Annual report - Morningstar, Inc.

Annual report19 9 9

Brought to you by Global Reports

Annual reportYear ended December 31, 1999

TECHNIPA limited company capitalized at FF. 315 170 740

Headquarters :Tour Technip - La Défense 6 - 170, place Henri Régnault92973 Paris La Défense cedex - FRANCE

RCS Nanterre B 589 803 261Ph.: 33 (0) 1 47 78 21 21 - Fax.: 33 (0) 1 47 78 33 40http://www.technip.com

2 Message from the Chairman

4 Technip Group Management

6 Technip Profile

8 Highlights

10 Financial position

16 The Year in Review

18 Fields of Activity

44 Human Resources

46 Technip Worldwide

Contents


During the year 1999, TECHNIP passed a milestone in its

strategy of orderly and profitable growth: with the acquisition

of the two engineering divisions of Mannesmann, our Group

climbed up to first place in Europe and fourth place in the world

in the engineering and construction sector.

Having thus increased by 50% the volume of its sales and its

staff, the Group is now solidly implanted in the United States,

the Netherlands, Germany and India. It has reinforced its

technological portfolio, thanks to the positions held by the former

KTI in the ethylene, hydrogen and sulphur markets and by

the former MDEU in the areas of pipelines, power plants and

underground gas storage.

Beyond the simple change in size, this major acquisition will

have important effects on the future of Technip :

- from a commercial standpoint, it means a significant enlar-

gement of markets and clients, particularly in the Americas

and in Germany. In 1999 this enlargement had already resulted

in significant orders, as well as in the development of first-rate

relations with oil and petrochemical companies.

- from a financial standpoint, the acquisition offers prospects

of strong growth in revenues. While only modestly profitable in

1999, the new affiliates resulting from the acquisition have set

a goal of net profits equal to 3% of their revenues as of 2001.

Message from the Chairman


Daniel VALOT - Chairman and C.E.O.

The reduction in the acquisition price by a third — obtained

in February 2000 — and the rapid integration of the new

affiliates into Technip bode well for our ability to reach this

objective.

As we begin this year 2000, the economic situation for the

engineering and construction industry is sharply improving.

The rise in oil prices, the recovery of the Asian economies and

the continuation of economic growth in the main industrial

regions of the world should result in a considerable increase

in investment projects in the sectors that interest us: mainly oil

and gas production, refining and petrochemicals, fine chemicals

and pharmaceuticals.

The Group, which now has a truly global commercial network,

recognized know-how and technology and competent and

motivated teams, is well placed to make the most of this expansion

in the markets.


Technip GroupManagement

TOP

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EDaniel VALOTChairman and C.E.O.

Daniel BURLINSenior Executive Vice PresidentFinance and Control

Georges KRAMMERSenior Executive Vice PresidentBusiness and Operations

Anne DECRESSACHuman Resources

Lucien SAJUSC.E.O. Technip France

Nicola GRECOManaging Director Technip Italy

Xavier JACOBStrategy and Technology

Samson ALEVWestern Europe

Jean DESEILLIGNYMiddle East / Upstream

Leonello PARIC.O.O. Technip Italy

David BAKERAmericas

Bernard DI TULLIOFar East

Jean-Noël MÉARYChemicals / Fertilizers

Giorgio CAVANNALife Sciences

Jean-Pierre CHARNEAUCement, Industries

Bruno de LESQUENEngineering, Construction

Jean-François HÉDIARDFinancing


Cabinet Barbier Frinault & Autres represented by :

René PROGLIO

Titular Auditor

Claude CHARRON

Titular Auditor

Gilles PUISSOCHET

Alternate Auditor

Laurent LEVESQUE

Alternate Auditor

Daniel VALOTChairman and C.E.O.

Olivier BARBAROUX

Philippe JEUNET

Miguel CAPARROS

Jean-Pierre LAMOURE

Christophe de MARGERIE

Charles PREVOT

Bruno WEYMULLER

GAZ DE FRANCEPermanent representative:

Claude MANDIL

I.S.I.S.Permanent representative:

Pierre JACQUARD

Board of Directors

Auditors

Pierre VAILLAUDHonorary Chairman, Board Member


Business: engineering and constructionTECHNIP's business is designing and building industrial and

service facilities. Its experience and flexibility allow it to handle

everything from preliminary studies to turnkey delivery — for

individual units as well as fully integrated complexes — in a

wide range of sectors, covering both its core activity of hydro-

carbons and petrochemicals as well as selected industries.

A world-class groupWorldwide, with a permanent staff of about 10,000 and annual

revenues of nearly 3 billion euros, TECHNIP is one of the world's

5 biggest full-service engineering and construction groups

operating internationally in the field of hydrocarbon and petro-

chemical facilities.

Active in hydrocarbons, petrochemicalsand other selected industriesTECHNIP’s principal fields of activity have developed along four

main lines :

TECHNIPHeadquarters (parent company) : Paris, France

Date of incorporation: 1958

Chairman and Chief Executive Officer:Daniel VALOT

Senior Executive Vice President, Business and Operations:

Georges KRAMMER

Senior Executive Vice President, Finance and Control:

Daniel BURLIN

SHAREHOLDERS

In-house staff : 10,000 worldwide

Revenues : 2.782 billion euros in 1999 (74% outsideof Europe)

Net profit : 125 million euros in 1999

Main operational bases : France, Italy, Germany,Netherlands, Abu Dhabi, India, Malaysia, China,USA and Venezuela

Technip profile

French retail and institutional investors (37.7%)

Staff (3.0%)

ISIS/GAZ DE FRANCE/TOTAL FINA ELF (29.6%)

TECHNIP (2.9%)

International investors (26.8%)


Oil and gas production:

• Oil and gas field development

(onshore and offshore).

• Gas processing and liquefaction.

Oil refining

Petrochemicals and fertilizers:

• Aromatics, olefins, polymers.

• Ammonia, urea, nitrogenous and phosphated fertilizers.

Diversified industries and architectural engineering:

• Basic chemicals, pyrotechnics, hydrometallurgy.

• Life sciences (fine chemicals, pharmaceuticals, biotechnologies,

food processing).

• Light industry (textiles, micro-electronics).

• Heavy industry (cement, glass and ceramics).

• Power generation (thermal, nuclear, cogeneration).

• Environmental protection.

• Advanced systems engineering.

• Operation and maintenance.

• Industrial and service buildings.

Full-range services up to lump-sumturnkey contractsFor any project, TECHNIP can provide all or part of the following

services: basic and detailed engineering, procurement, construc-

tion and project management services. Every year, the TECHNIP

group successfully carries out projects of all sizes, including a

thousand small projects.

Supported by its wide experience in joint ventures with foreign

partners, TECHNIP is also capable of taking on major turnkey

contracts worth several hundred million dollars and arranging

the necessary international financing. Moreover, completely

independent from suppliers, TECHNIP is fully experienced in

seeking the best available equipment at internationally compe-

titive prices.

Business segment breakdown(% of revenues 1999)

Business geographical breakdown(% of revenues 1999)

Refining (40%)

Oil and gas production (21%)

Petrochemicals, fertilizers (17%)

Industries/electricity and other (22%)

Far East (8%)

Middle East (24%)

Europe (26%)

Africa (23%)

CIS/Central Asia (7%)

Americas (12%)

Main engineering centers worldwide

Other European centers: Barcelona, Lisbon, Helsinki, Berlin, Prague, St Petersburg.


Net profits before goodwill depreciation

amount to 183 million euros, an increase

of 70%. Excluding extraordinary items,

recurring net profits amount to 125 mil-

lion euros, up 16.5%.

Adjustment of the purchase priceof KTI / MDEU

The experts’decision in favor of TECHNIP

in February 1999 on the acquisition price

of KTI/MDEU led to a reduction of 63 mil-

lion euros on the initial price of 192

million euros. As a result, the contracts

acquired by TECHNIP are now correctly

provisioned and goodwill depreciation

remains unchanged at 8 million euros

per year.

Turnaround of thenew subsidiaries

The new affiliates resulting from the

acquisition of KTI /MDEU, now named

TECHNIP GERMANY (in Düsseldorf),

TECHNIP BENELUX (in The Hague) and

TECHNIP USA ( in Houston and Los

Angeles), generated a net profit in the

first year, showing that their turnaround

is well under way.

Sustained activity in the refining sector

Oil refining, generally considered a matu-

re sector, remained a growth segment for

TECHNIP (40% of sales) due to the design

and construction of major turnkey pro-

jects in Egypt, the United Arab Emirates,

Turkmenistan and Venezuela. TECHNIP's

know-how and international reputation

in this area enabled the Group to com-

plete three grassroots refineries during

the last five years, as well as numerous

units and revampings for existing refi-

neries.

New success in thegas sector

TECHNIP won two major new contracts

in the area of gas production and treat-

ment: the basic engineering and project

management of a field development

project in Libya and the turnkey expan-

sion of the LNG complex in Nigeria,

comprising notably a third liquefaction

train. The first two trains, under an earlier

contract, were successfully started up in

September 1999 and in February 2000

and are now on stream.

Highlights

Expansion of the GroupThe TECHNIP Group changed in size,

thanks to the purchase of the engineering

activities of Mannesmann, which took

place in March 1999, with effect as of

January 1st, 1999. The Group's staff has

grown from about 6000 men and women

to 10,000, and its global network has

developed through its new establish-

ments notably in Germany, the Nether-

lands, the United States and India.

Accelerationof growth

Contrary to most of its major competi-

tors, TECHNIP experienced strong accele-

ration of its growth, despite an economic

environment still disrupted by the con-

sequences of the Asian crisis and the

collapse of oil prices in 1998. Sales for

the year reached 2.782 billion euros, an

increase of 51% over the previous year.


Successful wet testsfor TPG 3300

TECHNIP successfully conducted wet

tests on a large-scale model of a TPG

3300 platform designed for the develop-

ment of deep offshore oil and gas fields.

These tests constitute a decisive step

towards the commercialization of the

TPG 3300, whose concept was developed

by TECHNIP.

Marked recovery ofactivities in the MiddleEast and Far East

The Middle East regained a significant

place in TECHNIP's order book, parti-

cularly thanks to the 750-million-dollar

turnkey contract, in effect since October

1999, for the design and construction

of a petrochemical complex in Qatar

( in a 50 / 50 joint venture with KBR).

The geographic breakdown of backlog

also shows a clearly marked growth

tendency for activities in the Far East,

where TECHNIP won several turnkey

contracts in the petrochemical sector.

Rapid growth in theAmericas

The breakdown of activity by regions

did not change significantly compared

to 1998, with the exception of the share

represented by the Americas, which expe-

rienced noteworthy growth, rising from

7% to 12% of consolidated sales, thanks

to the activity of the new affiliate TECH-

NIP USA and to the major extra-heavy

crude processing projects in Venezuela.

Creation of TECHNIP ANGOLA

The Angolan national oil company

SONANGOL and TECHNIP joined in a

60 / 40 partnership to create the first

Angolan engineering and construction

company, TECHNIP ANGOLA. Based in

Luanda, TECHNIP ANGOLA will provide

engineering services for the design and

construction of industrial facilities, par-

ticularly in the oil and gas production

sector (offshore and onshore field deve-

lopment/gas processing), and in the refi-

ning and petrochemical sectors.

Significant progress indiversified industries

With the impetus of the new affiliates,

diversified industries (excluding oil /

petrochemicals) showed considerable

progress—up from 16% to 22% of sales

— with sales themselves up by 51%. In

a good number of the sectors concerned,

TECHNIP possesses specific know-how,

even proprietary technologies (high-

pressure piping for power plants, ethanol,

palm oil, pyrotechnics, cement), which

constitute real technological niches for

the Group.


Financialposition

Evolution of diluted earnings per share( in euros)

1996

4.07

1997

4.85

1998 19991995

5.606.51

10.75Consolidated accounts at 31 December, 1999

During the year 1999, TECHNIP had strong growth contrary

to most of its major competitors, and this despite an eco-

nomic environment that remained difficult.

The Group had a change of scale with the purchase of the

engineering operations of Mannesmann in March but with

effect from 1 January 1999. The Group’s workforce increased

from 6,000 to 10,000 people and its global network has

grown with new operations particularly in Germany,

Netherlands, the US and India.

TECHNIP’s growth was also demonstrated by the sharp

increase in financial results.

The principal financial results for the year 1999 are as follows:

Revenues

Cash flow from operations

Operating income

Group net income : beforeamortization of goodwill and releaseof provision for geopolitical risk

Group net income : before release of provision for geopolitical risk

Group net income

2782.2148.6163.5125.1

115.6

172.6

+ 50.7 %+ 29.5 %+ 14.4 %+ 16.5 %

+ 9.7 %

+ 63.8 %

in millions of euros 1999 Increase

After full dilution to include all options earnings per share

are as follows:

Group net income before release ofprovision for geopolitical risk

Group net income

7.20

10.75

+ 10.6 %

+ 65.2 %

in euros 1999 Increase

The strong growth indicated by these figures must be consi-

dered in light of three major factors:

• The new subsidiaries KTI / MDEU acquired from

Mannesmann generated a positive contribution to profit

of 9 million euros (before amortization of goodwill) in

their first year, which demonstrates that their recovery is

well under way.

• The expert study, which supported TECHNIP in respect

of the acquisition price of KTI/MDEU, led to a reduction of

63 million euros in the initial price of 192 million euros.

As a result, the contracts taken over by TECHNIP are

correctly provided for and the amortization of goodwill

remains unchanged at 8 million euros per year.

• The release of the geopolitical provision, driven by the

growth of the group, led to an exceptional income of

57 million euros net of tax. This improved TECHNIP’s

shareholders’ equity and brought its accounts into line

with international accounting standards.

In total, the acquisition of KTI /MDEU let to an increase in

total assets at 31 December 1999 of 1,307 million euros (of

which 70% was work-in-progress) in the consolidated

balance sheet.

Consolidated revenues, grew 50.7 % to 2,782.2 million

euros. On a like for like basis, growth was 4.7%.

During the year the group completed a large number of

contracts. Among the most significant in terms of revenue

(engineering, materials and works included) were; the Midor

refinery at Alexandria in Egypt, the OGD II gas treatment

unit in Abu Dhabi, the gas liquefaction plant at Bonny in

Nigeria, the naphtha reformer in Egypt and the VEHOP heavy

oil treatment plant in Venezuela.

7.20*

* excluding the reversal of the provision for geopolitical risk.


The geographic breakdown has not changed greatly since

1998, with the exception of the Americas, which had significant

market growth, and went from 7% to 12% of consolidated

revenues. This was due to the operation of the new subsidiary

TECHNIP USA and large projects in Venezuela. Three major

areas represent each over 20% of operations: Europe with 26%

of revenues, the Middle East with 24% and Africa with 23%.

Refining represents 40%, Oil and Gas Production 21% and

Petrochemicals and Fertilizers 17 %. Contracts are 85 %

turnkey or similar.

At the same time, other contracts signed and commenced in

1999 will have full effect on results over the coming twenty

four months. Examples include the third liquefaction line in

Nigeria, the petrochemical complex in Qatar, the lubricants

plant in Turkmenistan, all the off-site facilities and utilities

for a petrochemical complex in Malaysia and a high-pressure

polyethylene unit in Malaysia.

At 31 December 1999, the part of contracts in progress, which

only includes contracts in force (backlog), amounted to

3.47 billion euros, compared to 2.79 billion euros at 31

December 1998. This backlog, which represents around 15

months revenue, demonstrates the ability of the TECHNIP

group to survive in an unsettled international context and

ensures continuing high levels of business in its major sectors

of operation.

The movement in the backlog over the last three years was

marked by strong growth in Oil and Gas Production and in

Petrochemicals. In 1999, these two sectors achieved an order

of size comparable to the refining sector. The backlog growth

in the Middle East, Far East and the Americas was particu-

larly marked in recent times.

Evolutionof Group net income

( in millions of euros)

1996

67.1

1997 1998 19991995

95.6

105.4

172.6

Evolution ofconsolidated revenues

( in billions of euros)

1996

1.4

1997

1.5

1998 19991995

1.8 1.9

2.8

Evolution of backlog( in billions of euros)

1996

2.1

1997

1.9

1998 19991995

2.5

2.8

3.5

115.6 *

81.4

KTI/MDEU

TECHNIP

Backlog( in billions of euros)

19991999

3.473.47

0.48 - Europe

1.31 - Middle East

0.71 - Africa

0.22 - CIS

0.41 - Far East

0.34 - Americas0.33 - Industries

1.09 - Petrochemicals

0.83 - Production

1.22 - Refining

* excluding the reversal of the provision for geopolitical risk.


Operating income was 163.5 million euros representing 5.9%

of revenues and grew by 14.4% compared to 1998. Operating

income arises from the following two factors:

• revenues of 2,782.2 million euros including financial

income generated from cash balances in respect of

contracts of 19.1 million euros in 1999. In 1998, this was

16.3 million euros.

• operating expenses of 2,618.7 million euros, which

were 94.1% of revenues. The major items were

equipment and work carried out, i.e. 2,160.6 million

euros, and personnel costs of 435.8 million euros.

The average growth of payroll costs per employee

between 1998 and 1999 amounted roughly to 3%.

Net financial income (excluding contracts) of 16.6 million

euros in 1999 relates exclusively to the management of the

group’s own funds. It arises from investments and deposits

made on the basis of security and liquidity, and from

dividends received from the portfolio of non-consolidated

investments, principally COGEMA.

Net exceptional income was 2.8 million euros in 1999.

This included:

• the gross capital gain on the partial disposal of the

non-consolidated shares in COGEMA,

• the gross capital gain on the disposal of fixed assets,

• restructuring costs incurred during the year.

Current and deferred taxes of the group, including all

subsidiaries and contracts in progress subject to the tax

legislation of the country where the contract is being carried

out, amounted to 55.9 million euros, net of the deferred tax

of 32.9 million euros related to the release of the provision

for geopolitical risk.

This represents an apparent group tax rate of around 34.2%,

slightly lower than 1998. This rate includes the additional

charge on profits taxable in France.

Evolution of Group’s shareholders’equity before appropriation


1996

344

1997 1998 19991995

498 501

634

418

Financial position


Earnings from equity accounted companies arise mainly

from the investment in IPEDEX.

Amortization of goodwill on acquisition of 9.5 million

euros includes 8 million euros in respect of the amortization

over 20 years of the goodwill arising on KTI /MDEU.

The reversal of the provision for geopolitical risk, net of

tax, amounted to 57 million euros (the gross release was

89.9 million euros less the deferred tax provision of 32.9

million euros).

In the past, the group established a provision every year on

the basis of various criteria to value the work outstanding

on contracts in progress.

This provision was only increased by modest amounts in

recent years and was never used.

During the year, the significant development of the group

related to:

• the diversification of risk by country and by customer,

• the growth of the group and its financial strength,

• the spreading of the risk among partners, particularly

following the acquisition of KTI /MDEU,

• the reorganization that arose from the group operational

and legal structure with the creation of a holding

company,

have left this provision with no purpose. As a result, it has

been released to exceptional income. This new position is

now in compliance with international accounting standards.

Consolidated balance sheet and financial position

Shareholders’ equity at 31 December 1999, before appro-

priation of the profit for the year was 633.9 million euros

compared to 501.6 million euros at 31 December 1998. The

movement includes the reduction in capital of 19.8 million

euros following the cancellation of 1.49% of the shares.

In total, shareholders’ equity finances the fixed assets and

provides a sound financial basis for the group.

Cash flow from operations generated in the year was 148.6

million euros compared to 114.8 million in the previous

year. It was substantially in excess of current requirements

and has provided, on a regular basis, a significant margin

for manœuver.

Fixed assets were 431.8 million euros. The major items

are net goodwill (particularly following the acquisition of

KTI /MDEU), the net value of property and the investment

in COGEMA. In total, investment in the year was covered by

the amortization and depreciation charge of the year.

A cash flow well aboveorganic needs


104

1998 19991997

115


149

Current capitalspending10



A robust financial structureallowing strategic flexibility


1998 19991997

862

Cash position

1019

Financial debt22

936

Financial debt92

Financial debt69

Cash position

Cashposition




Contracts in progress, which represent the cost incurred

on all contracts in progress, was 3,944.1 million euros at

31 December 1999. The previous year, this was 2,900 million

euros. A major part of the increase arises from the inclusion

of KTI /MDEU in the group.

Work in progress is valued at cost price and comprises mainly

turnkey, FOB or similar contracts. These contracts are funded

by part payment invoiced to the customers. At 31 December

1999, part payments amounted to 4,580.5 million euros.

Provisions for liabilities and charges amounted to 269.5

million euros in total, compared to 236.5 million euros for

the previous year. These provide mainly for risks related to

contracts, completion costs for contracts at the stage of

preliminary acceptance, various charges, social obligations

and restructuring costs.

The movement in the year arises mainly from:

• the reversal of the provision of 89.9 million euros for

geopolitical risk,

• provisions of 152 million euros arising from the

transfer of the KTI /MDEU operations.

Debt of 68.5 million euros at the end of 1998 declined to

21.8 million euros at 31 December 1999.

Parent company accounts at31 December, 1999

At the completion of the structural reorganization of the

group, which in 1999 led to the transfer of the engineering

operations of TECHNIP to TECHNIP France, TECHNIP became

essentially a holding company. Its accounts at 31 December

1999 must be considered in light of this change and thus they

cannot be easily compared to the previous years’ accounts.

Financial position


Revenues of 70 million euros represent only dividends and

interest received from subsidiaries.

Net income was 162.6 million euros. This includes the relea-

se of the provision of 89.9 million euros for geopolitical

risk.

Shareholders’ equity was 500 million euros before distri-

bution at 31 December 1999. This includes the effects of

capital reduction following the cancellation of 238,277 shares.

Stock optionsIt is to be noted that the Board of Directors, during the

meetings held on March 30, 1994, February 13, 1995, March

14, 1996 and March 13, 1997, according to the authoriza-

tions extended by the Extraordinary General Meetings of

February 11, 1993 and May 16, 1995, granted TECHNIP

stock options. Furthermore, at its meeting held on April 30,

1998, according to the authorization extended by the Extra-

ordinary General Meeting held on that same day, a new

allocation of TECHNIP stock options was granted.

Throughout the year, 95 options were exercised, for 124,140

shares at 20 francs, corresponding to an increase in nominal

capital of 2,482,800 francs.

The Board of Directors, on April 30, 1999, authorized by the

Extraordinary General Meeting of April 30, 1998, decided

on a new allocation of stock options to 250 beneficiaries.

This offer concerned 315,520 shares at 20 francs each. The

subscription price was fixed at 95.94 euros (or 629.33

francs). Throughout the year, no options were exercised

relative to the two plans mentioned above.

SHAREHOLDERS’ LOG IN EUROS

1997 1998 1999

Share capital at the end of the year 50,407,417 48,100,711 48,047,469

Number of shares in issue (on 31 December) 16,532,549 15,775,999 15,758,537

Potential number of shares (on 31 December) 17,077,169 16,191,829 16,050,827

Share price :

highest 123.33 133 116

lowest 70.43 59 70

on December 31 96.81 80 101.8

Consolidated operating income diluted per share 7.55 8.83 10.19

Net consolidated income diluted per share 5.60 6.51 10.75

Dividend per share (proposal in1999) 2.21 2.45 3

Dividend/net consolidated result ratio 38.2 % 36.1 % 39.7 % (a)

Total revenue per share (net dividend + tax credit) 3.32 3.68 4.5

Gross yield per share (price December 31) 3.4 % 4.6 % 4.4 %

(a) Ratio calculated on net income before reversal of the geopolitical reserve.


JANUARYCorporate news

TECHNIP acquires the affiliates and engi-

neering divisions of Mannesmann (KTI/

MDEU). This operation represents an

increase of about 50% for TECHNIP in

terms of staff and sales. It means the

Group is now solidly implanted in Ger-

many, the United States, the Netherlands

and India and gives it access to technolo-

gies that complement its own, particularly

in the areas of ethylene, hydrogen and

high-pressure piping.

Bahrain

ALUMINIUM BAHRAIN awards TECHNIP

a turnkey contract worth approximately

220 million euros for the design and

construction of a petroleum coke calci-

ning plant capable of producing 450,000

tons per year.

FEBRUARYGreece

MOTOR OIL HELLAS entrusts TECHNIP

with the design and construction of two

new gasoline processing units and with

the revamping of its refinery at Corinth

in order to bring it into compliance with

the new European standards concerning

benzene-free and low-sulfur gasoline.

MARCHNigeria

Nigeria LNG awards TSKJ (TECHNIP-

SNAMPROGETTI-KBR-JGC) a turnkey

contract worth about 1.2 billion dollars

for the expansion of the LNG complex

at Bonny. The project includes the cons-

truction of a third natural gas liquefaction

train, an LPG recovery unit and associated

utilities and offsites.

APRILCzech Republic

TECHNIP is entrusted with the first phase

of the revamping and expansion of

CHEMOPETROL’s ethylene plant at

Litvinov.

Malaysia

Optimal Chemicals—a joint venture com-

pany between PETRONAS and UNION

CARBIDE — awards TECHNIP a major

contract for the design and construction

of offsites and infrastructures for a petro-

chemical complex at Kerteh.

MAYDubaï

The 120,000-barrel /day refinery at

Jebel Ali, executed turnkey by TECHNIP

for ENOC PROCESSING, comes on stream.

JUNEAngola

The Angolan national oil company

SONANGOL and TECHNIP together

create the first Angolan engineering

company, TECHNIP ANGOLA. The com-

pany, based in Luanda, will provide ser-

vices for the design and construction of

industrial facilities in Angola, particularly

in the oil and gas sectors.

Germany

RWE entrusts TECHNIP with a project

worth about 50 million euros for the

engineering, prefabrication, installation

and start-up of the high-pressure piping

systems for a new lignite-fired power

station to be built near Cologne.

JULYTurkmenistan

The Oil and Gas Ministry of Turkmenistan

awards TECHNIP a project worth about

180 million euros for the design and

construction of a lube oil plant and the

revamping of the vacuum distillation unit

at the refinery of Turkmenbashi, on the

shores of the Caspian Sea.

The year in review


AUGUSTLibya

AGIP GAS BV— a jointly-owned affiliate

of the Italian company AGIP and the

Libyan National Oil Company—awards

TECHNIP a major contract for basic

engineering and project management

services for the development of several

natural gas fields, both onshore and

offshore.

Nigeria

Nigeria LNG issues acceptance of the

first natural gas liquefaction train at

Bonny, delivered ready-for-start-up by

the consortium TSKJ (TECHNIP-SNAM-

PROGETTI-KBR-JGC). The facility, which

has a capacity of 2.9 million tons per

year, comes on stream the following

month.

SEPTEMBERUnited Arab Emirates

The new one-million-ton/year cement

plant, executed turnkey by TECHNIP in

the Emirate of Ras Al Khaimah, comes

on stream.

OCTOBERQatar

TECHNIP — in a 50 / 50 joint venture

with Kellogg Brown & Root — signs a

750-million dollar contract with Q-CHEM

(QGPC / PHILLIPS) for the design and

construction of a petrochemical com-

plex at Maesaieed. The complex includes

a 500,000-ton/year ethylene cracker, a

hexene-1 unit, two polyethylene units

with a combined capacity of over

450,000 tons per year, together with

related utilities and offsites.

NOVEMBERIndia

INDIAN OIL awards TECHNIP a contract

worth about 50 million dollars for the

turnkey design and construction of a

hydrotreatment unit and a hydrogen unit

at its refinery in Guwahati, Assam State.

Malaysia

PETLIN—a company formed by PETRO-

NAS, DSM AND POLYFIN—awards TECH-

NIP a major project covering the design

and construction of a 255,000-ton/year

high-pressure polyethylene unit at Kerteh.

China

The caprolactam plant at Shijiazhuang,

designed and built by TECHNIP, starts

up successfully. It is made up of nine

process units and ten utilities and offsite

facilities.

DECEMBERAbu Dhabi

GASCO entrusts TECHNIP with a turnkey

project worth about 90 million dollars

to revamp and expand the capacity of its

gas fractionation plant at Ruwais.

Spain/Argentina

The Spanish-Argentine group REPSOL-

YPF selects TECHNIP to revise and update

the oil refining/petrochemicals technical

specifications and documents for all its

facilities worldwide.

Uzbekistan

KREBS-SPEICHIM, the 50/50 joint affi-

liate of TECHNIP and SGN, wins a con-

tract worth about 60 million euros for

the construction of a plant to manu-

facture components of pyrotechnical

products from cellulose.


Fields of activityOil and Gas production

Despite an unfavorable economic environmentwhich was still influenced by the collapse of oilprices in 1998 and the Asian crisis, oil and gasproduction accounted for 21% of revenues in1999, or 584 million euros (425 million eurosin 1998). This sector received a boost with thesigning of a basic engineering and projectmanagement contract for a very large gas field

development project in Libya and the award of a new contract inNigeria for the expansion of the Bonny LNG complex, whose firsttwo liquefaction trains recently came on stream.

Second LNG train delivered at Bonny (Nigeria).


Europe and the United States

TECHNIP, in a consortium with McDERMOTT and BARMAC,

has practically completed, for ELF EXPLORATION UK, the

offshore Elgin-Franklin platform that will soon be installed

in the North Sea. Designed on the TPG 500 model developed

by TECHNIP, this self - elevating production /utilities /

accommodation platform was prefabricated in modules and

assembled in a dry dock at BARMAC's yard at Nigg, Scotland.

The living-quarters hull, the superstructures (containing the

process equipment and the utilities), as well as the legs

supporting the components above water were built at the

same yard. Jack-up tests for the platform (30,000 tons) took

place successfully in January 2000. Hydrotests and start-up

preparations have begun. Towing to sea is planned for July

2000. Hook-up operations and other operations prior to

start-up will then be able to begin. The jack-up will stand

on three steel legs anchored 92 m under water by means of

piles. The platform should become operational in autumn

2000. It will be able to accommodate up to 69 people and

will be able to treat 14.6 million m3/day of gas and produce

120,000 barrels/day of condensates. The project is being

executed—under an alliance

contract signed in March

1997—by an integrated team

comprising client representa-

tives and members of the

consortium.

In June 1999, ENI’s AGIP Division awarded TECHNIP’s

center in Rome a new contract dealing with the development

of the oil fields in Val d'Agri in Italy. The project concerns

the detailed engineering of the 3rd line, the basic engineering

of the 4th line and overall supervision of the worksite.

In summer 1999, TECHNIP successfully conducted wet tests

on a large-scale (1 /50th) model of the TPG 3300 platform.

The concept of the TPG 3300, developed by TECHNIP, is

that of a deep draft semi-submersible floating platform

designed to develop deepwater hydrocarbon fields. Its deep

draft gives it excellent hydrodynamic behavior, allowing the

placement of wells on the surface and significant advantages

in terms of utilization, cost and safety in comparison with

subsea wells. These tests, which took place in California with

the participation of several major American oil companies,

confirmed the earlier computer simulations carried out by

TECHNIP. They constitute a decisive step towards the

commercialization of the TPG 3300, which could be used

notably in the Gulf of Mexico, in Brazil, in the Gulf of Guinea

and in the Caspian Sea.

Elgin-Franklinplatform in

October 1999.

3-D view of the “TPG 3300”platform.


In the United States, COASTAL FIELD SERVICES entrusted

TECHNIP with the revamping of an LPG unit at St. Mary's

Parish in Louisiana. The American affiliate of TECHNIP has

been executing this project, awarded in November 1999, using

its expertise in the area of processing liquids, together with

its own process for the cryogenic treatment of gas.

Africa

In August 1999, TECHNIP won a major basic engineering

and project management contract for the development of

several natural gas fields in Libya. The contract, estimated at

100 million dollars, was signed with AGIP GAS BV, an affiliate

of the Italian oil company AGIP, and the Libyan National Oil

Co. The project covers the development of an onshore gas

field near Wafa, 550 km southwest of Tripoli, and of an

offshore gas field located 100 km off the coast Tripoli at

a depth of 190 meters. The natural gas and the condensates

will be transported by pipelines to a 10 billion-cubic-meters-

a-year gas processing plant to be built at Melitah, on the coast.

The facilities, for which TECHNIP is executing the engineering,

mainly include: an offshore fixed drilling and production

platform and subsea wellheads, subsea pipelines, the proces-

sing plant at Wafa, as well as the pipeline network linking

the Wafa production center to the Melitah plant (500 km).

The investment cost, including an export pipeline to Italy

which is not included in the contract, is estimated at 5.5 billion

dollars. The basic engineering is being executed by TECHNIP

teams in Rome for the onshore portion and in Paris for the

offshore portion of the project. The facilities should be

operational in late 2003.

Within the framework of the Girassol project in Angola,

TECHNIP has completed, on behalf of BOUYGUES OFFSHORE/

ETPM, a major portion of the basic engineering (250,000

hours) and notably all the process design for a 200,000-

barrel-per-day crude oil floating production unit for ELF

Exploration Angola. In addition, TECHNIP was chosen at the

end of the year by CABINDA GULF OIL Co., the affiliate of

CHEVRON in Angola, to perform the front end engineering

design for a 20-25 million scfd gas compression module to

be installed on the “GS November” complex offshore Cabinda.

Phase 1 of this project (definition engineering) is being

performed by TECHNIP teams based in Houston. Phase 2

(basic engineering) will be handled by TECHNIP ANGOLA

in Luanda by a TECHNIP team composed of Angolan,

American and French personnel in order to provide an efficient

transfer of know-how to the new affiliate. Created in June 1999

by the national oil company SONANGOL (60%) and TECHNIP

Fields of activityOil and gas production

LIBYA

3-D view of top-deck facilities for the Girassolplatform (Angola).


(40%), TECHNIP ANGOLA will assume a growing role in

the execution of projects, notably in the deep water sector,

which offers significant prospects in Angola.

A particularly solid level of activity in

LNG for TECHNIP in 1999

In March, Nigeria LNG awarded TSKJ, an equally shared

consortium of TECHNIP, SNAMPROGRETTI, KBR and JGC,

a turnkey contract worth about 1.2 billion dollars for the

construction of a third LNG (liquefied natural gas) train with

a capacity of 2.9 million tons per year, an LPG recovery unit

(1 million tons per year), as well as associated utilities and

off-sites at the Bonny Island (Rivers State) complex in Nigeria.

This expansion of the facilities will allow the processing of

an additional 3.7 billion m3 of gas per year (+50%), the pro-

duction of associated gas, and a significant

reduction in the quantities of flared gas. The

third liquefaction train itself will come on

stream in 2002, and all the work related to

the expansion project will be completed in

2003.

At the end of August 1999, Nigeria LNG issued

the acceptance certificate for the first LNG

train at Bonny, delivered turnkey by TSKJ.

This unit, with a capacity of 2.9 million tons

per year, began production the following

month, and the first cargo of LNG was shipped

during the first half of October to the Montoir

de Bretagne terminal near Nantes in France. In February 2000,

the second LNG train, with the same capacity, was pronounced

"ready-for-start-up". It began production on February 27.

The 2-billion-dollar turnkey contract covering these first

two trains had been awarded to TSKJ at the end of December

1995. Today Nigeria LNG (Nigerian National Petroleum

Corp., SHELL, ELF, AGIP) is studying the possibility of a new

expansion comprising liquefaction trains 4 and 5.

Loading jetty for the LNGcomplex at Bonny (Nigeria).

Residential area at Bonny (Nigeria).


Middle EastIn the gas liquefaction sector, TECHNIP also revised the basic

engineering for the new LNG project being developed by

YEMEN LNG (a group of international companies whose

main shareholder is TOTAL FINA ELF), based on new data

from the client. The call for bids for turnkey construction of

this complex at Bal Haf in Yemen is expected during the

first quarter of 2000.

In addition, TECHNIP won a 90-million-dollar turnkey

contract from GASCO (Abu Dhabi Gas Industries) to upgrade

the fractionation plant at Ruwais in Abu Dhabi. The project

involves the two NGL fractionation units, the cooling systems,

the mercaptan removal sections and the sulphur recovery

unit. The objective of this project is to increase the capacity

of the facilities in order to process and treat additional

quantities of feedstocks from Habshan and the Ruwais

refinery, as well as to supply ethane feedstock to the new

BOROUGE petrochemical plant. Execution of the project has

been entrusted to TECHNIP's local engineering center in

Abu Dhabi (300 people), to which GASCO had earlier awarded

a 30-million-dollar contract now being carried out for the

revamping of the control system at this plant and its terminal.

The construction of new natural gas processing facilities at

Habshan in the Emirate of Abu Dhabi had reached practi-

cally 50% completion at the end of 1999. The civil enginee-

ring has been completed and the jobsite is now in an active

phase of mechanical assembly. Work should be completed

during summer 2000, and start-up is scheduled for the end

of the year. This 1.3-billion-dollar turnkey project, designated

"OGD2" (Onshore Gas Project phase 2), is being executed

by a 50/50 joint venture made up of TECHNIP and BECHTEL.

It will allow ABU DHABI NATIONAL OIL Company (ADNOC)

to process an additional 10 billion m3/year of natural gas,

approximately doubling the capacity of the Habshan complex.

The new facilities will also produce NGL, condensates and

sulphur.

This major project is part of the continuing close collaboration

between TECHNIP, its American partner, the construction

company CCCI, and the client ADNOC. The first phase of the

Habshan project was carried out by TECHNIP/BECHTEL in

1996, and in 1997 TECHNIP completed the basic engineering

for OGD2.

Sulfur storage and handling facilitiesat Ruwais (U.A.E.).

Fields of activityOil and gas production


In Qatar, QAPCO has entrusted TECHNIP’s center in Rome

with the expansion of an ethane recovery unit at Umm Saïd.

In addition, TECHNIP’s center in Abu Dhabi completed,

for ELF, the basic engineering for the second development

phase of the Al Khaleej offshore oil field.

TECHNIP continued work on the contract concerning

facilities related to the development of the Hawiyah gas

field in Saudi Arabia. The project includes 3 sulphur

production units (350 t/day each), loading facilities and all

utilities for a plant that will allow SAUDI ARABIAN CO. to

deliver 16 billion m3 of gas to the Saudi distribution network

starting in 2002.

AsiaIn Malaysia, TECHNIP completed the detailed design of

the main complex for the development of the Angsi field,

located 165 km offshore Terengganu. The facilities include

a processing platform and a drilling /production platform,

interconnected by a 100-meter-long bridge. It is the largest

project undertaken jointly by PETRONAS Carigali and ESSO

Production Malaysia. TECHNIP’s engineering center in Kuala

Lumpur also completed, for GLOBAL Industries Offshore,

an engineering contract for the installation and start-up of

a 54-km subsea gas pipeline, linking, at a depth of approxi-

mately 65 meters, the Pailin processing platform and the

Erawan production platform in the Gulf of Thailand. Start-up

took place in August 1999.

Sulfur unit at the “OGD 2”gas complex at Habshan (Abu Dhabi).


Fields of activityOil refining

Accounting for 40% of revenues, oil refining representedthe leading field of activity for TECHNIP in 1999, thanksnotably to the execution of major turnkey projects inEgypt, Dubaï, and Turkmenistan, as well as the construc-tion of two extra-heavy crude oil processing complexesin Venezuela. In addition, the application—as of January1, 2000—of the new European standards for the produc-tion of gasolines with low benzene and sulfur contentstimulated activity in the upgrading of refineries in Europe.

Overall view of the MIDOR/MIDTAP refinery (Egypt).


In Spain, TECHNIP provided REPSOL with a benzene splitter

for the refinery at Cartagena. The project was completed

turnkey by the TECHNIP engineering center based in

Barcelona. Delivery of the unit "ready-for-start-up" took place

at the beginning of December 1999, almost four weeks ahead

of schedule. In addition, TECHNIP was awarded a service

contract by REPSOL/YPF at the end of 1999 to revise and upda-

te all the Hispano-Argentine group's technical specifications

and documents for its refineries and petrochemical plants

worldwide.

EuropeIn France, TECHNIP completed the "Essence 2000" projects

at the Grandpuits and Donges refineries, the goals of which

were to add fractionation columns and convert existing units

to reduce the benzene content of the gasolines produced.

These two contracts for project management and engineering

services, signed in September 1998, were carried out to the

satisfaction of ELF ANTAR GAZ in just thirteen and a half

months. On the Donges site, TECHNIP also completed the

revamping of the fluid-bed catalytic cracker (FCC), which

allows the recovery and valorization of propylene. In this

case as well, the work of the French TECHNIP teams was

carried out in very short time frames, and 60% of the work

was completed during the two-week shutdown of the units.

In September and October 1999, TECHNIP successfully

installed fractionation columns to reduce the benzene content

of gasolines produced in the Göteborg and Lysekil refineries

in Sweden. Both these projects were executed by TECHNIP’s

engineering center in Rome.

“Essence 2000” project at Grandpuits (France).



Mechanical acceptance of the 1800 ton/day

platformate splitter designed and executed

by the TECHNIP teams of Lyon at the Cressier

refinery in Switzerland was issued by SHELL

on February 17, 2000 — three weeks ahead of

schedule.

Other projects related to environmental regula-

tions were launched in 1999 and at the begin-

ning of 2000.

In February 1999, MOTOR OIL HELLAS awar-

ded TECHNIP a major project to upgrade the

Corinth refinery in Greece. The contract covers

front end design, detail engineering, procu-

rement and construction of two units based on

IFP technologies: a 1,200 ton/day "Benfree" (without benzene)

gasoline production unit and a 2,300 ton/day FCC gasoline

hydrotreater. Construction is scheduled for completion in

September 2000. The contract also includes the revamping

of the naphtha hydrotreater and of the regenerative catalytic

reformer. Execution of the project has been entrusted to the

TECHNIP engineering center in Rome, which had previously

been entrusted with the revamping of the catalytic cracker

that started up again after completion of works in March 1999.

In February 2000, RAFFINERIA DI MILAZZO awarded the

TECHNIP engineering center in Rome two turnkey projects

amounting to a total of about 38 million euros for the

revamping of the Milazzo refinery in Italy. Services mainly

cover the design and construction of a new 6,800 ton/day

gasoil hydrodesulphurization unit and the revamping of an

amine unit and the vacuum distillation unit.

These projects constitute significant references for TECHNIP.

They put the Group in a good position with respect to

the prospects of more important projects which will be

required by the application of probably stricter fuel quality

standards, starting in 2005.

Refinery at Cressier (Switzerland).

FCC unit at Corinthrefinery (Greece).


TECHNIP’s teams based in The Hague also designed and

built at Gdansk a 20,000-Nm3/hour hydrogen unit and a

hydrogen recovery unit capable of treating 38,000 Nm3/hour

of feedgas. These units have been on stream since February

2000.

Lastly, in the information and automation systems sector,

TECHNIP has been awarded by ERG PETROLI the extension

of FORWARD software to help in scheduling crudes and in

operational decisions in the Priolo refinery in Italy. MOTOR

OIL HELLAS also entrusted TECHNIP with the installation

of a centralized control and security system (DCS/ESD) in

the Corinth refinery in Greece.

AfricaTECHNIP is carrying out two large turnkey projects simul-

taneously at Alexandria in Egypt.

At the end of 1999, activity on the site of the MIDOR/MIDTAP

refinery at Ameryia (free zone of Alexandria) was at its peak

with 5000 people mobilized on the worksite under the super-

vision of TECHNIP's Italo-French project team. Work was

already 82% complete.

In addition, TECHNIP carried out several classic revamping

and optimization projects for refineries.

In Belgium, TECHNIP, under a lumpsum turnkey contract,

completed in twelve months the revamping of the three

main units (atmospheric distillation, vacuum distillation and

visbreaker) of a relatively old 4 million-ton/year refinery

at Antwerp. The objective of the project was to increase the

refining capacity by 25% and to maximize the products with

high added value, as well as to improve the energy balance

and to install a centralized control system. Heavy construction

work on the site was carried out during a six-week scheduled

shutdown of the refinery. Belgian Refinery Corp. issued the

"ready-for-start-up" certificate on December 29, 1999.

In Poland, TECHNIP's Italian teams completed the revamping

of the fluid-bed catalytic cracker (FCC) at the Plock refinery

and began construction, on the same site, of two new units:

a 600,000-ton/year isomerization unit and a 460,000-ton/

year light naphtha hydrotreater that should come on stream at

the end of June 2000. The teams also continued construction

of a 384,000 ton/year isomerization unit and the revamping

of an FCC in the Gdansk refinery, for which performance

tests took place successfully in February 2000.


The turnkey project, worth about one billion dollars, had been

entrusted to TECHNIP in June 1997. Designed according to

a high-conversion scheme, including a hydrocracker and

a delayed coker, this 100,000-barrel/day (5 million tons per

year) refinery will be able to convert heavy products into

desulphurized distillates and will produce a limited quantity

of coke. It will use the most advanced technology and

meet the most exacting environmental standards, nota-

bly the European directives scheduled for the year 2005.

When it becomes operational in 2001, the MIDOR/MIDTAP

refinery will indisputably be the most sophisticated refi-

nery in the Mediterranean Basin and the best adapted to the

requirements of the market.

On a neighboring site at Ameryia, TECHNIP continued, from

its center in Rome, the execution of a 170 million-dollar

project entrusted to it by ALEXANDRIA PETROLEUM Co. in

June 1998. This is a naphtha reforming complex made up

of several units designed to produce lead-free gasoline.


Isomerization unit and catalytic cracker at the MIDOR refinery(Egypt).

Naphtha reforming complex at Alexandria (Egypt).


The facilities comprise in particular a 700,000-ton/year

naphtha splitter, a 460,000-ton/year Penex isomerization

unit, a 495,000-ton/year catalytic reformer and a regene-

ration section — using UOP processes— as well as an LPG

recovery unit and associated utilities and offsites. Despite a

very tight schedule, construction was 82% complete at the

end of 1999. The facilities should come on stream during

the summer of 2000.

In addition, the TECHNIP engineering center in Rome, which

is playing a leading role in the execution of the two projects

cited above, was also awarded, by ALEXANDRIA MINERAL

OIL in March 1999, a project management contract concerning

a lube oil plant under construction at Alexandria.

Even though refining activity in Africa remained very concen-

trated in Egypt, TECHNIP did not stay away from projects

which, although admittedly still in a preliminary stage,

nevertheless offer interesting prospects in other countries.

Thus, TECHNIP was chosen to carry out a feasibility study

for construction of a 2.5 million-ton/year grassroots refinery

in Djibouti. Société Ivoirienne de Raffinage selected TECHNIP

to carry out a feasibility study for the debottlenecking of

SMB’s asphalt unit at Abidjan in Ivory Coast. SOGARA awarded

TECHNIP a feasibility study for revamping catalytic reforming

furnaces at Port Gentil in Gabon. Lastly, in Angola, TECHNIP

was entrusted, at the end of 1999, with a study and manage-

ment mission for the construction of a refinery in Benguela

Province (Lobito region). Moreover, the national oil company

SONANGOL and TECHNIP created together (60/40), in June

1999, the first Angolan engineering and construction com-

pany, TECHNIP ANGOLA. Based in Luanda, this company

will provide engineering services for the design and cons-

truction of industrial facilities, particularly in the refining

sector.

One of the heaters for the vacuum distillationunit at the MIDOR refinery (Egypt).

MIDOR refineryjobsite team(Egypt).


Central AsiaIn July 1999, the Ministry of Oil and Gas of Turkmenistan

awarded TECHNIP the design and construction of an

80,000-ton/year lube oil plant, as well as the revamping

of a vacuum distillation unit in the oil refining complex of

Turkmenbashi, located on the shores of the Caspian Sea.

The turnkey contract is worth 180 million euros. The pro-

ject is being executed from TECHNIP’s engineering center

in Düsseldorf.

On the same site at Turkmenbashi, the construction of a

catalytic cracker, subject of an earlier contract executed by

TECHNIP from Paris and worth 200 million euros, is in the

completion stage. Having a capacity of 1.8 million tons/year,

this MSCC (Milli Second Catalytic Cracker) using UOP tech-

nology is designed to convert distillate cuts into gasoline. At

the end of the year, construction had reached 80% progress.

At the client's request, the engineering and the construction

of the utilities were carried out ahead of schedule. These

utilities (water cooling towers and seawater desalination

units), which feed the cracking unit and the refinery, came

on stream six months ahead of the initially scheduled date.

The construction of the cracker will be completed at the end

of May 2000.

Middle EastThe coming on stream of the condensate refinery at Dubaï

is the most significant event for TECHNIP in this region.

Despite a very short contractual deadline (22 months) and

major changes in the definition of the project while it was

under way, this 183 million-dollar turnkey project was suc-

cessfully carried out by an integrated team made up of

representatives of the client ENOC PROCESSING Co. and

TECHNIP engineers and technicians from Rome. The Jebel

Ali refinery comprises a 120,000-barrel/day vacuum dis-

tillation unit and 5 Merox (UOP) units designed to treat

condensates from the Gulf region and to produce kerosene,

diesel, LPG and naphtha for the local and export markets.


M.S.C.C. unit at the Turkmenbashi refinery (Turkmenistan).


At the far end of the refining downstream

sector, TECHNIP won from the company

ALUMINIUM BAHRAIN (ALBA) a turnkey

contract worth 220 million euros for the

design and construction of a 450,000-ton

coke calcining plant in Bahrain. The calci-

ned coke is used for making anodes used

to extract aluminum from alumina. In addi-

tion, the heat generated in the calcining

process will be used by the desalination

plant to produce 41,000 m3/day of potable

water from seawater. The project is being

carried out by TECHNIP teams based in

Düsseldorf.

Asia

The year 1999 was marked by the winning against stiff

competition of a turnkey contract worth about 50 million

dollars in India. The project, entrusted to TECHNIP by

INDIAN OIL Corp. in November 1999, concerns the design

and construction of a hydrotreater and a hydrogen unit at

the Guwahati refinery in Assam Province in the far-eastern

part of the country. UOP is the selected licensor for the

hydrotreater, while TECHNIP's in-house "KTI Technology"

will be applied to the hydrogen unit. This project will be

executed by TECHNIP from the premises of its affiliate in

New Delhi (KT India), under the supervision of a team from

TECHNIP’s center in Rome. Mechanical completion is sche-

duled for May 2001.

Condensate refinery at Dubaï.

Oil blending unit at Manila(Philippines).

In the Far East, TECHNIP obtained a new reference for its

FORWARD software with an order from JAPAN ENERGY for

the Mizushima refinery in Japan. TECHNIP had earlier

installed the FORWARD system in the LG CALTEX refinery

in Korea. Elsewhere, EUROBATCH, an affiliate of KREBS-

SPEICHIM (TECHNIP /SGN) specialized in the design and

construction of integrated facilities for batch processing,

received from CALTEX LUBRICANTS VIETNAM acceptance of

a skid-mounted lubricant production unit built at Haïphong

in Vietnam and from PETRON, acceptance of an 80,000-ton/

year oil blending unit, installed in Manila in the Philippines.


United States

In the hydrogen sector, TECHNIP’s offices in San Dimas

(Los Angeles) participated, with Air Products & Chemicals

Inc. (APCI), in the construction of a 100 million scfd hydrogen

plant for Equilon Enterprises in Carson, California. The Carson

plant produces high-purity hydrogen, which is critical for

converting heavy crude oils into gasoline compliant with

Californian standards and into low-sulfur diesel. This project

represents the ninth facility that TECHNIP USA and APCI

Hydrogen unit at Carson,California (U.S.A.).


have built together. Through their cooperative agreement,

TECHNIP provides design expertise for hydrogen plants and

steam methane reformers, while APCI provides hydrogen

purification and regeneration systems and operates and main-

tains the facilities for customers under long-term agreements.

Latin AmericaThrough CONTRINA, TECHNIP was very active in Venezuela

in the extra-heavy crude processing sector in the Orinoco

Belt. CONTRINA was created in 1997 by TECHNIP, in

association with two North American partners, PARSONS

and KBR, and two Venezuelan partners, DIT-HARRIS of the

TECHNIP Group and PROYECTA. CONTRINA is dedicated

exclusively to the execution of projects related to the Vene-

zuelan program to upgrade heavy crudes from the Orinoco

Belt. CONTRINA is the leader today in this sector, since the

company has been

awarded two of

the three projects

which have been

launched so far.


processed to produce a light synthetic crude (32° API) of

very high quality, with low sulphur content and without any

"bottom-of-the-barrel". The facilities themselves are also

appreciably different. They mainly comprise a 284,000

barrel/day vacuum distillation unit, a sweet hydrocracker

and a naphtha hydrotreater using the IFP process, as well as

utilities and offsites and a distributed control and security

system. The complex also includes a delayed coker and a

hydrogen unit for which CONTRINA will assure the interface

although it is not responsible for construction. The basic

engineering for the project is being carried out entirely by

TECHNIP in Paris. Dispatch of the preassembled equipment

modules of exceptional size will begin in March 2000. The

facilities will be delivered "ready-for-start-up" in September

2001.

Overall view of the SINCORjobsite at Jose (Venezuela).

In June 1997, PETROZUATA, a joint venture company formed

by CONOCO and Petroleos de Venezuela (PdVSA), awarded

CONTRINA a 600-million-dollar project for the design and

construction of upgrading facilities with a capacity of

120,000 barrels/day and associated utilities and offsites near

Jose in Anzoategui State. The complex includes, in particular,

a desalination/vacuum distillation unit, a delayed coker, a gas

recovery plant, a naphtha hydrotreater, as well as a sulphur

recovery unit. It is designed to produce a 20° API synthetic

crude, which will later be processed in CONOCO’s refineries

in the United States and PdVSA’s refineries in Venezuela.

At the end of December 1999, all the engineering work carried

out in Houston and in Caracas as well as the deliveries of

materials had been completed. Construction work had reached

approximately 60% achievement, in conformity with the

schedule required to meet the contractual delivery date for

the facility at the end of August 2000.

CONTRINA was also awarded, in September 1998, a turnkey

contract worth 750 million dollars, by SINCOR, a joint ven-

ture company composed of TOTAL FINA ELF and PdVSA.

The project involves the design and construction of an extra-

heavy crude upgrading complex and associated utilities and

offsites at Jose, near Puerto La Cruz. The facilities are designed

to process the same type of extra-heavy crude (below 10° API)

from the Zuata area as used by PETROZUATA. However,

at the SINCOR complex the crude will first be diluted and


Petrochemicals and fertilizers represented about 473 millioneuros for TECHNIP in 1999 (17% of revenues), i.e. a sharepractically unchanged in relative value compared to 1998and up 42% in absolute value. Contrary to preceding years,construction and revamping of facilities was most sustainedin Europe. During the last quarter, TECHNIP won a very largeturnkey contract for the Q-CHEM complex in Qatar andseveral projects in Asia (in Malaysia), adding further to thenumerous references TECHNIP has already acquired inpolyolefins — a sector where TECHNIP enjoys a significantmarket share (14% of the world's polyethylene capacity and8% of the world's polypropylene capacity ). In addition,thanks to the new affiliates resulting from the acquisitionof KTI / MDEU, TECHNIP has strengthened its positions inthe ethylene and furnaces sector.

Fields of activityPetrochemicals -

Fertilizers

Caprolactam complex at Shijiazhuang (China).


U.S.A. and EuropeTECHNIP, in association with Parsons, signed an

alliance contract worth about 150 million dollars with

the client, AMERICAN ACRYL, to build a petroche-

mical complex in the United States. AMERICAN

ACRYL is a 50 / 50 joint venture between NIPPON

SHOKUBAI and ELF ATOCHEM. The complex, which

will be built at Bayport in Texas, will include a

120,000-ton/year acrylic acid plant and a butyl acrylate

plant, together with related offsites and utilities. The design

and construction contract (engineering, equipment supply and

construction) was signed in February 2000 and is scheduled

for completion by the end of 2001. The services awarded to

TECHNIP — in particular the process section and procure-

ment— will be handled out by TECHNIP USA's teams in

Houston, with support from specialists on hand from Paris.

The basic design had been executed earlier by PARSONS/

TECHNIP.

Within the framework of a joint venture with FLUOR

DANIEL, TECHNIP executed all basic engineering for a

250,000-ton/year polypropylene plant built for BP AMOCO

at Chocolate Bayou, Texas, and brought on stream during

the first quarter of 1999.

In Europe, with the exception of the contract awarded to

KREBS-SPEICHIM by BUTACHIMIE (Rhodia /Du Pont) for

engineering and project management services for a hydro-

cyanic acid facility at Chalampé in France, TECHNIP's

petrochemical activity consisted primarily of execution of

projects awarded in 1998 in the polyolefins sector.

The two high- capacity units being constructed on the

Grangemouth site in Scotland are in the completion phase.

Construction work on the PP3 polypropylene plant is fini-

shed. This unit, destined for APPRYL (Elf Atochem/BP), will

have a capacity of 250,000 tons per year. The PEX polyethy-

lene plant will be delivered in June 2000, ready-for-start-up.

Destined for BP CHEMICALS, it will have a capacity of

300,000 tons per year and will utilize BP’s Innovene tech-

nology. The two units are being built near each other, which

will allow joint usage of utilities (control room and electrical

substation buildings, cooling tower, flare). These projects

were executed within the framework of alliance contracts —

between TECHNIP, AMEC and the clients — by a single

project team made up of representatives of the four partners.

The services provided include engineering and equipment

supply, as well as assistance in construction of the plants

and in commissioning.

At the beginning of 2000, TECHNIP received mechanical

acceptance of the polypropylene plant built for DSM

Polyolefine GmbH at Gelsenkirchen in Germany. With a

capacity of 250,000 tons per year, this facility, based on

AMOCO technology, is comparable to the plant built at

Chocolate Bayou in the United States, which came on stream

several months earlier.

Grangemouth site(Scotland).

Polypropylene plant at Gelsenkirchen (Germany).


In the ethylene sector, the Dutch teams of TECHNIP based

in The Hague has been entrusted by CHEMOPETROL with

the revamping and expansion of its ethylene cracker at

Litvinov in the Czech Republic.

In Italy, TECHNIP completed the revamping and expansion

of the Brindisi ethylene complex for POLIMERI EUROPA

(Enichem / Union Carbide). Mechanical acceptance was

issued in September 1999.

LUSOTECNA, TECHNIP's affiliate based in Lisbon, carried

out detailed engineering, equipment supply, supervision of

assembly and project management services for the instrumen-

tation and revamping of the steamcracker at the BOREALIS

ethylene plant at Sines in Portugal.

Lastly, in the Netherlands, TECHNIP’s center in Paris is on

the verge of completing the revamping of the NAK3 steam-

cracker at the DSM complex in Geleen, which will allow a

significant increase in propylene and ethylene production

capacity. Meanwhile, the TECHNIP center in The Hague

(formerly KTI) is handling the revamping of 18 furnaces in

order to double the capacity of DOW’s ethylene plant at

Terneuzen.

In the fertilizers sector, CHEMOPROJEKT — the affiliate of

KREBS-SPEICHIM (TECHNIP / SGN) based in Prague —

successfully carried out the start-up of a 900-ton/day sulfuric

acid unit at Sala in Slovakia. The plant, which was designed

and constructed for DUSLO, utilizes Grande Paroisse’s mono-

pressure process.

Fields of activityPetrochemicals - Fertilizers

Sulfuric acid unit at Sala(Slovakia).

Ethylene complex at Brindisi (Italy).


AfricaKREBS-SPEICHIM (TECHNIP/SGN) is currently carrying out

a turnkey project worth 150 million euros to double the

capacity of the phosphoric acid complex belonging to

Industries Chimiques du Sénégal (ICS). The new facilities will

be built on the site of Darou Koudoss, 100 km from Dakar

in Senegal. They will include a 1015-ton/day phosphoric acid

unit, a 3000-ton/day sulfuric acid unit, as well as utilities and

offsites, and will come on stream in 2001. Construction,

under license by KREBS-SPEICHIM, of the UCEGO 12A filter

used to filter phosphoric slurry, has just been completed

in the French plant of the AOUSTIN company, with which

KREBS-SPEICHIM is developing a whole range of filters of

this type. The filter at the Darou Koudoss plant is the 87th

UCEGO filter to be sold in the world.

Middle EastTECHNIP, in a 50/50 joint venture with Kellogg Brown & Root

(KBR), won a turnkey contract worth 750 million dollars for

the design and construction of a petrochemical complex at

Maesaieed in Qatar. The project will be executed on behalf of

Q-CHEM, a company jointly owned by Qatar General Petro-

leum Corp. (QGPC) and PHILLIPS. It involves the construction

UCEGO filter.

of a 500,000-ton/year ethylene cracker, a two-train poly-

ethylene plant capable of producing over 450,000 tons a year

of high and/or low-density polyethylene, a 47,000-ton/year

hexene-1 unit, and associated utilities and offsite facilities.

KBR is responsible for the ethylene technology and has

already ordered “KTI Technology” furnaces from TECHNIP's

American affiliate. The polyethylene and hexene-1 units will

use PHILLIPS technologies.The contract, which came into force

in October 1999 is to be completed in 2002. The engineering

is currently underway — with KBR in Houston handling the

ethylene and hexene-1 units, and TECHNIP in Paris the

polyethylene units, the utilities and offsites. Approximately

4,000 people are expected to be working on the Maesaieed

site during the third quarter of 2001.


At the same time, TECHNIP — in association with KRUPP

UHDE — is continuing work on the design and construction, at

Umm Saïd in Qatar, of a complex for the production of EDC

(175,000 tons/year of ethylene dichloride), VCM (230,000

tons/year of vinyl chloride monomer) and caustic soda

(290,000 tons/year). The contract, which was awarded in

December 1998, is worth about 430 million dollars. The

facilities, which will also include offsites and utilities, are being

built for QVC, a joint venture company formed by QGPC,

QAPCO, NORSK HYDRO and ELF ATOCHEM. Works will be

completed during the summer of 2001.

In Saudi Arabia, within the framework of the contract

concerning the No. 3 ethylene cracker at Al Jubail (800,000

tons/year), TECHNIP began delivery in December 1999 of

the modules for the eight furnaces ordered by PETROKEMIA.

The design and construction of these furnaces are being

carried out entirely by TECHNIP, based on its proprietary

“KTI Technology”.

AsiaTECHNIP’s engineering center in Malaysia was awarded two

significant contracts in 1999 for the construction of facilities

on the site of Kerteh in Malaysia. The first turnkey contract,

signed with OPTIMAL CHEMICALS (a joint venture between

PETRONAS and UNION CARBIDE), involves offsites and

infrastructures: electrical substations and distribution net-

works, incineration and waste water treatment units, buildings,

access roads and pipeline interconnections. The second con-

tract covers the design and construction of a 255,000-ton/year

polyethylene plant, based on STAMICARBON’s high-pressure

technology. The project is for PETLIN — a company formed

by PETRONAS, DSM and POLYFIN.

TECHNIP’s engineering center in Malaysia is also carrying out

two projects that will be completed during the second half of

2000. One is the construction at Tanjung Langsat, Johor State,

for TITAN POLYETHYLENE (Malaysia) of a 100,000-ton/year

high-density polyethylene plant using MITSUI CHEMICALS’

technology. The other is the construction of a 150,000-ton/

year PVC plant at Kerteh for the company VINYL CHLORIDE

(Malaysia).

Fields of activityPetrochemicals - Fertilizers

Furnace module beingtransported to Al Jubail(Saudi Arabia).


engineering center in Rome. With a capacity of 50,000 tons

per year of caprolactam (an intermediate product used in the

manufacture of nylon fibers), the plant includes nine process

units, plus utilities and offsites.

In the fertilizers sector, KREBS-SPEICHIM, in association

with TESSAG-INA, received provisional acceptance of a DAP

(1350 tons/day) and urea (1670 tons/day) complex built at

Bin Qasim, near Karachi in Pakistan, for FAUJI JORDAN

FERTILIZER Co. For its part, TECHNIP’s center in Rome

completed, for WESFARMERS CSBP, the construction of a

650-ton/day ammonia plant using TOPSOE technology at

Kwinana, near Perth in Australia.

Latin AmericaAt El Tablazo in Venezuela, the 120,000-ton/year PVC plant,

designed and constructed turnkey by TECHNIP's Italian

teams and the construction firm JANTESA, started up suc-

cessfully in March 1999.

In China, TECHNIP won a contract in February 2000 for

the design and equipment supply of a 200,000-ton/year

polypropylene plant at Yangzi, in Jiangsu Province, a region

located north of Shanghai.

TECHNIP received provisional acceptance of two other

polyolefin units: the polypropylene plant (200,000 tons/year)

using AMOCO technology and built at Yanshan, near Beijing,

and the polyethylene plant (140,000 tons/year) at the Qilu

complex in the province of Shandong, which uses DSM/

STAMICARBON high-pressure polymerization technology.

The caprolactam plant at Shijiazhuang in the province of

Hebei came on stream in November 1999. The facilities were

designed and constructed for SINOPEC by the TECHNIP

Fertilizer complex at Bin Qasim (Pakistan).

Polyethylene plantat Qilu (China).


Fields of activityIndustries & Buildings

Activities outside the hydrocarbons/petrochemicalssectors progressed noticeably in 1999, particularly dueto the impetus of new affiliates resulting from the acqui-sition of KTI/MDEU. These activities represent revenuesof about 612 million euros (22%), versus 295 millioneuros in 1998. They amalgamate various sectors inwhich TECHNIP has developed particular know-howand even, in certain cases, proprietary technologies(cement, ethanol, palm oil) and specialized affiliates(KREBS-SPEICHIM for specialty chemicals, agro- foodindustries, pyrotechnics and TECHNIP TPS for buildings).

Cement plant at Ras Al Khaimah (U.A.E.).


Electricity and cogeneration

RWE, the leading producer of electricity in Germany, awarded

TECHNIP’s Düsseldorf-based German affiliate a contract worth

about 50 million euros for the engineering, prefabrication,

delivery, installation and start-up of the high-pressure piping

systems for a new state-of-the-art lignite-fired power plant

to be built at Niederaussem, near Cologne.

In December 1999, TECHNIP obtained provisional acceptance

and the "First Industrial Production" certificate for continuous

operation at full capacity during 120 hours of the cogeneration

unit built on LYONDELL's petrochemical site at Fos-sur-Mer

in France.

Chemicals and Pyrotechnics

KREBS-SPEICHIM, the 50/50 joint affiliate of TECHNIP and

SGN, was awarded a contract in June 1999 for the revamping

of a chlorates plant (sodium chlorate and magnesium chlo-

rate) at Ferghana in Uzbekistan. In December, UZPROM-

MASHIMPEKS awarded the company a contract worth about

60 million euros for the design and construction near

Tashkent of a plant for the manufacturing, from cellulose,

of the components for pyrotechnic products.

In France, the IRIS project awarded to TECHNIP for the

doubling of the capacity of MSSA's metallic sodium and

liquid chlorine production plant at Pomblière is currently in

the finishing stage. The salt processing unit and the chlorine

sections are operational. The sodium filtration facility and

the new electrolysis facility should start up at the end of

March 2000.

TECHNIP also completed a graphite plant for UCAR FRANCE

at its site in Notre-Dame de Briançon, near Moutiers. Gra-

phitization allows the manufacturing of products such as

electrodes for aluminum ovens.

Pharmaceuticals

At the beginning of 1999, AVENTIS PASTEUR awarded

TECHNIP a contract for engineering and project management

services at its pharmaceutical site at Val de Reuil in the west

of France.

In October 1999, SOLVAY PEPTISYNTHA, an affiliate of the

SOLVAY Group specialized in the synthesis of peptides, entrus-

ted TECHNIP with the expansion of it pharmaceutical unit

at Brussels in Belgium. The project consists in the creation

of a new synthesis section. TECHNIP is also responsible for

IQ-OQ qualification of the facilities required by the Food

and Drug Administration.

Cogeneration unit at Fos-sur-Mer (France).

UCAR’s graphitization unit at Notre Dame de Briançon(France).


Agro-food Industries

COCA-COLA awarded TECHNIP a project management and

engineering services contract for the conversion of its concen-

trates plant at Signes near Toulon in France to an integrated

production plant for "Minute Maid" fruit juices. The facilities

will be substantially revamped to be able to handle the produc-

tion of fresh products. Investment is valued at 45 million euros.

KREBS-SPEICHIM, the affiliate of TECHNIP and SGN, won

from the company PALMCI, the biggest producer of palm oil

in Ivory Coast, a turnkey contract for the construction of a

mill that will produce 20,000 tons of crude oil and 4,000 tons

of palm kernels annually. The plant will be the sixth oil mill to

be designed and built by KREBS-SPEICHIM, based on its own

technology, in Ivory Coast.

In the ethanol sector, which is also one of its specialties,

KREBS-SPEICHIM successfully completed performance tests

for the plant built at Aktubinsk in Kazakhstan. With a capacity

of 80,000 hl/year, this unit, based on KREBS-SPEICHIM’s

proprietary technology, gives the Group its first industrial

reference in ethanol produced from wheat.

Cement

In the cement sector, the most significant event for TECHNIP

in 1999 was the start-up of the cement plant at Ras Al Khaimah

in the United Arab Emirates. This plant, with a capacity of

one million tons per year, was designed and built entirely

by TECHNIP, within the framework of a turnkey contract

worth 137 million euros, awarded in March 1997 by RAS

AL KHAIMAH CEMENT Co. (RAKCC). The project cove-

red, in addition to the production sections, the construction

of all utilities generation and distribution, as well as offsites,

in particular the installation of sea shipping facilities near

the site at Khor Khair. This cement plant, which successfully

passed production tests last December, includes TECHNIP CLE

proprietary items, in particular: the ball mills, the separators,

the preheater, the precalciner and the rotary kiln. The

plant, which is operated by LAFARGE, uses the most up-to-

date technology and meets very strict standards with respect

to dust emissions. It re-

presents an outstanding

international reference

for TECHNIP.

Fields of activityIndustries & Buildings

Ethanol plant at Aktubinsk (Kazakhstan).


In Morocco, TECHNIP completed on schedule and to the satisfaction of the client, LAFARGE CIMENTS, the moderni-

zation of the preheater of kiln No. 1 of the Meknès cement plant (1,800 tons/year) and the transformation of the

burning line of the Bouskoura cement plant (3,200 tons/year), located near Rabat. Performance tests took place

successfully in June/July 1999 in these cement plants, both of which are fueled

with petroleum coke. TECHNIP also carried out for ASMAR, of the Italian group

Italcimenti, the capacity expansion of the clinker grinding unit (from 100 to 165

tons/hour) of the cement plant at M'Zoudia near Marrakech. This expansion

was made possible by the addition of a CKP 180 pregrinder. Lastly, TECHNIP is

currently completing the first phase of the expansion (from 1,550 to 2,000 tons/day

of clinker) and the optimization of the cement plant at Temara near Rabat for

ASMENT DE TEMARA of the Portuguese group CIMPOR.

Acceptance was officially issued for two grassroots units which had been delivered

turnkey at the end of 1998: the 4,000-ton/day cement plant at But Son in

Vietnam and the 2,400-ton/day line at the Sibline cement plant in Lebanon.

Buildings

In June 1999, the Berlaymont building in Brussels, Belgium, the former headquarters of

the European Community, was the subject of an “asbestos free certificate”. For two

years, TECHNIP TPS had managed the firms that carried out the work on this vast

200,000-square-meter complex. This achievement, combined with similar work carried

out at the Jussieu campus in Paris, makes

TECHNIP TPS the undisputed specialist in

the engineering of asbestos removal.

TECHNIP TPS was selected to participate,

alongside the architect Jacques Ferrier, in the

major restructural work of the Collège de

France in Paris. The project, which will start

in 2001, involves the laboratories, the libra-

ry and certain lecture halls.

LUSOTECNA, the Portuguese affiliate of TECH-

NIP, completed, in association with the archi-

tectural firm REGINO CRUZ, the detailed

engineering for the future Estoril Convention

Center in Portugal.

Cement plant at But Son (Vietnam).

Cement plant at Bouskoura (Morocco).

Berlaymont building at Brussels (Belgium).


Human resources

TECHNIP has strengthened its potential for carrying out industrial andtechnological projects on an international scale and now numbers10,000 people who have the flexibility to adapt easily to the needs ofclients by organizing themselves into multicultural and mobile teams. The Group is continuing to develop the expertise and know-how ofits collaborators, whose complementary skills assure the success ofthe projects that are entrusted to them.The strong involvement of its employees in the life and the successof TECHNIP is further strengthened by the development of employeeshareholding plans and the enlargement of stock option plans.


Internationalization of the teams

The expansion of the Group through the acquisition at the

beginning of 1999 of the companies KTI and MDEU has

added 3,600 new collaborators to its teams, while enriching

the teams’ skills in all branches of engineering and construc-

tion and enhancing their internationalization.

Three years ago, more than 50% of the people working at

TECHNIP were of French nationality. Today that proportion

is no more than 30%. The others are European, American,

Russian, Malaysian, Indian, etc.

At the same time, personnel mobility is on the rise: today

10% of the employees are posted away from their base.

The establishment of a “TECHNIP Mobility” site on the

Group's Intranet will facilitate this geographic and profes-

sional mobility.

Expertise and developmentof skills

The solid initial training of TECHNIP's employees (more than

50% hold diplomas) is complemented throughout their pro-

fessional lives at TECHNIP by training courses that enable

them to adapt their knowledge in each area to the evolutions

in technology and data processing, as well as to optimize the

ability of each person to manage complex projects within

ever shorter time frames.

One person out of two benefits from training each year.

The loyalty to TECHNIP shown by the people who work here

(an average of 12 years with the Group) also contributes to

raising their level of expertise even higher, while at the same

time assuring the cohesion of teams and the effectiveness of

their performance together in carrying out contracts.

Motivation and employeeshareholding

The employees hold more than 3% of the shares in the com-

pany. For this reason, TECHNIP is listed on the IAS index

(based on employee shareholding), which comprises 28 stocks

listed on the Paris Stock Exchange. This new index aims to

measure the performance on the stock exchange of firms

having a significant percentage of shares held by employees.

In France, 75% of TECHNIP’s employees are shareholders.

The same possibility is expected to be extended in 2000 to

all those working at the Group's main locations around the

world.

At the same time, an expansion of stock options and greater

internationalization of these programs is planned.


Technip worldwide

Other European centers: Barcelona, Lisbon, Helsinki, Berlin, Prague,


Petersburg.


Edited by Technip’s Communication Department

Editors :Sylvie HALLEMANS (Annual report)

Raymond MARI (Financial report)

Design and printing :COMÈTE Communication

33 (0) 1 41 02 92 80

Photos :Photo libraries of TECHNIP, TOTAL FINA ELF,

BP, KREBS-SPEICHIM

J.J. Humphrey • J.P. Bédoin • Ph. Plisson

A. Lemaresquier • J. Cador • V. Dieudonné • X.


Headquarters :

Tour Technip • La Défense 6 • 170, place Henri Régnault 92973 Paris La Défense cedex • FRANCE

Ph. : 33 (0) 1 47 78 21 21

Fax. : 33 (0) 1 47 78 33 40

Web site : http://www.technip.com


F i n a n c i a l d a t a19 99


Consolidated financialstatementsDecember 31, 19 9 9International accounting standard s( I A S )

Consolidated Statements of Income 2

Consolidated balance sheets 4

Consolidated statements of cash flows 8

Consolidated statements of changes in shareholders’ equity 10

Notes to the consolidated financial statements 11

Statutory auditor’s report on consolidatedfinancial statements 2 8

Parent company financial statements31. 12 . 19 99

Summary presentation 2 9

Statutory auditor’s report 4 3

Statutory auditor’s special report 4 4

C o n t e n t s


Consolidatedfinancial statements

December 31, 1999International accounting standards (IAS)


1. Consolidated statements of income

DILUTED EARNINGS PER SHARE ARE PRESENTED IN (note 5.9).

The accompanying notes are an integral part of this consolidated statement of income.

(million Euros)

TECHNIP GROUP

STATEMENT OF INCOME 1 9 9 9 1 9 9 8 1 9 9 7G R O U P e x c l .

n o t e s T O T A L K T I / M D E U

REVENUES 5.3 2,782.2 1,933.1 1,846.4 1,809.3

External Cost (2,160.6) (1,515.4) (1,433.6) (1,428.9)

Payroll cost 5.4 (435.8) (250.5) (258.0) (239.5)

Allowance for depreciation (22.3) (13.3) (11.9) (12.0)

OPERATING EXPENSES (2,618.7) (1 779.2) (1,703.5) (1,680.4)

OPERATING INCOME 1 6 3 . 5 1 5 3 . 9 1 4 2 . 9 1 2 8 . 9

FINANCIAL INCOME/(EXPENSE) EXCLUDING CONTRACTS 5.5 16.6 15.7 21.8 23.7

NON OPERATING INCOME/(EXPENSE) 5.6 2.8 3.8 4.0 1.8

EMPLOYEE PROFIT SHARING 5.7 (2.5) (2.5) (5.4) (4.2)

INCOME TAX 5.8 (55.9) (54.9) (56.8) (55.2)

EQUITY IN INCOME OF UNCONSOLIDATED AFFILIATES 0.8 0.8 1.1 3.6

MINORITY INTERESTS (0.2) (0.2) (0.2) (0.1)

NET INCOME BEFORE REVERSAL OF GEOPOLITICAL RISKS 1 2 5.1 1 1 6.6 1 0 7.4 9 8.5

AND GOODWILL DEPRECIATION

REVERSAL OF GEOPOLITICAL RISKS NET OF TAX 57.0 57.0 - -

AMORTIZATION OF GOODWILL (9.5) (1.5) (2.0) (2.9)

NET INCOME 1 7 2.6 1 7 2.1 1 0 5.4 9 5.6

Consolidated financial statements


2 3

TECHNIP GROUP

STATEMENT OF INCOME 1 9 9 9 1 9 9 8 1 9 9 7G R O U P e x c l .

n o t e s T O T A L K T I / M D E U

REVENUES 5.3 18,250.0 12,679.9 12,111.7 11,868.4

External Cost (14,172.6) (9,940.2) (9,403.7) (9,373.0)

Payroll cost 5.4 (2,859.0) (1,643.0) (1,692.3) (1,570.9)

Allowance for depreciation (146.0) (87.1) (78.4) (78.7)

OPERATING EXPENSES (17,177.6) (11,670.3) (11,174.4) (11,022.6)

OPERATING INCOME 1 , 0 7 2.4 1 , 0 0 9.6 9 3 7 . 3 8 4 5 . 8

FINANCIAL INCOME/(EXPENSE) EXCLUDING CONTRACTS 5.5 109.3 103.0 143.3 155.4

NON OPERATING INCOME/(EXPENSE) 5.6 18.9 25.7 25.8 11.7

EMPLOYEE PROFIT SHARING 5.7 (16.1) (16.1) (35.9) (27.5)

INCOME TAX 5.8 (367.5) (361.0) (372.3) (361.9)

EQUITY IN INCOME OF UNCONSOLIDATED AFFILIATES 4.8 4.8 7.2 22.9

MINORITY INTERESTS (1.1) (1.1) (1.0) (0.5)

NET INCOME BEFORE REVERSAL OF GEOPOLITICAL RISKS 8 2 0.7 7 6 4.9 7 0 4.4 6 4 5.9

AND GOODWILL DEPRECIATION

REVERSAL OF GEOPOLITICAL RISKS NET OF TAX 374.0 374.0 - -

AMORTIZATION OF GOODWILL (62.6) (10.3) (13.1) (18.8)

NET INCOME 1 , 1 3 2.1 1 128.6 6 9 1.3 6 2 7.1

DILUTED EARNINGS PER SHARE ARE PRESENTED IN (note 5.9).

The accompanying notes are an integral part of this consolidated statement of income.

(million French Francs)


2. Consolidated balance sheets(b e fo re net income appro p r i a t i o n)

TECHNIP GROUP

31 DECEMBER, 1999 3 1 3 1A S S E T S G R O U P e x c l . D E C E M B E R D E C E M B E R

n o t e s T O T A L K T I / M D E U 1 9 9 8 1 9 9 7

Intangible assets 5.11 0.4 0.3 - 0.2

Goodwill 5.12 154.4 2.8 4.4 6.4

Property, plant and equipment 5.13 172.4 155.1 160.0 167.4

Other investments and loans 5.14 98.4 93.5 93.5 94.7

Equity in unconsolidated affiliates 5.15 6.2 6.2 6.2 6.6

TOTAL FIXED ASSETS 4 3 1.8 2 5 7.9 2 6 4.1 2 7 5.3

Work in progress 5.16 3,944.1 3,036.4 2,900.0 3,078.1

Deferred bid costs 5.17 4.3 4.3 6.2 8.4

Other 0.3 0.3 0.3 0.4

INVENTORIES 3 , 9 4 8.7 3 , 0 4 1.0 2 , 9 0 6.5 3 , 0 8 6.9

Advances to suppliers 1 3 0.2 8 8.2 6 9.3 1 0 1.7

Accounts and notes receivable 5.18 465.4 355.3 247.8 241.4

Other debtors 5.19 247.2 135.1 142.6 126.7

R E C E I V A B L E 7 1 2.6 4 9 0.4 3 9 0.4 3 6 8.1

Marketable securities 5.20 360.8 315.5 499.7 516.5

Cash 658.6 586.3 361.8 419.8

CASH AND MARKETABLE SECURITIES 1 , 0 1 9.4 9 0 1.8 8 6 1.5 9 3 6.3

Current account KTI / MDEU - 156.1 - -

TOTAL ASSETS 6 , 2 4 2 . 7 4 , 9 3 5.4 4 , 4 9 1.8 4 , 7 6 8.3

Commitments and contingencies (note 5.27)

The accompanying notes are an integral part of this consolidated statement balance.

(million Euros)



4 5

Commitments and contingencies (note 5.27)


TECHNIP GROUP

31 DECEMBER, 1999 3 1 3 1LIABILITIES AND SHAREHOLDERS’ EQUITY G R O U P e x c l . D E C E M B E R D E C E M B E R


Common stock 5.21 48.1 48.1 48.1 50.4

Retained earnings (parent company) 290.3 290.3 259.4 210.0

Retained earnings (subsidiaries) 124.2 124.2 94.2 147.3

Cumulative translation adjustment (1.3) (2.1) (5.5) (4.9)

Net income 172.6 172.1 105.4 95.6

S H A R E H O L D E R S ’ E Q U I T Y 6 3 3 . 9 6 3 2 . 6 5 0 1 . 6 4 9 8 . 4

Minority interests

Common stock and retained earnings 2.1 2.1 2.6 3.3

Net income 0.2 0.2 0.2 0.1

MINORITY INTERESTS 2 . 3 2 . 3 2 . 8 3 . 4

Accrued liabilities 5 . 2 3 2 6 9 . 5 1 2 6 . 9 2 3 6 . 5 2 9 9 . 5

Financial debt 5.24 21.8 16.0 68.5 91.8

Advances received from customers on contracts 5.25 4,580.5 3,619.9 3,226.9 3,407.6

Accounts and notes payable 530.9 377.5 325.1 299.6

Other creditors 5.26 203.8 160.2 130.4 168.0

L I A B I L I T I E S 5 , 3 3 7 . 0 4 , 1 7 3 . 6 3 , 7 5 0 . 9 3 , 9 6 7 . 0

TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY 6 , 2 4 2.7 4 , 9 3 5.4 4 , 4 9 1.8 4 , 7 6 8.3

(million Euros)


2. Consolidated balance sheets(b e fo re net income appro p r i a t i o n)

TECHNIP GROUP

31 DECEMBER, 1999 3 1 3 1A S S E T S G R O U P e x c l . D E C E M B E R D E C E M B E R


Intangible assets 5.11 2.9 2.1 - 1.0

Goodwill 5.12 1,012.5 18.4 28.6 42.0

Property, plant and equipment 5.13 1,131.1 1,017.6 1,049.2 1,098.0

Other investments and loans 5.14 645.0 613.4 613.5 621.3

Equity in unconsolidated affiliates 5.15 40.8 40.8 40.9 43.3

TOTAL FIXED ASSETS 2,832.3 1,692.3 1,732.2 1,805.6

Work in progress 5.16 25,872.0 19,917.4 19,022.9 20,191.0

Deferred bid costs 5.17 28.1 28.1 40.6 55.3

Other 1.9 1.9 1.6 2.3

INVENTORIES 25,902.0 19,947.4 19,065.1 20,248.6

Advances to suppliers 854.3 578.5 454.8 667.1

Accounts and notes receivable 5.18 3,052.7 2,330.2 1,625.7 1,583.5

Other debtors 5.19 1,620.8 885.8 935.1 831.0

RECEIVABLE 4,673.5 3,216.0 2,560.8 2,414.5

Marketable securities 5.20 2,366.6 2,069.8 3,277.9 3,388.2

Cash 4,320.4 3,846.2 2,373.2 2,753.8

CASH AND MARKETABLE SECURITIES 6,687.0 5,916.0 5,651.1 6,142.0

Current account KTI / MDEU - 1,024.2 - -

TOTAL ASSETS 40,949.1 32,374.4 29,464.0 31,277.8

COMMITMENTS AND CONTINGENCIES (note 5.27).





COMMITMENTS AND CONTINGENCIES (note 5.27).


TECHNIP GROUP

31 DECEMBER, 1999 3 1 3 1LIABILITIES AND SHAREHOLDERS’ EQUITY G R O U P e x c l . D E C E M B E R D E C E M B E R


Common stock 5.21 315.2 315.2 315.5 330.6

Retained earnings (parent company) 1,904.5 1,904.5 1,701.7 1,377.1

Retained earnings (subsidiaries) 814.9 814.9 617.7 966.1

Cumulative translation adjustment (8.9) (13.9) (36.2) (31.9)

Net income 1,132.1 1,128.6 691.3 627.1

SHAREHOLDERS’ EQUITY 4 , 1 5 7 . 8 4 , 1 4 9 . 3 3 , 2 9 0 . 0 3 , 2 6 9 . 0

Minority interests

Common stock and retained earnings 14.2 14.2 17.0 21.9

Net income 1.1 1.1 1.0 0.5

MINORITY INTERESTS 1 5.3 1 5.3 1 8.0 2 2.4

Accrued liabilities 5 . 2 3 1 , 7 6 7.8 8 3 2.4 1 , 5 5 1.6 1 , 9 6 4.7

Financial debt 5.24 143.1 105.3 449.7 601.8

Advances received from customers on contracts 5.25 30,045.9 23,745.1 21,166.9 22,352.4

Accounts and notes payable 3,482.7 2,476.5 2,132.7 1,965.2

Other creditors 5.26 1,336.5 1,050.5 855.1 1,102.3

L I A B I L I T I E S 3 5 , 0 0 8.2 2 7 , 3 7 7.4 2 4 , 6 0 4.4 2 6 , 0 2 1.7

TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY 40,949.1 32,374.4 29,464.0 31,277.8


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3. Consolidated statements of cash flow s1 9 9 9 1 9 9 8 1 9 9 7

(12 months) (12 months) (12 months)

CASH FLOW FROM OPERATING ACTIVITIESNet income before minority interests 172.6 105.4 95.6Minority interests 0.2 0.2 0.1Depreciation of intangibles, goodwill, property, plant and equipment 31.8 (a) 13.9 15.0Equity in income of unconsolidated affiliates - 0.4 (2.2)Change in foreign exchange differences 4.2 (0.7) (1.1)Change on accrual for geopolitical risks (55.9) (b) 3.0 -Net result on disposal of fixed assets (4.3) (7.4) (3.3)

CASH FLOW FROM OPERATIONS 1 4 8 . 6 1 1 4 . 8 1 0 4 . 1

Change in working capital itemsInventories (215.1) 180.4 (25.9)Advances received from customers 475.2 (180.7) (84.7)Others (125.2) (68.1) (46.9)

NET CASH PROVIDED BY OPERATING ACTIVITIES A 2 8 3 . 5 4 6 . 4 ( 5 3 . 4 )

CASH FLOW FROM INVESTING ACTIVITIESCapital expenditures (property, plant and equipment) (8.4) (d) (7.3) (f) (11.0) (h)

Capital expenditures (intangibles) (c) 0.3 - 0.2Change in financing investments (155.1) (e) 11.5 (g) (22.9) (i)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES B ( 1 6 3 . 2 ) 4 . 2 ( 3 3 . 7 )

CASH FLOW FROM FINANCING ACTIVITIESIncrease (decrease) in short-term debts (55.9) (3.7) (0.8)Increase (decrease) in long-term debts (0.3) (17.3) (1.6)Decrease in minority interests (0.6) (0.8) 1.6Parent company's equity

- Capital increases 12.5 10.3 10.9- Capital decreases (19.8) (75.4) -- Paid dividends (37.7) (36.2) (26.0)

Change in scope of consolidation (0.5) (0.2) 0.4

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES C ( 1 0 2 . 3 ) ( 1 2 3 . 3 ) ( 1 5 . 5 )

NET INCOME INCREASE (DECREASE) IN CASH A + B + C 1 8.0 ( 7 2.7 ) ( 1 0 2.6 )CHANGE IN THE SCOPE OF CONSOLIDATION (j) 140.0 - -CASH AT BEGINNING OF PERIOD 859.4 932.1 1,034.7

CASH AT END OF PERIOD 1,017.4 859.4 932.1

Cash and marketables securities 1,019.4 861.5 936.3Short-term credit lines (2.0) (2.1) (4.2)

T O T A L 1 , 0 1 7.4 8 5 9.4 9 3 2.1

(a) Including Goodwill depreciation 9.5 millions (KTI/MDEU : 8.0 millions).(b) Including reversal of geopolitical risks net of tax 89.9 - 32.9 = 57 millions.(c) Research and Development costs are fully accounted for as operating espenses (see note 5.1 m).(d) Is composed of 9.6 millions investments less disposals for 1.2 millions.(e) Including principaly the acquisition KTI/MDEU to Mannesmann for 159.5 millions (312 MDEM) and the sales of Cogema's securities for 8.5 millions.(f) Is composed of 10.6 millions investments less disposals for 3.3 millions.(g) Representing the sale of Speichim Processing.(h) Is composed of 11.6 millions investments less disposals for 0.6 millions.(i) Including principaly the impact of Cogema for 20.1 millions (corresponding to the tax of capital gain of SGN's securities against COGEMA's capital

increase reserved to TECHNIP), CBS's aquisition for 7.8 millions and disposals of 0Interpetrole, Intercontrôle and Hays Spaichim for 5.2 millions.(j) Cash of KTI and MDEU at the acquisition date (274 MDEM or 140 MEuros).

(million Euros)



8 9

1 9 9 9 1 9 9 8 1 9 9 7(12 months) (12 months) (12 months)

CASH FLOW FROM OPERATING ACTIVITIESNet income before minority interests 1,132.1 691.3 627.1Minority interests 1.1 1.0 0.5Depreciation of intangibles, goodwill, property, plant and equipment 208.6 (a) 91.5 98.6Equity in income of unconsolidated affiliates 0.1 2.4 (14.5)Change in foreign exchange differences 27.3 (4.3) (7.1)Change on accrual for geopolitical risks (367.0) (b) 20.0 -Net result on disposal of fixed assets (27.7) (48.4) (21.7)


Change in working capital itemsInventories (1,410.6) 1,183.5 (170.0)Advances received from customers 3,117.2 (1,185.5) (555.6)Others (820.9) (446.8) (308.1)

NET CASH PROVIDED BY OPERATING ACTIVITIES A 1 , 8 6 0 . 2 3 0 4 . 7 ( 3 5 0 . 8 )

CASH FLOW FROM INVESTING ACTIVITIESCapital expenditures (property, plant and equipment) (55.4) (d) (47.7) (f) (72.5) (h)

Capital expenditures (intangibles) (c) 1.7 (0.2) 1.5Change in financing investments (1,017.7) (e) 75.8 (g) (150.1) (i)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES B ( 1 , 0 7 1 . 4 ) 2 7 . 9 ( 2 2 1 . 1 )

CASH FLOW FROM FINANCING ACTIVITIESIncrease (decrease) in short-term debts (366.3) (24.3) (5.3)Increase (decrease) in long-term debts (2.0) (113.8) (10.2)Decrease in minority interests (3.8) (5.4) 10.3Parent company's equity

- Capital increases 81.9 67.6 71.8- Capital decreases (129.7) (494.6) -- Paid dividends (247.5) (237.7) (170.7)

Change in scope of consolidation (3.0) (1.3) 2.9

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES C ( 6 7 0 . 4 ) ( 8 0 9 . 5 ) ( 1 0 1 . 2 )

NET INCOME INCREASE (DECREASE) IN CASH A + B + C 1 1 8.4 ( 4 7 6.9 ) ( 6 7 3.1 )CHANGE IN THE SCOPE OF CONSOLIDATION (j) 918.3CASH AT BEGINNING OF PERIOD 5,637.2 6,114.1 6,787.2

CASH AT END OF PERIOD 6,673.9 5,637.2 6,114.1

Cash and marketables securities 6,687.0 5,651.1 6,142.0Short-term credit lines (13.1) (13.9) (27.9)

T O T A L 6 , 6 7 3 . 9 5 , 6 3 7 . 2 6 , 1 1 4 . 1


(a) Including Goodwill depreciation 62.6 millions (KTI/MDEU : 52.3 millions).(b) Including reversal of geopolitical risks net of tax 590 - 216 = 374 millions.(c) Research and Development costs are fully accounted for as operating espenses (see note 5.1.m).(d) Is composed of 63.1 millions investments less disposals for 7.7 millions.(e) Including principaly the acquisition KTI/MDEU to Mannesmann for 1 046.4 millions (312 MDEM or 160 MEuros) and the sale of Cogema's securities for

55.6 millions.(f) Is composed of 69.5 millions investments less disposals for 21.8 millions.(g) Representing the sale of Speichim Processing.(h) Is composed of 76.1 millions investments less disposals for 3.6 millions.(i) Including principaly the impact of Cogema for 132 millions (corresponding to the tax of capital gain of SGN's securities against COGEMA's capital increase

reserved to TECHNIP), CBS's aquisition for 51.2 millions and disposals of Interpetrole, Intercontrôle and Hays Spaichim for 34.3 millions.(j) Cash of KTI and MDEU at the acquisition date (274 MDEM or 140 MEuros).



4. Consolidated statement of changes in share h o l d e rs’ equity(b e fo re appropriation of net income - without minority intere s t s)

(a) Including the gain resulting from the transfert of SGN securities to COGEMA.

Stock issued

Nb of shares C o m m o noutstanding stock

Paid ins u r p l u s

P a r e n tc o m p a n y

S u b s i d i a r i e s C u m u l a t i v et r a n s l a t i o na d j u s t m e n t

N e ti n c o m e

S H A R E H O L D E R S ’E Q U I T Y

AS OF DECEMBER 31, 1996 1 6 , 2 7 0 , 3 2 4 3 2 5 . 4 7 4 . 9 1 , 0 3 0 . 3 8 0 5 . 1 ( 2 4 . 8 ) 5 3 4 . 2 2 , 7 4 5 . 1

Increase in common stock 2 6 2 , 2 2 5 5.2 6 6.6 7 1 . 8

Appropriation of net income 1996 2 0 5.3 1 5 8.2 ( 5 3 4.2 ) ( 1 7 0 . 7 )

Foreign exchange difference 1997 ( 7.1 ) ( 7 . 1 )

Changes in the scope of consolidation 2.9 2 . 9

Net income 1997 6 2 7.1 6 2 7 . 1

O t h e r ( 0.1 ) ( 0 . 1 )

AS OF DECEMBER 31, 1997 1 6 , 5 3 2 , 5 4 9 3 3 0 . 6 1 4 1 . 5 1 235.6 9 6 6 . 1 ( 3 1 . 9 ) 6 2 7 . 1 3 , 2 6 9 . 0


Appropriation of net income 1997 7 3 6.5 ( a ) ( 3 4 7.1) ( a ) ( 6 2 7.1 ) ( 2 3 7 . 7 )

Foreign exchange difference 1998 ( 4.3 ) ( 4 . 3 )

Decrease in the common stock ( 9 7 7 , 8 7 6 ) ( 1 9.6 ) ( 4 7 5.0 ) ( 4 9 4 . 6 )

Changes in the scope of consolidation ( 1.3 ) ( 1 . 3 )

Net income 1998 6 9 1.3 6 9 1 . 3

O t h e r 0 . 0

AS OF DECEMBER 31, 1998 1 5 , 7 7 5 , 9 9 9 3 1 5 . 5 2 0 4 . 6 1 , 4 9 7 . 1 6 1 7 . 7 ( 3 6 . 2 ) 6 9 1 . 3 3 , 2 9 0 . 0


Appropriation of net income 1998 2 4 3.6 2 0 0.2 ( 6 9 1.3 ) ( 2 4 7 . 5 )

Foreign exchange difference 1999 2 7.3 2 7 . 3

Decrease in common stock ( 2 3 8 , 2 7 7 ) ( 4.8 ) ( 1 2 4.9 ) ( 1 2 9 . 7 )

Regulated provision 6.7 6 . 7

Changes in the scope of consolidation ( 3.0 ) ( 3 . 0 )

Net income 1999 1 , 1 3 2.1 1 , 1 3 2 . 1

O t h e r 0 . 0

AS OF DECEMBER 31, 1999 1 5 , 7 5 8 , 5 3 7 3 1 5 . 2 2 8 2 . 0 1 , 6 2 2 . 5 8 1 4 . 9 ( 8 . 9 ) 1 , 1 3 2 . 1 4 , 1 5 7 . 8

Million Euros 4 8 . 1 4 3 . 0 2 4 7 . 3 1 2 4 . 2 ( 1 . 3 ) 1 7 2 . 6 6 3 3 . 9


Retained earnings


3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Closing rate Average rate Closing rate Average rate Closing rate Average rate

Euro 6,55957 6,55957 - - - -Italian Lira (thousands) 3,39 3,39 3,39 3,40 3,40 3,42Peseta 0,03942 0,03942 0,03942 0,03952 0,03952 0,03981US Dollar 6,52953 6,14979 5,6221 5,90698 5,9881 5,79815Escudo 0,03272 0,03272 0,03272 0,03272 0,0327 0,03326Swiss Franc 4,08671 4,09640 4,0799 4,07033 4,1184 4,01792Malayan Ringgit 1,71784 1,61533 1,4795 1,51612 1,5453 2,07435Belgian Franc 0,16261 0,16261 0,16261 0,1625 0,16219 0,16348Deutsche Mark 3,35386 3,35386 3,35386 3,35096 3,3457 3,36546Brazilian Real 3,61748 3,45362 4,6521 5,09732 5,3652 5,38585Chinese Yuan 0,78859 0,74285 0,6791 0,71215 0,7232 0,69895Sterling pound 10,55102 9,94913 9,2984 9,80018 9,917 9,53204Saudi Ryal 1,74105 1,63881 1,4988 1,57488 1,5966 1,54592

5. Notes to consolidated financial statements

5.1 - Accounting policiesThe consolidated accounts of Technip as at December 31, 1999 include all the activities of KTI / MDEU bought at the beginning of the yearfrom Mannesmann. The incidence of the purchase is explained in the note 5.2.b and detailed in each note.

a ) - Accounting standardsThe consolidated accounts of Technip have been prepared in accordance with the French law on consolidation dated January 3, 1985 and itsimplementing decree, and with the statements of international accounting standards, as set forth in the pronouncements of the InternationalAccounting Standards Committee (I.A.S.C.).

Except for the consolidation of four companies under the proportional integration method (note 5.1.b) the computation of net income andshareholders' equity complies with the generally accepted accounting principles in the United States of America. Previously the geopoliticalrisk accrual (note 5.1.l) could not fulfill Statement of Financial Accounting Standards No 5. It was released in 1999 (note 5.1.l).

b ) - Consolidation

Subsidiaries controlled by Technip are fully consolidated.

20 % to 50 % owned companies are carried under the equity method.

Proportional consolidation method is used for affiliates TECHNIP manages jointly with other partners.

c ) - Translation of foreign subsidiaries' financial statements

The balance sheet is translated at the rates of exchange prevailing at balance sheet dates. The income statement is translated at the averagerates of exchange for the period.

Differences arising from changes in exchange rates are reflected as adjustments to "Shareholders' equity".

The main closing and average currency rates used for translation purposes are summarized in the table below:

d ) - Intangible assets

Intangible assets are amortized over five years.Royalties related to micro or large systems software are fully accounted for as operating expenses.

e ) - Initial consolidation difference

Initial consolidation differences which are clearly identified are allocated to the relevant asset items. Their depreciation is computedaccording to the same principle. Fixed assets are depreciated over their remaining lives. No depreciation is provided for non depreciableassets such as land or building rights.

Unallocated initial consolidation differences, if significant, are reported as Goodwill. Goodwill is amortized over a period of 5 or 20 yearsdepending on the activity of the firm.

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f ) - Fixed assets

Fixed assets are carried at cost and are depreciated over their estimated useful lives.

Depreciation rates are as follows :

Buildings 2 % to 4 %Improv. & Install. 10 % to 12,5 %Furniture 10 % to 15 %Office equipt. 20 %Transport equipt. 20 %EDP / Mainframe 20 %EDP / PC 20 % to 33 %

g ) - Valuation of work in progress (WIP)

Costs accumulated in WIP include:

• All costs incurred in relation to contracts, i.e. equipment and material purchases, subcontracted services, manhours and miscellaneous services;

• The hourly rates of the personnel directly assigned to the contract include an overhead factor covering all operating expenses exceptfor selling, research and development expenses and underactivity costs.

Interest expenses are not included in work in progress.

h ) - Long-term contracts: margin recognition

The percentage of completion method is applied for long term contracts which are significant in terms of turnover as well as expectedprofit, when a sufficient level of completion is reached. Under this method and until completion, the related costs are recognized whenincurred and transferred to Work in Progress, and the net margin recognized in profit is recorded as a receivable.

Full allowance is made for foreseeable losses in the case of unprofitable long-term contracts. At completion, provisions are made asnecessary to cover pending contingencies and expenses.

i ) - Deferred bid costs

If directly attributable to a future contract, the signature of which can be reasonably expected, pre-award costs are recognized asinventories and transferred to Work in Progress upon final contract award.

This amount is depreciated in relation to the probability of success.

j ) - Receivables

Receivables are valued at their face value. Allowances are recorded as soon as the debtor is likely not to pay.

k ) - Marketable securities

Marketable securities are valuated at their market value on the closing date.

l) - Accrued liabilities

Accrued liabilities are based on management's assessment of risk incurred using the best available information.

• Foreseeable losses on contracts. Full allowance is made for foreseeable losses in the case of unprofitable long-term contracts.

• Contingencies related to contracts. This provision concerns litigation on contracts.

• Geopolitical risks. Previously an accrual for geopolitical risk was computed each year using various risk assessments and theremaining works on contracts in progress.

The accrual has never been used and no significant changes affected it during the last years.

In 1999, the accrual was no longer necessary because of :• the diversification of the risks relating to foreign countries and customers,• the growth of the Technip Group and its robust financial structure,• the reallocation of risks with joint venture partners especially after the acquisition of KTI / MDEU,• the operational and legal reorganization of the Group with the establishment of an holding company,And thus the non-operating income includes the reversal of the geopolitical risk.

Accrued liabilities are now in accordance with the statements of international accounting standards.



m ) - Research and Development costs

Research and Development costs incurred during the year are fully accounted for as operating expenses.

n) - Financial income

Financial income arising from contracts is included in revenues.

Only the financial income not allocated to contracts is included within this category.

o ) - Deferred tax

Deferred taxes are provided on items recognized in different periods for financial reporting and tax purposes following the liability method,under which deferred taxes are computed by utilizing the rate expected to be in effect when the tax becomes payable.

If the balance leads to a deferred taxation, it is accounted for as a liability. If such balance is an asset likely to be offset against future taxableincome, it is accounted for as a receivable.

This accounting policy complies with Statement of Financial Accounting Standards No 109, except for the accounting of a deferred taxliability on undistributed earnings of subsidiaries and affiliates.

p) - Diluted earnings per share

Diluted earnings per share is computed on a number of shares including the number of outstanding shares at the closing date, as well as thenumber of stock options allocated.

q ) - The Euro

The consolidated statements have been drawn up in French Francs. They are also presented in Euros on the basis of French Franc/E u r oparity set on 31 December 19998. No expenses or provisions were recorded for the costs of preparing for the introduction of the Euro.

r ) - Year 2000

The specific unit set up at TECHNIP to avoid potential issues arising as a result of the turn of the millennium has been working well.

Considering the company's activity, in-house adaptation expenses were not significant. They were taken into account when they occured.

1 2 1 3

• Expenses to complete contracts. At the time of sale of a contract, pending charges and works to be performed to reach the finalacceptance are accounted for as "Expenses to complete contracts".

• Accrual for retirement benefits. They include:

• Retirement benefits, which are to be paid at retirement date.

• Deferred wages indemnities, which are to be paid when employees leave the company.

• Retirement benefits which are to be paid as pension.

The actuarial estimation is based on usual parameters such as future wage and salary increases, life expectancy, turnover of staff andrate of return on investment.

• Restructuring costs. As soon as decided a restructuring action is planned and valorized. The total costs is fully accounted the year of decision.



The 1999 changes are due to :• the incorporation in the consolidated statements of the KTI / MDEU engineering companies bought from Mannesmann (under their present day names of TP USA,

TP Holding Benelux BV, TP Benelux BV, KTI Belgium NV, KTI SpA, TP Germany, EHR, MSE, MSI)• the incorporation of TP Americas, TP Eurocash GEIE and the joint venture BRI/TP.• the outgoing from the scope of consolidation of Cleplan, TLT, Tech Atlan after the merger with TP France, and the merger with TP.

NUMBER OF COMPANIES 1999 1998 1997

Parent company and fully consolidated subsidiaries 36 27 27Companies accounted for under the equity method 1 2 2Joint ventures accounted for under proportional integration method 4 4 5

4 1 3 3 3 4

5.2 - Changes in the scope of consolidation (and incidences)a) - Evolution

As of December 31 1999, 41 companies are included in TECHNIP Group's scope of consolidation, as shown in the attached organizationchart. The table below presents an analysis of the changes in the scope of consolidation for 1999, 1998 and 1997:

b) - Impact of the buyout of KTI/MDEU companies on financial statements

The balance sheet and the income statement as at December 31, 1999 distinguish for each note the Group with KTI /MDEU andwithout KTI/MDEU.

The balance sheet of those bought out companies considered separately as at December 31, 1999 is presented below.

(a) Net Goodwill : Gross Goodwill 1 046,4 M FRF (312 M DEM or 160 M Euros) less the amortization 52,3 M FRF (or 8 M Euros).(b) Shareholder’s Equity : Net income of 55,8 M FRF (or 8,5 M Euros) reduced by the amortization of goodwill of 52,3 M FRF (or 8 M Euros) and increased by thetranslation adjustment of 5 M FRF (or 0,8 M Euros).

KTI/MDEU balance sheet as at December 31, 1999

in millionEuros Francs

Net goodwill (a) 152 994 Shareholders' Equity (b) 1 9Fixed assets 22 146 Accrued liabilities 143 935Inventories 908 5,955 Financial debts 6 38Receivables 264 1,733 Advances received from customers Current account Technip (156) (1,024) on contract 960 6,301Cash and marketable securities 117 771 Other liabilities 197 1,292

1 , 3 0 7 8 , 5 7 5 1 , 3 0 7 8 , 5 7 5

in millionEuros Francs


A S S E T SLIABILITIES ANDSHAREHOLDERS’ EQUITY


5. Notes to consolidated financial statements5.3 - Reve n u e s by geographic areas and by business segment

a) - RevenuesRevenues represent the period's production valuated at selling price. According to note 1.n, financial income on contracts isincluded in revenues.

Analysis by geographical area

R E V E N U E S

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

France / Western Europe 4,759 26 % 3,506 29 % 4 750 40 %Central CIS / Asia 1,295 7 % 706 6 % 781 7 %Middle East 4,335 24 % 3,100 26 % 2 033 17 %Far East 1,475 8 % 1,132 9 % 1 301 11 %Africa 4,171 23 % 2,818 23 % 2 083 17 %Americas 2,215 12 % 850 7 % 920 8 %

IN MILLION OF FRF 1 8 , 2 5 0 (a) 1 2 , 1 1 2 11 868

IN MILLION OF EUROS 2 , 7 8 2 1 , 8 4 6 1 809

EVOLUTION + 51 % + 2 % + 17 %

Analysis by business segment

R E V E N U E S

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Refining 7,234 40 % 5,168 43 % 4 274 36 %Petroleum production / gas 3,868 21 % 2,865 23 % 2 158 18 %Petrochemicals / Fertlizers 3,183 17 % 2,150 18 % 3 425 29 %Industries and others 3,965 22 % 1,929 16 % 2 011 17 %

IN MILLION OF FRF 1 8 , 2 5 0 1 2 , 1 1 2 11 868

IN MILLION OF EUROS 2 , 7 8 2 1 , 8 4 6 1 809

(a) Including KTI/MDEU for 5 570 millions of FRF (849 millions of Euros).

b) - BacklogThe backlog is defined as the value of uncompleted parts of contracts in force.

Analysis by geographical area

BACKLOG

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

France / Western Europe 3,136 14 % 2,198 12 % 3,264 20 %Central CIS / Asia 1,457 6 % 916 5 % 1,306 8 %Middle East 8,615 38 % 6,412 35 % 3,264 20 %Far East 2,657 12 % 1,832 10 % 1,306 8 %Africa 4,687 20 % 4,946 27 % 6,365 39 %Americas 2,198 10 % 2,016 11 % 815 5 %

IN MILLION OF FRF 2 2 , 7 5 0 1 8 , 3 2 0 1 6 , 3 2 0

IN MILLION OF EUROS 3 , 4 6 8 2 , 7 9 3 2 , 4 8 8

EVOLUTION + 24 % + 12 % + 33 %



(a) Variation mainly due to KREBS SPEICHIM, its subsidiaries and CBS employees which have been taken into account for the whole of 1998.(b) The average growth of payroll costs per employee between 1998 and 1999 amounted roughly to 3%.(c) Increase due to the acquisition of KTI / MDEU companies.

(a) Dividend from COGEMA (in millions of FRF) : 20.3 in 1999 ; 17.8 in 1998 ; 24.5 in 1997.

(a) Before tax on net gain on sales for 12.4 million French francs.(b) Due to the partial buyout of COGEMA securities (before tax on net gain on sales for 4.2 million French Francs) (c) Due to the restructuration of the staff. No cost of restructuring for KTI/MDEU at December 31 1999 (this cost for KTI/MDEU companies is already registered

in the opening balance sheet, note 5.23).(d) Before tax on reversal of the accrual for geopolitical risks for 216 million French francs. The impact in the net income of the reversal of the accorded liabilities, after

tax for 216 million French francs - note 5.8, amounts to 374 million French francs (57 millions Euros).

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

PERSONNEL EXPENSESSalaries and wages, including employment taxes 2,859.0 ( b ) 1 , 6 9 2 . 3 1 , 5 7 0 . 9

EMPLOYEES (PERIOD AVERAGE)

Staff from Parent Company and consolidated subsidiaries 7,442 (c) 4,542 (a) 4,295Other 895 (c) 709 899

External staff at TECHNIP's disposal added to its working teams 1,372 (c) 1,169 1,208

EMPLOYEES (PERIOD AVERAGE) 9 , 7 0 9 6 , 4 2 0 6 , 4 0 2

5.5 - Financial income excluding contra c t sAccording to note 5.1.n, this table does not include financial income on contracts.

5.4 - Staff info r m a t i o n

5.6 - Extra o rdinary itemsThe extraordinary items are mainly composed of the change in accrued liabilities for geopolitical risks, restructuring costs and the impact ofsales of fixed assets.

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Gain on sales of consolidated investments 3.0 51.4 (a) -Gain on sales of unconsolidated investments (b) 25.6 (b) - 21.0Gain on sales of fixed assets 3.9 9.4 0.7Restructuring costs (c) (6.8) (c) (15.0) -Cost of foreign subsidiary closing (6.8) - -Change in the accrued liabilities for geopolitical risks (notes 5.1 l and 5.23). - (20.0) (10.0)

1 8 . 9 2 5 . 8 1 1 . 7Reversal of the accrual for geopolitical risks 590.0 (d) - -

EXTRAORDINARY ITEMS (IN MILLIONS OF FRF) 6 0 8.9 2 5.8 1 1.7

EXTRAORDINARY ITEMS (IN MILLIONS OF EUROS) 9 3 4 2

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Dividends from unconsolidated affiliates (a) 28.2 20.2 29.6Net income on sales of securities (excluding contracts) 82.7 122.7 123.6Changes in provisions and losses related to affiliates not included in the scope of consolidation (1.6) 0.4 2.2

TOTAL (IN MILLIONS OF FRF) 1 0 9 . 3 1 4 3 . 3 1 5 5 . 4

TOTAL (IN MILLIONS OF EUROS) 1 7 2 2 2 4

1 6 1 7

Analysis by business segment

B A C K L O G

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Refining 8,010 35 % 9,343 51 % 9,629 59 %Petroleum production / Gas 5,340 24 % 4,397 24 % 2,938 18 %Petrochemicals / Fertlizers 7,128 31 % 3,481 19 % 2,121 13 %Industries and others 2,272 10 % 1,099 6 % 1,632 10 %

IN MILLION OF FRF 2 2 , 7 5 0 1 8 , 3 2 0 1 6 , 3 2 0

IN MILLION OF EUROS 3 , 4 6 8 2 , 7 9 3 2 , 4 8 8


(a) The additional 10% burden has been included since 1997 in the French tax rate. (b) It corresponds to the additional 15% burden for 1997 and 1998 and only since 1999 to the additional 10% burden.(c) Deferred tax assets of the year have been calculated with a tax rate of 36.66% since 1997.

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Current income tax 333.1 359.9 391.1Deferred income tax 29.5 - (29.2)Tax on the social net gain on sales 4.9 12.4 -

3 6 7 . 5 3 7 2 . 3 3 6 1 . 9Deferred Income tax on reversal of geopolitical risk (a) 216.0

TOTAL (IN MILLIONS OF FRF) 5 8 3.5 3 7 2.3 3 6 1.9



5.8 - Income taxThe principles described in note 5.1.o result in the following:

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Deferred tax assetsGross 121.1 354.5 357.8Allowance NIL NIL NIL

121.1 354.5 357.8

Deferred tax liabilities (17.0) (72.0) (75.3)

NET DEFERRED TAX ASSET 1 0 4 . 1 2 8 2 . 5 2 8 2 . 5

Analysis of income tax provision

Deferred tax assets and liabilities

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Net income 1,132.1 691.3 627.1Minority interests 1.1 1.0 0.5Income tax 583.5 372.3 361.9Social gain on sales (21.5) (51.4) -Less: equity in income of unconsolidated affiliates (4.8) (7.2) (22.9)

PRE-TAX INCOME (IN MILLIONS OF FRF) 1 , 6 9 0 . 4 1 , 0 0 6 . 0 9 6 6 . 6

FRENCH INCOME TAX RATE (a) 36.66 % 36.66 % 36.66 %

Theoretical income tax 619.7 368.8 354.4Extraordinary tax - French companies (b) 19.3 31.2 28.7Difference between French and foreign tax rates 14.7 5.6 0.6Change in French tax rate (c) - - (25.3)Permanent differences (34.9) (14.0) 2.0Other (40.2) (31.7) 1.5

NET INCOME TAX CHARGE 5 7 8 . 6 3 5 9 . 9 3 6 1 . 9

EFFECTIVE TAX RATE 34.2 % 35.8 % 37.4 %

Reconciliation between the provision for income tax and pre-tax accounting income

5.7 - Employees Profit SharingThis item represents the amounts to be distributed to the personnel of French companies in compliance with the October 21, 1986 edict andrelative French regulations.

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Employees profit sharing (in millions of FRF) (16.1) (35.9) (27.5)

Employees profit sharing (in millions of EUROS) (2) ( 5 ) ( 4 )

(a) Directly charged to the reversal of geopolitical risk (note 5.6 d).



3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Net Income (in millions of French Francs) 1,132.1 691.3 627.1Number of shares (in thousands) 16,051 16,192 17,077

DILUTED EARNINGS PER SHARE (IN FRENCH FRANCS) 7 0 . 5 3 4 2 . 7 0 3 6 . 7 2

DILUTED EARNINGS PER SHARE (IN EUROS) 1 0 . 7 5 6 . 5 1 5 . 6 0

EVOLUTION + 65.2 % + 16.3 % + 15.4 %

5.9 - Diluted earnings per shareDiluted earnings per share has been computed in compliance with note 5.1.p.

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Gross 21.2 17.4 17.2Amortization (18.3) (17.4) (16.2)

NET (IN MILLIONS OF FRF) 2 . 9 ( a ) 0 . 0 1 . 0

NET (IN MILLIONS OF EUROS) 0 0 0

5. 10 - Payments made to the management CommitteesAs for 1999, the total payments made to the 31 executive managers of the Group (members of the Group Executive Committee, theGroup Directorate Committee and the Group Enginneering-Construction Coordination Committee) amounted to 28.6 million francs (4.4million euros).

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Gross 1,134.6 118.7 133.5Amortization (122.1) (90.1) (91.5)

NET (IN MILLIONS OF FRF) 1,012.5 ( a ) 2 8 . 6 4 2 . 0

NET (IN MILLIONS OF EUROS) 1 5 4 4 6

5. 12 - GoodwillAcquisition goodwill is amortized over a duration depending on the activity of the firm (note 5.1.e).

The decrease in 1998 is due to the sale of Speichim Processing.

The increase in 1999 is due to the acquisition of KTI/MDEU companies from Mannesmann with a goodwill of 312 millions of DEM or 1046,4 millions of FRF or 160 millions of euros amortized over 20 years, with an annual charge of 52,3 millions of FRF or 8 millions of euros.

Deferred tax assets exclusively consist of non deductible accrued liabilities and of loss carry forwards for which realization is morelikely than not.Deferred tax liabilities come from revenues which will later suffer taxation.The variation of the year mainly concerns the deferred tax assets (216 million French francs) of the accrued liabilities for geopoliticalrisk reversed in 1999 (note 5.6 d).

1 8 1 9

(a) Including KTI/MDEU for 0.8 million of FRF.

(a) Including KTI/MDEU for 994.1 millions of FRF.

5. 11 - Intangible ASSETSIntangible assets are amortized over 5 years (note 5.1.d).


3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

NON CONSOLIDATED INVESTMENTS (a)Portfolio valued at historical cost 632.0 611.7 609.9Provision for depreciation (40.3) (26.6) (26.8)

NET VALUE (IN MILLIONS OF FRF) 5 9 1 . 7 5 8 5 . 1 5 8 3 . 1

RECEIVABLES RELATED TO INVESTMENTS Initial value 13.0 1.5 12.5Provision for depreciation (11.8) (1.5) (1.2)

NET VALUE (IN MILLIONS OF FRF) 1 . 2 0 . 0 1 1 . 3

OTHER INVESTMENTS Initial value 0.4 0.4 7.3Provision for depreciation (0.1) (0.1) -

NET VALUE (IN MILLIONS OF FRF) 0 . 3 0 . 3 7 . 3

LOANS

NET VALUE (IN MILLIONS OF FRF) 2 0 . 7 1 . 7 2 . 3

OTHER MONETARY ASSETS Security deposits 10.9 12.9 8.8Other 20.2 13.5 8.5

NET VALUE (IN MILLIONS OF FRF) 3 1 . 1 2 6 . 4 1 7 . 3

TOTAL NET VALUE (IN MILLIONS OF FRF) 6 4 5 . 0 6 1 3 . 5 6 2 1 . 3

TOTAL NET VALUE (IN MILLIONS OF EUROS) 9 8 9 4 9 5


5. 14 - Other investments and loans

31.12.1999 31.12.1998 31.12.1997

LANDS AND BUILDINGS Gross 1,089.1 1,052.3 1,079.6Depreciation (217.0) (175.8) (166.9)

NET (IN MILLIONS OF FRF) 872.1 ( a ) 8 7 6 . 5 9 1 2 . 7

OTHER FIXED ASSETS Gross 942.8 499.5 515.7Depreciation (683.8) (326.8) (330.4)

NET (IN MILLIONS OF FRF) 259.0 ( b ) 1 7 2 . 7 1 8 5 . 3

TOTAL NET VALUE (IN MILLIONS OF FRF) 1,131.1 (c ) 1 , 0 4 9 . 2 1 , 0 9 8 . 0

TOTAL NET VALUE (IN MILLIONS OF EUROS) 1 7 2 1 6 0 1 6 7

5. 13 - Fixed assetsThey include on the one hand lands and buildings mainly used for administrative purposes (parent company's and subsidiaries'headquarters), and on the other hand fittings, office equipment and furniture, computer equipment, all accounted for as "other fixed assets"(note 5.1.f).

(a) Including KTI/MDEU for 18.9 millions of FRF and the partial disposal for 9.4 millions of FRF of Lusoctecna building.(b) Including KTI/MDEU for 94.6 millions of FRF(c) Including KTI /MDEU for 113,5 millions of FRF.



3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7G r o s s N e t N e t N e t

NPL RINTEKNO Finland 6.8 6.1 6.1 6.4TP INDIA India 1.9 0.2 1.9 -TECHNIPETROL AG (new company) 9.0 9.0 - -PETROLINVEST Bosnia 4.2 0.7 - -GUIGUES S.A. France 0.8 0.8 0.8 0.8COGEMA France (a) 535.9 535.9 565.9 565.9TPS PEYRARD France (merger with TPS) - - 3.1 3.1DIT HARRIS Venezuela 16.7 16.7 - -INTEMA Italy 18.3 - - -POLLUTION SERVICE France 2.7 2.7 2.7 2.7KTI INDIA India (arising from KTI/MDEU) 6.4 6.4 - -EUS Germany (arising from KTI/MDEU) 6.3 - - -SPIRONEFF France 2.0 - - -Miscellaneous 21.0 13.2 4.6 4.2

IN MILLIONS OF FRF 6 3 2 . 0 591.7 ( b ) 5 8 5 . 1 5 8 3 . 1

IN MILLIONS OF EUROS 9 6 9 0 8 9 8 9

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Historical cost 17.5 21.9 22.5Goodwill - - -Portfolio restatement

Equity income 4.8 7.3 10.3Investment 18.5 11.7 10.5

RESTATED PORTFOLIO (IN MILLIONS OF FRF) 4 0 . 8 4 0 . 9 4 3 . 3

RESTATED PORTFOLIO (IN MILLIONS OF EUROS) 6 6 7

5. 15 - Equity in non-consolidated aff i l i a t e sThe valuation of equity in non consolidated affiliates is based on the restated shareholders' equity of each affiliate.

a ) Non consolidated investments breakdown

(a) Concerns COGEMA's capital increase subscribed by TECHNIP (3.5 % of capital) paid up by the SGN securities' transfer in 1997. In 1999, the investment was reduced after a partial buyout of securities.

(b) Including KTI/MDEU for 7.2 millions of FRF.

Those investments are not quoted. They are valuated at the lower of their restated shareholders' equity or their historical cost.

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Cost price 26,902.2 (a) 19,170.0 20,404.2Allowances (1,030.2) (b) (147.1) (213.2)

NET VALUE (IN MILLIONS OF FRF) 2 5 , 8 7 2 . 0 1 9 , 0 2 2 . 9 2 0 , 1 9 1 . 0

NET VALUE (IN MILLIONS OF EUROS) 3 , 9 4 4 2 , 9 0 0 3 , 0 7 8

5. 16 - Work in Pro g re s sWork in progress represents the aggregate of current contracts (turnkey, FOB and lumpsum services contracts).

Valued at cost price as stated in note 5.1.g to the accounting principles, it includes all purchases incorporated in constructions as well asmanhour costs.

(a) Including KTI/MDEU for 6,794.1 millions of FRF.(b) Including KTI/MDEU for 813.6 millions of FRF.

Work in progress is financed by advances received from customers on contracts, which are reported as liabilities on the balance sheet (seenote 5.24).



31.12.1999 31.12.1998 31.12.1997

Cost price 137.3 125.3 130.9Allowances (109.2) (84.7) (75.6)

NET VALUE (IN MILLIONS OF FRF) 2 8 . 1 4 0 . 6 5 5 . 3

NET VALUE (IN MILLIONS OF EUROS) 4 6 8

5. 17 - Defe r red bid costsThey include preaward costs directly attributable to a contract of which the signature can be reasonably expected.

This amount is depreciated in relation with the probability of success (note 5.1.i).

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Accounts and notes receivable 3,337.7 1,801.0 1,763.8Valuation allowance (285.0) (175.3) (180.3)

NET VALUE (IN MILLIONS OF FRF) 3,052.7 (a) 1,625.7 1,583.5

NET VALUE (IN MILLIONS OF EUROS) 4 6 5 2 4 8 2 4 1

5. 18 - Accounts and notes re c e i va b l eReceivables related to contracts as well as margins recognized according to percentage completed (in compliance with note 5.1.h to theaccounting principles) are accounted for as 'accounts and notes receivable'.

Non overdue billings related to contracts in progress are deducted from 'advances received from customers on contracts', which are reportedas liabilities on the balance sheet (see note 5.25).

5. 19 - Other debtors

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7G r o s s N e t N e t N e t

TaxesDeferred tax (see note 5.8) 104.1 104.1 282.5 282.5Prepaid income tax 35.3 35.3 5.0 -VAT 220.5 220.5 (a) 151.4 125.3Other 87.4 87.4 46.1 27.2

Insurance Indemnities 4.2 8.8Advances to non-consolidated affiliates 18.6 4.5 51.4 41.3Joint venture associates 109.8 91.9 (b) 20.1 20.3Prepaid expenses 39.5 39.5 52.7 83.9Technip owned shares 247.2 247.2 114.7 53.8Receivable from Mannesmann (price adjustment) 415.9 415.9 (c) - -Miscellaneous 501.2 374.5 (d) 207.0 187.9

IN MILLIONS OF FRF 1 779.5 1 620.8 (e) 9 3 5 . 1 8 3 1 . 0

IN MILLIONS OF EUROS 2 7 1 2 4 7 1 4 3 1 2 7

(a) Including KTI/MDEU for 64 millions of FRF.(b) Including KTI/MDEU for 76.1 millions of FRF.(c) Reduction (124 M DEM) of the KTI/MDEU acquisition price paid in February 2000.(d) Including KTI/MDEU for 89.8 millions of FRF.( e ) Including KTI/MDEU for 735 millions of FRF.

(a) Including KTI/MDEU for 722.5 millions of FRF.



3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

ISIS 12.1 % 13.3 % 12.4 %Gaz de France 11.1 % 11.6 % 11.1 %TOTAL FINA group 5.1 % 6.3 % 6.1 %ELF group 1.3 % 3.2 % 3.0 %Employees 3.0 % 3.8 %Others (a) 67.4 % 65.6 % 63.6 %

100 % 100 % 100 %

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Historical cost 2,306.9 3,211.4 3,322.0Realized gains 59.7 66.5 66.2

MARKET VALUE (IN MILLIONS OF FRF) 2 , 3 6 6 . 6 3 , 2 7 7 . 9 3 , 3 8 8 . 2

MARKET VALUE (IN MILLIONS OF EUROS) 3 6 1 5 0 0 5 1 7

5.2 0 - Marketable securitiesAccording to note 5.1.k, mutual funds are valued at their market price. Detail of realized gains is as follows:

No. of shares outstanding Common stock(in million French Francs)

Common stock as of December 31, 1994 15,717,205 314.31995 increase (a) 160,500 3.3

Common stock as of December 31, 1995 15,877,705 317.61996 increase (a) 261,085Subscription to equity issue (b) 131,534

7.8

Common stock as of December 31, 1996 16,270,324 325.41997 increase (a) 146,560Subscription to equity issue (b) 115,665

5.2

Common stock as of December 31, 1997 16,532,549 330.61998 increase (a) 128,190

4.5Subscription to equity issue (b) 93,136Decrease in capital (c) (977,876) (19.6)

Common stock as of December 31, 1998 15,775,999 315.51999 increase (a) 124,140

4.5Subscription to equity issue (b) 96,675Decrease in capital (c) (238,277) (4.8)

Common stock as of December 31, 1999 (d) 15,758,537 315.2

in millions of EUROS 4 8

5. 21 - Pa rent company's common stockParent company's common stock breakdown and changes

As of December 31, 1999 TECHNIP's common stock included 15,758,537 outstanding shares of FRF 20 per-value. The changes from1994 can be analysed as follows:

(a) This increase results from exercised stock options.(b) This increase results from a new equity issue reserved for Group's employees.(c) Decrease in capital by cancellation of shares.(d) Including 454,231 shares in hand from the stock option plan.

(a) French market, French and international investors.

TECHNIP's shareholders and changes

2 2 2 3



5. 22 - Stock option plansThe stock option plan (1996), was authorized by the shareholders' meeting held on May 16, 1995 and implemented by the Board ofDirectors on March 14, 1996 and March 13, 1997. This three-year plan concerns a number of options that cannot exceed 5% of thecommon stock.

The stock option plan (1998), was authorized by the shareholders' meeting held on April 30, 1998, and implemented by the Board ofDirectors on April 30, 1998. It substitutes the last allocation of the 1996 plan for the remaining options and uses the shares bought byT e c h n i p .

The stock option plan (1999) was authorized by the shareholders’ meeting held on April 30, 1999 and implemented by the Board ofDirectors on April 30, 1999. This eight-year plan concerns a number of shares that cannot exceed 5% of the common stock.

(a) These options may be exercised within 2 years and 6 months starting February 13, 1995.(b) These options may be exercised within 2 years and 6 months starting March 14, 1996.(c) These options may be exercised within 2 years and 6 months starting March 13, 1997. (d) These options may be exercised within 5 years starting April 30, 1998.(e) These options may be exercised within 5 years starting April 30, 1999.

NUMBER OF OPTIONS

1993 plan 1996/1998 plan 1 9 9 9 / 2 0 0 1 T o t a lp l a n

T h i r d First S e c o n d T h i r d F i r s ta l l o c a t i o n a l l o c a t i o n a l l o c a t i o n a l l o c a t i o n a l l o c a t i o n1995 (a) 1996 (b) 1997 (c) 1998 (d) 1999 (e)

OPTIONS ALLOCATED AS OF 31/12/95 1 3 8 , 9 2 5 - - - - 1 3 8 , 9 2 5

Exercised options - - - - - -Cancelled options (1,000) (500) - - - (1,500)Allocated options - 158,842 - - - 158,842

OPTIONS ALLOCATED AS OF 31/12/96 1 3 7 , 9 2 5 1 5 8 , 3 4 2 - - - 2 9 6 , 2 6 7

Exercised options (37,810) - - - - (37,810)Cancelled options (900) - - - - (900)Allocated options - - 178,973 - - 178,973

OPTIONS ALLOCATED AS OF 31/12/97 9 9 , 2 1 5 1 5 8 , 3 4 2 1 7 8 , 9 7 3 - - 4 3 6 , 5 3 0

Exercised options (19,100) (1,000) - - - (20,100)Cancelled options - - - - - -Allocated options - - - 138,711 - 138,711

OPTIONS ALLOCATED AS OF 31/12/98 8 0 , 1 1 5 1 5 7 , 3 4 2 1 7 8 , 9 7 3 1 3 8 , 7 1 1 - 5 5 5 , 1 4 1

Exercised options (73,390) (39,350) (11,400) - - (124,140)Cancelled options - - - - - -Allocated options - - - - 315,520 315,520

OPTIONS ALLOCATED AS OF 31/12/99 6 , 7 2 5 1 1 7 , 9 9 2 1 6 7 , 5 7 3 1 3 8 , 7 1 1 3 1 5 , 5 2 0 7 4 6 , 5 2 1

Stocks hold by Technip as part of the stock option plan (454,231)

2 9 2 , 2 9 0Expiration plan date 13.02.2000 14.03.2001 13.03.2002 30.04.2006 30.04.2007



5. 23 - Accrued liabilitiesThe principles on which accrued liabilities are estimated are described in note 5.1.l to the accounting principles.

5. 24 - Financial debt

(a) The changes in these accrued liabilities impact the non operating income (see note 5.6).(b) Net change, including the change in exchange rates.(c) Corresponds to 48 millions of DEM.

CHANGES IN 1999 CHANGES IN 1998 CHANGES IN 1997

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Charges to D e d u c t i o n s Charges to D e d u c t i o n s Charges to D e d u c t i o n scosts and costs and costs ande x p e n s e s e x p e n s e s e x p e n s e s

Accrued contingencies

Foreseeable losses on contracts 2 8 1 . 8 3 . 2 ( 1 . 0 ) 2 7 4 . 7 4 . 9 - ( 4 4 . 8 ) 4 9 . 7 3 4 . 7 ( 3 . 0 )Contingencies related to contracts 2 1 3 . 5 1 1 0 . 1 ( 2 6 6 . 4 ) 3 6 . 0 3 3 3 . 8 1 6 . 7 ( 1 3 3 . 3 ) 4 5 0 . 4 1 9 . 3 ( 1 6 7 . 1 )Geopolitical risks (a) - - ( 5 9 0 . 0 ) - 5 9 0 . 0 3 6 4 . 0 ( 3 4 4 . 0 ) 5 7 0 . 0 4 0 2 . 0 ( 3 9 2 . 0 )O t h e r 1 9 . 2 5 . 4 ( 1 2 . 7 ) - 2 6 . 5 1 4 . 1 ( 2 0 . 3 ) 3 2 . 7 1 5 . 1 ( 1 5 . 6 )

5 1 4 . 5 1 1 8 . 7 ( 8 7 0 . 1 ) 3 1 0 . 7 9 5 5 . 2 3 9 4 . 8 ( 5 4 2 . 4 ) 1 , 1 0 2 . 8 4 7 1 . 1 ( 5 7 7 . 7 )

Accrued expenses

Expenses to complete contracts 4 8 5 . 6 1 4 6 . 1 ( 9 4 . 8 ) 2 7 9 . 5 1 5 4 . 8 6 1 . 1 ( 3 6 0 . 8 ) 4 5 4 . 5 2 7 0 . 3 ( 2 6 5 . 2 )Accrual for retirement benefits (b) 4 0 0 . 6 1 5 . 6 ( 1 4 . 8 ) 2 4 4 . 0 1 5 5 . 8 2 0 . 1 - 1 3 5 . 7 7 . 7 ( 2 2 . 4 )Miscellaneous expenses 2 3 2 . 0 4 3 . 0 ( 4 3 . 0 ) - 2 3 2 . 0 1 3 2 . 0 ( 1 2 0 . 0 ) 2 2 0 . 0 1 5 . 1 ( 2 5 . 1 )Restructuring costs KTI/MDEU (c) 9 8 . 0 - ( 6 3 . 0 ) 1 6 1 . 0 - - - - - -Other 3 7 . 1 1 1 . 0 ( 3 0 . 8 ) 3 . 1 5 3 . 8 2 6 . 8 ( 2 4 . 7 ) 5 1 . 7 5 3 . 2 ( 4 8 . 4 )

1 , 2 5 3.3 215.7 (246.4) 687.6 5 9 6.4 2 4 0.0 ( 5 0 5.5 ) 8 6 1.9 3 4 6.3 ( 3 6 1.1 )

IN MILLIONS OF FRF 1 , 7 6 7.8 3 3 4.4 ( 1 , 1 1 6.5 ) 9 9 8.3 1 , 5 5 1.6 6 3 4.8 ( 1 , 0 4 7.9 ) 1 , 9 6 4.7 8 1 7.4 ( 9 3 8.8 )

IN MILLION OF EUROS 2 6 9 5 1 ( 1 7 1 ) 1 5 2 2 3 7 9 7 ( 1 6 0 ) 3 0 0 1 2 5 ( 1 4 3 )

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Long-terme debt (a) 16.6 2.0 115.8Short term debt (b) 113.4 433.8 458.1Borrowing under bank overdrafts 13.1 13.9 27.9



3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

by category

Bank borrowings and credit lines 16.6 2.0 114.0Other 0.0 - 1.8

TOTAL (IN MILLIONS OF FRF) 1 6 . 6 2 . 0 1 1 5 . 8

a ) Long-term debt

2 4 2 5

K TI /M D E U


5. Notes to consolidated financiel statements

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

By currency

German Mark 16.6 - -Belgian Franc - 1.1 2.2Italian Lira - 0.9 111.8Malaysian Ringgit - - 1.8

TOTAL IN MILLIONS OF FRF 1 6 . 6 2 . 0 1 1 5 . 8

By maturity date

2001 16.62002 and after -

16.6

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

By category

Bank borrowings and credit lines 55.0 4.4 22.8Bank prefinancings - 377.8 377.8

55.0 382.2 400.6Other 58.4 51.6 57.5


3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

By currency

French Franc - 377.8 377.8US Dollar 29.9 3.9 -Italian Lira 0.3 0.1 22.6Belgian Franc - 0.4 0.2German Mark 20.8 - -Czech crown 4.0 - -

TOTAL (IN MILLIONS OF FRF) 5 5 . 0 3 8 2 . 2 4 0 0 . 6

Bank prefinancings help TECHNIP finance its contracts in progress.

b ) Short-term debt



3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Employees 229.1 236.8 232.7Social taxes 104.5 93.2 56.8Taxes 408.9 242.4 441.1Deffered income 12.5 5.4 59.2Miscellaneous 581.5 277.3 312.5

NET VALUE (IN MILLIONS OF FRF) 1 , 3 3 6 . 5 (a ) 8 5 5 . 1 1 , 1 0 2 . 3

NET VALUE (IN MILLIONS OF EUROS) 2 0 4 1 3 0 1 6 8

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Foreign exchange hedging

Purchases of foreign currencies against national currencies (forward exchange contracts and currency swaps) 220.5 125.5 422.5Sales of foreign currencies against national currencies (forward exchange contracts, currency swaps and currency options) (a) 3,231.0 3,081.3 3,951.9Purchases or sales of foreign currencies against other foreign currencies 517.9 3,166.3 1,359.0

Interest rate hedging (b)

FRA - - -Interest rate swaps - - 15.9Caps/floors - - 59.8Bonds options put - - -

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Advances received from Customers contracts in progress (in millions of FRF) 30,045.9 (a) 21,166.9 22,352.4

(in millions of EUROS) 4 , 5 8 0 3 , 2 2 7 3 , 4 0 8

5. 25 - Advances re c e i ved from customers on contra c t sAdvances received from customers on contracts provide TECHNIP with its contracts' financing (see note 5.15).

(a) Those commitments mainly represent guarantees or commitments given by financial institutions to clients in order to cover for:• completion of contracts (performance bonds),• final retention payment

(b) Commitments received mainly correspond to guarantees received from suppliers.

In order to cover unexpected changes in market interest rates and/or foreign exchange rates, the Group hedges its foreign exchange risksand interest risks by using financial instruments, which are detailed as follows:

(a) Some of the Group's billings to its clients are expressed in currencies different from those in which contracts expenses are incurred. The resulting exposure is hedgedthrough the most efficient financial instruments available on the domestic markets. At closing date they consist of Forward Exchange Contracts (amounting to 1,558million of French Francs), currency swaps 1,673 million of French Francs).

(b) The Group hasn't used interest rates instruments since 1997.

5. 26 - Other debts

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7

Commitments given (a) 6,699.2 4,171.9 4,140.6Commitments received (b) 2,749.3 1,872.8 1,532.5Non matured discounted notes 35.5 50.9 76.0

5. 27 - Off balance sheet commitmentsThe Group gives and receives commitments within its normal activities.

2 6 2 7

(a) Including KTI / MDEU for 6,300.9 millions of FRF.

(a) Including KTI / MDEU for 286 millions of FRF.


6. Statutory auditor’s report on consolidatedfinancial statementsYear ended December 31, 1999

To the Shareholders of the Company Technip:

In compliance with the assignment entrusted to us by your shareholders’ general meeting, we have audited the accompanying

consolidated financial statements of Technip and its subsidiaries, prepared in French francs and in Euro, for the years ended December

31, 1999.

The consolidated financial statements have been approved by the Board of Directors. Our responsability is to express an opinion on

these consolidated financial statements based on our audit.

We conducted our audit in accordance with the professional standards applied in France which comply with international standards on

auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated

financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts

and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates

made by management in their preparation, as well as evaluating their overall presentation. We believe that our audit provides a

reasonable basis for our opinion.

In our opinion, the consolidated financial statements give a true and fair view of the group’s financial position and of its assets and

liabilities as of December 31, 1999, and of the results of operations of the companies included in the consolidation for the year then

ended.

Without qualifying our opinion, we draw attention to the following point, set out in note 5.1.l to consolidated fiancial statements. The

consolidated net result for the year includes extraordinary income of FRF 374 million (after tax), arising from the reversal of the

provision for geopolitical risk booked in previous fiscal years and which is now no longer necessary.

We also performed the verification of the information given in the report of the Board of Directors on the management of the Group. We

have no comment as to the fair presentation and the conformity with the consolidated financial statements of the information

contained therein.

Neuilly-sur-Seine and Saint-Gratien, March 9, 2000

The Statutory Auditors

BARBIER FRINAULT & AUTRESArthur ANDERSEN

René PROGLIO

Claude CHARRON



Parent companyfinancial statements

31.12.1999(summary presentation)


1. P reliminary note


3 0 3 1

(million French francs)

The parent Company financial statements are summarised below and show the main points of the financial data and of the results of thea c t i v i t y .

An internal organization of the Group structure took place in 1999:• Merger of Technip Geoproduction with Technip.• Transfer of the net assets corresponding to the complete Technip engineering activity to Technip France.

These operations completed on May 1, 1999, were backdated to January 1, 1999.

The balance sheets and the statements of income of the last three years are therefore no longer comparable.

The main activity of Technip consists of holding affiliates and receiving dividends.

2. Balance sheets 31. 12 . 1999 ( b e fo re appropriation of net income)

3. Statements of income 31. 12 . 19 9 9(million French francs)

AS S E T S 1 9 9 9 1 9 9 9 1 9 9 8 1 9 9 7

Fixed assets 424.0 2,781.0 2,076.6 2,021.0Current assets 57.6 377.9 3,699.6 4,839.9Cash and marketable securities 267.0 1,751.5 2,326.5 2,920.1

A S S E T S 7 4 8 . 6 4 , 9 1 0 . 4 8 , 1 0 2 . 7 9 , 7 8 1 . 0

(million Euro)

note

7.1

(million French francs)(million Euro)

note

7.2

7.3

(million Euro)

note

7.47.5

LIABILITIES AND SHAREHOLDER’S EQUITY 1 9 9 9 1 9 9 9 1 9 9 8 1 9 9 7

Shareholders' equity (without net income) 337.4 2,213.0 2,020.0 1,711.2Net income 162.6 1,066.4 491.1 974.2Provisions 36.4 239.1 1,226.5 1,581.7Financial debts and loans 7.7 50.7 406.7 391.6Other accrued liabilities and creditors 204.5 1,341.2 3,958.4 5,122.3

TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY 7 4 8 . 6 4 , 9 1 0 . 4 8 , 1 0 2 . 7 9 , 7 8 1 . 0

1 9 9 9 1 9 9 9 1 9 9 8 1 9 9 7

Operating income (2.3) (15.0) 503.4 427.4Net financial income 75.1 492.7 215.5 244.3Net extraordinary items 96.6 633.7 (20.8) 639.0Income tax & Employee profit sharing (6.8) (45.0) (207.0) (336.5)

NET INCOME 1 6 2 . 6 1 , 0 6 6 . 4 4 9 1 . 1 9 7 4 . 2



4. - Statements of cash flows as of 31 D e c e m b e r, 19 9 9

3 1 . 1 2 . 1 9 9 9 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 7(12 months) (12 months) (12 months)

CASH FLOW FROM OPERATING ACTIVITIESNet income 1,066.4 491.1 974.2Depreciation, of intangibles, property, plant and equipment 1.2 29.3 25.9Change on accrual for general risks (590.0) 32.0Net result on disposal of fixed assets (44.5) (0.1) (560.8) (a)


Inventories 1,156.6 1,769.4Advanced received from customers (886.1) (2,260.2)Other 969.6 (681.4) 59.2

Change in working capital 9 6 9 . 6 ( 4 1 0 . 9 ) ( 4 3 1 . 6 )

1) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 1 , 4 0 2 . 7 1 4 1 . 4 7 . 7

CASH FLOW FROM INVESTING ACTIVITIESCapital expenditure (intangibles) (4.9) (0.3)Capital expenditure (property, plant an equipment) (30.6) (21.6)Change in financing investment (818.0) (c) (49.8) (172.6) (b)

2) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES ( 8 1 8 . 0 ) ( 8 5 . 3 ) ( 1 9 4 . 5 )

CASH FLOW FROM FINANCING ACTIVITIES

Increase (decrease) in long term debts 30.3 16.0 (1.2)Shareholder' equityCapital increases (47.8) (427.1) 71.9Paid dividends (247.5) (237.7) (170.9)

3) NET CASH PROVIDED BY (USED IN) FINANCE ACTIVITIES ( 2 6 5 . 0 ) ( 6 4 8 . 8 ) ( 1 0 0 . 2 )

1) - 2) - 3) - NET INCOME (DECREASE IN CASH) 3 1 9.7 ( 5 9 2.7 ) ( 2 8 7.0 )CASH AT BEGINNING OF PERIOD 2,325.4 2,918.1 3,205.1Cash from merger of TPG with Technip 173.3Cash from Technip net assets’ transfer (1,068.6)

CASH AT END OF PERIOD 1 , 7 4 9.8 2 , 3 2 5.4 2 , 9 1 8.1

CASHCash an marketable securities 1,751.5 2,326.5 2,920.1Short-term credit lines (1.7) (1.1) (2.0)

T O T A L 1 , 7 4 9 . 8 2 , 3 2 5 . 4 2 , 9 1 8 . 1


(a) Gain on transfer of SGN's securities against COGEMA's capital increase reserved to TECHNIP.( b ) Out of which FRF 132 million income tax relating to gain on transfer of SGN's securities recorded (but not cashed).(c) Includes TECHNIP Holding Benelux (174,9 MF) and TECHNIP Americas (180,9 MF) acquisitions, TECHNIP France's capital increase (83.4 MF) and

TECHNIP Germany (197,9 MF), and TECHNIP Americas (240 MF) loans.


3 2 3 3

5. Financial results of the last five years

NATURE OF INFORMATION 3 1 . 1 2 . 1 9 9 5 3 1 . 1 2 . 1 9 9 6 3 1 . 1 2 . 1 9 9 7 3 1 . 1 2 . 1 9 9 8 3 1 . 1 2 . 1 9 9 9

I - YEAR END FINANCIAL POSITION

A) - Called up capital 3 1 7 . 6 3 2 5 . 4 3 3 0 . 7 3 1 5 . 5 3 1 5 . 2Uncalled up capital - - - -

B) - Outstanding shares 1 5 , 8 7 7 , 7 0 5 1 6 , 2 7 0 , 3 2 4 1 6 , 5 3 2 , 5 4 9 1 5 , 7 7 5 , 9 9 9 15,758,537 ( a )

C) - Outstanding subshares - - - - -

D) - Convertible debenture - - - - -

II - OVERALL OPERATING RESULTS

A) - Net revenues 2 , 8 3 0 . 1 5 , 1 7 7 . 6 4 , 2 9 2 . 9 3 , 7 5 4 . 1 -

B) - Income before tax, allowance for depreciation and provisions 5 3 4 . 6 7 5 7 . 2 1 , 2 1 9 . 9 3 7 4 . 7 4 9 4 . 0

C) - Income tax 1 4 8 . 3 1 4 9 . 1 3 1 2 . 0 1 7 6 . 0 4 5 . 0

D) - Net income 3 4 3 . 7 3 7 6 . 1 9 7 4 . 2 4 9 1 . 1 1 066.4

E) - Dividends paid 1 4 2 . 9 1 7 0 . 9 2 3 7 . 7 2 4 7 . 5 Under approval

III - OPERATING INCOME PER SHARE (in French Francs)

A) - Net income before allowancefor depreciations and provisions 2 4 . 3 3 3 7 . 3 7 5 4 . 9 1 1 2 . 6 0 2 8 . 4 9

B) - Net income 2 1 . 6 5 2 3 . 1 2 5 8 . 9 3 3 1 . 1 3 6 7 . 6 7

C) - Dividend paid per share 9 . 0 0 1 0 . 5 0 1 4 . 5 0 1 6 . 0 7 Under approval

IV - STAFF (b)

A) - Number of employees 1 , 7 0 1 1 , 6 4 8 1 , 6 5 5 1 , 6 1 5 3( c )


(a) Does not take account of subscription of purchasing option coning from current stock option plan.(b) Only number of employees is mentioned. The other information is not comparable.(c) After the transfer of employees from Technip to Technip France (transfer of the net assets corresponding to the complete Technip engineering activity

to Technip France).


6. Notes on accounting policies

6.1 - Internal org a n i z a t i o nTwo operations have been made in order to reorganize the Group structure in 1999 :

• Merger of TECHNIP Geoproduction with TECHNIP.

• Transfer of the net assets corresponding to the complete TECHNIP engineering activity to TECHNIP FRANCE.

These operations completed on May 1, 1999 were backdated to January 1, 1999.

6.2 - Geopolitical risksPreviously an accrual for geopolitical risk was computed each year using various risk assessments and the remaining works on contract inp r o g r e s s .

The accrual has never been used and no significant changes affected it during the last years.

In 1999, the accrual was no longer necessary because of :

• the diversification of the risks relating to foreign countries and customers,

• the growth of the Technip Group and its robust financial structure,

• the reallocation of risks with joint venture partners especially after the acquisition of KTI / MDEU,

• the operational and legal reorganization of the Group with the establishment of an holding company.

And thus the non-operating income includes the reversal of the geopolitical risk.

Accrued liabilities are now in accordance with the statements of international accounting standarts.

6.3 - Fo reign currency tra n s a c t i o n sTransactions in foreign currencies related to financial revenues or expenses are recorded in accordance with current accounting policies.

In connection with corporate management of foreign currency translations, receivables and liabilities in foreign currency due to the cashpooling are translated by using an internal standard exchange rate. Any exchange differencies, arising at completion of operations and inconnection with corporate of foreign currency translations, are computed in income statement as they arise.

At year end, receivables and debts are translated at the exchange rates prevailing at balance sheet date and any differences are recorded asunrealised exchange loss or gain.

At year end, the exchange risk is assessed on the basis of the overall situation of the company with respect to foreign currency translations.

If a potential loss is identified, a provision for exchange risk is appropriated for the same amount.

6.4 - Accounting policies for provisions re g a rding subsidiariesAll provisions for contingencies related to subsidiaries are fully computed under financial expenses whether they cover depreciation ofinvestments in affiliated companies, related receivables or the complementary accrual for contingencies.

In the financial results, write-offs of debt granted to subsidiaries and sale of investments in subsidiaries, for the portion covered by provision,are offset by the reversal of the relevant provision.



3 4 3 5

The main changes of the year consist of TECHNIP HOLDING BENELUX (174.9 MF) and TECHNIP AMERICAS (180.9 MF) acquisitions,TECHNIP FRANCE's capital increase (83.4 MF) and TECHNIP GERMANY (197.9 MF) and TECHNIP AMERICAS (240 MF) loans.

Gross value Depreciation & Amortization Net value

Intangible assets 10.0 10.0 0.0Tangible assets 35.7 14.3 21.4Investments 2,803.7 44.1 2,759.6TOTAL FIXED ASSETS 2,849.4 68.4 2,781.0


7. Notes to financial statements

7.1 - F i xe d A s s e t s

7.2 - P rov i s i o n s

The provision for geopolitical risks, no longer necessary, has been reversed in the “Net extraordinary items”. At the end of the year theprovisions consist of miscellaneous accrued expenses.

7.3 - Financial debts and loans

The other accrued liabilities and creditors consist of affiliates current accounts due to the cash pooling. The main affiliates current accountsare TECHNIP FRANCE, TECHNIP BENELUX GROUPE BV, TECHNIP GERMANY, EHR.

7.4 - Net financial income

Includes incomes from the affiliated companies (434.7 MF) and from other net financial account (58 MF).

7.5 - Net ex t ra o rdinary items

Includes the reversal of the geopolitical risks (590 MF), gain of sales of Cogema shares (18.5 MF) and merger surplus of TECHNIPGEOPRODUCTION (25.9 MF).


8. Subsidiaries and inve s t m e n t s

A- Detailed information concerms investments for whichthe gross-value exceeds 1% of the reportingcompany’s common stock (or which are consideredas significant within the group)

1/- Subsidiaries (more than 50% of common stock held by TECHNIP)

TECHNIP FRANCE 9 8 , 3 9 3 , 6 0 0 1 , 5 6 9 , 0 0 6 100.00 %170, place Henri Régnault92973 PARIS LA DÉFENSE cedex

TECHNIP ITALY Italian Lira 5 0 , 0 0 0 , 0 0 0 , 0 0 0 8 , 0 3 8 , 7 4 1 , 4 1 1 95.30 %68, viale Castello della Magliana French Fr.00148 ROME - ITALY 0 . 0 0 3 3 9

TPL - TECNOLOGIE PROGETTI LAVORI S.p.A. Italian Lira 1 7 , 5 0 0 , 0 0 0 , 0 0 0 1 5 , 2 8 6 , 5 7 5 , 4 3 0 95.00 %68, viale Castello della Magliana French Fr.00148 ROME - ITALY 0 . 0 0 3 3 9

INFRASTRUTTURE E GESTIONI S.p.A. Italian Lira 5 0 0 , 0 0 0 , 0 0 0 3 5 , 2 3 4 , 7 8 2 95.00 %38, viale Castello della Magliana French Fr.100148 ROME - ITALY 0 . 0 0 3 3 9

L U S O T E C N A E s c u d o 1 2 0 , 0 0 0 , 0 0 0 ( 1 3 , 5 1 1 , 6 9 9 ) 63.33 %Rua Padre Antonio Vieira, 26, 5° French Fr.1099 - 075 LISBONNE - PORTUGAL 0 . 0 3 2 7 2

TECHNIP SERI CONSTRUCTION (TECHNIP TPS) 6 , 0 0 0 , 0 0 0 5 , 3 9 3 , 6 5 9 100.00 %24, boulevard de l'Hôpital75005 PARIS

TECHNIP IBERIA P e s e t a 9 6 , 4 3 0 , 0 0 0 2 0 9 , 6 5 8 , 9 4 1 100.00 %Gran Via Carlos III - 97 J French Fr.08028 BARCELONE - SPAIN 0 . 3 9 4 2 0

S.C.I. CB3 DÉFENSE 2 , 8 2 5 , 0 0 0 4 8 0 , 0 0 0 100.00 %170, place Henri Régnault92973 PARIS LA DÉFENSE cedex

TECHNIP CAPITAL Belgian Fr. 7 7 8 , 0 0 0 , 0 0 0 1 0 0 , 9 0 2 , 8 5 0 100.00 %Rue Montagne du Parc - 4 Warandeberg French Fr.1000 BRUXELLES - BELGIUM 0 . 1 6 2 6 1

TECHNIP INC US Dollar 2 , 0 0 0 , 0 0 0 1 , 3 0 2 , 7 6 4 1 0 0 , 0 0 . %1990 POST OAK Blud, suite 200 French Fr.HOUSTON TEXAS 77056 - 3846 - USA 6 . 5 2 9 5 3

TECHNIP ANLAGENBAU GmbH D .M a r k 1 0 0 , 0 0 0 3 8 , 9 7 2 100.00 %Grafenberger Allee 277 French Fr.D-40237 DUSSELDORF - GERMANY 3 . 3 5 3 8 6

TECHNIP INTERNATIONAL AG Swiss Fr. 5 , 0 0 0 , 0 0 0 4 , 2 3 2 , 6 1 4 100.00 %Industriestrasse 13 C, Postfach 4339 French Fr.CH 6304 ZOUG - SWITZERLAND 4 . 8 6 7 1 0

COMMON STOCKCOMPANIES

RESERVES &RETAINED

EARNINGS BEFOREALLOCATION

PERCENTAGEOF OWNERSHIP (%)



9 8 , 3 9 3 , 0 0 0 9 8 , 3 9 3 , 0 0 0 2 9 , 4 9 7 , 1 0 0 * 2 , 8 8 7 , 0 0 1 , 9 6 4 * 2 2 6 , 6 3 2 , 5 1 9 3 3 , 7 5 0 , 0 0 0& parent company guarantees

for QATARGAS / ELGINFRANKLIN / DEEP JUSEPIN

parent company guarantees * 8 0 4 , 2 3 8 , 3 5 5 , 4 2 6 * 9 , 3 8 0 , 7 2 4 , 3 0 51 3 3 , 2 5 2 , 1 8 2 1 3 3 , 2 5 2 , 1 8 2 f o r HAWIYAH SULPHUR /

SULPHUR RECOVERY

* 9 3 , 9 1 7 , 1 1 4 , 8 9 0 * 1 8 7 , 9 7 3 , 1 8 14 6 , 2 1 1 , 4 3 9 4 6 , 2 1 1 , 4 3 9 3 9 , 3 8 8 , 6 4 5

1 , 3 2 0 , 3 2 7 1 , 3 2 0 , 3 2 7

* 1 , 3 7 7 , 2 2 6 , 5 1 5 * 1 5 7 , 4 1 8 , 6 2 23 4 , 0 4 0 , 7 3 1 1 4 , 0 4 0 , 7 3 1

9 9 9 , 4 0 0 9 9 9 , 4 0 0 * 4 7 , 0 4 0 , 1 0 3 * 3 , 9 2 0 , 7 5 9 2 , 5 5 0 , 0 0 0

* 2 , 7 6 5 , 1 0 0 , 2 2 2 * 1 4 1 , 4 6 3 , 8 5 45 , 5 6 5 , 9 2 2 5 , 5 6 5 , 9 2 2 8 , 0 4 9 , 1 2 0 2 , 7 1 4 , 2 8 0

5 6 5 , 0 9 1 , 0 1 8 5 6 5 , 0 9 1 , 0 1 8 a) 196,482,712 8 , 1 7 8 , 0 7 5 * 1 0 4 , 2 2 8 , 7 2 4 * 1 9 , 1 4 8 , 4 7 0

* 1 7 2 , 0 0 0 * 9 2 , 3 4 4 , 0 3 41 2 6 , 7 7 0 , 0 6 0 1 2 6 , 7 7 0 , 0 6 0 7 , 1 3 6 , 9 2 1

* 6 0 5 , 7 1 7 * ( 9 7 , 8 1 5 )1 0 , 3 9 6 , 3 4 1 1 0 , 3 9 6 , 3 4 1

- -1 0 5 , 4 6 8 1 0 5 , 4 6 8 parent company guarantees -

for LEUNA

* 3 4 1 , 9 4 7 , 2 4 7 * 9 8 6 , 0 7 62 0 , 2 1 5 , 4 1 2 2 0 , 2 1 5 , 4 1 2 6 6 2 , 9 8 4

OUTSTANDINGLOANS AND

ADVANCES BYTECHNIP

BONDS POSTEDAND

GUARANTEESGIVEN BYTECHNIP

REVENUES NET INCOMEDIVIDENDS RECEIVED

BY TECHNIP

SHARE BOOK-VALUE

GROSS NET



TECHNIP EUROCASH E u r o 3 0 0 , 0 0 0 90.00 %170, place Henri Régnault French Fr.92973 PARIS LA DÉFENSE cedex

TECHNIP TIANCHEN Chinese Yuan 4 , 9 7 4 , 9 3 6 ( 4 , 3 1 0 , 1 5 1 ) 60.00 %521 Jing Jin Road - Tianjin 300400 French Fr.PEOPLE’S REPUBLIC OF CHINA 0 . 7 8 8 5 9

TECHNIP C.I.S R o u b l e 1 , 9 0 0 ( 6 , 2 2 0 , 5 7 6 ) 90.00 %20, rue Galernaya French Fr.190 000 SAINT-PETERSBOURG - RUSSIA 0 . 2 4 0 9 0

TECHNIP FAR EAST R i n g g i t 1 , 0 0 0 , 0 0 0 1 2 , 2 4 1 , 5 2 4 100.00 %2nd Floor Wisma Inai - 241, Jalan Tun Razak French Fr.50400 KUALA LUMPUR - MALAYSIA 1 . 7 1 1 8 8

C O F R I 4 , 4 0 0 , 0 0 0 2 , 3 1 0 , 0 7 6 100.00 %14, rue Hoche - KUPKA C92902 PARIS LA DÉFENSE cedex

T.T.I.L. SNC 2 5 0 , 0 0 0 4 , 2 9 7 , 8 3 1 60.00 %170, place Henri Régnault92973 PARIS LA DÉFENSE cedex

TP HOLDING BENELUX BV Dutch Guilder 2 0 , 0 2 0 , 0 0 0 ( 9 , 0 8 7 , 6 7 1 ) 100.00 %Bredewater 26 French Fr.2700 CA ZOETERMEER - NETHERLANDS 2 . 9 7 6 6 1

TECHNIP AMERICAS US Dollar 3 0 , 0 0 0 , 0 0 0 0 100.00 %1990 POST OAK Blud, suite 200 French Fr.HOUSTON - TEXAS 77056-3846 - USA 6 . 5 2 9 5 3

TECHNIP GERMANY D. Mark 4 8 , 8 9 6 0 100.00 %Theodorstrasse, 90 French Fr.D - 40472 DÜSSELDORF - GERMANY 3 . 3 5 3 8 6

TPG UK Sterling Pound 5 , 0 0 0 1 , 0 4 1 , 0 4 5 90.00 %Criffel House - Lime Walk - maidon Head French Fr.BERKS, LSG6QB - UNITED KINGDON 1 0 . 5 6 1 0 2

TECHNIP OVERSEAS SA US Dollar 1 0 , 0 0 0 8 3 7 , 4 3 7 100.00 %C/O ALEMAN, CORDERO, GALINDO & LEE French Fr.Apartado 6 - 1014 EL DORADO PANAMA 6 . 5 2 9 5 3REPUBLIC OF PANAMA


RESERVES &RETAINED





1 , 7 7 1 , 0 8 4 1 , 7 7 1 , 0 8 4 b) 487,062,848

* 3 4 , 7 0 2 , 5 0 1 * 6 , 4 5 8 , 6 8 12 , 0 9 6 , 0 0 0 1 , 1 9 6 , 0 0 0

* 4 2 , 8 6 1 , 1 0 3 * ( 2 , 4 0 9 , 3 0 2 )4 , 6 3 7 , 0 0 8 0 3 , 2 4 4 , 0 5 5

* 3 9 7 , 7 2 6 , 8 8 8 * 1 6 , 8 7 0 , 2 8 22 0 7 , 7 5 0 2 0 7 , 7 5 0 1 8 , 7 8 4 , 6 6 9 2 2 , 5 5 7 , 3 9 5

4 , 7 1 1 , 9 0 1 4 , 7 1 1 , 9 0 1 * 0 * 3 5 6 , 9 8 6 5 0 5 , 9 3 1

1 5 0 , 0 0 0 1 5 0 , 0 0 0 1 , 6 4 2 , 9 3 7 - - -& parent company

guarantees for MIDOR

* 0 * ( 1 , 9 5 1 , 8 8 6 )1 7 4 , 8 7 2 , 0 0 0 1 7 4 , 8 7 2 , 0 0 0

* 0 * (3,111,433) ( c )

1 8 0 , 8 6 6 , 4 5 6 1 8 0 , 8 6 6 , 4 5 6 a) 239,997,278 3 0 , 0 5 1 , 6 3 8b) 3,331,433

* 3 7 6 , 1 3 3 , 8 0 0 * ( 7 6 , 0 0 4 , 9 1 5 )1 6 3 , 9 8 9 1 6 3 , 9 8 9 a) 197,877,740 7 2 9 , 2 1 0 , 0 6 2

parent company guarantees * 6 , 0 9 3 , 5 0 6 * 4 3 , 6 9 55 1 , 6 6 9 5 1 , 6 6 9 b) 67,537 for FLOTTEL ELGIN

- -6 0 , 0 0 0 6 0 , 0 0 0 1 7 9 , 2 9 6 , 8 6 5 -

& parent company

guarantees for OGD II


ADVANCES BYTECHNIP

BONDS POSTEDAND


REVENUES NET INCOMEDIVIDENDS RECEIVED

BY TECHNIP

SHARE BOOK-VALUE

GROSS NET

3 8 3 9

(c) AMORTIZATION OF GOODWILL 2,577,644 USD.


2/-Investments(10 to 50% of common stock held by TECHNIP)

KREBS SPEICHIM 7 2 , 2 5 0 , 0 0 0 3 , 7 9 9 , 6 2 0 50.00 %14, rue Hoche - KUPKA C92902 PARIS LA DÉFENSE CEDEX

T P G M R i n g g i t 1 , 0 0 0 , 0 0 0 6 , 6 7 8 , 2 9 3 30.00 %2nd, Floor Wisma Inai - 241, Jalan Tun Razak French Fr.50400 KUALA LUMPUR - MALAYSIA 1 . 7 1 1 8 8

D I N S A B o l i v a r 1 , 8 0 8 , 9 5 4 , 0 0 0 ( 1 , 1 4 4 , 3 0 0 , 6 2 9 ) 20.00 %2 da Avenida de la Urbanizacion - Campo Alegre French Fr.Edificio Torre Cari - CARACAS 1060 VENEZUELA 0 . 0 1 0 0 6

TECHNIP - THYSSEN - LURGI G.E.I.E - - 31.00 %170, place Henri Régnault92973 PARIS LA DÉFENSE cedex

TSKJ SERVICOS DE ENGENHARIA LDA E s c u d o 4 0 0 , 0 0 0 1 , 1 4 6 , 8 4 7 , 2 6 0 25.00 %& French Fr.LNG SERVICOS E GESTAO DE PROJECTOS E s c u d o 4 0 0 , 0 0 0 25.00 %Rue 31 de Janeiro 13-a,4 French Fr.F u n c h a l 0 . 0 3 2 7 200620 PORTUGAL

CONSORCIO CONTRINA SNC 5 0 , 0 0 0 28.00 %170, place Henri Régnault92973 PARIS LA DÉFENSE cedex

TECHNIP SAUDI ARABIA LTD Saudi Ryal 5 , 0 0 0 , 0 0 0 ( 2 5 , 3 2 3 ) 40.00 %P . O . Box 60159 French Fr.RIYADH 11545 (Saudi Arabia) 1 . 7 2 9 1 7

NIIGATA TECHNIP CO. LDT Y e n 1 0 , 0 0 0 , 0 0 0 49.00 %9-3 Kamata honcho 1-Chome French Fr.Ohta-Tu, TOKYO - JAPAN 0 . 0 6 3 8 5

I P E D E X 8 , 9 1 2 , 5 0 0 2 6 , 4 9 1 , 6 0 4 46.00 %366, avenue Napoléon Bonaparte - BP 20592502 RUEIL MALMAISON cedex

B - Information concerning other subsidiaries or investments

1/- SUBSIDIARIES

a) French subsidiaries:

b) Foreign subsidiaries:

2/- INVESTMENTS

a) French investments:

b) Foreign investments:

TOTAL :



RESERVES &RETAINED





3 6 , 1 7 5 , 0 0 0 3 6 , 1 7 5 , 0 0 0 parent company guarantees for * 6 8 1 , 7 2 2 , 2 8 0 * 1 , 3 6 9 , 3 9 0 2 , 9 0 0 , 0 0 0SANLONG NYLON CO LTD /

HYDRO AGRI JORDAN

* 7 8 , 9 4 3 , 9 0 5 * 1 , 0 8 5 , 9 5 78 , 0 5 9 , 0 0 0 8 , 0 5 9 , 0 0 0 a) 5,500,000 1 7 2 , 5 6 6 , 9 1 0

& parent company guarantees

f o r EPMI UMBRELLA / VYNIL

CHLORIDE / EPMI TCOT /OGP /

BOUYGUES OFFSHORE /

PVC KERTEH / LDPE KERTEH /

CARIGALI TRITON / UCC

* 1 , 0 2 5 , 3 5 5 , 5 3 8 * 1 , 0 1 9 , 7 2 4 , 3 3 11 , 2 9 0 , 6 0 0 0

* 1 , 7 1 7 , 0 8 8 * ( 4 1 , 4 6 5 )

- -3 , 3 5 5 3 , 3 5 5 5 6 5 , 7 5 2 , 8 3 4 -

& parent company guarantees for3 , 6 7 3 3 , 6 7 3 NIGERIA LNG TRAIN 1,

TRAIN 2 / TRAIN 3

1 4 , 0 0 0 1 4 , 0 0 0 9 5 , 1 3 5 , 7 1 6 * 1 3 , 8 2 8 , 6 5 9 * 1 5 , 3 8 5 , 3 0 2et garantie de réalisation sur

SINCOR / VEHOP

* 7 8 , 5 4 5 , 6 6 0 * 1 5 9 , 0 4 02 , 9 4 5 , 0 0 0 2 , 2 4 5 , 0 0 0 3 2 , 4 3 5 , 8 1 2

et garantie de réalisation surSHAYBAY / PETROKEMYA

2 2 9 , 9 0 8 2 2 9 , 9 0 8

4 , 6 0 9 , 7 0 0 4 , 6 0 9 , 7 0 0 * 2 4 8 , 5 3 9 , 5 0 9 * 1 2 , 7 4 7 , 7 4 6

7 , 7 7 8 , 5 0 0 2 4 3 , 4 7 0 a) 1,190,000 1 0 0 , 0 0 0

2 , 5 8 3 , 0 3 4 4 1 3 , 9 5 4 b) 16,066,939

663 811 449 663 811 449 2 0 , 4 7 8 , 3 3 1

13,003 ,722 7 , 3 2 7 , 0 0 0 b) 2,691,162 1 , 2 6 2 , 1 0 8

2 , 1 5 2 , 4 5 6 , 0 9 8 2 , 1 0 9 , 5 4 7 , 6 5 8 1 , 1 5 0 , 2 6 7 , 6 4 9

P r o v i s i o n s 4 2 , 9 0 8 , 4 4 1a) Outstanding loans : 6 4 1 , 0 4 7 , 7 3 0 * In approval processb ) Advances : 5 0 9 , 2 1 9 , 9 1 9


ADVANCES BYTECHNIP

BONDS POSTEDAND


REVENUES NET INCOME DIVIDENDS RECEIVEDBY TECHNIP

SHARE BOOK-VALUE

GROSS NET


9. Statutory Auditor’s reportYear ended December 31, 1999

To the Shareholders of the Company Technip,

In compliance with the assignment entrusted to us by your shareholders’ general meeting, we hereby report to you, for the year

ended December 31, 1999, on:

- the audit of the accompanying financial statements of Technip prepared in French francs and in Euro currency,

- the specific verifications and information required by law.

These financial statements have been approved by the Board of Directors. Our responsability is to express an opinion on these

financial statements based on our audit.

1. OPINION ON THE FINANCIAL STATEMENTS

We conducted our audit in accordance with the professional standards applied in France which comply with international standards

on auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and

disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates

made by management in their preparation, as well as evaluating the overall financial statements presentation. We believe that our

audit provides a reasonable basis for our opinion.

In our opinion, the financial statements give a true and fair view of the company’s financial position and its assets and liabilities as of

December 31, 1999, and of the results of its operations for the year then ended.

Without qualifying our opinion, we draw attention to the following points set out in notes 6.1 and 6.2 of the notes to financial

s t a t e m e n t s :

- the financial statements as at December 31, 1999 cannot be directly compared with those of the preceding fiscal year because of the

structural reorganization which took place during the year,

- the current year result includes an extraordinary income of FRF 590 million, arising from the reversal of the provision for

geopolitical risk booked in previous fiscal years which is now no longer necessary.

2. SPECIFIC VERIFICATIONS AND INFORMATION

We also performed the specific verifications required by law in accordance with the professional standards applied in France.

We have no comment as to the fair presentation and the conformity with the financial statements of the information given in the

management report of the Board of Directors, and in the documents addressed to the shareholders with respect to the company’s

financial position and the financial statements.

As required by the Article 356-3 of the law of July 24, 1966, we inform you that the identity of stockholders is given in the

management report of the board.



BARBIER FRINAULT & AUTRESRené PROGLIO

Claude CHARRON

4 2 4 3



4 4

10. Statutory Auditor’s special reportYear ended December 31, 1999

To the Shareholders of the Company Technip,

In our capacity as statutory auditors of your company, we have a duty to present a report on the regulated agreements of

which we have been informed. Our assignment does not involve particular performing auditing procedures to disclose the

existence of any such agreements.

We wish to inform you that no agreement covered by Article 101 of the Law of July 24, 1966 has been reported to us by

m a n a g e m e n t .



BARBIER FRINAULT & AUTRESRené PROGLIO

Claude CHARRON



H e a d q u a r t e r s :

Tour TECHNIP - La Défense 6170, place Henri Régnault - 92973 Paris La Défense cedex - FRANCE

Ph. : 33 (0) 1 47 78 21 21 - Fax. : 33 (0) 1 47 78 33 40Site web : http://www.technip.com


Annual report - Morningstar, Inc.

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