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FIRST QUARTER 2006 RESULTS – Technip

Technip · May 18, 2006 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FIRST QUARTER 2006 RESULTS – Technip – slide 1
    FIRST QUARTER 2006 RESULTS MAY 18, 2006
  2. FIRST QUARTER 2006 RESULTS – Technip – slide 2
    First Quarter 2006 Highlights in Millions (except EPS) Change YoY Backlog 11,627 + 61.8% Revenues 1,574 + 31.1% Net Income 25.3 + 16.6% Fully diluted EPS (in ) 0.31 + 22.6% Annualized ROCE 15.7% vs. 5.7% First Quarter…
  3. FIRST QUARTER 2006 RESULTS – Technip – slide 3
    I. FIRST QUARTER 2006 GROUP FIGURES II. CURRENT BUSINESS ENVIRONMENT III. MEDIUM-TERM BUSINESS TRENDS IV. OUTLOOK First Quarter 2006 Results May 18, 2006 3
  4. FIRST QUARTER 2006 RESULTS – Technip – slide 4
    I. FIRST QUARTER 2006 GROUP FIGURES 1. Backlog 2. Revenues and Operating Income 3. Business Segment Performance 4. Income Statement 5. Convertible Bond 6. Cash Flow Statement 7. Balance Sheet 8. Net Cash Position 9. ROCE…
  5. FIRST QUARTER 2006 RESULTS – Technip – slide 5
    1.1 Backlog As of March 31, 2005 As of March 31, 2006 7,184 M 11,627 M 22% 9% SURF 26% Offshore Facilities 14% 68% Onshore-Downstream 57% Industries 3% 1% In months of revenues 16.9 24.3 EUR 11.6 billion backlog…
  6. FIRST QUARTER 2006 RESULTS – Technip – slide 6
    1.2 Backlog: Market Split As of March 31, 2005: As of March 31, 2006: 7,184 M 11,627 M Petrochems Deepwater Petrochems 17% Refining / Deepwater 25% 9% Heavy Oil 25% 18% Refining / 12% Heavy Oil 6% Shallow 15% Water Shallow…
  7. FIRST QUARTER 2006 RESULTS – Technip – slide 7
    2. Revenues and Operating Income in Millions (not audited) 1Q 2006 1Q 2005 Change Revenues 1,574.4 1,201.3 + 31.1% Operating Income 54.0 50.4 + 7.1% Operating Margin Ratio 3.4% 4.2% Moderate growth in operating income…
  8. FIRST QUARTER 2006 RESULTS – Technip – slide 8
    3. Business Segment Performance in Millions (not audited) SURF Offshore Onshore- Industries Facilities Downstream Revenues 493.4 293.0 739.1 48.9 Change +23.1% +63.0% +33.6% -27.4% Op. Income 40.0 11.4 1.2 2.5 Change +29.0%…
  9. FIRST QUARTER 2006 RESULTS – Technip – slide 9
    4. Group Income Statement in Millions (not audited) 1Q 2006 1Q 2005 Change Revenues 1,574.4 1,201.3 + 31.1% Operating Income 54.0 50.4 + 7.1% Financial Charges (17.3) (17.3) = Income of Equity Affiliates 0.4 (0.2) nm Profit Before…
  10. FIRST QUARTER 2006 RESULTS – Technip – slide 10
    5. Convertible Bond Softcall March 2006: 3.58 million bonds (99.94% of the total outstanding) were exchanged for 14.31 million shares, of which 19% existing shares and 81% newly created shares Slightly accretive transaction: on a…
  11. FIRST QUARTER 2006 RESULTS – Technip – slide 11
    6. Cash Flow Statement in Millions (not audited) SOURCES USES Operating Cash Flow 44 Capex 32 Working Capital 55 Debt 25 Asset Disposals* 35 Share Repurchase** 67 Cash 12 Feta and Other 22 TOTAL 146 TOTAL 146 * Cash…
  12. FIRST QUARTER 2006 RESULTS – Technip – slide 12
    7. Group Balance Sheet in Millions (not audited) Mar. 31, 2006 Mar. 31, 2005 FIXED ASSETS 3,267.7 3,234.1 OTHER ASSETS 1,918.1 1,712.5 CASH 2,175.8 1,409.1 + 54.4% TOTAL ASSETS 7,361.6 6,355.7 SHAREHOLDERS EQUITY (incl. Min.…
  13. FIRST QUARTER 2006 RESULTS – Technip – slide 13
    8. Net Cash Position in Millions 1,328 Net Cash 03-31-2005 Net Debt 03-31-2006 - 151 Over time, excess cash (currently estimated at 600 M) will be returned to shareholders, mainly through share repurchases. First…
  14. FIRST QUARTER 2006 RESULTS – Technip – slide 14
    9. Net Return on Capital Employed in Millions Q1 2006 Q1 2005 Profit Before Tax 36.4 33.5 Financial Charges 17.3 17.3 Notional Income Tax (30%) (16.3) (16.7) Adjusted Net Income (1) 38.1 33.5 Opening Shareholders Equity (inc.…
  15. FIRST QUARTER 2006 RESULTS – Technip – slide 15
    II. CURRENT BUSINESS ENVIRONMENT 1. Technip: Change in Contract Mix 2. Impact of Booming Oil & Gas Capex 3. Impact of Rising F&D Costs First Quarter 2006 Results May 18, 2006 15
  16. FIRST QUARTER 2006 RESULTS – Technip – slide 16
    1.1 Technip: Change in Contract Mix Under Technips accounting policy, margin recognition on LSTK contracts is very progressive, with no margin recognized during early execution phase. As a result, during any particular quarter,…
  17. FIRST QUARTER 2006 RESULTS – Technip – slide 17
    1.2 Technip: Change in Contract Mix Backlog Increase % Revenues Coming From New Contracts(1) 12.31.04 12.31.05 Q1 2005 Q1 2006 SURF + 45% 31% 58% Offshore Facilities + 28% 50% 60% Onshore-Downstream + 90% 34% 71% This…
  18. FIRST QUARTER 2006 RESULTS – Technip – slide 18
    2.1 Impact of Booming Oil and Gas Capex Positive Effects Negative Implications Higher level of activity Higher volatility in raw material and equipment costs Better pricing environment Stretched manufacturing, construction and…
  19. FIRST QUARTER 2006 RESULTS – Technip – slide 19
    2.2 Supply Chain Tensions Some Raw Material Costs Average Delivery Times % Weeks 400 75 Large Pressure Vessels Copper +264% 70 350 Nickel Heat Exchangers 65 Aluminum 300 60 Stainless Steel Air Coolers 55 250 Large…
  20. FIRST QUARTER 2006 RESULTS – Technip – slide 20
    3. Impact of Rising F&D Costs Average Finding and Development (F&D) Costs (/barrel) 12 10 + 66% 8 6 4 2 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 In this context, oil and gas companies are…
  21. FIRST QUARTER 2006 RESULTS – Technip – slide 21
    III. Medium-Term Business Trends 1. Overall Need for Massive Capex Remains 2. LNG: Rapid Growth Required to Cope with Fast Rising Demand 3. Capex of the 12 Largest Oil Companies First Quarter 2006 Results May 18, 2006 21
  22. FIRST QUARTER 2006 RESULTS – Technip – slide 22
    1. Overall Need for Massive Capex Remains World Oil Spare Production Capacity mbpd 6 Upstream 5 4 3 2 1 % World Refining Capacity Utilization 90 0 89 91-97 1998 1999 2000 2001 2002 2003 2004 2005 2006e 2007e…
  23. FIRST QUARTER 2006 RESULTS – Technip – slide 23
    2. LNG: Rapid Growth Required to Cope with Fast Rising Demand 2001 2020 3 12…
  24. FIRST QUARTER 2006 RESULTS – Technip – slide 24
    3. Capex of the 12 Largest Oil Companies Billion 200 180 Share Buybacks 160 140 Dividends 120 100 Capex 80 60 40 20 0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007e 2009e Capex expected to reach much higher levels…
  25. FIRST QUARTER 2006 RESULTS – Technip – slide 25
    IV. OUTLOOK 1. Radar Screen 2. Share Repurchase Program 3. Full Year 2006 Targets First Quarter 2006 Results May 18, 2006 25
  26. FIRST QUARTER 2006 RESULTS – Technip – slide 26
    1. Major Awards Expected by Technip and Competition in Next 12 Months OFFSHORE GAS / LNG REFINING / PETCHEM. SAXI-BATUQUE DOW Ethylene (Angola) L AKG2 (Qatar) L XL (Oman) FRADE (Brazil) L PASCAGOULA SABIC Petrochem. (The LNG TERM.…
  27. FIRST QUARTER 2006 RESULTS – Technip – slide 27
    2. Share Repurchase Program Approved at shareholders meeting on April 28, 2006 Up to 10% of outstanding shares (maximum allowed under French law) Validity: 18 months Maximum buying price: 75 per share Board has decided to…
  28. FIRST QUARTER 2006 RESULTS – Technip – slide 28
    3. Full Year 2006 Financial Targets* 2005 Actual 2006 Targets Revenues: 5.4 billion 6.8 billion Operating Income: 231 million 340 million + The operating income target is still valid but challenging. *2006 targets…
  29. FIRST QUARTER 2006 RESULTS – Technip – slide 29
    For more information, please contact: INVESTOR RELATIONS G. Christopher Welton Tel. +33 (0) 1 47 48 66 74 e-mail: cweltontechnip.com Xavier dOuince Tel. +33 (0) 1 47 78 25 75 e-mail: xdouincetechnip.com First Quarter…
  30. FIRST QUARTER 2006 RESULTS – Technip – slide 30
    Trading Technip ISIN FR0000131708 First Quarter 2006 Results May 18, 2006 30
  31. FIRST QUARTER 2006 RESULTS – Technip – slide 31
    ANNEXES 1. U.S. GAAP Net Income 2. Estimated Backlog Scheduling First Quarter 2006 Results May 18, 2006 32
  32. FIRST QUARTER 2006 RESULTS – Technip – slide 32
    Annex I: U.S. GAAP Net Income in Millions Not Audited 1Q 2006 IFRS Net Income 24.3 Restatement IAS 32/39 & FAS 133 and Other (8.2) U.S. GAAP Net Income 16.1 First Quarter 2006 Results May 18, 2006 33
  33. FIRST QUARTER 2006 RESULTS – Technip – slide 33
    Annex II: Estimated Backlog Scheduling in Millions Offshore Onshore SURF Facilities Downstream Industries Group Last 3 quarters of 2006 1,447 680 2,603 115 4,845 2007 777 255 3,414 25 4,471 2008 and Beyond 331 101 1,866 13…

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