Technip: First Quarter 2004 Results; Earnings Trend in Line with Full Year Targets; Strong Cash Flow Generation.Business Editors PARIS--(BUSINESS WIRE)--May 27, 2004 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). (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 ):
First Quarter
Euros in millions
(except EPS and E/ADS) 2004 2003 Change
-------- -------- ----------
-- Backlog at Period End 6,451 6,091 + 5.9%
-- Revenues 1,250 1,099 + 13.7%
-- Income from Operations (EBITA) 50.0 44.4 + 12.6%
-- Net Income (3.3) (3.5) + 5.7%
-- Net Income before Non-Operating
Items and Goodwill Amortization 26.6 19.3 + 37.8%
-- Fully Diluted EPS (EUR) 0.97 0.79 + 22.8%
-- Fully Diluted E/ADS ($) 0.30 0.24 + 25.0%
The Board of Directors of Technip met yesterday and approved the unaudited first quarter 2004 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. 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 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. , commented: "As expected, Technip's first quarter earnings are up. Strong growth is expected to continue in the second and third quarters, which should allow Technip to attain its full-year target of 35% growth in pre-goodwill net income. "While net consolidated debt position continued to improve during the first quarter and led to a further reduction in the Group's 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. , Technip has also re-engineered its financial structure. A new, single five-year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility 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. 850 million has replaced two previously existing credit lines. A seven-year EUR 650 million Eurobond Eurobond A bond that is denominated in a different currency than the one of the country in which the bond is issued. Notes: A eurobond is usually categorized by the currency in which it is denominated, and is usually issued by an international syndicate. has also been successfully placed, allowing the Group to extend its debt maturity while taking advantage of the historically low level of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest rates. "Offshore contract awards were up compared to the same period one year ago. Onshore/Downstream 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. was below the extraordinarily high first quarter 2003 level. For the remainder of the year, prospects for new contract awards remain promising, particularly for offshore developments, major gas projects as well as 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. facilities. In particular, a number of extra-large gas-related projects such as treatment plants, liquefaction liquefaction, change of a substance from the solid or the gaseous state to the liquid state. Since the different states of matter correspond to different amounts of energy of the molecules making up the substance, energy in the form of heat must either be supplied to units and gas-to-liquids This technology deals with the conversion of natural gas to hydrocarbon liquids such as gasoline or diesel fuel. One method starts with partial oxidation of methane (a component in natural gas) to carbon dioxide, carbon monoxide, hydrogen and water, the carbon monoxide to hydrogen (H facilities are expected to be awarded to the industry during the next twelve months in the Middle East, Africa and Asia Pacific." I. OPERATIONAL HIGHLIGHTS During the first quarter of 2004, Technip's order intake was EUR 876 million (versus a preliminary estimate of EUR 840 million) of which 69.1% related to the Offshore Branch. Listed below are the main contracts which came into force during the quarter along with their approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. values (Technip's share): -- a contract awarded by BP for the development of the Greater Plutonio field, located offshore Angola Angola (ăng-gō`lə), officially Republic of Angola (2005 est. pop. 11,191,000), including the exclave of Cabinda, 481,351 sq mi (1,246,700 sq km), SW Africa. in Bloc bloc n. 1. A group of nations, parties, or persons united for common action: the Communist bloc. 2. 18, between 1,200 and 1,500 m water depth (EUR 143 million); -- a contract awarded by Kerr-McGee The Kerr-McGee Corporation was an energy company involved in the exploration and production of oil and gas resources. The company, founded in 1929, had about 1.4 billion U.S. dollars in assets as of March 31, 2006. Corp. for the engineering and construction of a Spar floating production platform hull and the engineering and delivery of the associated moorings moorings Noun, pl Naut the ropes and anchors used in mooring a vessel moorings npl (= chains) → amarras fpl; (place) → amarradero and production riser system for the Constitution field in the Gulf of Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. ; -- a contract awarded by Woodside Woodside is the name of several places or entities in the English-speaking world: Australia
Enfield, outer borough (1991 pop. 249,100) of Greater London, SE England. It is residential, with important concentrations of industry. oil development located offshore Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. in the Carnarvon Carnarvon may refer to:
-- two contracts awarded by Shell and Eni ENI Ente Nazionale Idrocarburi (Italy) ENI Ecole Nationale d'Ingénieurs (French: National Engineer School) ENI Employee Network Inc. for key sub sea developments (Pierce Pierce may refer to: Places
Stirling, town (1991 pop. 38,638), Stirling council area, central Scotland, on the Forth River. The center of a large farm district, it has livestock markets and light industries making agricultural machinery, carpets, and meat , respectively) in the UK North Sea (EUR 26 million). As of March 31, 2004, the 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. (1) amounted to EUR 6,451 million versus EUR 6,091 million registered at March 31, 2003 (+ 5.9%). Compared to 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. 2003, the backlog as of March 31, 2004 was down by EUR 729 million. Almost half of this reduction came from both foreign exchange translation adjustments (approximately EUR 189 million) and changes in the scope of consolidation (approximately EUR 160 million).(2) The Offshore backlog of EUR 2,775 million increased by over 72.5% compared to its level one year ago and accounted for 43.0% of the Group's overall backlog. The Onshore/Downstream and Industries combined backlog was EUR 3,676 million, compared to EUR 4,482 million at the end of March 31, 2003. Order intake during the first quarter of 2003 included a large gas-to-liquids (GTL GTL - Gunning Transceiver Logic ) contract worth USD USD In currencies, this is the abbreviation for the U.S. Dollar. 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. 675 million. II. FINANCIALS A) Income Statement Revenues were EUR 1,250 million, up 13.7% compared to the first quarter of 2003 (EUR 1,099 million). Offshore revenues were up 17.7% year-on-year as activity picked up due to the execution of contracts awarded in 2003. 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". umbilicals, risers and flowlines (SURF surf: see wave, in oceanography; beach. ) revenues were up 25.9% at EUR 355 million, while Facilities revenues amounted to EUR 262 million, an increase of 8.3% compared to the first quarter of 2003. Onshore/Downstream revenues rose 19.8% due to large contracts signed in 2002 and early 2003 coming into full-scale full-scale adj. 1. Of actual or full size; not reduced: a full-scale model. 2. Employing all resources; not limited or partial: implementation. Industries revenues amounted to EUR 58 million due to the previously mentioned change in the scope of consolidation. Income from operations(a) (EBITA EBITA Earnings Before Interest Taxes Amortization ) amounted to EUR 50.0 million, a 12.6% increase versus EUR 44.4 million reported for the same period one year ago. The Group EBITA margin for the first quarter 2004 was 4.0%, unchanged year-on-year. SURF margins demonstrated significant improvement compared to the first quarter of 2003, increasing from 4.7% to 8.1% due to higher sales volume and the completion of a couple of challenging contracts which had generated losses during 2003. Facilities margins declined due to the Group's decision to apply its progressive margin recognition policy to this segment as of January January: see month. 1, 2004. Onshore/Downstream returns improved to 4.0% (up from 3.7% one year ago) in line with the more advanced maturity profile of the activity's contracts under execution. The Industries' margin is slightly better than breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations following the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of this activity which began in the second half of last year. Financial charges decreased to EUR 7.9 million during first quarter 2004, compared to EUR 10.5 million registered for the same period in 2003. The improvement was primarily related to the sharp reduction of the provision for the redemption premium redemption premium See call premium. on convertible bonds following the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of convertible bonds and subsequent cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. during the first quarter of 2004. Profit before tax(a) for the first quarter 2004 was EUR 39.7 million, compared to EUR 37.3 million for the same period in 2003. Excluding non-operating items, profit before tax progressed 19.5% year-on-year. Income taxes were EUR 13.8 million, reflecting an average corporate tax rate of 32.3%. After tax, net income pre-goodwill was EUR 25.9 million, up 13.6% compared to EUR 22.8 million during the first quarter 2003. After goodwill amortization of EUR 29.2 million, net income was EUR (3.3) million compared to EUR (3.5) million for the first quarter of 2003. Excluding non-operating items and goodwill amortization, the consolidated net income of the Group increased by 37.8% to EUR 26.6 million. For the first quarter of 2004, 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. increased 22.8% to EUR 0.97 while fully diluted E/ADS was up 25.0% at USD 0.30. First quarter 2004 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 (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) more than doubled to EUR 29.6 million (unaudited). The main adjustment to reported French GAAP net income is the restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of goodwill amortization of EUR 29.2 million. B) Cash Flow Statement Net cash provided by operating activities increased by EUR 95.4 million thanks to increased cash from operations and a significant improvement in working capital. Capital expenditures came down to EUR 13.9 million versus EUR 18.2 million in the first quarter of 2003. As a result, the Group was able to reduce its debt by EUR 113.6 million during the first three months of 2004. C) Balance Sheet The Group's net debt (excluding the redemption premium on convertible bonds) as of March 31, 2004 was EUR 171 million compared to EUR 506 million as March 31, 2003 and EUR 237 million as of December December: see month. 31, 2003. As a result, net gearing at the end of March 2004 was significantly reduced to 8.7%, compared to 25.2% one year earlier. Technip repurchased 419,742 convertible bonds for a total amount of EUR 71.4 million during the first quarter of 2004. These bonds were 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. cutting the total outstanding amount as of March 31, 2004 to EUR 644.1 million. Accordingly, the amount of the associated redemption premium liability fell to EUR 76.1 million as of March 31, 2004. During the second quarter of 2004, Technip signed a new 5-year EUR 850 million revolving credit facility which replaced two existing lines maturing in 2006. The Group has also issued a 7-year EUR 650 million Eurobond which carries a fixed interest rate of 4.625%. Taking into account that the convertible bonds issued in 2002 will mature at the end of 2006, the Eurobond proceeds increase the Group's financial flexibility. (1) The remaining portion of contracts in force. (2) In line with its overall strategy, the Group decided to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. 3 non-core affiliates previously reported under the 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. / Downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). and Industries Branches. The combined backlog of these activities was EUR 160 million as of December 31, 2003. It is estimated that their combined revenues and EBITA for the first quarter of 2004 would have been approximately EUR 41 million and EUR 1 million, respectively. (a) Before goodwill amortization Statements in this document that are not historical fact are 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. 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 and business cycles, competitiveness and strategy of the Technip 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 Arabic-Persian Gulf or other regions, the strength of competition, interest rate fluctuations, control of costs and expenses, the reduced availability of government-sponsored export financing, the timing and success of anticipated integration synergies and stability in developing countries. For a further description of such risks and uncertainties, see the reports filed by Technip with the Securities and Exchange Commission and the "Autorite des Marches Financiers." Technip disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Except as otherwise indicated, 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 19,000 persons, Technip ranks among the top five corporations in the field of oil, gas and petrochemical 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 and Paris. The Group's main engineering and business centers 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 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. , 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 world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. fleet of offshore construction vessels.
ANNEX I
CONSOLIDATED STATEMENT OF INCOME
French GAAP
Unaudited
Euros in Millions First Quarter
--------------------
(EPS in Euros; E/ADS in US Dollars) 2004 2003
------------------------------------------------- --------------------
Revenues 1,249.8 1,099.4
Cost of Sales (1,170.1) (1,025.1)
Depreciation of Fixed Assets (29.7) (29.9)
------------------------------------------------- --------------------
Income from Operations (1) 50.0 44.4
------------------------------------------------- --------------------
Financial Result (7.3) (6.6)
Provision for Redemption Premium on Convertible
Bonds (0.6) (3.9)
Non-Operating Income (Loss) (0.7) 3.5
Income of Equity Affiliates -- --
Minority Interests (1.7) (0.1)
------------------------------------------------- --------------------
Profit Before Tax (1) 39.7 37.3
------------------------------------------------- --------------------
Income Tax (13.8) (14.5)
------------------------------------------------- --------------------
Net Income pre-Goodwill 25.9 22.8
------------------------------------------------- --------------------
Goodwill Amortization (29.2) (26.3)
------------------------------------------------- --------------------
Net Income (3.3) (3.5)
------------------------------------------------- --------------------
Net Income before Non-Operating Items (1) 26.6 19.3
------------------------------------------------- --------------------
Fully Diluted Adjusted EPS (2) 0.97 0.79
------------------------------------------------- --------------------
Fully Diluted Adjusted E/ADS (3) 0.30 0.24
------------------------------------------------- --------------------
(1) Income from Operations (EBITA), Profit before Tax and Net Income
before Non-Operating Items are all calculated before goodwill
amortization. These data are used for informational purposes only.
They allow, in the Group's opinion, to make more meaningful
comparisons between its operational performance and those of its
peers who may use different accounting standards, such as US GAAP
which do not allow the goodwill amortization.
(2) Fully diluted EPS is calculated based upon net income before
non-operating items and goodwill amortization plus specific
financial charges associated with the Group's convertible bond
issue. The number of fully diluted shares (28,932,375 as of March
31, 2003 and 28,966,450 as of March 31, 2004) includes those which
would be issued in the event that all outstanding convertible
bonds would be redeemed for shares. Accordingly, the post tax
financial costs and redemption premium (EUR 3.7 million and EUR
1.6 million for the first quarters of 2003 and 2004, respectively)
are added back.
(3) E/ADS is in U.S. dollars and is calculated using the Federal
Reserve Bank of New York noon buying rate (USD/EUR) of 1.2292 as
of March 31, 2004. One ADS is equal to one-fourth of an ordinary
share.
ANNEX II
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited
Euros in Millions
First Quarter
--------------------------
2004 2003
--------------------------------------------==========================
Net Income (3.3) (3.5)
Depreciation of Property, Plants & Equipment 29.7 29.9
Goodwill Amortization 29.2 26.3
Provision for Redemption Premium on
Convertible Bonds 0.6 3.9
Net Loss (Gain) on the Disposal of Fixed
Assets (0.3) (3.1)
Deferred Income Tax 11.7 10.1
Minority Interests and Other 1.7 0.1
------- ------
Cash from Operations 69.3 63.7
------- ------
Change in Working Capital 21.4 (68.4)
------- ------
Net Cash Provided by (Used in) Operating
Activities 90.7 (4.7)
------- ------
----------------------------------------------------------------------
Capital Expenditures (13.8) (18.2)
Proceeds from Assets Disposals 0.6 10.2
Other Cash Provided by (Used in) Investment
Activities 0.3 (6.6)
Aker Deepwater Acquisition Price Reduction -- 31.4
------- ------
Net Cash Provided by (Used in) Investment
Activities (12.9) 16.8
------- ------
----------------------------------------------------------------------
Increase (Decrease) in Debt (113.6) (14.0)
Repurchase of Outstanding Shares (11.0) --
Capital Increase 23.7 --
------- ------
Net Cash Provided by (Used in) Financing
Activities (100.9) (14.0)
------- ------
----------------------------------------------------------------------
Foreign Exchange Translation Adjustment 8.8 (13.1)
------- ------
Net Increase (Decrease) in Cash and Cash
Equivalents (14.3) (15.0)
======= ======
Cash and Cash Equivalents as of December 31,
2003 892.4 741.1
Change in scope of consolidation (17.4) --
Cash and Cash Equivalents as of March 31,
2004 860.7 726.1
------- ------
14.3 15.0
======= ======
ANNEX III
CONSOLIDATED BALANCE SHEET
French GAAP
Euros in Millions Mar. 31, Dec. 31, Sept 30, June 30,
2004 2003(a) 2003 2003(a)
-----------------------------------
----------------------------------
ASSETS
---------------------------------- -----------------------------------
Non-Current Assets 3,215 3,246 3,284 3,289
---------------------------------- -----------------------------------
Contracts in Progress, Inventories
& Deferred Bid Costs, net 6,639 6,442 6,233 5,359
---------------------------------- -----------------------------------
Premium for Redemption of
Convertible Bonds 52 52 57 62
---------------------------------- -----------------------------------
Receivables & Other Current
Assets, net 1,609 1,376 1,600 1,430
---------------------------------- -----------------------------------
Cash & Cash Equivalents 861 892 697 634
---------------------------------- -----------------------------------
TOTAL ASSETS 12,376 12,008 11,871 10,774
---------------------------------- -----------------------------------
----------------------------------
LIABILITIES & SHAREHOLDERS' EQUITY
---------------------------------- -----------------------------------
Shareholders' Equity 1,959 1,938 1,960 1,921
---------------------------------- -----------------------------------
Minority Interests 10 9 11 11
---------------------------------- -----------------------------------
Provisions 306 324 320 314
---------------------------------- -----------------------------------
Financial Debt 1,032 1,129 1,242 1,313
---------------------------------- -----------------------------------
Premium for Redemption of
Convertible Bonds 76 85 87 87
---------------------------------- -----------------------------------
Progress Payments on Contracts 7,298 7,048 6,833 5,740
---------------------------------- -----------------------------------
Other Liabilities 1,695 1,475 1,418 1,388
---------------------------------- -----------------------------------
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY 12,376 12,008 11,871 10,774
---------------------------------- -----------------------------------
(a) Audited
First Quarter 2004 Changes in Shareholders' Equity
--------------------------------------------------
Euros in Millions
Shareholders' Equity as of December 31, 2003 1,938.0
Net Income - First Quarter 2004 (3.3)
Capital Increase Associated with Employee Share
Participation Program 23.7
Treasury Stock (11.0)
Foreign Exchange Translation Adjustments, net 11.3
Shareholders' Equity as of March 31, 2004 1,958.7
ANNEX IV
Euros in millions
Unaudited
Revenues by Branch
--------------------------------
First Quarter
--------------------------------
2004 2003 Change
--------------------------------------------------------
Offshore 617 524 17.7%
--------------------------------------------------------
Onshore/Downstream 575 480 19.8%
--------------------------------------------------------
Industries 58 95 (38.9)%
--------------------------------------------------------
Total 1,250 1,099 13.7%
--------------------------------------------------------
Revenues by Region
--------------------------------
First Quarter
--------------------------------
2004 2003 Change
--------------------------------------------------------
Europe, Russia, C Asia 224 254 (11.8)%
--------------------------------------------------------
Africa, Middle-East 682 470 45.1%
--------------------------------------------------------
Asia Pacific 90 80 12.5%
--------------------------------------------------------
Americas 254 295 (13.9)%
--------------------------------------------------------
Total 1,250 1,099 13.7%
--------------------------------------------------------
EBITDA by Branch
--------------------------------
First Quarter
--------------------------------
2004 2003 Change
--------------------------------------------------------
Offshore 52.5 48.9 7.4%
--------------------------------------------------------
Onshore/Downstream 26.6 22.0 20.9%
--------------------------------------------------------
Industries 0.6 3.4 (82.4)%
--------------------------------------------------------
Total 79.7 74.3 7.3%
--------------------------------------------------------
EBITA by Branch
--------------------------------
First Quarter
--------------------------------
2004 2003 Change
--------------------------------------------------------
Offshore 26.5 23.9 10.9%
--------------------------------------------------------
Onshore/Downstream 23.2 17.7 31.1%
--------------------------------------------------------
Industries 0.3 2.8 (89.3)%
--------------------------------------------------------
Total 50.0 44.4 12.6%
--------------------------------------------------------
ANNEX V
Euros in millions
Unaudited
Order Intake by Branch
--------------------------------
First Quarter
--------------------------------
2004 2003 Change
--------------------------------------------------------
Offshore 606 525 15.4%
--------------------------------------------------------
Onshore/Downstream 227 941 (75.9)%
--------------------------------------------------------
Industries 43 62 (30.6)%
--------------------------------------------------------
Total 876 1,528 (42.7)%
--------------------------------------------------------
Backlog by Branch
--------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2004 2003 2003 2003 2003
----------------------------------------------------------------------
Offshore 2,775 2,895 3,140 3,047 1,609
----------------------------------------------------------------------
Onshore/Downstream 3,362 3,907 4,081 4,210 4,126
----------------------------------------------------------------------
Industries 314 378 305 315 356
----------------------------------------------------------------------
Total 6,451 7,180 7,526 7,572 6,091
----------------------------------------------------------------------
Backlog by Region
--------------------------------------------------
Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
2004 2003 2003 2003 2003
----------------------------------------------------------------------
Europe, Russia,
C. Asia 1,260 1,480 1,232 1,058 1,005
----------------------------------------------------------------------
Africa, Middle East 3,754 4,162 4,761 4,890 3,356
----------------------------------------------------------------------
Asia Pacific 467 509 616 633 582
----------------------------------------------------------------------
Americas 970 1,029 917 991 1,148
----------------------------------------------------------------------
Total 6,451 7,180 7,526 7,572 6,091
----------------------------------------------------------------------
Backlog Scheduling as of Mar. 31, 2004
-------------------------------------------------
Offshore Onshore/ Industries Group
Downstream
---------------------------------------------------------------------
For 2004 1,175 1,240 160 2,575
---------------------------------------------------------------------
For 2005 1,050 1,577 120 2,747
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For 2006 and Beyond 550 545 34 1,129
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Total 2,775 3,362 314 6,451
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ANNEX VI
Unaudited
Net Debt
Euros in millions Mar 31 Dec 31 Sept 30 June 30 Mar 31
2004 2003 2003 2003 2003
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Marketable Securities 164 110 108 81 327
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Cash 697 782 589 553 399
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Cash & Cash Equivalents (A) 861 892 697 634 726
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Short Term Debt 195 226 321 390 306
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Long Term Debt 837 903 921 923 926
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Gross Debt (B) 1,032 1,129 1,242 1,313 1,232
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Net Debt(1) (B - A) 171 237 545 679 506
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(1) Does not include the redemption premium on the convertible bonds.
Foreign Exchange Conversion Rates vs. Euro
Statement of Income Balance Sheet
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Mar 31 Dec 31 Mar 31 Mar 31 Dec 31 Mar 31
2004 2003 2003 2004 2003 2003
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USD 1.24 1.13 1.07 1.19 1.26 1.09
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GBP 0.68 0.69 0.67 0.67 0.70 0.69
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