Full Year 2002 Results in Line with Expectations; Strong Progress in Backlog -- Improved...

Business Editors

PARIS--(BUSINESS WIRE)--Feb. 21, 2003

Technip-Coflexip (NYSE:TKP)(Euronext:13170)

-- The relocation of the Paris region staff from four locations to one. This move involves the sale of the current headquarters and the lease of newly-completed office

				
					
					
				
				
				
				
				
		
				
		
				
			
				
					
				
			
 space in Paris-La Defense. Both the sale and the lease have recently been finalized;

-- A vigorous development of synergies and cost savings, specifically in the areas of procurement, information technology and overhead;

-- A second round of non-strategic asset sales;

-- The merger of Technip-Coflexip and Coflexip SA which should reduce costs associated with the Coflexip listing and allow various affiliate and corporate reorganizations;

-- The streamlining of management structure. Shareholders will be asked to amend the by-laws, by replacing the current dual structure (Management Board and Supervisory Board) with a single Board of Directors structure;

Technip-Coflexip (NYSE:TKP)(Euronext:13170) today announced that the Management Board has approved the consolidated accounts for the fourth quarter and full year 2002 (audited), which have been reviewed by the Supervisory Board.

On full year revenues of EUR 4,452 million, Group adjusted net income* came to EUR 110.9 million. Backlog increased during the year from EUR 4.9 billion to EUR 5.8 billion (equivalent to 15.7 months of revenues). A strong increase in free cash flow allowed for the reduction of the gearing ratio from about 40% at the beginning of 2002 to 25% at year-end.

Daniel Valot, Chairman of the Management Board, commented:

"During a year which was extremely challenging for our industry, Technip-Coflexip displayed a good level of resilience, with EBITDA margin ratios standing, on a comparable basis, at 8% versus 9.1% in 2001.

"Our teams are now fully integrated. We generated enough cash flow in 2002 to cover our capital expenditures, reduce our net debt to an easily manageable level and pursue a buy-back program involving both shares and convertible bonds.

"In spite of difficult market conditions, the Group managed to increase significantly its order intake without compromising risk and profitability criteria. The year-end backlog stands at a high level, both in terms of volume and quality. As a result, Technip-Coflexip is anticipating a new period of profitable growth in the next few years.