Technip Third Quarter 2010 Results FINAL Quarter 2010 Results 7 (27)% 154 211 Subsea Third Quarter...
Transcript of Technip Third Quarter 2010 Results FINAL Quarter 2010 Results 7 (27)% 154 211 Subsea Third Quarter...
Third Quarter 2010 Results
October 28, 2010
2Third Quarter 2010 Results
Operational & Financial Highlights
Strategy & Outlook
Annex
Contents
I.
II.
III.
3Third Quarter 2010 Results
Third Quarter 2010 Operational & Financial Highlights
I.
4Third Quarter 2010 Results
Third Quarter Subsea Operational Highlights
► Successfully completed offshore operations:• Brazil: Pipelay phase of the Tupi gas export pipeline
• Gulf of Mexico: Caesar/Tonga
• North Sea: Broom field
• Trinidad & Tobago: Angostura field
►Offshore operations in progress:• Jubilee field in Ghana and several projects in the North Sea
• Block 31 in Angola and West Delta Deep Marine Phase VII in Egypt
► Pazflor offshore campaign preparation in progress
►Asset activity• Vessel utilization rate was 81% compared with 85% a year ago
• Good activity continued at flexible pipe production units
• Brazilian-flagged Skandi Vitoria delivered to Petrobras
5Third Quarter 2010 Results
Third Quarter Onshore/Offshore Operational Highlights► Projects delivered to client:
• Qatargas 3&4 Train 6 & 7 delivered to client in Qatar
► Pre-commissioning/Commissioning & start-up activities in progress• Biodiesel plant for Neste Oil in Singapore completed• Completed commissioning on OAG modules, Dàs Island in United Arab Emirates • Pre-commissioning completed and commissioning progressed well on Gdansk refinery, Grupa Lotos
in Poland
► Work in progress: • Saudi Arabia: Jubail refinery• United Arab Emirates: Asab 3 • Turkmenistan: Block 1 Gas development • Qatar: PMP • China: Yinchuan, Ningxia LNG• Brazil: Preparation for P-56 floatover operation• The Netherlands: Biodiesel plant for Neste Oil in Rotterdam
► FEED activities in progress: • Floating LNG FEED for Shell's Prelude field near Australia • Floating LNG FEED for Petrobras in Brazil• Gas processing platform for Wheatstone, offshore Australia
6Third Quarter 2010 Results
Third Quarter Order Intake & Backlog Highlights
Order intake
1Q 10
720440
3Q 10
773
2Q 10 Sept. 302010
June 302010
Backlog
3,1413,057
Order intake
906749
Backlog
5,3615,206
1Q 10 3Q 102Q 10 Sept. 302010
June 302010
► Onshore/Offshore Order intake• KJO in Neutral Zone between Saudi Arabia
and Kuwait• Two Hydrogen plants in the USA • Several small and medium-sized projects in
Asia Pacific & Americas
3,053
Dec. 312009
4,965
Dec. 312009
► Subsea Order Intake• 1st IPB* in Brazil: Papa Terra • 1st reeled heated pipe-in-pipe: Islay, UK• Marine Well Containment System (MWCS)
FEED for the Gulf of Mexico
897
* Integrated Production Bundle
€ million
7Third Quarter 2010 Results
(27)%
154211
Subsea Third Quarter Figures
(6)%
3Q 09
699746
3Q 10
(14)%
117136Margin (155)bp
22.0%28.3%
16.7%18.2%
3Q 09 3Q 10 3Q 09 3Q 10
Revenue
EBITDA
Operating income*
* from recurring activities
€ million
3Q 09 3Q 10 3Q 09 3Q 10
8Third Quarter 2010 Results
Onshore/Offshore Combined Third Quarter Figures
(16)%
814965
* from recurring activities
+2%
5049 Margin +105bp
6.1%5.1%
3Q 09 3Q 10
3Q 09 3Q 10 3Q 09 3Q 10
Revenue
Operating income*
€ million
9Third Quarter 2010 Results
Third Quarter FiguresGroup Financial Highlights
(1) calculated as operating income from recurring activities before depreciation and amortization(2) from recurring activities
0.40.2Other Operating Income
(0.5)(2.8)Minority Interests
-1.1Income of Equity Affiliates147.2159.0Profit Before Tax
(8.9)(14.8)Financial Charges
103.4107.7Net Income0.951.00Diluted EPS (€)
10.3%10.1%Operating margin (2)
13.2%14.9%EBITDA margin
(43.3)(48.5)Income Tax
155.7172.5Operating Income (2)
199.2254.1EBITDA (1)
1,512.11,710.5Revenue 3Q 103Q 09€ million
► 29.4% effective tax rate
► Selling & tendering costs remain high
► Higher interest income, lower IFRS impacts
10Third Quarter 2010 Results
Third Quarter FiguresNet Cash Flow Statement
(35.0)Others
-Dividend Payment
(126.3)Working Capital
1,357.1Net Cash as of September 30, 2010
(126.4)Capex
146.9Operating Cash Flow
1,497.9Net Cash as of June 30, 2010
3 months€ million
► Milestone payment on Skandi Niteroi
► Essentially currency effects
► Around €500 million expected for FY10
► Includes $158 million TSKJ payments
11Third Quarter 2010 Results
8,5024,4549073,141Total
2,2861,3152936782012+
4,5892,3963941,7982011
743
Onshore
1,6272206652010 (3 months)
GroupOffshoreSubsea
September 30, 2010 Backlog Estimated Scheduling
€ million
12Third Quarter 2010 Results
Strategy & OutlookII.
13Third Quarter 2010 Results
Delivery: Brazilian-flagged Skandi Vitoria
3Q Execution
Strategy Execution in 2010
€1.6 billion order intake, split 44:56 between Subsea & Onshore/Offshore
Islay: Reeled heated pipe-in-pipePapa-Terra: 1st IPB* flexible pipe in Brazil
Expansion of logistics in Brazil
Strategic Priorities
Balanced, profitable backlog
Key differentiating assets
Local content
Technology
Vertical integration
Partnership with Petronas: MHB
Investment in people and processesExecution capability
* Integrated Production Bundle
14Third Quarter 2010 Results
BrazilPetrobrasLogistic support contracts
Gulf of Mexico5 IOCsMWCS
AustraliaShellPrelude FLNG
UAEZadcoArtificial Island
Lt. Am.PDVSA / CupetCienfuegos Refinery
CountryClientProject
Strategic FEEDs / Services
IndiaHPCLVisakh refinery
Timor SeaENIKitan
Neutral Zone between Saudi Arabia and Kuwait
Khafji Joint OperationsKJO
TurkmenistanPetronasBlock 1 Gas Development
USAValeroMc Kee & Memphis
UKBPDevenick
EgyptBurullusWDDM Phase 8a
North SeaBP, BG, StatoilSeveral Frame Agreements
UKLundinBroom
CountryClientProjectDiversified / medium-sized
NorwayStatoilMarulk
QatarQatargas 1PMP
UKTotalIslay
BrazilPetrobrasIPB Papa-Terra
BrazilPetrobrasTupi Pilot
CountryClientProjectFlagship / Large
Well-diversified portfolio of new contracts YTD 2010
15Third Quarter 2010 Results
Technip’s ETH* technology Islay Project, UK North Sea
Reeled Heated Pipe-in-Pipe
• 6 km tie-back in 122 meters of water
• Major challenge: hydrates formation
• EPCI project, valued in excess of £60 million
• Offshore deployment in mid-2011 with Technip’s fleet
• Flow assurance: heated pipe-in-pipe
• Fibre optic temperature monitoring
• Fast installation: reeled pipe-in-pipe
• Built-in directly onshore, at our spoolbases
• Higher insulation efficiency: lower power requirements
*ETH: Electrical Trace Heating
16Third Quarter 2010 Results
Technip’s Asia Pacific Regional Hub
• Enhance local content and client proximity • Provide proven technology, world class engineering and execution
• Reinforce regional capability: Onshore / Offshore / Subsea
Technip’spriorities
• Major fabrication yard in South East Asia• Centrally located• Strong platform fabrication track record• Support from MISC / PETRONAS• Collaboration agreement to provide EPCI
capability and technology to PETRONAS
Investment in MHB
• 1st and only Asian flexible/umbilical manufacturing plant
• Offshore logistic base• Dedicated local installation capacity
Asiaflex
Perth
Bangkok
Shanghai
Singapore
Jakarta
Balikpapan
Kuala Lumpur
Technip’s Operating Centers
Flexible/Umbilical manufacturing plant
MHB’s yard
• 3,750 people• Founded in 1982
Technip in Asia Pacific
17Third Quarter 2010 Results 17
Today’s view: Business Environment
• Petrobras IPO completed • Non pre-salt work active • Flexible pipe technologies
used for both pre-salt & traditional fields
• Strong focus on logistics & local content
• High level of tendering
Brazil
• Strong activity in North Africa
• Activity across the Gulf of Guinea recovering
• Continued tendering in Angola
Africa
• Investment in refining and petrochemicals for local markets
• Promising market for flexible pipe solutions
• Strong momentum in Australian gas-related projects
Asia Pacific / India
• Some activity in Canadian oil sands and US onshore
North America
• Onshore market still very slow
Europe
• Visibility improving post Macondo• Momentum in major projects
Gulf of Mexico
• Recovery trend continues• Tendering turning to awards
North Sea
• Strategic investments continue across region
• Heavier weight towards Saudi Arabia going forward
Middle East
• Multiple opportunities both in up & downstream
Lt. America
18Third Quarter 2010 Results
2011: Initial View*
Market►New project momentum has grown during the year
►Many projects have slipped into 2011
►Uncertainties persist and competition remains intense
►Relative oil price stability & strategic investments are both positive drivers
Technip in 2011*► Look to start growing Group revenue
► Subsea operating margin objective around 15%
►Onshore/Offshore operating margin sustained year-on-year
* view as of September 30, 2010 at third quarter average exchange rates
19Third Quarter 2010 Results
2010 Full Year Outlook*
► Subsea operating margin around 16.5% (previous outlook: above 15%)
►Onshore/Offshore combined operating margin close to 6% (previousoutlook: around 5.3%)
►Group revenue around €5.9 - 6.1 billion - unchanged
► Subsea revenue around €2.6 - 2.7 billion - unchanged
*at third quarter average exchange rates
Third Quarter 2010 Results
October 28, 2010
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21Third Quarter 2010 Results
AnnexIII.
22Third Quarter 2010 Results
Offshore Third Quarter Figures
+45%
197136
* from recurring activities
918
4.8%
13.6%
3Q 09 3Q 10
3Q 09 3Q 10 3Q 09 3Q 10
Revenue
Operating income*
€ million
23Third Quarter 2010 Results
Onshore Third Quarter Figures
(26)%617
829
* from recurring activities
40316.6%
3Q 09 3Q 10
3Q 09 3Q 09
3.7%
Revenue
Operating income*
€ million
3Q 10 3Q 10
24Third Quarter 2010 Results
Technip’s Backlog by Geography and Activity€8,502 million as of September 30, 2010
By geography
Europe / Russia Central Asia
Africa
AsiaPacific
Americas
Middle East
14%
38%
8%
19% 21%
Market Split
23%7%
32%
12%
25%
Deepwater*
PetrochemsOther (1%)
Gas / LNG
Refining /Heavy Oil
Shallow Water
* Contracts operated strictly below 1,000 meter water depth
25Third Quarter 2010 Results 25
Malaysia: promising deepwater oil & gas market
0 5 10 15
China
India
Malaysia
Vietnam
Indonesia
Australia
Other Asia Pacific
0
5
10
15
20
25
30
2009 2010 2011 2012 2013 2014 2015
China Other Asia (Non-OECD) Pacific (OECD)
► 3rd largest regional crude oil reserves
►Growing energy demand
► Increasing spending in domestic production
►Deepwater oil & gas developments• 7 deepwater fields being explored/developed
• 16 other fields discovered
► Local players to benefit of nationalization program
Thousand million barrels
Asia Pacific Oil Proved Reserves at end 2009
Asia Pacific Oil Demand, million barrels per day
26Third Quarter 2010 Results
Technip Today
27Third Quarter 2010 Results 27
Technip: bringinginnovative solutions to clients in 3 segments
► Vertical integration► In-house technologies ► Worldwide leadership► First class assets:
• Manufacturing plants• High performing vessels
► Innovative capabilities► Proprietary platform design► Proven track record in engineering
& construction
► Project management know-how ► Strong process engineering
capabilities ► Proprietary technologies (Hydrogen,
Ethylene…)
Subsea
Offshore
Onshore
TPG 500 Unideck Semi-submersible Spar EDP FPSO/FLNG
28Third Quarter 2010 Results
Capital intensive: fleet and manufacturing units
Vertical integration from engineering to manufacturing & construction
Two complementary business models driving financial structure and performance
Negative capital employed: low fixed assets
High degree of outsourcing & sub-contracting
* from recurring activities
FY 08
523 533
FY 09
€ million
Operating Income*
19.5%
FY08 FY 09
18.6 %
Operating Margin*
FY 08
192 191
FY 09
€ million
Combined Operating Income*
4.0%
FY08 FY 09
5.3%
CombinedOperating Margin*
Negative working capital
Offshore OnshoreSubsea
29Third Quarter 2010 Results
Large diversified customer base balanced between National Oil Companies and International Oil Companies
30Third Quarter 2010 Results 30
Technip’s worldwide presence
Aberdeen
ParisSt. John’s
Luanda
Rio de Janeiro
Houston
Mumbai
Kuala Lumpur
Perth
Lagos
Vitória
Los Angeles
Caracas
Dande
Lobito
Port Harcourt
BarcelonaLyon
RomeAthens
The HagueDüsseldorf
St. PetersburgEvanton
LondonNewcastle
Abu DhabiDoha
Chennai Bangkok
Singapore
JakartaBalikpapan
Shanghai
Pori
Le Trait
Bogota
New Delhi
Regional Headquarters / Operating centers
Spoolbases
Manufacturing plants (flexible pipelines)Manufacturing plants (umbilicals)Construction yard
Tanjung Langsat(operational in 2010)
Calgary
Monterrey
Oslo
Orkanger
Stavanger
Services base
Baku
Angra Porto
Seven empowered regions
31Third Quarter 2010 Results
Installation Manufacture & Fabricate
R&D
• Manufacturing plants on all continents
Flexible plants:France, Brazil, Malaysia
Rigid spoolbases:UK, Norway, USA, Angola
Logistic bases:Brazil
Umbilical plants:UK, USA, Angola
• State-of-the-art fleet designed to:
• Install pipes
• Heavy construction
• Diving support
Seamless execution Subsea, a unique vertically integrated business model
• Close to production sites
• Proprietary technology
Design & Project Management
• Dedicated engineering teams around the world
Strategic locationsParisAberdeenOsloHoustonKuala LumpurPerthRio de Janeiro
2
World-classR&D facilitiesLe Trait (France)Aberdeen (UK)Newcastle (UK)Rio & Vitoria (Brazil)
1
34
32Third Quarter 2010 Results
Jubilee, an example of a seamless project execution
Houston
Paris
Multi vessel installation (Incl. Deep Blue/ Deep Pioneer)
Jubilee
• The first offshore field in Ghana
• Engineering, Fabrication and Installation projects involving Technip’s centers in Paris, Houston and Angola
• Fabrication of flexible pipes in Le Trait, France
• Mobilization of Deep Blue and Deep Pioneer for offshore campaign
Le Trait
Fabrication of the flexible pipes
at Le Trait
Angola
Coordinated Engineering
teams from the Subsea Division
33Third Quarter 2010 Results
State-of-the-art fleet
Pipelay vessels
Heavy Construction Vessels (HCV)
Diving Support Vessels (DSV)
Deep Blue Apache II Deep Energy
Deep Pioneer Sunrise 2000 Skandi Vitoria
Alliance
Wellservicer
Seamec 2
Seamec 3 Venturer
Seamec 1 Orelia Seamec Princess
2 major vessel upgrades
Skandi Arctic Skandi Achiever
2 new assets
Deep Constructor Skandi Niteroi
3 units
5 units
10 units
34Third Quarter 2010 Results
Ethylene Increasedefficiency
Cryogenic Rigid Pipe-in-PipeFlow-assuranceUltra Deepwater
State-of-the-art technology in all business segments
Unrivalled high technological assets Numerous proprietary technologies and partnerships with licensors
• LNG unloading/ long distance applications
Heated and monitoredFlexible Pipes
3,000m (7”- 11”)Flexible Pipes
Heated Rigid Pipe-in-Pipe
• Design, manufacture & qualify flexible pipes for 3,000 m water depth
• Integration of gas lift tubes, electrical cables or optic fibers in the production riser
• New Electrical Trace Heating technology qualified by major clients
• Increasing ethylene and refining efficiency
Subsea Offshore Onshore
35Third Quarter 2010 Results
Synergies of Technip’s broad ranging strengths in all three business segments
Example: FLNG1, an innovative solution for our customers Shell in Australia
► FLNG is a commercially attractive and environmentally sensitive approach for offshore gas fields in remote locations
► Technip’s unique combination of skills and technology:• LNG process• Offshore facilities• Subsea infrastructures
► Shell’s Prelude field specific FEED awarded in first quarter 2010
► Petrobras FEED awarded at the end of 2009
1,476 x 230 feet, (450 x 75 meters), 3.5 mtpa LNG capacity
1: Floating Liquified Natural Gas
36Third Quarter 2010 Results
Shareholding structure, June 2010
Listed on NYSE Euronext ParisSource: Ipreo June 2010
FSI5.4%
North America29.2%
Treasury Shares2.8%
Employees2.3%
IFP2.7%
Rest of World16.9%
French Institutional Investors20.1%
Individual shareholders5.7%
Others3.7%
UK & Ireland11.2%
Institutional Investors82.8%
Third Quarter 2010 Results
October 28, 2010
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