Technip: Full Year 2004 Results; Net Income Up 36%.PARIS Paris, in Greek mythology Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt. -- 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 ):
Euros in Millions, French GAAP
(except EPS and E/ADS) 2004 2003 Change
---------- --------- -------
-- Backlog at December 31 6,779 7,180 -5.6%
-- Revenues 5,141 4,711 9.1%
-- Income from Operations (EBITA) 259 228 13.6%
-- Net Income 5 (20) ns
-- Net Income before Non-Operating
Items and Goodwill Amortization 138.1 101.6 35.9%
-- Fully Diluted EPS (EUR) 5.26 3.97 32.5%
-- Fully Diluted E/ADS ($) 1.78 1.34 32.5%
On February February: see month. 23, 2005, the Board of Directors of Technip approved the unaudited fourth quarter and audited full year 2004 consolidated French GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). 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: "2004 was a year of success for Technip. In terms of financial performance, the Group had set demanding growth targets for its revenue and earnings. These were reached demonstrating the Group's resilience resilience (r  ·zilˑ·yens),n to challenging market dynamics such as the continuing weakness of the US dollar and rising raw material costs. At the same time, strong cash flow generation allowed us to further reduce gearing to 7% of equity. "Several commercial breakthroughs at the end of 2004 and beginning of 2005 validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our strategy of targeting the high-growth, high valued-added markets. Contracts such as Qatargas Qatargas is a natural gas company in Qatar. It has offshore natural gas production, which supplies the LNG plant in Ras Laffan, which has three operation LNG trains. The company was established in 1984 and the shareholders of the company are Qatar Petroleum, ExxonMobil, Total, II, Freeport Freeport, city, Bahamas Freeport, city (1990 pop. 25,115), Grand Bahama Island, Bahamas. A popular resort area, it developed out of a 1955 agreement between the Bahamian colonial government and a private development company to create a free port and , Kikeh and Horizon place Technip at the cutting edge of the gas processing, deepwater Deepwater or Deep Water may refer to:
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. represents about 16 months of revenues, a level which gives the Group good visibility on its future activity. "Given our assumptions concerning the world currency markets, 2005 full year revenues expressed in euros should decline modestly. Our target for 2005 is to continue to improve our operational margin ratio such that, under comparable accounting methods, net income (before goodwill and non-operating items) should be at least as high as in 2004. "In terms of business development, our prospects have rarely been as bright as they are today. All indications point to a rapid increase in hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen production capital expenditures in order to cope with both reservoir depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and increased global energy demand, the latter coming primarily from developing countries. Given Technip's competitive strengths in terms of geographic and sector positioning, technological expertise, its ability to execute large projects and the quality of its teams, I have every confidence in our ability to achieve profitable growth over the coming years." I. 2004 OPERATIONAL HIGHLIGHTS Asset Management The Group exercised for 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. 28 million the purchase option on the Deep Pioneer, a construction vessel which was under lease agreement. As part of its ongoing non-strategic asset disposal initiative, the Group sold four activities: --EHR in 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). - piping, --KTI SpA in 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. - engineering, --IG SpA in Italy - maintenance, and --Technip Offshore Moorings moorings Noun, pl Naut the ropes and anchors used in mooring a vessel moorings npl (= chains) → amarras fpl; (place) → amarradero Inc. in the USA. The combined 2003 revenues of these activities were 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. 221 million. In addition, the Group sold two office buildings in Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). . Order Intake Technip's 2004 order intake was EUR 5,092 million. Listed below are the main contracts that came into force during the year along with their approximate values (Technip's share): --two contracts awarded by Qatar Qatar or Katar (both: kŭ`tər, gŭ–, kətär`), officially State of Qatar, independent emirate (2005 est. pop. 863,000), c. Liquefied Gas Company Limited (II) for the world's two largest liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (LNG LNG (liquefied natural gas): see under natural gas. ) trains as well as the associated offshore facilities (USD 1,750 million); --two contracts awarded by Woodside Woodside is the name of several places or entities in the English-speaking world: Australia
adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. gas plant (EUR 200 million); --a contract awarded by Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. LNG Ltd. for the engineering, procurement and construction  The introduction to this article is vague. To comply with Wikipedia's guidelines, it should be improved. of the sixth train at its existing
liquefied natural gas facility (amount not disclosed);--several contracts for hydrogen plants located in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , the Middle East and Northern Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). (USD 257 million);--a contract awarded by Freeport LNG Development for a new LNG receiving terminal to be located near Freeport, Texas Freeport is a city in Brazoria County, Texas within the Houston–Sugar Land–Baytown Metropolitan Area and is situated in Southeast Texas. As of the 2000 U.S. Census, the city population was 12,708 and is about sixteen miles away from Angleton. (amount not disclosed); --a contract awarded by BP for the subsea 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 (USD 180 million); --a contract awarded by Petrobras PETROBRAS Petróleo Brasileiro SA (Brazilian oil company) for the engineering and construction of the P-51 semi-submersible A semi-submersible or semisubmersible is a watercraft that can put much of its bulk underwater. With a relatively small area above the water's surface, the semi-submersible is less affected by the waves than a normal ship, but must be trimmed continuously. production platform (USD 160 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 spar. For dogtooth spar, see calcite; for fluorspar, see fluorite; for heavy spar, see barite; for satin spar, see calcite floating production platform for the Constitution field in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east (amount not disclosed); As of December December: see month. 31, 2004, the backlog(1) amounted to EUR 6,779 million (equivalent to approximately 16 months of revenues) and was stable compared to EUR 6,828 million(2) at December 31, 2003. The breakdown by activity is as follows: -- Offshore EUR 2,804 million -- Onshore-Downstream EUR 3,758 million -- Industries EUR 217 million. II. FINANCIALS Full Year 2004 A) Income Statement Revenues for 2004 were EUR 5,141 million, an increase of 9.1% compared to 2003 (EUR 4,711 million). Offshore revenues during the period were EUR 2,487 million, a year-on-year growth of 12.6%. Of this total, EUR 1,421 million were related to the subsea umbilicals, risers and flowlines (SURF surf: see wave, in oceanography; beach. ) activity, up 8.1%, while Facilities revenues amounted to EUR 1,066 million, up 19.1%. Onshore-Downstream revenues rose 12.6% to EUR 2,385 million. Industries revenues were EUR 269 million, down year-on-year due to the previously mentioned disposal of EHR (Electronic Health Records) Computerized medical records that bring patient care into the digital age and save time, money and lives. The push to adopt comprehensive electronic documentation between doctors' offices and hospital settings intensified after the RAND in Germany. Based on continued operations, Industries revenues were up 9% compared to 2003. Income from operations (EBITA EBITA Earnings Before Interest Taxes Amortization ) for 2004 was EUR 258.5 million, a 13.6% increase versus EUR 227.6 million reported for 2003. The Group EBITA margin for the period continued to improve, moving to 5.0% compared to 4.8% in 2003 and 4.6% in 2002. Without the increase of raw material prices, the 2004 margin at the Group level would have been approximately 60 basis points higher. The SURF margin rose 300 basis points to 10.3% compared to 7.3% during 2003. The Facilities 2004 margin is not comparable to 2003 due to the Group's decision to extend to this segment as of January January: see month. 1, 2004 its margin recognition policy regarding major lump sum Lump sum A large one-time payment of money. turnkey See turnkey system. contracts. While Onshore-Downstream 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. was up 12.4%, the associated operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was stable at 4.1% year-on-year. The Industries' margin was negative due to start-up Start-up The earliest stage of a new business venture. costs of Technip BioPharm in the US as well as difficulties encountered on the execution of a Middle East contract. Net financial charges during 2004 were EUR 54.0 million (compared to EUR 44.3 million in 2003) and included a charge of EUR 18.4 million for the Group's 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. issue. In challenging foreign currency market conditions, the Group successfully limited its 2004 foreign exchange loss to EUR 1.0 million. Non-operating expenses of EUR 16.1 million were recorded primarily in connection with restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. (approximately EUR 12 million) in Germany. Profit before tax for 2004 was EUR 188.4 million, compared to EUR 175.7 million for 2003. Income tax was significantly lower year-on-year at EUR 65.2 million, reflecting a 2004 tax rate of 34.6% compared to 46.7% for 2003. After tax, 2004 net income pre-goodwill grew by 29.8% to EUR 122.0 million, compared to EUR 94.0 million during 2003. After goodwill amortization of EUR 117.3 million, net income was EUR 4.7 million compared to the EUR 19.7 million loss in 2003. 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. and E/ADS increased 32.5% to EUR 5.26 and USD 1.78, respectively. 2004 net income reconciled to U.S. generally applied accounting principles (U.S. GAAP) amounted to EUR 66.6 million (not audited) compared to EUR 69.6 millions for 2003. The main 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. to reported French GAAP net income is the reversal of goodwill amortization of EUR 117.3 million. B) Cash Flow Statement The Group's free cash flow (cash from operations less capital expenditures) increased 32.5% to EUR 141.6 million. This more than covered the Group's EUR 82.3 million 2004 dividend payment. Change in working capital contributed an additional EUR 108.3 million. C) Balance Sheet For the third consecutive year, the Group cut its net debt (excluding the redemption premium redemption premium See call premium. on convertible bonds), by 46.0% as of December 31, 2004 to EUR 128 million, down from EUR 237 million at December 31, 2003 and EUR 506 million at December 31, 2002. As a result, the Group achieved a net 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. at the end of December 2004 of 7.2%, compared to 12.2% at the end of 2003 and 25.0% at the end of 2002. Without the advance payment of a portion of the 2005 dividend, 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. 2004 gearing would have been approximately 4.5%. Fourth Quarter 2004 Fourth quarter 2004 revenues were EUR 1,317 million, a 1.9% increase compared to EUR 1,291 million during the same period in 2003. Offshore and Onshore-Downstream revenues were up 3.0% and 5.0% year-on-year, respectively. EBITA amounted to EUR 62.4 million, up 7.2% compared to EUR 58.2 million registered during the fourth quarter of 2003. The quarterly EBITA margin for the SURF activity was 11.0% (versus 8.9% one year ago) while the Onshore-Downstream EBITA margin was 3.5%. At the Group level, the EBITA margin was 4.7%, up from 4.5% during the fourth quarter of 2003. Net financial costs were higher at EUR 17.5 million due to additional charges related to the Group's Eurobond issue. Non-operating charges were EUR 3.9 million compared to EUR 1.8 million for the same period one year ago. Profit before tax was EUR 41.0 million, compared to EUR 48.9 million recorded for the fourth quarter of 2003. Net-income pre-goodwill of EUR 27.5 million was 7.0% higher than the EUR 25.7 million recorded during the fourth quarter of 2003. Net income was a loss of EUR 1.7 million compared to a net loss of EUR 3.5 million during the same period one year ago. Fully diluted adjusted EPS and E/ADS were EUR 1.20 and USD 0.41, respectively. Net income reconciled to U.S. GAAP amounted to EUR (22.3) million (not audited). (1) The remaining portion of contracts in force. (2) Reported backlog as of December 31, 2003 of EUR 7,180 million adjusted for currency variations and the changes in the scope of consolidation (EUR 352 million). The International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ) came into effect on January 1, 2005. As a result, Technip's 2005 quarterly and full year results will be prepared and published according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. these new standards. Below is Technip's 2005 IFRS accounts publication schedule.
Date Event Accounts prepared
according to:
------------------------ ------------------- -------------------------
French GAAP
April 2005 2004 Annual Report -- With IFRS
reconciliation
------------------------ ------------------- -------------------------
IFRS only
-- Comparison 1Q04 &
1Q05
First Quarter 2005 -- Application IAS 32
Thursday, May 19, 2005 Results & 39
-- No balance sheet
-- Full-year guidance
restated according
to IFRS
------------------------ ------------------- -------------------------
IFRS only
First Half 2005 -- Comparison 1H04 &
Thursday, July 28, 2005 Results 1H05
-- First Half Balance
Sheet
------------------------ ------------------- -------------------------
IFRS only
Nine-Month 2005 -- Comparison 9M04 &
Thursday, Nov. 17, 2005 Results 9M05
-- 9-Month Balance
Sheet
------------------------ ------------------- -------------------------
The Annual General Meeting will be convened on first notice on Thursday Thursday: see week. , April 21, 2005. In the event of a lack of quorum A majority of an entire body; e.g., a quorum of a legislative assembly. A quorum is the minimum number of people who must be present to pass a law, make a judgment, or conduct business. on this date, the meeting will be reconvened on second notice on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 29, 2005. The Board of Directors will propose a 2005 dividend in the amount of EUR 3.30 per share. Taking into account the down payment of EUR 2.00 per share made in December 2004, the remaining EUR 1.30 per share would be paid on May 3, 2005. Additional information on our fourth quarter and full year 2004 accounts is available in the following annexes as well as on our website. Cautionary note regarding 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. This release contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, or statements of future expectations; within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. words such as "believe", "aim", "expect", anticipate", "intend", "foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. ", "likely", "should", "planned", "may", "estimates", "potential" or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate o·rig·i·nate v. 1. To bring into being; create. 2. To come into being; start. and execute large integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel, price fluctuations; the timing of development of energy resources; 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, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; and the timing and success of anticipated integration synergies. Some of these risk factors are set forth and discussed in more detail in our Annual Report on Form 20-F as filed with the SEC on June June: see month. 29, 2004, and as updated from time to time in our SEC filings. Should one of these known or unknown risks materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . 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 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 and Paris. The Group's main engineering and business centers are located in France, Italy, Germany, 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, Malaysia and Australia. 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.
ANNEX I
CONSOLIDATED STATEMENT OF INCOME
French GAAP
Audited
Euros in Millions Fourth Quarter(a) Full Year
------------------- -------------------
(EPS in Euros; E/ADS in US
Dollars) 2004 2003 2004 2003
------------------------------ --------- --------- --------- ---------
Revenues 1,316.5 1,291.4 5,141.0 4,711.1
Cost of Sales and General &
Administrative Costs (1,225.6) (1,203.1) (4,766.3) (4,365.6)
Depreciation of Fixed Assets (28.5) (30.1) (116.2) (117.9)
------------------------------ --------- --------- --------- ---------
Income from Operations (1) 62.4 58.2 258.5 227.6
------------------------------ --------- --------- --------- ---------
Financial Result (14.5) (4.0) (42.6) (28.2)
Provision for Redemption
Premium on Convertible Bonds (3.0) (3.5) (11.4) (16.1)
Non-Operating Income (Loss) (3.9) (1.8) (16.1) (7.6)
------------------------------ --------- --------- --------- ---------
Profit before Tax (1) 41.0 48.9 188.4 175.7
------------------------------ --------- --------- --------- ---------
Income of Equity Affiliates 0.3 0.6 1.2 1.1
Minority Interests 0.4 (0.2) (2.4) (0.8)
Income Tax (14.2) (23.6) (65.2) (82.0)
------------------------------ --------- --------- --------- ---------
Net Income pre-Goodwill 27.5 25.7 122.0 94.0
------------------------------ --------- --------- --------- ---------
Goodwill Amortization (29.2) (29.2) (117.3) (113.7)
------------------------------ --------- --------- --------- ---------
Net Income (1.7) (3.5) 4.7 (19.7)
------------------------------ --------- --------- --------- ---------
------------------------------ --------- --------- --------- ---------
Net Income before Non-
Operating Items (1) 31.4 27.5 138.1 101.6
------------------------------ --------- --------- --------- ---------
------------------------------ --------- --------- --------- ---------
Fully Diluted Adjusted EPS (2) 1.20 1.05 5.26 3.97
------------------------------ --------- --------- --------- ---------
------------------------------ --------- --------- --------- ---------
Fully Diluted Adjusted E/ADS (3) 0.41 0.36 1.78 1.34
------------------------------ --------- --------- --------- ---------
(a) Not Audited
(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
that do not allow the goodwill amortization.
(2) Fully diluted EPS is calculated based upon net income before
non-operating items and goodwill amortization plus the financial
charges associated with the Group's convertible bond issue. The
number of fully diluted shares (29,362,760 as of December 31, 2003
and 28,886,234 as of December 31, 2004) includes those that would
be issued in the event that all outstanding convertible bonds
would be redeemed for shares. Accordingly, the post tax financial
costs and the provision for the redemption premium (EUR 3.4
million for the fourth quarters of 2003 and 2004, and EUR 15.0
million and EUR 13.9 million for the full years of 2003 and 2004,
respectively) are added back.
(3) E/ADS are in U.S. dollars and is calculated using the Federal
Reserve Bank of New York noon buying rate (USD/EUR) of 1.3538 as
of December 31, 2004. One ADS is equal to one-fourth of an
ordinary share.
ANNEX II
CONSOLIDATED STATEMENT OF CASH FLOWS
Audited
Euros in Millions Full Year
---------------------------------------
2004 2003
------------------------------ =================== ===================
Net Income 4.7 (19.7)
Depreciation of Property,
Plants & Equipment 116.2 117.9
Goodwill Amortization 117.3 113.7
Provision for Redemption
Premium on Convertible Bonds 11.4 16.1
Net Loss (Gain) on the
Disposal of Fixed Assets 9.2 0.3
Deferred Income Tax & Non-
Current Provisions 0.2 1.3
Minority Interests and Other 1.2 (0.3)
--------- ---------
Cash from Operations 260.2 229.3
--------- ---------
Change in Working Capital 108.3 119.4
--------- ---------
Net Cash Provided by (Used in)
Operating Activities 368.5 348.7
--------- ---------
------------------------------ --------- --------- --------- ---------
Capital Expenditures (118.6) (122.4)
Proceeds from Assets Disposals 14.0 104.8
Other Cash Provided by (Used
in) Investment Activities 8.9 28.6
Change in Scope of
Consolidation (27.4) --
--------- ---------
Net Cash Provided by (Used in)
Investment Activities (123.1) 11.0
--------- ---------
------------------------------ --------- --------- --------- ---------
Increase (Decrease) in Debt 431.0 (86.0)
Repurchase of Outstanding
Shares (22.7) (6.5)
Dividends Paid (129.8) (77.3)
Capital Increase 26.3 --
--------- ---------
Net Cash Provided by (Used in)
Financing Activities 304.8 (169.8)
--------- ---------
------------------------------ --------- --------- --------- ---------
Foreign Exchange Translation
Adjustment (8.6) (38.6)
--------- ---------
Net Increase (Decrease) in
Cash and Cash Equivalents 541.6 151.3
========= =========
------------------------------ --------- --------- --------- ---------
Cash and Cash Equivalents as
of December 31 (prior year) 892.4 741.1
Cash and Cash Equivalents as
of December 31 1,434.0 892.4
--------- ---------
(541.6) (151.3)
========= =========
ANNEX III
CONSOLIDATED BALANCE SHEET
French GAAP
Audited
Euros in Millions Dec. 31, June 30, Dec. 31, June 30,
2004 2004(a) 2003 2003(a)
--------- --------- --------- ---------
------------------------------
ASSETS
------------------------------ --------- --------- --------- ---------
Non-Current Assets 3,098 3,179 3,246 3,289
------------------------------ --------- --------- --------- ---------
Contracts in Progress,
Inventories & Deferred Bid
Costs, net 6,692 6,177 6,442 5,359
------------------------------ --------- --------- --------- ---------
Premium for Redemption of
Convertible Bonds 32 41 52 62
------------------------------ --------- --------- --------- ---------
Receivables & Other Current
Assets, net 1,517 1,647 1,376 1,430
------------------------------ --------- --------- --------- ---------
Cash & Cash Equivalents 1,434 1,406 892 634
------------------------------ --------- --------- --------- ---------
TOTAL ASSETS 12,773 12,450 12,008 10,774
------------------------------ --------- --------- --------- ---------
------------------------------
LIABILITIES & SHAREHOLDERS'
EQUITY
------------------------------ --------- --------- --------- ---------
Shareholders' Equity 1,789 1,856 1,938 1,921
------------------------------ --------- --------- --------- ---------
Minority Interests 10 11 9 11
------------------------------ --------- --------- --------- ---------
Provisions 323 340 324 314
------------------------------ --------- --------- --------- ---------
Financial Debt 1,562 1,598 1,129 1,313
------------------------------ --------- --------- --------- ---------
Premium for Redemption of
Convertible Bonds 75 76 85 87
------------------------------ --------- --------- --------- ---------
Progress Payments on Contracts 7,354 6,916 7,048 5,740
------------------------------ --------- --------- --------- ---------
Other Liabilities 1,660 1,653 1,475 1,388
------------------------------ --------- --------- --------- ---------
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY 12,773 12,450 12,008 10,774
------------------------------ --------- --------- --------- ---------
(a) Not Audited
2004 Changes in Shareholders' Equity
Euros in Millions
----------------------------------------------------------- ----------
Shareholders' Equity as of December 31, 2003 1,938.0
2004 Net Income 4.7
Capital Increase Associated with Employee Share
Participation Program 26.3
Dividend & Dividend Down Payments (129.8)
Treasury Stock (22.7)
Foreign Exchange Translation and Other Adjustments (27.5)
Shareholders' Equity as of December 31, 2004 1,789.0
----------------------------------------------------------- ----------
ANNEX IV
REVENUES, EBITDA & EBITA
Not Audited
Euros in Millions Revenues by Segment
-----------------------------------------
Fourth Quarter Full Year
-------------------- --------------------
2004 2003 Change 2004 2003 Change
============================ ====== ====== ====== ====== ====== ======
Offshore 635 617 3.0% 2,487 2,210 12.6%
---------------------------- ------ ------ ------ ------ ------ ------
SURF 348 371 -6.2% 1,421 1,315 8.1%
---------------------------- ------ ------ ------ ------ ------ ------
Facilities 287 246 16.7% 1,066 895 19.1%
---------------------------- ------ ------ ------ ------ ------ ------
Onshore-Downstream 604 575 5.0% 2,385 2,119 12.6%
---------------------------- ------ ------ ------ ------ ------ ------
Industries 78 99 nc 269 382 nc
---------------------------- ------ ------ ------ ------ ------ ------
Total 1,317 1,291 1.9% 5,141 4,711 9.1%
---------------------------- ------ ------ ------ ------ ------ ------
Euros in Millions Revenues by Region
-----------------------------------------
Fourth Quarter Full Year
-------------------- --------------------
2004 2003 Change 2004 2003 Change
============================ ====== ====== ====== ====== ====== ======
Europe, Russia, C. Asia 365 265 37.7% 1,279 1,138 12.4%
---------------------------- ------ ------ ------ ------ ------ ------
Africa, Middle-East 665 696 -4.5% 2,554 2,150 18.8%
---------------------------- ------ ------ ------ ------ ------ ------
Asia Pacific 68 99 -31.3% 379 345 9.9%
---------------------------- ------ ------ ------ ------ ------ ------
Americas 219 231 -5.2% 929 1,078 -13.8%
---------------------------- ------ ------ ------ ------ ------ ------
Total 1,317 1,291 1.9% 5,141 4,711 9.1%
---------------------------- ------ ------ ------ ------ ------ ------
Euros in Millions EBITDA by Segment
-----------------------------------------
Fourth Quarter Full Year
-------------------- --------------------
2004 2003 Change 2004 2003 Change
============================ ====== ====== ====== ====== ====== ======
Offshore 68.3 57.4 19.0% 267.1 242.7 10.1%
---------------------------- ------ ------ ------ ------ ------ ------
SURF 58.2 53.1 9.6% 230.3 177.5 29.7%
---------------------------- ------ ------ ------ ------ ------ ------
Facilities 10.1 4.3 134.9% 36.8 65.2 -43.6%
---------------------------- ------ ------ ------ ------ ------ ------
Onshore-Downstream 23.8 36.0 -33.9% 109.1 100.4 8.7%
---------------------------- ------ ------ ------ ------ ------ ------
Industries (1.2) (5.1) nc (1.5) 2.4 nc
---------------------------- ------ ------ ------ ------ ------ ------
Total 90.9 88.3 2.9% 374.7 345.5 8.5%
---------------------------- ------ ------ ------ ------ ------ ------
Euros in Millions EBITA by Segment
-----------------------------------------
Fourth Quarter Full Year
-------------------- --------------------
2004 2003 Change 2004 2003 Change
============================ ====== ====== ====== ====== ====== ======
Offshore 42.9 32.5 32.0% 165.0 142.1 16.1%
---------------------------- ------ ------ ------ ------ ------ ------
SURF 38.4 33.0 16.4% 146.2 96.6 51.3%
---------------------------- ------ ------ ------ ------ ------ ------
Facilities 4.5 (0.5) nm 18.8 45.5 -58.7%
---------------------------- ------ ------ ------ ------ ------ ------
Onshore-Downstream 21.3 32.0 -33.4% 96.7 86.0 12.4%
---------------------------- ------ ------ ------ ------ ------ ------
Industries (1.8) (6.3) nc (3.2) (0.5) nc
---------------------------- ------ ------ ------ ------ ------ ------
Total 62.4 58.2 7.2% 258.5 227.6 13.6%
---------------------------- ------ ------ ------ ------ ------ ------
nc: not comparable
nm: not meaningful
ANNEX V
ORDER INTAKE & BACKLOG
Not Audited
Euros in Millions Order Intake by Segment
-----------------------------------------
Fourth Quarter Full Year
-------------------- --------------------
2004 2003 Change 2004 2003 Change
----------------------------------------------------------------------
Offshore 735 383 91.9% 2,424 3,531 -31.4%
---------------------------- ------ ------ ------ ------ ------ ------
SURF 402 97 314.3% 1,470 2,104 -30.1%
---------------------------- ------ ------ ------ ------ ------ ------
Facilities 333 286 16.4% 954 1,427 -33.1%
---------------------------- ------ ------ ------ ------ ------ ------
Onshore-Downstream 1,608 379 324.4% 2,510 2,666 -5.8%
---------------------------- ------ ------ ------ ------ ------ ------
Industries 34 158 nc 158 385 nc
---------------------------- ------ ------ ------ ------ ------ ------
Total 2,377 920 158.4% 5,092 6,582 -22.6%
---------------------------- ------ ------ ------ ------ ------ ------
nc: not comparable
Euros in Millions Backlog by Segment
-----------------------------
Dec. 31 Dec. 31 Dec. 31
2004 2003 2002
======================================== ========= ========= =========
Offshore 2,804 2,895 1,761
---------------------------------------- --------- --------- ---------
SURF 1,860 1,840 1,172
---------------------------------------- --------- --------- ---------
Facilities 944 1,055 489
---------------------------------------- --------- --------- ---------
Onshore-Downstream 3,758 3,907 3,625
---------------------------------------- --------- --------- ---------
Industries 217 378 390
---------------------------------------- --------- --------- ---------
Total 6,779 7,180 5,776
---------------------------------------- --------- --------- ---------
Euros in Millions Backlog by Region
-----------------------------
Dec. 31 Dec. 31 Dec. 31
2004 2003 2002
======================================== ========= ========= =========
Europe, Russia, C. Asia 1,077 1,480 833
---------------------------------------- --------- --------- ---------
Africa, Middle East 4,146 4,162 3,038
---------------------------------------- --------- --------- ---------
Asia Pacific 460 509 511
---------------------------------------- --------- --------- ---------
Americas 1,096 1,029 1394
---------------------------------------- --------- --------- ---------
Total 6,779 7,180 5,776
---------------------------------------- --------- --------- ---------
Euros in Millions Estimated Backlog Scheduling
at December 31, 2004
-------------------------------------------
Offshore Onshore- Industries Group
Downstream
========================== ========= =========== =========== =========
For 2005 1,950 1,500 180 3,630
-------------------------- --------- ----------- ----------- ---------
For 2006 800 1,500 30 2,330
-------------------------- --------- ----------- ----------- ---------
For 2007 and Beyond 54 758 7 819
-------------------------- --------- ----------- ----------- ---------
Total 2,804 3,758 217 6,779
-------------------------- --------- ----------- ----------- ---------
ANNEX VI
TREASURY & EXCHANGE RATES
Not Audited
Euros in Millions Treasury / Financial Debt
-----------------------------
Dec. 31 Dec. 31 Dec. 31
2004 2003 2002
======================================== ========= ========= =========
Marketable Securities 739 110 99
---------------------------------------- --------- --------- ---------
Cash 695 782 642
---------------------------------------- --------- --------- ---------
Cash & Cash Equivalents (A) 1,434 892 741
---------------------------------------- --------- --------- ---------
Short Term Debt 194 226 301
---------------------------------------- --------- --------- ---------
Long Term Debt 1,368 903 946
---------------------------------------- --------- --------- ---------
Gross Debt (B) 1,562 1,129 1,247
---------------------------------------- --------- --------- ---------
Net Financial Debt(b) (B - A) 128 237 506
---------------------------------------- --------- --------- ---------
(b) Does not include the redemption premium on the convertible bonds.
Euro vs. Foreign Exchange Conversion Rates
Statement of Income Balance Sheet
----------------------------- ------------------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31
2004 2003 2002 2004 2003 2002
========= ========= ========= ========= ========= ========= ==========
USD 1.24 1.13 0.95 1.36 1.26 1.05
--------- --------- --------- --------- --------- --------- ----------
GBP 0.68 0.69 0.63 0.71 0.70 0.65
--------- --------- --------- --------- --------- --------- ----------
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