing the current dual structure (Management Board and Supervisory Board) with a single Board of Directors structure; Gross proceeds from asset sales of EUR 143.2 million were enough to cover capital expenditures of EUR (126.2) million. Free cash flow of EUR 256.9 million was more than double that of the year earlier amount. Total net debt at the end of 2002 amounted to EUR 506 million*, a 22% decrease from EUR 652 million at September September: see month. 30, 2002. Gearing at the end of 2002 was 25.0% compared to 39.6% as of December 31, 2001. Compared to its high of EUR 1,036 million at the end of March 2002, net debt was reduced by 51%.
Euro in millions Dec Sept June Mar Dec
31 30 30 31 31
2002 2002 2002 2002 2001
----------------------------------------------------------------------
Marketable Securities 99 98 142 120 150
----------------------------------------------------------------------
Cash 642 633 560 516 613
----------------------------------------------------------------------
Cash & Cash Equivalents 741 731 702 636 763
----------------------------------------------------------------------
Short Term Debt 296 273 472 417 457
----------------------------------------------------------------------
Long Term Debt 951 1,110 1,151 1,255 1,182
----------------------------------------------------------------------
Gross Debt 1,247 1,383 1,623 1,672 1,639
----------------------------------------------------------------------
Net Debt* 506 652 921 1,036 876
----------------------------------------------------------------------
In December 2002, Technip-Coflexip repurchased 165,653 convertible bonds for a total amount of EUR 26.9 million. These bonds were cancelled bringing the total outstanding amount as of December 31, 2002 to EUR 765.3 million. The amount of the associated reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. premium liability was accordingly reduced proportionally pro·por·tion·al adj. 1. Forming a relationship with other parts or quantities; being in proportion. 2. Properly related in size, degree, or other measurable characteristics; corresponding: to EUR 90.4 million as of December 31, 2002. Since the beginning of 2003, the Group has repurchased and cancelled another 100,611 bonds. This has reduced the outstanding amount to EUR 748.2 million as February February: see month. 14, 2003, and the associated reimbursement premium liability is reduced proportionally to EUR 88.4 million. * Does not include the reimbursement premium on the convertible bonds issued in the first quarter of 2002. The following section contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning the Group's operations and results which are subject to risks and uncertainties. These statements should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the cautionary statement included at the end of this section. PERSPECTIVES The Group has instigated a strategic initiative involving: -- The relocation of the Paris region staff from four locations to one. This move involves the sale of the current headquarters and the lease of newly-completed office space in Paris-La Defense. Both the sale and the lease have recently been finalized; -- A vigorous development of synergies and cost savings, specifically in the areas of procurement, information technology and overhead; -- A second round of non-strategic asset sales; -- The merger of Technip-Coflexip and Coflexip SA which should reduce costs associated with the Coflexip listing and allow various affiliate and corporate reorganizations; -- The streamlining of management structure. Shareholders will be asked to amend the by-laws, by replacing the current dual structure (Management Board and Supervisory Board) with a single Board of Directors structure; Contemplated assets sales under this plan should: -- Generate gross proceeds of between EUR 130-150 million through the disposal of non-strategic assets, including the sale of the current headquarters; -- On a full-year basis, improve the EBITA margin ratio by up to 0.4 points and reduce Group revenues by approximately 4% due to asset sales. Based upon the current order backlog and known contract prospects, the Group anticipates that the next three years (2003-2005) should constitute a new era of growth for Technip-Coflexip during which time revenues should experience a compound annual growth rate (CAGR CAGR See: Compound Annual Growth Rate ) of approximately 10%, on a comparable basis. Due to the time lag between the booking of new orders and the full fledged fledge v. fledged, fledg·ing, fledg·es v.tr. 1. To take care of (a young bird) until it is ready to fly. 2. To cover with or as if with feathers. 3. execution of the contracts, the level of revenues and margins for the first half of 2003 should be similar to what was experienced during the first half in 2002. Revenue and margin growth should begin to pick up in the second half of 2003, and then to accelerate in 2004. The business mix is expected to change in the coming years, with most of the growth coming from engineering and construction activities, both offshore and onshore, which carry lower EBITDA margins but are less cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. and less capital intensive than the subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". activities. As a result, the Group currently anticipates that EBITA margins and return on capital employed Return on capital employed (ROCE) Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). should improve significantly during the period 2003-2005. Compared to 2002 on a full year basis, the Group expects 2003 group revenues to be up around 5% (on a comparable basis, both in terms of perimeter The boundary of a system or network, which defines the inside and outside. It is typically determined by firewalls and addresses. See DMZ. and currency exchange rates), with onshore/downstream revenues growing at a somewhat faster rate and offshore revenues being flat to slightly up. The main targets are EBITA growing at twice the rate of revenues with pre-goodwill EPS growing three times faster than the revenue growth rate. Statements in this document that are not historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including forward-looking statements with respect to the financial condition, results of operations, business, competitiveness and strategy of the Technip-Coflexip Group. Such statements are based on a number of assumptions, expectations and forecasts that could ultimately prove inaccurate, and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including currency fluctuations, the level of capital expenditure in the oil and gas industry as well as other industries, the timing of development of energy resources, construction and project risks, armed conflict or political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in the Persian Gulf Persian Gulf, arm of the Arabian Sea, 90,000 sq mi (233,100 sq km), between the Arabian peninsula and Iran, extending c.600 mi (970 km) from the Shatt al Arab delta to the Strait of Hormuz, which links it with the Gulf of Oman. or other regions, the strength of competition, interest rate fluctuations, control of costs and expenses, the timing and success of anticipated integration synergies and stability in developing countries. For a further list and description of such risks and uncertainties, see the reports filed by Technip-Coflexip with the Securities and Exchange Commission and the "Commission des Operations de Bourse bourse (b  rs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent. ."
Technip-Coflexip disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The financial information
contained in this document has been prepared 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 French GAAP, and certain elements would differ materially upon reconciliation to US GAAP. With a workforce of about 18,000, Technip-Coflexip ranks among the top five in the field of oil and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. engineering, construction and services. Headquartered in Paris, the Group is listed in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (NYSE:TKP) and in Paris (Euronext:13170). The main engineering and business centers of Technip-Coflexip are located in France, Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , the UK, Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. , Finland Finland, Finnish Suomi (swô`mē), officially Republic of Finland, republic (2005 est. pop. 5,223,000), 130,119 sq mi (337,009 sq km), N Europe. , the Netherlands, the Netherlands, The officially Kingdom of The Netherlands byname Holland Country, northwestern Europe. Area: 16,034 sq mi (41,528 sq km). Population (2005 est.): 16,300,000. Capital: Amsterdam. Seat of government: The Hague. Most of the people are Dutch. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Brazil, Abu-Dhabi, China, India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world class fleet of offshore construction vessels. For further information please contact: Press Relations Sylvie Sylvie is a musical group from Regina, Saskatchewan. It features singer/guitarist Joel Passmore, formerly of the now-disbanded Despistado, alongside bass player Riva Farrell Racette, guitarist Chris Notenboom, keyboardist Erin Passmore and drummer Jeff Romanyk. Hallemans Tel. +33 (0) 1 47 78 34 85 E-mail: shallemans@technip-coflexip.com Fax +33 (0) 1 47 78 24 33 Investor Relations Investor relations The process by which the corporation communicates with its investors. G. Christopher Welton
There are several places that carry the name Welton:
Technip-Coflexip's web-site is accessible at: www.technip-coflexip.com CONSOLIDATED STATEMENT OF INCOME French GAAP
Euro in Millions except EPS Fourth Quarter* Full Year
------------------ ------------------
2001*
(pro-
2002 2001 2002 forma)
-------------------------------- ------------------ ------------------
Net Sales 1,144.9 1,352.0 4,452.4 4,949.8
Cost of Sales (1,052.6)(1,227.5) (4,104.7)(4,500.2)
E.B.I.T.D.A. 92.3 124.5 347.6 449.6
Depreciation and Amortization
excluding Goodwill (34.4) (34.1) (143.0) --
E.B.I.T.A. 57.9 90.4 204.6 --
Goodwill Amortization (29.8) (29.4) (117.8) --
E.B.I.T. 28.1 61.0 86.8 --
Financial Result (18.9) (7.6) (50.0) --
Provision for Redemption Premium
on Convertible Bonds (4.4) -- (16.9) --
Non-Operating Income (Loss) (4.4) (1.6) (6.9) --
Income Tax (11.7) (20.5) (46.3) --
Income of Equity Affiliates (0.9) (1.0) -- --
Minority Interests 2.6 (2.2) 3.9 --
Net Income (9.6) 28.1 (29.4) --
-------------------------------- ------------------ ------------------
-------------------------------- ------------------ ------------------
Net Income for EPS Computation:
Net Income (9.6) 28.1 (29.4) --
Non-Operating Income (Loss) 4.4 1.6 6.9 --
Goodwill Amortization 29.8 29.4 117.8 --
Convertible Bond Financial Costs
(After Tax) (0.2) -- 15.6 --
-------------------------------- ------------------ ------------------
Adjusted Net Income 24.4 59.1 110.9 --
-------------------------------- ------------------ ------------------
-------------------------------- ------------------ ------------------
Adjusted EPS 0.86 -- 3.91 --
-------------------------------- ------------------ ------------------
Number of fully diluted shares as of December 31, 2002: 28,385,816 * Unaudited 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. French GAAP
Dec. Sept. June Dec.
Euro in Millions 31, 30, 30, 31,
2002 2002* 2002 2001
----------------------------
-----------------------------------------
Assets
----------------------------------------- ----------------------------
Non-Current Assets 3,518 3,552 3,659 3,807
----------------------------------------- ----------------------------
Contracts in Progress, Inventories &
Deferred Bid Costs, net 4,977 5,660 5,499 6,426
----------------------------------------- ----------------------------
Premium for Redemption of Convertible
Bonds 74 81 86 -
----------------------------------------- ----------------------------
Receivables & Other Current Assets, net 1,296 1,224 1,149 1,122
----------------------------------------- ----------------------------
Cash & Cash Equivalents 741 731 702 763
----------------------------------------- ----------------------------
Total Assets 10,606 11,249 11,095 12,118
----------------------------------------- ----------------------------
-----------------------------------------
Liabilities & Shareholders' Equity
----------------------------------------- ----------------------------
Shareholders' Equity 2,026 2,020 2,084 2,214
----------------------------------------- ----------------------------
Minority Interests 16 32 20 21
----------------------------------------- ----------------------------
Financial Debt 1,247 1,383 1,623 1,640
----------------------------------------- ----------------------------
Premium for Redemption of Convertible
Bonds 90 93 93 -
----------------------------------------- ----------------------------
Progress Payments on Contracts 5,420 6,020 5,533 6,472
----------------------------------------- ----------------------------
Accrued Liabilities 329 337 309 338
----------------------------------------- ----------------------------
Other Liabilities 1,478 1,363 1,433 1,433
----------------------------------------- ----------------------------
Total Liabilities & Shareholders' Equity 10,606 11,249 11,095 12,118
----------------------------------------- ----------------------------
* Unaudited CONSOLIDATED STATEMENT OF CASH FLOWS FULL YEAR 2002 Euro in Millions
Net Income (29.4)
Depreciation of Property, Plants & Equipment 133.0
Goodwill Amortization 117.8
Provision for Redemption Premium on Convertible
Bonds 16.9
Net Loss (Gain) on the Disposal of Fixed Assets (10.7)
Deferred Income Tax 16.2
Minority Interests (3.9)
--------
239.9
Change in Working Capital 192.9
Net Cash Provided by (Used in) Operating Activities 432.8
Capital Expenditures (126.2)
Disposal of Assets 143.2
Other 1.7
Net Cash Provided by (Used in) Investment Activities 18.7
Increase (Decrease) in Short Term Debt 85.3
Increase (Decrease) in Long Term Debt (405.0)
Rights Issue 12.4
Dividends Paid (79.8)
Share Buy-back (49.0)
Net Cash Provided by (Used in) Financing Activities (436.1)
Foreign Exchange Translation Adjustment (37.7)
--------
Net Increase (Decrease) in Cash and Cash Equivalents (22.3)
--------
Cash and Cash Equivalents as of January 1, 2002 (763.4)
Cash and Cash Equivalents as of December 31, 2002 741.1
--------
(22.3)
--------
ANNEX an·nex tr.v. an·nexed, an·nex·ing, an·nex·es 1. To append or attach, especially to a larger or more significant thing. 2. I Changes in Shareholders Equity - Fourth Quarter 2002 Euro in Millions Shareholders' Equity as of September 30, 2002 2,020.5 Net Income of the fourth quarter (9.6) Other 15.4 Shareholders' Equity as of December 31, 2002 2,026.3 ---------------------------------------------------------------------- Changes in Shares Outstanding Since January 1, 2002 Shares outstanding as of December 31, 2001 26,713,448 Share Issuances 170,509 Cancellation of treasury shares (acquired following merger with ISIS) (1, 847,376) Cancellation of treasury shares (exchanged CGG shares) (511,253) Cancellation of treasury shares (1,117,324) Shares outstanding as of December 31, 2002 23,408,004 Stock options (subscription options) 475,818 Convertible bonds 4,501,994 Fully diluted shares for EPS computation 28,385,816 ---------------------------------------------------------------------- ANNEX II (Euro in millions except per share data)
Key Figures 2002
(Quarterly data unaudited) ----------------------
4th Quarter Full Year
--------------------------------------------------------------
Revenues 1,144.9 4,452.3
--------------------------------------------------------------
Free Cash Flow (1) (5.1) 256.9
--------------------------------------------------------------
EBITDA 92.3 347.6
--------------------------------------------------------------
EBITA 57.9 204.6
--------------------------------------------------------------
Net Debt 506
--------------------------------------------------------------
Order Intake 1,115 5,553
--------------------------------------------------------------
Backlog 5,776
--------------------------------------------------------------
--------------------------------------------------------------
Net Income (9.6) (29.4)
--------------------------------------------------------------
Adjusted Net Income (2) 24.4 110.9
--------------------------------------------------------------
Adjusted EPS (fully diluted) (3) 0.86 3.91
--------------------------------------------------------------
Adjusted E/ADS (fully diluted) (3) (4) 0.21 0.93
--------------------------------------------------------------
2002
Revenues by Region ----------------------------------
(Unaudited) Fourth Quarter Full Year
----------------------------------
Europe, Russia, Central Asia 274 1,197
---------------------------------------------------------------
Africa, Middle-East 440 1,482
---------------------------------------------------------------
Asia Pacific 112 445
---------------------------------------------------------------
Americas 319 1,328
---------------------------------------------------------------
Total 1,145 4,452
---------------------------------------------------------------
2002
EBITDA by Region ----------------------------------
(Unaudited) Fourth Quarter Full Year
----------------------------------
Europe, Russia, Central Asia 39 148
---------------------------------------------------------------
Africa, Middle-East 35 103
---------------------------------------------------------------
Asia Pacific 9 22
---------------------------------------------------------------
Americas 9 74
---------------------------------------------------------------
Total 92 348
---------------------------------------------------------------
(1) Excluding working capital variation. (2) Adjusted net income is equal to net income less goodwill amortization, non-operating loss and after-tax convertible bond financial costs. (3) EPS and E/ADS are calculated using adjusted net income as described in Footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." 2 above. Fully diluted shares of 28,385,816 shares for the fourth quarter and full year 2002 are calculated assuming full conversion of convertible bonds. (4) E/ADS is in U.S. dollars and is calculated using the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. noon buying rate (USD/EUR) of 1.0485 as of December 31, 2002. One ADS is equal to one-fourth of an ordinary share. ANNEX III Backlog (unaudited) (Euro in millions)
By Business Segment As of As of Percent
December 31, 2002 December 31, 2001 Change
---------------------------------------------------------------------
Offshore 1,761 2,138 -17.6%
---------------------------------------------------------------------
Onshore/Downstream 3,625 2,498 +45.1%
---------------------------------------------------------------------
Industries 390 290 +34.5%
---------------------------------------------------------------------
Total 5,776 4,926 +17.3%
---------------------------------------------------------------------
2002
By Region ----------------------------------
As of Dec. 31 As of Sept. 30
----------------------------------
Europe, Russia, Central Asia 833 703
---------------------------------------------------------------
Africa, Middle-East 3,038 3,232
---------------------------------------------------------------
Asia Pacific 511 685
---------------------------------------------------------------
Americas 1,394 1,443
---------------------------------------------------------------
Total 5,776 6,063
---------------------------------------------------------------
Scheduling of Backlog as of December 31, 2002
Offshore Onshore/Downstream Industries Total
-----------------------------------------------------------------
For 2003 1,417 1,589 238 3,244
-----------------------------------------------------------------
For 2004 and Beyond 343 2,036 153 2,532
-----------------------------------------------------------------
Total 1,761 3,625 390 5,776
-----------------------------------------------------------------
CONFERENCE CALLS: Daniel Valot, Chairman of the Management Board of Technip-Coflexip, will comment on the results and will field questions at the following two events on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 21, 2003. Copies of his presentation for these conference calls will be posted on the company web site in the "Publications" section by 8:00 am February 21, 2003, and can be down loaded. -- An English language English language, member of the West Germanic group of the Germanic subfamily of the Indo-European family of languages (see Germanic languages). Spoken by about 470 million people throughout the world, English is the official language of about 45 nations. conference call will be at 10:30 a.m. Paris time, 9:30 a.m. UK time: To participate in the conference call, please dial +33 (0) 1 56 38 35 35 (France) or +44 (0) 208 515 2304 (UK) ten to fifteen minutes prior to the scheduled start time. Please be sure that you call from a touch tone phone to be able to connect to the call and participate in the question and answer session. You will be asked for the name of the conference "Technip-Coflexip" and the name of the Chairman of the Management Board "Mr. Valot". A replay will be available, starting 2 hours after the close of the call, for 7 days. To listen to the replay please dial +33 (0) 1 40 50 20 20 (France) and use the confirmation code 8408# or +44 (0) 208 797 2499 (UK) and use the confirmation code 859815#. -- An additional English language conference call will be held at 3:00 p.m. Paris time, 9:00 a.m. Eastern US time and 8:00 a.m. Central US time. To participate in this additional conference call, please dial +1 (719) 457-2605 (United States) or +44 (0) 207 984 7582 (UK) or +33 (0) 1 70 70 81 98 (France) five to ten minutes prior to the scheduled start time. A replay will be available, starting 2 hours after the close of the call, for 7 days. To listen to the replay please dial +1 (719) 457-0820 (United States) or +44 (0) 207 984 7578 (UK) or +33 (0) 1 70 70 82 10 (France) and use the confirmation code 794722. Both calls will be broadcast live on the Group Website (www.technip-coflexip.com) and replays will be available for 7 days under the "Publications" section. |
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