Technip Announces Second Quarter and First Half 2003 Results; First Half EBITA Up 10%; Offshore Order Intake Leads to Record Backlog.Business Editors PARIS--(BUSINESS WIRE)--Sept. 5, 2003 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 2nd Quarter 1st Half
------------- -------------
June 30 Backlog 7,572 7,572
Revenues 1,064 2,163
EBITA 52 97
Net Income:
- Before Goodwill 14 37
- After Goodwill (15) (19)
Fully Diluted Adjusted EPS EUR 0.75 EUR 1.55
Fully Diluted Adjusted E/ADS $0.22 $0.47
The Board of Directors of Technip has approved the unaudited consolidated accounts for the second quarter of 2003. 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: "Technip's strategic positioning has led to unprecedented growth in the Group's 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. . In just over a year we have started to reap the benefits of the consolidation between Technip and Coflexip. Thus far in 2003, without relaxing our well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. bidding discipline and margin requirements, we have been awarded the Dalia Dalia may refer to:
FPSO Foster Parent Society of Ontario FPSO Fleet Publication Supply Office , Shah Shah is a Persian term for a monarch (ruler) that has been adopted in many other languages. This term is a Post Islamic Revolution term for monarchs in Iran which is replaced by valie faghih or Supreme Leader. Deniz, East Area, Simian-Sapphire and Amenam 2 contracts. These contract awards indicate that Technip is now recognized by the oil majors as one of the very few contractors in the world able to reliably deliver not only 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. and 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.). projects for which our leadership has been long established, but also large and complex field developments in the fast growing offshore market. As expected, our EBITA EBITA Earnings Before Interest Taxes Amortization during the first half of 2003 showed improvement, with an EBITA margin up by close to 50 basis points compared to the first half of 2002. We continue to streamline the Group's post merger cost structure, as we saved more than 100 basis points on goodwill amortization, fixed asset depreciation and financial costs, the total of which represented 6.3% of revenue in the first half of 2003 compared to 7.6% during the same period last year. For the full year 2003, based upon currently prevailing currency exchange rates, revenues may grow a bit faster than previously anticipated given the size of recent awards. EBITA is expected to increase by about 10%, in line with previous guidance given to the market. It is important, however, to keep in mind that in our business, technological and weather-related risks may affect the outcome of a few contracts currently nearing completion. Given our current business mix, we anticipate the tax burden for full year 2003 to grow faster than pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings. The strong and healthy backlog of the Group bodes well for growth in both revenues and earnings in 2004." I. OPERATIONAL HIGHLIGHTS During the second quarter of 2003, Technip was awarded new orders totaling 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. 2.7 billion (compared to EUR 1.5 billion in the first quarter of 2003 and EUR 1.2 billion in the second quarter of 2002). Primary wins included: -- two major contracts with a combined value of 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. 1.2 billion (Group share USD 780 million) awarded by Total and its partners for the floating, production, storage, offloading facility (FPSO) and for the SURF package related to the development of the Dalia oil field, 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. ; -- a USD 460 million (Group share USD 460 million) contract awarded by Exxon/Mobil related to a gas compression platform and associated facilities to be installed in the East Area field, offshore 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. ; -- a USD 566 million lump sum Lump sum A large one-time payment of money. turnkey See turnkey system. contract (Group share USD 374 million) awarded by Abu Dhabi Abu Dhabi (ä`b  thä`bē, zä–, dä–), Arab. Abu Zabi, sheikhdom (1995 pop. 928,360), c. Company for Onshore OilOperations (ADCO ADCO Abu Dhabi Company for Onshore Oil Operations ADCO Alcohol and Drug Control Officer ADCO Air Defense Control Center ADCO Alcohol & Drug Control Office ADCO Air Defense Communications Office ADCO Air Defense Coordination Organization ) for the North East Bab Bab: see Babism. (NEB) phase 1 project; -- a contract worth about USD 300 million (Group share USD 300 million) awarded by BP and its partners for the stage 1 development, which includes a TPG TPG Texas Pacific Group TPG Tapping TPG Transports Publics Genevois (Geneva, Switzerland public transportation) TPG Test Pattern Generator TPG TNT Post Group TPG Trésorier Payeur Général drilling and production platform, of the Shah Deniz gas field Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 kilometers southeast of Bakubat, at a depth of 600 metres. The field covers approximately 860 square kilometers. in the Azerbaijan Azerbaijan, country, Asia Azerbaijan (ä'zərbījän`, ă'zər–), Azeri Azərbaycan, officially Republic of Azerbaijan, republic (2005 est. pop. 7,912,000), 33,428 sq mi (86,579 sq km), in Transcaucasia. sector of the Caspian Sea Caspian Sea (kăs`pēən), Lat. Mare Caspium or Mare Hyrcanium, salt lake, c.144,000 sq mi (373,000 sq km), between Europe and Asia; the largest lake in the world. ; -- a contract worth about USD 300 million (Group share USD 300) awarded by Burullus Gas Company for the sub sea development of the Simian/Sienna gas fields offshore Egypt Egypt (ē`jĭpt), Arab. Misr, biblical Mizraim, officially Arab Republic of Egypt, republic (2005 est. pop. 77,506,000), 386,659 sq mi (1,001,449 sq km), NE Africa and SW Asia. ; -- a contract worth about USD 350 million (Group share USD 100 million) awarded by Total for the extension of the Amenam Kpono Oil and Gas Export Project (AMP2), offshore Nigeria; and -- a contract worth about EUR 50 million (Group share EUR 50 million) awarded by Statoil Statoil ASA (OSE: STL, NYSE: STO) is a Norwegian petroleum company established in 1972. It is the largest petroleum company in the Nordic countries and Norway's largest company, employing over 25,000 people. for the supply of flexible risers for the Kristin Field Development Project. As of June June: see month. 30, 2003, the backlog* was EUR 7.6 billion (which is equivalent to 21 months of revenues), up 24% compared to the backlog of EUR 6.1 billion registered at March 31, 2003. Without foreign exchange rate fluctuations, the Group backlog as of June 30, 2003 would have been approximately EUR 7.9 billion. The Offshore Branch backlog of EUR 3.0 billion was sequentially up 89% and more than 57% above its level at the same time last year. On a sequential basis, the floater/integrated fixed backlog more than doubled to EUR 1.2 billion while the sub sea umbilicals, risers and flowlines (SURF) backlog totaled EUR 1.9 billion, a 63% increase. In the onshore activities (Onshore/Downstream and Industries), backlog reached EUR 4.5 billion, up 1% compared to the end of March 2003 and 22% compared to June 30, 2002. * The remaining portion of contracts in force. II. FINANCIALS 2003 first half revenues were EUR 2.2 billion, unchanged compared to the first half of 2002, as 2003 revenues were impacted by 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 and by the disposal of
non-strategic assets. Without foreign exchange movements and changes in
scope of consolidation, first half 2003 revenues would have totaled
approximately EUR 2.4 billion, 11% above first half 2002.2003 second quarter revenues were EUR 1.1 billion. During the quarter, offshore revenues of EUR 467 million were lower sequentially and year-on-year due primarily to currency fluctuations and to a lesser extent to slow activity 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 and fewer jobs than expected in the British North Sea. Onshore revenues of EUR 597 million posted strong year-on-year growth of 11% and were up 5% sequentially due to the large contracts booked in 2002 entering into their execution stages. 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. before goodwill amortization (EBITA) for the first half of 2003 amounted to EUR 96.7 million, up 10% year-on-year. The EBITA margin for the first half of 2003 improved to 4.5% compared to 4.0% during the same period in 2002. EBITA for the second quarter of 2003 amounted to EUR 52.3 million, up sequentially and little changed year-on-year. The Group's EBITA margin for the second quarter of 2003 was 4.9%, unchanged from the second quarter of 2002. Financial costs, including the non-cash provision for the redemption premium redemption premium See call premium. of the convertible bonds, were reduced from EUR 31.5 million in the first half of 2002 to 22.5 million in the first half of 2003. Financial costs were reduced from EUR 15.2 million in the second quarter of 2002 to EUR 12.0 million in the second quarter of 2003. Pre-goodwill net income for the first half of 2003 increased 19% compared to the same period one year ago. This improvement came despite a higher tax burden, which given the geographical mix of sales and earnings, increased from EUR 24.5 million in the first half of 2002 to EUR 37.3 million in the first half of 2003. Pre-goodwill net-income for the second quarter 2003 was EUR 13.9 million compared to EUR 15.3 million during the same period in 2002. After goodwill amortization, net income was EUR (18.5) million for the first half of 2003 compared to EUR (27.4) million for the same period in 2002. Net income after goodwill amortization was EUR (15.0) million for the second quarter 2003 compared to EUR (14.1) million for the second quarter of 2002. First half 2003 net income adjusted 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 44.6 million versus EUR 43.0 million during the same period one year ago (please refer to 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. 1). First half 2003 fully diluted adjusted EPS and E/ADS were EUR 1.55 and USD 0.42, respectively. Second quarter 2003 adjusted net income amounted to EUR 21.6 million versus EUR 22.4 million during the same period one year ago. Fully diluted adjusted EPS and E/ADS were EUR 0.75 and USD 0.22, respectively. First half 2003 net income reconciled to U.S. generally applied accounting principles (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) amounted to EUR 11.3 million (unaudited). The main adjustments to reported French GAAP net income are 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 (55.2) million and the impact of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 133 on the accounting treatment of hedging instruments. Second quarter 2003 net income reconciled to U.S. GAAP amounted to EUR (2.8) million (unaudited). During the first half of 2003, cash from operations was EUR 111 million, unchanged compared to the first half of 2002. Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. was EUR 55 million compared to EUR 47 million during the same period last year. Change in working capital during the first half of 2003 amounted to EUR (171) million. During the second quarter of 2003, cash from operations was EUR 47 million, capital spending was EUR 33 million and change in working capital was EUR (108) million. The change in working capital was due to the following: -- major onshore/downstream contracts booked in 2002 are starting to be executed, taking cash out of down payments received at signature time; -- new orders booked in first half of 2003 related mainly to offshore projects which generally provide lower down payments than onshore contracts. In addition, some of those down payments were paid after June 30, 2003. Given the change in working capital and the payment of dividends (EUR 77 million), net debt, excluding the redemption premium of convertible bonds, as of June 30, 2003 amounted to EUR 679 million compared to EUR 506 million as of December December: see month. 31, 2002 and EUR 922 million as of June 30, 2002. Gearing at the end of the second quarter of 2003 was 35% compared with 44% as of June 30, 2002. III. NEW AWARDS Since the end of the second quarter 2003, main contracts awarded to Technip so far include: -- a contract worth approximately USD 250 million (Group share USD 250 million) awarded by Burullus Gas Company for sub sea facilities for the Sapphire sapphire, precious stone. A transparent blue corundum, it is classified among the most valuable of gems. Sapphires are found chiefly in Thailand, India, Sri Lanka, and Myanmar and also in Australia and in the United States (in Montana). gas field, offshore northern Egypt; -- a lump sum turnkey contract awarded by Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. , for the addition of diesel hydro hy·dro adj. Hydroelectric. n. pl. hy·dros 1. Hydroelectric power. 2. A hydroelectric power plant. treating facilities at their Riyadh Riyadh or Riad (both: rēäd`), city (1997 est. pop. 3,000,000), capital and largest city of Saudi Arabia, in the Nejd, central Saudi Arabia. It is situated in an oasis, c.240 mi (390 km) inland from the Persian Gulf. Refinery; -- an EPIC contract worth about USD 125 million (Group share USD 125 million) awarded by Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Natural Resources for the sub sea development of the Baobab baobab (bä`ōbăb', bā`ō–), gigantic tree of India and Africa, exceeded in trunk diameter only by the sequoia. The trunks of living baobabs are hollowed out for dwellings; rope and cloth are made from the bark and condiments field offshore Ivory Coast Ivory Coast: see Côte d'Ivoire. ; and -- a contract worth about EUR 65 million (Group share EUR 65 million) awarded by Statoil for the installation of the infield Infield is a widely used term in sports terminology, its meaning depends on in what sport it is used. In baseball In baseball the baseball diamond plus a rounded region beyond it (see diagram), usually clear of grass, in contrast to the more distant, usually grass-covered flowlines, service lines and umbilicals at the Snohvit field. As a result, in addition to the backlog registered as of June 30, 2003 (and without taking into account smaller size contracts), the Group has in hand approximately between EUR 600 and 700 million worth of contracts which should enter into the backlog during the second half of 2003. 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 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 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 "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 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 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 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 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. Technip trades under the symbol TKP on the NYSE and under the ISIN Isin (ĭs`ĭn), capital of an ancient Semitic kingdom of N Babylonia. The city became important after the third dynasty of Ur fell to the Elamites and the Amorites (c.2025 B.C.). The phase from c.2025–c.1763 B.C. FR0000131708 on the Euronext.
ANNEX I
CONSOLIDATED STATEMENT OF INCOME
French GAAP
Unaudited
Euros in Millions except EPS Second Quarter First Half
------------------ -------------------
E/ADS in US Dollars 2003 2002 2003 2002
----------------------------- -------- --------- --------- ---------
Revenues 1,063.8 1,097.1 2,163.2 2,172.8
Cost of Sales (983.2) (1,004.8) (2,008.3) (2,008.5)
Depreciation and Amortization
excluding Goodwill (28.3) (38.1) (58.2) (76.4)
----------------------------- -------- --------- --------- ---------
Operating Income before
Goodwill Amortization (1) 52.3 54.2 96.7 87.9
----------------------------- -------- --------- --------- ---------
Financial Result (7.8) (10.5) (14.4) (23.7)
Provision for Redemption
Premium on Convertible Bonds (4.2) (4.7) (8.1) (7.8)
Non-Operating Income (Loss) (3.7) (1.6) (0.2) (2.1)
Income Tax (22.8) (22.4) (37.3) (24.5)
Income of Equity Affiliates 0.5 - 0.5 0.9
Minority Interests (0.4) 0.4 (0.5) 0.3
----------------------------- -------- --------- --------- ---------
Net Income pre-Goodwill 13.9 15.3 36.7 30.9
----------------------------- -------- --------- --------- ---------
Goodwill Amortization (28.9) (29.5) (55.2) (58.4)
----------------------------- -------- --------- --------- ---------
Net Income (15.0) (14.1) (18.5) (27.4)
----------------------------- -------- --------- --------- ---------
Net Income for EPS
Calculation:
Net Income (15.0) (14.1) (18.5) (27.4)
Non-Operating (Income) Loss 3.7 1.6 0.2 2.1
Goodwill Amortization 28.9 29.5 55.2 58.4
Convertible Bond Financial
Costs, after Tax 4.0 5.5 7.7 9.9
----------------------------- -------- --------- --------- ---------
Adjusted Net Income (2) 21.6 22.4 44.6 43.0
----------------------------- -------- --------- --------- ---------
Fully Diluted Adjusted EPS
(3) 0.75 0.76 1.55 1.47
----------------------------- -------- --------- --------- ---------
Fully Diluted Adjusted E/ADS
(4) 0.22 0.22 0.45 0.42
----------------------------- -------- --------- --------- ---------
(1) Operating income before goodwill amortization (EBITA), is used for
informational purposes only. It allows, 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.
(2) Adjusted net income is calculated for information purposes only.
It allows, in the Group's opinion, to make more meaningful comparisons
between its net income and those of its peers who may use different
accounting standards, such as US GAAP (which, contrary to French GAAP,
do not allow the amortization of goodwill). Furthermore, the Group is
currently accruing on a quarterly basis the cost of the redemption
premium associated with the possibility that convertible bonds due in
January 2007 would not be redeemed for ordinary shares. However, the
amount of fully diluted shares includes those shares that would be
issued in the event that all outstanding convertible bonds would be
redeemed for shares. In such an event, the redemption premium would
not be paid, and therefore the associated post tax amount is
accordingly added back. Non-operating income (loss) is excluded.
(3) Number of fully diluted shares as of June 30:
2003 28,746,052
2002 29,308,601
(4) E/ADS is in U.S. dollars and is calculated using the Federal
Reserve Bank of New York noon buying rate (USD/EUR) of 1.1502 as of
June 30, 2003. One ADS is equal to one-fourth of an ordinary share.
ANNEX II
CONSOLIDATED BALANCE SHEET
French GAAP
Unaudited
Euros in Millions June 30, Mar. 31, Dec. 31, June 30,
2003 2003 2002* 2002*
-------- -------- -------- --------
Assets
---------------------------------
Non-Current Assets 3,289 3,324 3,518 3,659
--------------------------------- -------- -------- -------- --------
Contracts in Progress,
Inventories & Deferred Bid
Costs, net 5,359 5,337 4,977 5,499
--------------------------------- -------- -------- -------- --------
Premium for Redemption of
Convertible Bonds 62 67 74 86
--------------------------------- -------- -------- -------- --------
Receivables & Other Current
Assets, net 1,430 1,455 1,296 1,149
--------------------------------- -------- -------- -------- --------
Cash & Cash Equivalents 634 726 741 702
--------------------------------- -------- -------- -------- --------
Total Assets 10,774 10,909 10,606 11,095
--------------------------------- -------- -------- -------- --------
Liabilities & Shareholders'
Equity
---------------------------------
Shareholders' Equity 1,921 2,007 2,026 2,084
--------------------------------- -------- -------- -------- --------
Minority Interests 11 12 16 20
--------------------------------- -------- -------- -------- --------
Financial Debt 1,313 1,232 1,247 1,623
--------------------------------- -------- -------- -------- --------
Premium for Redemption of
Convertible Bonds 87 88 90 93
--------------------------------- -------- -------- -------- --------
Progress Payments on Contracts 5,740 5,751 5,420 5,533
--------------------------------- -------- -------- -------- --------
Accrued Liabilities 314 323 329 309
--------------------------------- -------- -------- -------- --------
Other Liabilities 1,388 1,497 1,478 1,433
--------------------------------- -------- -------- -------- --------
Total Liabilities &
Shareholders' Equity 10,774 10,909 10,606 11,095
--------------------------------- -------- -------- -------- --------
* Audited
Changes in Shareholders Equity -- First Half 2003
Euros in Millions
Shareholders' Equity as of December 31, 2002 2,026.3
Net Income of the first half of 2003 (18.5)
Dividend Payment (77.3)
Foreign Exchange Translation Adjustments and Others (9.5)
Shareholders' Equity as of June 30, 2003 1,921.0
ANNEX III
CONSOLIDATED STATEMENT OF CASH FLOWS
SECOND QUARTER 2003
Euros in Millions
Unaudited
Net Income (15.0)
Depreciation of Property, Plants & Equipment 28.3
Goodwill Amortization 28.9
Provision for Redemption Premium on Convertible Bonds 4.2
Net Loss (Gain) on the Disposal of Fixed Assets 1.3
Deferred Income Tax (0.9)
Minority Interests 0.4
-------
Cash from Operations 47.2
Change in Working Capital (107.5)
Net Cash Provided by (Used in) Operating Activities (60.3)
Capital Expenditures (33.0)
Net Cash Provided by (Used in) Investment Activities (33.0)
Increase (Decrease) in Short Term Debt 84.2
Increase (Decrease) in Long Term Debt 0.1
Capital Issued (0.9)
Dividend Payment (77.3)
Net Cash Provided by (Used in) Financing Activities 6.1
Foreign Exchange Translation Adjustment (4.7)
-------
Net Increase (Decrease) in Cash and Cash Equivalents (91.9)
-------
Cash and Cash Equivalents as of March 31, 2003 726.1
Cash and Cash Equivalents as of June 30, 2003 634.2
-------
(91.9)
-------
ANNEX IV
Euros in millions
Unaudited
Revenues
---------------------------------------------------
2nd Quarter 1st Half
------------------ ------------------------- -------------------------
Business Branch 2003 2002 Change 2003 2002 Change
------------------ -------- -------- ------- -------- -------- -------
Offshore 466.5 560.1 (16.7)% 990.2 1,045.8 (5.3)%
------------------ -------- -------- ------- -------- -------- -------
Onshore/Downstream 502.4 390.0 28.8% 982.8 892.0 10.2%
------------------ -------- -------- ------- -------- -------- -------
Industries 94.9 147.0 (35.4)% 190.2 235.0 (19.1)%
------------------ -------- -------- ------- -------- -------- -------
Total 1,063.8 1,097.1 (3.0)% 2,163.2 2,172.8 (0.4)%
------------------ -------- -------- ------- -------- -------- -------
Revenues by Region
---------------------------------------------------
2nd Quarter 1st Half
------------------ ------------------------- -------------------------
Region 2003 2002 Change 2003 2002 Change
------------------ -------- -------- ------- -------- -------- -------
Europe, Russia,
C. Asia 292 335 (12.8)% 548 598 (8.4)%
------------------ -------- -------- ------- -------- -------- -------
Africa,
Middle-East 396 200 98.0% 864 519 66.5%
------------------ -------- -------- ------- -------- -------- -------
Asia Pacific 106 149 (28.9)% 185 295 (37.3)%
------------------ -------- -------- ------- -------- -------- -------
Americas 270 413 (34.6)% 566 761 (25.6)%
------------------ -------- -------- ------- -------- -------- -------
Total 1,064 1,097 (3.0)% 2,163 2,173 (0.4)%
------------------ -------- -------- ------- -------- -------- -------
EBITDA
---------------------------------------------------
2nd Quarter 1st Half
------------------ ------------------------- -------------------------
Business Branch 2003 2002 Change 2003 2002 Change
------------------ -------- -------- ------- -------- -------- -------
Offshore 60.0 70.6 (15.0)% 108.9 113.7 (4.2)%
------------------ -------- -------- ------- -------- -------- -------
Onshore/Downstream 19.4 15.6 24.4% 41.4 43.1 (3.9)%
------------------ -------- -------- ------- -------- -------- -------
Industries 1.2 6.1 (80.3)% 4.6 7.6 (39.5)%
------------------ -------- -------- ------- -------- -------- -------
Total 80.6 92.3 (12.7)% 154.9 164.4 (5.8)%
------------------ -------- -------- ------- -------- -------- -------
EBITA
---------------------------------------------------
2nd Quarter 1st Half
------------------ ------------------------- -------------------------
Business Branch 2003 2002 Change 2003 2002 Change
------------------ -------- -------- ------- -------- -------- -------
Offshore 34.7 38.4 (9.6)% 58.6 47.9 22.3%
------------------ -------- -------- ------- -------- -------- -------
Onshore/Downstream 17.0 10.3 65.0% 34.7 33.8 2.7%
------------------ -------- -------- ------- -------- -------- -------
Industries 0.6 5.5 (89.9)% 3.4 6.3 (46.0)%
------------------ -------- -------- ------- -------- -------- -------
Total 52.3 54.2 (3.5)% 96.7 87.9 10.0%
------------------ -------- -------- ------- -------- -------- -------
ANNEX V
Euros in millions
(unaudited)
Order Intake
2nd Quarter 1st Half
------------------------- -------------------------
By Business Branch 2003 2002 Change 2003 2002 Change
------------------ -------- -------- ------- -------- -------- -------
Offshore 1,932 328 489.0% 2,457 819 200.0%
------------------ -------- -------- ------- -------- -------- -------
Onshore/Downstream 664 669 (0.8)% 1,606 1,824 (12.0)%
------------------ -------- -------- ------- -------- -------- -------
Industries 54 212 (74.5)% 115 269 (57.3)%
------------------ -------- -------- ------- -------- -------- -------
Total 2,650 1,209 119.2% 4,178 2,912 43.9%
------------------ -------- -------- ------- -------- -------- -------
Backlog
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
By Business Branch 2003 2003 2002 2002 2002
------------------ -------- -------- -------- -------- --------
Offshore 3,047 1,609 1,761 1,930 1,944
------------------ -------- -------- -------- -------- --------
Onshore/Downstream 4,210 4,126 3,625 3,844 3,420
------------------ -------- -------- -------- -------- --------
Industries 315 356 390 289 303
------------------ -------- -------- -------- -------- --------
Total 7,572 6,091 5,776 6,063 5,667
------------------ -------- -------- -------- -------- --------
Backlog Scheduling
As of Onshore/
June 30, 2003 Offshore Downstream Industries Total
------------------- ---------- ---------- ---------- ----------
For 2003 1,085 1,129 163 2,377
------------------- ---------- ---------- ---------- ----------
For 2004 1,105 1,791 131 3,027
------------------- ---------- ---------- ---------- ----------
For 2005 and Beyond 857 1,290 21 2,168
------------------- ---------- ---------- ---------- ----------
Total 3,047 4,210 315 7,572
------------------- ---------- ---------- ---------- ----------
ANNEX VI
(unaudited)
Net Debt
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
Euros in millions 2003 2003 2002 2002 2002
--------------------- -------- -------- -------- -------- --------
Marketable Securities 81 327 99 98 142
--------------------- -------- -------- -------- -------- --------
Cash 553 399 642 633 560
--------------------- -------- -------- -------- -------- --------
Cash & Cash
Equivalents (A) 634 726 741 731 702
--------------------- -------- -------- -------- -------- --------
Short Term Debt 390 306 301 273 472
--------------------- -------- -------- -------- -------- --------
Long Term Debt 923 926 946 1,110 1,151
--------------------- -------- -------- -------- -------- --------
Gross Debt (B) 1,313 1,232 1,247 1,383 1,623
--------------------- -------- -------- -------- -------- --------
Net Debt * (B - A) 679 506 506 652 921
--------------------- -------- -------- -------- -------- --------
* Does not include the reimbursement premium on the convertible bonds
issued in the first quarter of 2002.
Foreign Exchange Conversion Rates vs. Euro
Statement of Income Balance Sheet
-------------------------- --------------------------
Jun. 30, Dec. 31, Jun. 30, Jun. 30, Dec. 31, Jun. 30,
2003 2002 2002 2003 2002 2002
-------------- -------- -------- -------- -------- -------- --------
USD 1.10 0.95 0.90 1.14 1.05 1.00
-------------- -------- -------- -------- -------- -------- --------
GBP 0.69 0.63 0.62 0.69 0.65 0.65
-------------- -------- -------- -------- -------- -------- --------
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