Technip Full Year 2003 Results; Business Development Exceeds Expectations Continuing Progress on...
Business Editors
PARIS--(BUSINESS WIRE)--Feb. 26, 2004
Technip (NYSE:TKP)(Euronext:FR0000131708)
Euros in millions
(except EPS) 2003 2002 Change
------ ------ ------
Backlog
at Year End 7,180 5,776 + 24 %
Revenues 4,711 4,452 + 6 %
Income from Operations (EBITA) 228 205 + 11 %
Profit Before Tax 176 135 + 30 %
Net Income:
Pre Goodwill 94 88 + 7 %
Post Goodwill (20) (29)
Fully Diluted EPS (EUR) 3.97 3.91 + 2 %
Fully Diluted E/ADS ($) 1.25 1.23 + 2 %
The Board of Directors of Technip has approved the unaudited fourth quarter 2003 consolidated accounts as well as the audited consolidated accounts for the full year 2003.
Daniel Valot, Chairman and CEO, commented: "2003 was a solid year for Technip. Significant progress has been achieved since the acquisition of Coflexip two years ago. Consolidated backlog at the end of 2003 is 46% larger than the combined backlog of Technip and Coflexip at the end of 2001. The size and quality of this backlog, which is increasingly oriented toward offshore projects, provide us with very good visibility, since more than 70% of Group 2004 forecast revenues is already in hand.
"While growing the business, Technip has also reduced its capital employed. Cash flow from operations, working capital improvements and disposal of non-core assets have allowed to slash net debt by 75% in two years. Although the level of net debt may fluctuate during the year, we still target a gearing ratio below 20% by the end of 2004.
"For the full year 2004, I reiterate the targets which were provided last month and which were made in comparison to 2002. Compared to 2003 actual results, the targets, which are subject to currency fluctuations, translate into a growth in revenues of about 9%, an increase in income from operations of approximately 13% and a more than 35% improvement in pre-goodwill net income. As usual, the seasonal factors which impact the offshore operations are likely to lead to relatively weaker earnings during the first and fourth quarters of the year.
"The Board has decided to propose to the Annual General Meeting to maintain the net dividend per share unchanged at EUR 3.30."
I. OPERATIONAL HIGHLIGHTS
During 2003, Technip's order intake rose to EUR 6,582 million (compared to EUR 5,553 million in 2002). The main contracts are listed below along with their approximate values (Technip's share).
-- Two contracts in Angola for Total and its partners: the
floating, production, storage, offloading facility (FPSO) and
the sub sea, umbilicals, risers and flowlines (SURF) package
related to the development of the Dalia oil field (USD 780
million);
-- Oryx GTL Ltd.: the design and construction of the world's
first industrial gas-to-liquids (GTL) complex, to be located
in Ras Laffan Industrial City, Qatar (USD 675 million);
-- Burullus Gas Company: the sub sea development of the
Simian/Sienna and Sapphire gas fields offshore Egypt (USD 550
million);
-- Exxon/Mobil: a gas compression platform and associated
facilities to be installed in the East Area field, offshore
Nigeria (USD 460 million);
-- Abu Dhabi Company for Onshore Oil Operations (ADCO): the North
East Bab onshore field development (USD 374 million);
-- Motor Oil Hellas: the addition of new process units and
utilities at their refinery in Corinth, Greece (EUR 300
million);
-- BP and its partners: a TPG drilling and production platform
for the Shah Deniz gas field in the Azerbaijan sector of the
Caspian Sea;
-- Saudi Aramco: the addition of diesel hydro treating facilities
at their Riyadh refinery;
-- Total: new conversion capacity at their Normandy refinery,
located near Le Havre, France (Euro 260 million);
-- Canadian Natural Resources: the sub sea development of the
Baobab field, offshore Ivory Coast (USD 125 million); and
-- Petrobras: the engineering and construction of the P-52
semi-submersible production platform for the deep water
Roncador field in the Campos Basin, Brazil (USD 120 million).
As of December 31, 2003, the backlog(1) amounted to EUR 7,180 million (which is equivalent to approximately 18 months of revenues), compared to the backlog of EUR 5,776 million registered at December 31, 2002 (+24%).
The Offshore Branch backlog of EUR 2,895 million increased by over 64% compared to its level one year ago. The Onshore/Downstream and Industries backlog was EUR 4,285 million, up more than 7% compared to the same period one year ago.
II. FINANCIALS
Full Year 2003
Revenues were EUR 4,711 million, up nearly 6% compared to 2002 (EUR 4,452 million). Onshore/Downstream revenues improved by 9% due to the increasing contributions of contracts signed in 2002. Offshore revenues were up 4% year-on-year although the increase was more pronounced during the second half of the year. Finally, the revenues of Industries slipped 2%.
Income from operations before goodwill amortization (EBITA) amounted to EUR 227.6 million, an 11% increase from EUR 204.6 million reported for full year 2002. The 2003 EBITA margin was 4.8%, compared to 4.6% in 2002.
Financial costs decreased by one-third to EUR 44.3 million during 2003, compared to EUR 66.9 million registered during 2002. Excluding the non-cash convertible bond redemption premium provision, cash financial costs declined 44% from EUR 50.0 million to EUR 28.2 million.
Non-operating income posted a charge of EUR 7.6 million, coming mainly from restructuring provisions taken in the second half in relation to the Pori yard in Finland and operations in Germany.
Profit before tax (pre-tax, pre-goodwill net income) was EUR 176.0 million, compared to EUR 134.7 million in 2002 (+30%).
Pre-goodwill net income was EUR 94.0 million, compared to EUR 88.4 million during 2002. Impacting the 2003 figure was a relatively heavier tax burden which went from EUR 46.3 million in 2002 to EUR 82.0 million. This represented an increase of the Group's tax rate from 30% to 41%, coming mainly from losses incurred in some countries and for which it has been decided not to recognize deferred tax assets.
After goodwill amortization, net income was EUR (19.7) million compared to EUR (29.4) million for 2002.
Net income adjusted for the purpose of calculating fully diluted EPS amounted to EUR 116.6 million versus EUR 110.9 million in 2002 (please refer to Annex 1). Full year 2003 fully diluted adjusted EPS and E/ADS were EUR 3.97 and USD 1.25, respectively.
Net income reconciled to U.S. generally applied accounting principles (U.S. GAAP) amounted to EUR 83.2 million (unaudited). The main adjustments to reported French GAAP net income of (19.7) million is the restatement of goodwill amortization of EUR (113.7) million.
Free cash flow was EUR 212 million and resulted from cash from operations of EUR 229 million, capital spending of EUR (122) million and proceeds from asset sales of EUR 105 million (essentially the sale of the Group headquarters). Change in working capital was an improvement of EUR 119 million. As a result, the Group reduced net debt (excluding the redemption premium of convertible bonds) as of December 31, 2003 to EUR 237 million compared to EUR 545 million as of September 30, 2003 and EUR 506 million as of December 31, 2002.
Gearing at the end of 2003 fell to 12%, from 28% as of September 30, 2003 and 25% as of December 31, 2002.
Fourth Quarter 2004
Revenues for the quarter were EUR 1,291 million, a nearly 13% increase compared to EUR 1,145 million during the same period one year ago. Revenue growth was particularly pronounced in the Offshore branch, which displayed a 16% year-on-year progression, due to the start-up of new large contracts awarded earlier in the year.
EBITA amounted to EUR 58.2 million, essentially unchanged year-on-year. The Group's quarterly EBITA margin was 4.5%.
Financial costs were reduced from EUR 23.3 million to EUR 7.5 million in the fourth quarter of 2003. The cash financial costs were reduced from EUR 18.9 million to EUR 4.0 million.
Non-operating income was a charge of EUR 1.8 million compared to a charge of EUR 4.4 million one year ago.
Profit before tax was EUR 49.3 million, 55% above the EUR 31.9 million recorded during the fourth quarter of 2002.
Pre-goodwill net-income was EUR 25.7 million compared to EUR 20.2 million during the fourth quarter of 2002 (+27%).
Net income was EUR (3.5) million compared to EUR (9.6) million during the same period one year ago.
Adjusted net income amounted to EUR 30.9 million versus EUR 24.4 million during the same period one year ago. Fully diluted adjusted EPS and E/ADS were EUR 1.05 and USD 0.33, respectively.
Net income reconciled to U.S. GAAP amounted to EUR 22.0 million (unaudited).
During the fourth quarter of 2003, free cash flow was EUR 103 million. Change in working capital was a contribution of EUR 191 million.
The final terms and conditions of the Employee Stock Participation Plan (ESPP) announced during the fourth quarter of 2003 have been definitively established. Participating employees will be purchasing 331,614 shares at an average price of EUR 73.70 per share. This will result in a capital increase of approximately 1.40%.
The Annual General Meeting will be convened on first notice on Friday, April 21, 2004. In the event of a lack of quorum on this date, the meeting will be reconvened on second notice on Thursday, April 29, 2004. The Board of Directors will be proposing that the Group pay a net dividend of EUR 3.30 per share, unchanged from last year. The dividend payment date would be May 3, 2004. The Board will also ask that the authorization to buy back shares be renewed.
Statements in this document that are not historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements with respect to the financial condition, results of operations, business and business cycles, competitiveness and strategy of the Technip Group. Such statements are based on a number of assumptions, expectations and forecasts that could ultimately prove inaccurate, and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including currency fluctuations, the level of capital expenditure in the oil and gas industry as well as other industries, the timing of development of energy resources, construction and project risks, armed conflict or political instability in the Persian Gulf or other regions, the strength of competition, interest rate fluctuations, control of costs and expenses, the reduced availability of government-sponsored export financing, the timing and success of anticipated integration synergies and stability in developing countries. For a further description of such risks and uncertainties, see the reports filed by Technip with the Securities and Exchange Commission and the "Autorite des Marches Financiers." Technip disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Except as otherwise indicated, the financial information contained in this document has been prepared in accordance with French GAAP, and certain elements would differ materially upon reconciliation to US GAAP.
With a workforce of about 19,000 persons, Technip ranks among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York and Paris. The Group's main engineering and business centers are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the United States, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, and Finland as well as a world-class fleet of offshore construction vessels.
(1) The remaining portion of contracts in force.
ANNEX I
CONSOLIDATED STATEMENT OF INCOME
French GAAP
Audited
Euros in Millions except EPS Full Year Fourth Quarter*
------------------- -------------------
E/ADS in US Dollars 2003 2002 2003 2002
--------- --------- --------- ---------
Revenues 4,711.1 4,452.3 1,291.4 1,144.9
Cost of Sales (4,365.6) (4,104.7) (1,203.1) (1,052.6)
Depreciation and Amortization
excluding Goodwill (117.9) (143.0) (30.1) (34.4)
--------- --------- --------- ---------
Operating Income before
Goodwill Amortization (1) 227.6 204.6 58.2 57.9
--------- --------- --------- ---------
Financial Result (28.2) (50.0) (4.0) (18.9)
Provision for Redemption
Premium on Convertible Bonds (16.1) (16.9) (3.5) (4.4)
Non-Operating Income (Loss) (7.6) (6.9) (1.8) (4.4)
Income of Equity Affiliates 1.1 -- 0.6 (0.9)
Minority Interests (0.8) 3.9 (0.2) 2.6
--------- --------- --------- ---------
Profit Before Tax 176.0 134.7 49.3 31.9
--------- --------- --------- ---------
Income Tax (82.0) (46.3) (23.6) (11.7)
--------- --------- --------- ---------
Net Income pre-Goodwill 94.0 88.4 25.7 20.2
--------- --------- --------- ---------
Goodwill Amortization (113.7) (117.8) (29.2) (29.8)
--------- --------- --------- ---------
Net Income (19.7) (29.4) (3.5) (9.6)
--------- --------- --------- ---------
Net Income for EPS
Calculation:
Net Income (19.7) (29.4) (3.5) (9.6)
Non-Operating (Income) Loss 7.6 6.9 1.8 4.4
Goodwill Amortization 113.7 117.8 29.2 29.8
Convertible Bond Financial
Costs, after Tax 15.0 15.6 3.4 (0.2)
--------- --------- --------- ---------
Adjusted Net Income (2) 116.6 110.9 30.9 24.4
--------- --------- --------- ---------
Fully Diluted Adjusted EPS (3) 3.97 3.91 1.05 0.86
--------- --------- --------- ---------
Fully Diluted Adjusted E/ADS
(4) 1.25 1.23 0.33 0.27
--------- --------- --------- ---------
* Unaudited
(1) Operating income before goodwill amortization (EBITA), is used for
informational purposes only. It allows, in the Group's opinion, to
make more meaningful comparisons between its operational
performance and those of its peers who may use different
accounting standards, such as US GAAP.
(2) Adjusted net income is calculated for information purposes only.
It allows, in the Group's opinion, to make more meaningful
comparisons between its net income and those of its peers who may
use different accounting standards, such as US GAAP (which,
contrary to French GAAP, does not allow the amortization of
goodwill). Furthermore, the Group is currently accruing on a
quarterly basis the cost of the redemption premium associated with
the possibility that convertible bonds due in January 2007 would
not be redeemed for ordinary shares. However, the amount of fully
diluted shares includes those shares that would be issued in the
event that all outstanding convertible bonds would be redeemed for
shares. In such an event, the redemption premium would not be
paid, and therefore the associated post tax amount is accordingly
added back. Non-operating income (loss) is excluded.
(3) Number of fully diluted shares as of December 31:
2003 29,362,760
2002 28,385,816
(4) E/ADS is in U.S. dollars and is calculated using the Federal
Reserve Bank of New York noon buying rate (USD/EUR) of 1.2597 as
of December 31, 2003. One ADS is equal to one-fourth of an
ordinary share.
ANNEX II
CONSOLIDATED BALANCE SHEET
French GAAP
Audited
Euros in Millions Dec. 31, Sept 30, June 30, Dec. 31,
2003 2003* 2003 2002
-------- -------- -------- --------
Assets
Non-Current Assets 3,246 3,284 3,289 3,518
Contracts in Progress, Inventories
& Deferred Bid Costs, net 6,442 6,233 5,359 4,977
Premium for Redemption of
Convertible Bonds 52 57 62 74
Receivables & Other Current
Assets, net 1,376 1,600 1,430 1,296
Cash & Cash Equivalents 892 697 634 741
-------- -------- -------- --------
Total Assets 12,008 11,871 10,774 10,606
Liabilities & Shareholders' Equity
Shareholders' Equity 1,938 1,960 1,921 2,026
Minority Interests 9 11 11 16
Financial Debt 1,129 1,242 1,313 1,247
Premium for Redemption of
Convertible Bonds 85 87 87 90
Progress Payments on Contracts 7,048 6,833 5,740 5,420
Accrued Liabilities 324 320 314 329
Other Liabilities 1,475 1,418 1,388 1,478
-------- -------- -------- --------
Total Liabilities &
Shareholders' Equity 12,008 11,871 10,774 10,606
* Unaudited
2003 Changes in Shareholders' Equity
Euros in Millions
Shareholders' Equity as of December 31, 2002 2,026.3
Net Income (19.7)
Dividend Paid (77.3)
Impact of the merger between Technip and Coflexip:
Capital Increase 48.5
Minority Interests Reduction (14.3)
Treasury Stock (9.7)
Foreign Exchange Translation Adjustments and Others (15.8)
Shareholders' Equity as of December 31, 2003 1,938.0
ANNEX III
CONSOLIDATED STATEMENT OF CASH FLOWS
Euros in Millions
Unaudited
Net Income (19.7)
Depreciation of Property, Plants & Equipment 117.9
Goodwill Amortization 113.7
Provision for Redemption Premium on Convertible Bonds 16.1
Net Loss (Gain) on the Disposal of Fixed Assets 0.3
Deferred Income Tax 1.3
Minority Interests and Other (0.3)
Cash from Operations 229.3
Change in Working Capital 119.4
Net Cash Provided by (Used in) Operating Activities 348.7
Capital Expenditures (122.4)
Proceeds from Assets Disposals 104.8
Other Cash Provided by (Used in) Investment Activities 28.6
Net Cash Provided by (Used in) Investment Activities 11.0
Increase (Decrease) in Debt (86.0)
Repurchase of Outstanding Shares (6.5)
Dividend Payment (77.3)
Net Cash Provided by (Used in) Financing Activities (169.8)
Foreign Exchange Translation Adjustment (38.6)
Net Increase (Decrease) in Cash and Cash Equivalents 151.3
=======
Cash and Cash Equivalents as of December 31, 2002 741.1
Cash and Cash Equivalents as of December 31, 2003 892.4
151.3
=======
ANNEX IV
Euros in millions
Unaudited
Revenues
-----------------------------------------
4th Quarter Full Year
-------------------- --------------------
Business Branch 2003 2002 Change 2003 2002 Change
------ ------ ------ ------ ------ ------
Offshore 617 534 15.5% 2,210 2,125 4.0%
Onshore/Downstream 575 523 9.9% 2,119 1,938 9.3%
Industries 99 88 12.5% 382 389 (1.8)%
------ ------ ------ ------ ------ ------
Total 1,291 1,145 12.8% 4,711 4,452 5.8%
Revenues by Region
-------------------------------------------
4th Quarter Full Year
--------------------- ---------------------
Region 2003 2002 Change 2003 2002 Change
------ ------ ------- ------ ------ -------
Europe, Russia, C Asia 265 274 (3.3)% 1,138 1,197 (4.9)%
Africa, Middle-East 696 440 58.2% 2,150 1,482 45.1%
Asia Pacific 99 112 (11.6)% 345 445 (22.5)%
Americas 231 319 (27.6)% 1,078 1,328 (18.8)%
------ ------ ------- ------ ------ -------
Total 1,291 1,145 12.8% 4,711 4,452 5.8%
EBITDA
----------------------------------------
4th Quarter Full Year
------------------- --------------------
Business Branch 2003 2002 Change 2003 2002 Change
----- ----- ------- ------ ------ ------
Offshore 57.4 69.7 (17.6)% 242.7 250.1 (3.0)%
Onshore/Downstream 36.0 20.5 75.6% 100.4 85.3 17.7%
Industries (5.1) 2.1 nm 2.4 12.2 nm
----- ----- ------- ------ ------ ------
Total 88.3 92.3 (4.3)% 345.5 347.6 (0.6)%
EBITA
----------------------------------------
4th Quarter Full Year
------------------- --------------------
Business Branch 2003 2002 Change 2003 2002 Change
----- ----- ------- ------ ------ ------
Offshore 32.5 39.5 (17.7)% 142.1 126.9 12.0%
Onshore/Downstream 32.0 17.3 85.0% 86.0 68.9 24.8%
Industries (6.3) 1.1 nm (0.5) 8.8 nm
----- ----- ------- ------ ------ ------
Total 58.2 57.9 0.5% 227.6 204.6 11.2%
Net Debt
Euros in millions Dec 31 Sept 30 June 30 Mar 31 Dec 31
2003 2003 2003 2003 2002
------- ------- ------- ------- -------
Marketable Securities 110 108 81 327 99
Cash 782 589 553 399 642
Cash & Cash Equivalents (A) 892 697 634 726 741
Short Term Debt 227 321 390 306 301
Long Term Debt 903 921 923 926 946
Gross Debt (B) 1,130 1,242 1,313 1,232 1,247
Net Debt * (B - A) 237 545 679 506 506
* Does not include the reimbursement premium on the convertible bonds
issued in the first quarter of 2002.
Foreign Exchange Conversion Rates vs. Euro
Statement of Income Balance Sheet
-------------------------------- --------------------------------
Dec 31 June 30 Dec 31 Dec 31 June 30 Dec 31
2003 2002 2002 2003 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
USD 1.13 1.10 0.95 1.26 1.14 1.05
GBP 0.69 0.69 0.63 0.70 0.69 0.65
ANNEX V
Euros in millions
(unaudited)
Order Intake
4th Quarter Full Year
--------------------- ---------------------
Business Branch 2003 2002 Change 2003 2002 Change
------ ------ ------- ------ ------ -------
Offshore 383 358 7.0% 3,531 1,706 107.0%
Onshore/Downstream 379 547 (30.7)% 2,666 3,317 (19.6)%
Industries 158 210 (24.8)% 385 530 (27.4)%
------ ------ ------- ------ ------ -------
Total 920 1,115 (17.5)% 6,582 5,553 18.5%
Backlog by Business Branch
--------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
2003 2003 2003 2003 2002
-------- -------- -------- -------- --------
Offshore 2,895 3,140 3,047 1,609 1,761
Onshore/Downstream 3,907 4,081 4,210 4,126 3,625
Industries 378 305 315 356 390
-------- -------- -------- -------- --------
Total 7,180 7,526 7,572 6,091 5,776
Backlog by Region
--------------------------------------------
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
2003 2003 2003 2003 2002
-------- -------- -------- -------- --------
Europe, Russia, C. Asia 1,480 1,232 1,058 1,005 833
Africa, Middle East 4,162 4,761 4,890 3,356 3,038
Asia Pacific 509 616 633 582 511
Americas 1,029 917 991 1,148 1,394
-------- -------- -------- -------- --------
Total 7,180 7,526 7,572 6,091 5,776
Backlog Scheduling
-------------------------------------------
Onshore/
As of Dec. 31, 2003 Offshore Downstream Industries Total
---------- ---------- ---------- ----------
For 2004 1,733 1,743 226 3,702
For 2005 841 1,582 126 2,549
For 2006 and Beyond 321 582 26 929
---------- ---------- ---------- ----------
Total 2,895 3,907 378 7,180
In addition, make sure to read these articles:
- Smith-Midland Corporation Announces Positive Results for the Year Ended December 31, 2002...
- B.O.S. Better On-line Solutions Ltd. Announces Financial Results for the Fourth Quarter...
- iVOW, Inc. Reports Fourth Quarter and Year-End Financial Results.
- Safeway Inc. Announces 1996Earnings.
- Teva Reports First Quarter 2002 Results; Sales Up 11%; EPS Up 60% to $0.64.
- Full Year 2002 Results in Line with Expectations; Strong Progress in Backlog -- Improved...
- Safeway Inc. announces 1995 earnings.
- MedQuist Reports Financial Results for Third Quarter 2002.
- MAAX Inc.: Results for Fiscal 2000, An Excellent YearFocused on Integration.
- The TJX Companies, Inc. reports 1995 year-end results.
- The Sports Authority's 1996 earnings per shareincreases 32.4% on record full year earnings...
- SCOR Announces 1996 Full Year Results; Return OnEquity Stood At 10.7%.
- Technip: Third Quarter 2006 Results.
- Applied Digital Solutions Reports Record 1999 Revenuesand Net Income.
- MAAX Delivers Record Results and Improved ProfitMargins in the Second Quarter.
Email
Digg It
del.icio.us
Related Resources
Business Resources
Sponsored Links
Site Map | Contact Us | FAQs | About Us | Media Kit | Reprints | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy
Copyright © 1999 - 2008 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.
© COPYRIGHT 2004 Business Wire
You may not repost, republish, reproduce, package and/or redistribute the content of this page,
in whole or in part, without the written permission of the copyright holder.
Online Business Database | Online Business Information | Email Marketing Lists | Sales and Marketing Solutions | Business Mailing Lists
AllBusiness.com, its parent company D&B, and its affiliates.
