Building Solutions for the Energy Industry Thierry Pilenko, - - PowerPoint PPT Presentation
Building Solutions for the Energy Industry Thierry Pilenko, - - PowerPoint PPT Presentation
Building Solutions for the Energy Industry Thierry Pilenko, Chairman and CEO September 4, 2013 Safe Harbor T his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical
Second Quarter 2013 Results 2
Safe Harbor
his presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking words such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “likely”, “should”, “planned”, “may”, “estimates”, “potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking
- statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our
actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material, especially steel as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or
- ther regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export
financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards, IFRS, according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due to underdeveloped infrastructure in some countries where we are performing projects. Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward looking information set forth in this release to reflect subsequent events or circumstances. **** This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other
- jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The
information contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities. This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly
- r indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal
restrictions of the United States or of other jurisdictions.
T
3
A World Leader Bringing Innovative Solutions to the Energy Industry
A world leader in project management, engineering and construction for oil & gas, chemicals and energy companies Revenues driven by services provided to clients Onshore/Offshore and Subsea Around 38,000 people in 48 countries 2012 Revenues: €8.2 billion; Operating margin(1) of 10% for the 4th year
(1) From recurring activities
National Oil Companies International Oil Companies
Diversified & Balanced Customer Base
4 Second Quarter 2013 Results
4.9 8.5 7.6 5.9 3.7 4.9 6.1 6.0 6.7 6.7 7.4 8.2 8.0 7.8 1.9 2.7 2.7 3.5 3.5 3.1 3.1 4.4 5.6 6.0 6.1 6.0 6.8 7.4
Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013 Jun 2013
ONSHORE/OFFSHORE SUBSEA
5
Backlog History
€ billion
Backlog Analysis
(1) Includes offshore platforms and subsea projects
Backlog by Geography
Asia Pacific Middle East Europe / Russia Central Asia Africa Americas
Backlog by Market Split
Petrochems Others Refining / Heavy Oil Gas / LNG / FLNG Shallow Water(1) Deepwater(1) >1,000 meters
6 Second Quarter 2013 Results
Backlog as of: December 2006: €10.3 billion December 2012: €14.3 billion June 2013: €15.2 billion
9% 30% 27% 12% 21% 20% 18% 29% 28% 48% 11% 8% 13% 9% 17% Dec 2006 Dec 2012 June 2013 23% 18% 30% 11% 42% 37% 37% 12% 9% 12% 14% 11% 16% 12% 10% 1% 2% 3% Dec 2006 Dec 2012 June 2013
7
2013 Full Year Objectives Maintained
(1)
Group revenue growing 11% to 16% to between €9.1 and €9.5 billion Subsea revenue growing to between €4.3 and 4.6 billion, with operating margin(2) around 15% Onshore/Offshore revenue growing to between €4.7 and €5.1 billion, with operating margin(2) between 6% and 7%
(1) year-to-date exchange rates (2) from recurring activities
Second Quarter 2013 Results
A World Leader Bringing Innovative Solutions to the Oil & Gas Industry
Onshore/Offshore
Proven track record with customers & business partners Engineering & construction Project execution expertise Early involvement through conceptual studies and FEEDs Knowhow High added-value process skills Proprietary platform design Own technologies combined with close relationship with licensors Low capital intensity Worldwide leadership Unique vertical integration R&D Design & Project Management Manufacturing & Spooling Installation First class assets and technologies Technologically Advanced Manufacturing plants High performing vessels Advanced rigid & flexible pipes Very broad execution capabilities
Subsea
8 Second Quarter 2013 Results
9
Global Business with Unique Multi-Local Footprint…
Kuala Lumpur Vitória Dande Lobito Port Harcourt Evanton Newcastle Pori Le Trait 5 Spoolbases 4 Flexible pipeline plants 4 Umbilical plants 1 Construction yard Tanjung Langsat Orkanger 4 Logistic bases Angra Porto Macaé Batam Mobile Carlyss Açu (under construction) Flexible-Lay & Construction Rigid Reel-Lay & J-Lay Rigid S-Lay and Heavy Lift Diving & Multi-Support Vessels 4,800 people Founded in 1978 North Sea 3,900 people Founded in 1971 North America 4,300 people Founded in 1977 Latin America 2,500 people Founded in 1984 Middle East 750 people Founded in 1995 Africa 8,900 people Founded in 1982 Asia Pacific 8,900 people Founded in 1958 Europe
x15 x4 x4 x13
Houston
Second Quarter 2013 Results
…Supporting Early Involvement in Projects
10
Aberdeen Paris Mumbai Kuala Lumpur Perth Trinidad Rome London Abu Dhabi Beijing Genesis Regional Headquarters / Operating centers Oslo Singapore Houston Claremont Cambridge
Milton Keynes Zoetermeer
Stavanger
Tunis
Rio de Janeiro Process Technologies Regional Headquarters / Operating centers Genesis & Process Technologies Regional Headquarters / Operating centers Brisbane
Second Quarter 2013 Results
Technip E&C Activities
Early Involvement Improves Likelihood of Successful Project Development and Execution
11
ASSESS CONCEPT SELECTION FEED EPC OPERATE DECOM CREATE
Subsea / Offshore
LICENSE PROCESS DESIGN FEED EPC TECHNICAL ASSISTANCE DEVELOP
Onshore
Field Development Planning through: Safety & environmental assessment Capex/Opex estimates Risk analysis Flow assurance Consultancy to support execution: HSE Risk & integrity management Specialized services Debottlenecking Inspection services Decommissioning studies Early collaborative approach through: Joint‐development of new technologies Licensing Process Design Book Validation process packages Supply of proprietary equipment Project Management Consultancy (PMC) Performance tests Debottlenecking Revamp & Upgrade
CONCEPTUAL START‐UP
Early Engagement
CONCEPT DEFINITION
Second Quarter 2013 Results
12
Deeper Understanding from Seabed to Surface
Subsea architects assist clients:
- Identify solutions from seabed to surface
- Define scope of work & specifications
- Evaluate Cost & Schedule
- Assess risks & contingencies
- Select fit for purpose options
- Prepare FEED phase
Second Quarter 2013 Results
13
New Asset Delivery in 2013: Deep Energy
- Supports subsea developments in
ultra deep waters (down to 3,000 m)
- Variety of cranes and winches to support
- perations in multiple environments
- 2 x 3,000 m work-class ROVs(1)
- PLET handling system delivers In-Line
Trees, Riser Base Gas Lift Skids, and Riser Hang Off Flex Joints
- Handles rigid pipes up to 18”, flexible
pipes up to 24” and umbilicals in water depths up to 3,000 m
One of the largest and fastest pipelay vessels ever built
(1) ROV: Remotely operated vehicle (2) Length: 194,5 meters, Speed: 20 knots, Accomodation: 140 people
Deep Energy (2)
14
New Asset Delivery in 2013: Deep Orient
- Capable of laying flexible pipe &
umbilicals in water down to 2,300 m
- Designed to remain stable in a range
- f loaded conditions, maximizing
workability and that of the crane
- 2 work class ROVs(1)
- 250 T active heave-compensated /
constant tension crane enables the vessel to lift and install with pin-point accuracy
- Large deck space (>1,900 m2) for
- perations in remote locations
Ideal for subsea construction and long distance flexible pipelay projects in remote locations
Deep Orient (2)
(1) ROV: Remotely operated vehicle (2) Length: 135,65 meters, Speed: 13 knots, Accomodation: 120 people
15
Investing in Key Differentiating Assets: Long Term Charter Flexible Pipe Lay Vessels
(1) laying capacities
)
4 Flexible Pipe Lay Vessels to be built by the Technip/DOF JV World’s largest: two 650 ton to be built in Norway(1) National content: two 300 ton to be built in Brazil(1)
Second Quarter 2013 Results
16
Açuflex in Brazil
New Asset Delivery in 2013: Açu Plant
One of the most technologically advanced plants ever built
- High-end flexible manufacturing plant
dedicated to pre-salt development
- Expanding Brazil’s national content
- High-tech large diameter flexible pipes
- 3000 metres Water Depth Flexibles for
New Frontiers
- Initial start-up at end of 2013
- Plant construction & machinery delivery
- n-going and on time
- >150 employees gaining experience at
Vitória Açu plant in Brazil
- High-end flexible manufacturing plant
dedicated to pre-salt development
- High-tech large diameter flexible pipes
- 3,000 meters water depth for new frontiers
- Expanding Brazil’s national content
- Initial start-up at end of 2013
- Plant construction & machinery delivery
- n-going and on time
- >150 employees gaining experience at
Vitória
Second Quarter 2013 Results
Innovative Flexible Pipe Solutions:
Challenging Reservoirs & Ultra Deepwater Developments
17
Anti H2S layer
Cost effective solution for highly corrosive fluids
Integrated Production Bundle
Multi service pipe: production, gas lift, power, heating, monitoring and chemical injection
Carbon fiber armor flexible pipe
Lighter and stronger material with excellent corrosion and fatigue performances
Pre-salt large diameter flexible pipe
Deepwater, large diameters, high pressure, strong corrosion performances
Smoothbore riser
Internal layer designed to eliminate noise and vibration for dry gas risers Top tension reduction by up to 35%1 relative to sour service Improve flow assurance Reduce pipelay vessel capacity requirements Guara & Lula Nordeste: 2,250m water depth, 552 bars Ensure riser and topside integrity, while reducing pressure drop
1 8-inch flexible riser in a water depth of 2,500 meters (design pressure of 350 bars)
Second Quarter 2013 Results
Offshore Solutions
18 18
Prelude FLNG, Australia
Floating LNG
World’s first references under construction Breakthrough: develop remote gas reserves
Lucius SPAR sail away to Gulf of Mexico
SPAR
Solution for harsh waters 15 delivered out of 17, plus 2 ongoing projects
Second Quarter 2013 Results
FLNG LNG GTL
Ideal for reserves located far
- ffshore in deep water
Economically attractive in areas with high onshore construction costs Potential for reduction of overall field development time Development of small fields with relocation Monetize offshore associated gas versus re-injection or flaring High demand for LNG worldwide Marketing flexibility vs pipelines Technology readily available under license with well developed service industry Good returns through long term sales agreements Access to resources for IOC’s Economically attractive with an increasing spread between oil and gas prices Regions close to consumer markets and/or without direct sea access Lower product distribution costs Alternative solution to monetize gas for investors with technology
19
LNG, FLNG & GTL Investment Drivers
Second Quarter Results 2013
Stone & Webster Process Technologies: Enhanced Portfolio of Downstream Technologies
Natural Gas Refining GTL Hydrogen Ethylene
Business Domains
20
LNG Crude Oil
Cryogenic separation Cooperation with Air Products and Chemicals, Inc. (APCI) Exclusive co-developer of Sasol Fischer Tropsch reactor technology Steam reformer proprietary technology Alliance with Air Products Ammonia technology licensing cooperation with Haldor Topsoe Complementary proprietary technologies with different clients & geographic bases Polyolefins and others Residual Fluid Catalytic Cracking Deep Catalytic Cracking
Technip
Fertilizer Intermediates polymers derivatives
Technologies and Skills
Stone & Webster process technologies and associated oil and gas engineering capabilities
20 Second Quarter 2013 Results
21
Opportunities all Along the Gas Value Chain
Petrochemicals
- Ammonia/Urea
- Hydrogen
- Polyethylene
- Polyvinyl chloride…
Steam cracker (Ethylene)
Associated Gas Non- Associated Gas
Natural Gas Pipeline Onshore Liquefaction
C5-12 C5-20 Methane (C1) Ethane (C2) C3/C4
Gasoline Condensate LPG
CO2 Water Sulphur
Oil Field Facilities
- inc. Shale oil
Gas Field Facilities
- inc. Shale gas
Offshore Liquefaction Qatar LNG Prelude FLNG, Australia Oryx GTL, Qatar Phu My Fertilizer, Vietnam Gas Processing Khursaniyah, S. Arabia Yansab, Saudi Arabia GTL Coal bed methane
Second Quarter Results 2013
22
Business Environment
Second Quarter 2013 Results
Solid Fundamentals for Oil & Gas Industry
20 40 60 80 100 120 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
2015 - 2035 Demand: +13 mb/d Depletion rate 2010 - 2035: ~6%*
Total production:
NGLs Unconventional Biofuel Processing Gains Yet to be Developed Yet to be Found
Estimated Oil Demand
*IEA WEO 2011 - 2012: Depletion rate calculated on average. Depletion is the annual rate at which the remaining recoverable resources of a field or region are being produced.
2015 - 2035 production
- 37 mb/d on current
produced crude oil reserves +15.5 mb/d of other
- il-based resources
+34 mb/d of Crude Oil to be developed/found +2.5 mb/d +16 mb/d +18 mb/d +1 mb/d +4 mb/d +8 mb/d
- 37 mb/d
million barrels per day (mb/d)
Crude Oil
Oil Demand versus Production
Second Quarter 2013 Results 23
24 24
Business Environment
Emerging deeper water prospects GDP growth drives refining, petrochemicals and fertilizer investments New Australian gas projects continue, onshore developments less certain Momentum building in West Africa subsea New discoveries to drive future onshore & offshore developments Africa Upswing in US Gulf of Mexico US shale gas driving downstream investments and LNG FEEDs Upgrades & brownfield prospects North America High level of subsea awards continues Larger & more complex projects Increase in platform activity North Sea Sustained volume of activity Good opportunities offshore, subsea & downstream Middle East Asia Pacific Growing visibility in Brazil with post-salt & pre-salt developments Technology choices & necessary assets Latin America
Second Quarter 2013 Results
Vertical integration
25
Our Strategic Framework
Well diversified, profitable backlog Key differentiating assets Technology National content Execution capability
To Deliver Sustainable & Profitable Growth
Second Quarter 2013 Results
26 Second Quarter 2013 Results
Annex
Revenue grew by 18.1%(1), to €2.4 billion Group Operating margin(2) at 10.0% Net income grew 19.4%(1), to €162.4 million EPS(3) grew 17.8%, to €1.35 per share €15.2 billion backlog, with €2.8 billion order intake Solid margins in both segments First projects completed for Deep Orient vessel Portfolio diversification maintained: Iracema Sul, Brazil: Flexible pipes for the pre-salt Pacific LNG, Canada: Early involvement, know-how intensive P-76 FPSO, Brazil: Engineering & Integration of topsides
27
Second Quarter 2013 Highlights
Financials Achievements
Second Quarter 2013 Results
(1) year-on-year (2) from recurring activities (3) diluted Earning Per Share: 124,410,586 outstanding shares
28
Second Quarter Order Intake
Subsea
Iracema Sul pre-salt flexible pipes, Brazil South White Rose Extension field, Canada Egina umbilicals & flexible pipes, Nigeria Exxon Mobil Julia EPCI, US Gulf of Mexico Snøhvit CO2 project, Norway
Onshore/Offshore
Bahrein refinery brownfield for third SRU(1) P-76 FPSO, Brazil Pacific LNG FEED, Canada Zhuhai Purified Terephthalic Acid plant, China Yamal LNG, Russia, early works Order intake Backlog
€ million
Order intake Backlog
Second Quarter 2013 Results
1,336 1,926 1,540 2Q 12 1Q 13 2Q 13 1,180 980 1,224 2Q 12 1Q 13 2Q 13
(1)Sulfur Recovery Unit
6,761 7,964 7,830 2Q 12 1Q 13 2Q 13 5,963 6,815 7,355 2Q 12 1Q 13 2Q 13
29
Second Quarter Subsea Operations
(1) from recurring activities (2) restated
Revenue Operating Income & Margin1 Engineering / Procurement ramp-up
- n large, new projects
Moho Nord, Congo Sapinhoa flexible pipes supply, Brazil Quad 204, UK Bøyla, Norway Julia, US Gulf of Mexico
2013 offshore operations on-going
Åsgard subsea compression, Norway Golden Eagle, UK Brynhild, Norway GirRI phase 2, Angola Liuhua, China
Vessel utilization rate: 84%
€ million
Second Quarter 2013 Results
147 175 2Q 12 2Q 13
15.0% 15.9%
2Q 12 2Q 13 981 1,103 2Q 12 2Q 13
(2) (2)
Second Quarter Onshore/Offshore Operations
Revenue Operating Income & Margin1 Upstream
Lucius Spar, US Gulf of Mexico Malikai TLP, Malaysia Upper Zakum EPC 1, Abu Dhabi Aasta Hansteen Spar, Norway
Gas, LNG & FLNG
Petronas FLNG, Malaysia Prelude FLNG, Australia Other FLNG FEEDs, Australia/Asia
Refining
Burgas refinery, Bulgaria Jubail refinery, Saudi Arabia Algiers refinery, Algeria
Petrochemicals
Ikra vinyl plant, Russia Etileno XXI, Mexico
€ million
Second Quarter 2013 Results
1,071 1,321 2Q 12 2Q 13 78 89 2Q 12 2Q 13 7.2% 6.7% 2Q 12 2Q 13
(2) (2)
(1) from recurring activities (2) restated
30
31
Group Financial Highlights
(1) restated (2) calculated as operating income from recurring activities before depreciation and amortization (3) from recurring activities (4) diluted number of shares: 124,410,586 outstanding shares
+17%
€ million
+19%
Year-on-year change
+14%
2Q 12(1) 2Q 13
Revenue
2,052.2 2,423.6
EBITDA(2)
257.3 294.4
EBITDA Margin
12.5% 12.1%
Operating Income(3)
207.3 242.0
Operating Margin(3)
10.1% 10.0%
Non-Current Operating Result
(3.0)
- Financial Result
(18.9) (10.7)
Income / (Loss) before Tax
185.4 231.2
Effective Tax Rate
26.3% 29.3%
Net Income
136.0 162.4
Diluted Earning Per Share(4) 1.14 1.35 +18% +18%
32
Cash flow
€ million
3 Months Net Cash Position as of March 31, 2013 (90.9) Cash Generated from / (Used in) Operations 257.7 Change in Working Capital Requirements (75.1) Capital Expenditures (170.8)
Dividends paid (186.0)
Other including FX Impacts (6.1) Net Cash Position as of June 30, 2013 (271.2)
Better balance between spending on existing projects and contract advances Strong capex ramp-up of €282 million for 1H13 Dividend amount grew by nearly 8% €17 million share buybacks during 2Q13 and €108 million over the last 12 months
Second Quarter 2013 Results
33
Diversified Backlog by Contract Size and Type
€7.4 billion backlog Moho Nord added over €1billion,
- ur largest project
Next largest projects:
Iracema Sul, Brazil Mariscal Sucre, Venezuela Quad 204, UK
Subsea Onshore & Offshore
€7.8 billion backlog Largest projects:
Prelude FLNG, Australia Etileno XXI, Mexico Martin Linge, Norway Over 15 projects in €100 - 350 million ~70 projects in €10 - 100 million ~15 projects in €100 - 600 million Over 50 projects in €10 - 100 million
Second Quarter 2013 Results
34
Backlog Visibility
(1)
(1) Backlog estimated scheduling as of June 30, 2013
Subsea Onshore / Offshore Group
2013 (6 months) 1,938 2,453 4,391 2014 2,485 3,136 5,621 2015 and beyond 2,932 2,241 5,173 Total 7,355 7,830 15,185
€ million
Second Quarter 2013 Results
35
Two Complementary Business Models Driving Financial Structure and Performance
(1) from recurring activities
Subsea Onshore/Offshore
Operating Income1 Operating Margin1
Capital intensive: fleet and manufacturing units Vertical integration from engineering to manufacturing & construction Negative capital employed: low fixed assets High degree of outsourcing & sub- contracting
498 603
FY 11 FY 12
16.8% 14.9%
FY 11 FY 12 2Q 13 2Q 13
274 290
FY 11 FY 12
7.1% 7.0%
FY 11 FY 12 € million
Backlog 7,355 Operating Income1 Operating Margin1 7,830 Backlog
Second Quarter 2013 Results
Rigid Reel-lay Rigid J-lay
Subsea Vertical Integration: Customer Support from Concept to Execution
Concept Project Engineering & Procurement Upstream Engineering With Genesis(1)
Pre-FEED(2) and FEED Offshore field development studies Innovative technology solutions for platform and subsea challenges R&D, Proprietary Software & Hardware
Execution Manufacturing
Rigid S-lay P R O J E C T M A N A G E M E N T Flexible risers and flowlines Rigid Pipeline Welding/Spooling Umbilicals
Installation
Flexible-lay Umbilical-lay Associated construction Heavy-lift for Subsea infrastructure Offshore topside installation Support, Diving & Logistics
(1) Genesis Oil & Gas Consultants, a wholly owned subsidiary of Technip (2) FEED: Front End Engineering Design
36 Second Quarter 2013 Results
Delivering Best-for-Project Solutions Through Genesis
Genesis: A wholly owned subsidiary of Technip Provide independent, early phase engineering support to concept selection
Fixed and floating platform configuration and selection Subsea architecture development and component selection
Provide subsea engineering services from FEED through execution and operation
Project management / engineering management Flow assurance Deepwater expertise Subsea production systems Pipelines & risers Risk & integrity management
Over 1,300 dedicated Engineers and Designers
37 Second Quarter 2013 Results
Investment in Key Subsea Assets
38
5 7, incl. 1 under
construction
Plants
2007
New long-term charters
North Sea Giant
18 36, incl. 7 under
construction
Vessels
2007
North Sea Atlantic, delivery in 2014
As of June 30, 2013
Second Quarter 2013 Results
39
High Performing Fleet
1 As of June 30, 2013 2 Part of 7 vessels under construction
J-Lay Rigid Reel Lay
4 units
Flexible Lay & Construction
15 units
S-Lay Heavy Lift
4 units
Diving Multi Support Vessel
13 units
4 New PLSVs2 Deep Blue Deep Energy Apache II Chickasaw G1201 G1200 Hercules Iroquois Skandi Arctic Skandi Achiever Global Orion Alliance 2 x 550t PLSVs2 Skandi Niteroi & Vitoria Deep Orient
40
Flexibrás
Vitória, Brazil
Flexi France
Le Trait, France
Asiaflex Products
Tanjung Langsat, Malaysia
Port of Açu
Açu, Brazil
Flexible Pipe Manufacturing Plants
Second Quarter 2013 Results
41
Umbilicals Manufacturing Plants
Duco Inc
Houston, USA
Duco Ltd
Newcastle, UK
Angoflex
Lobito, Angola
Asiaflex Products
Tanjung Langsat, Malaysia
Second Quarter 2013 Results
42
Mobile, Alabama, USA Orkanger, Norway Evanton, UK Dande, Angola Carlyss, Louisiana, USA
Offshore Manufacturing & Logistic Bases
Port of Angra, Brazil
Second Quarter 2013 Results
43
Very Broad Execution Capabilities in Subsea
S-Lay Heavy Lift
Deep-to-shore Deepwater infield lines Ultra-deep water infield lines
(Very high tensions: alliance with Heerema)
Subsea Heavy Lift J-Lay & Reel-Lay J-Lay & Reel-Lay
Second Quarter 2013 Results
Ultra-Deepwater Challenges
Larger developments with contracting interfaces increasingly difficult to manage by operators Increasing use of EPCI contracts requiring extensive project management and execution experience Heavier subsea equipment Vessels with higher lifting/abandonment capacity Deeper water and heavier pipes Vessels with higher tension pipe laying capacities Increasing QHSE1 requirements State‐of‐the‐art vessels and experienced project management required
44
1 Quality, Health, Safety & Environment
Second Quarter 2013 Results
Helping Clients to Develop Ultra-deepwater Fields
Geographical footprint covers key subsea markets worldwide (engineering, sales & business development, yards, spoolbases, flexible & umbilical plants) Track record in engineering & project management of complex projects Financial strength to endorse large contract responsibility Unique set of capabilities for ultra- deepwater market:
- Experienced engineering & project
management
- High capacity vessels
- State-of-the-art laying technologies
(J-, Reel-, S- and Flex-Lay)
- Logistic and construction network
(yards, plants)
- Sales & business development
network Installation capabilities for Ultra-Deepwater Extensive track record of fabrication and installation of heavy and specialized pipelines Capabilities for remote areas lacking infrastructure, thanks to liftable reel-lay system
45 Second Quarter 2013 Results
Onshore/Offshore Key Markets
46
Petrochemical & Ethylene LNG & GTL Floating LNG Spar Fixed platform
Expertise in Full Range of Offshore Facilities Onshore Downstream Unique Position
FPSO Fertilizer Refining
46 Second Quarter 2013 Results
CP Chem cracker, USA Braskem Comperj petrochemical complex, Brazil Braskem / Idesa Ethylene XXI, Mexico Reliance cracker, India EBSM1: El Dekila Egyptian Polystyrene Prod. Co., Egypt Cumene: Lihuayi Weiyuan Chemical Co. Ltd., China Sasol Uzbekistan GTL, Uzbekistan Sasol Oryx plant, Qatar Resid FCC2: Takreer, UAE DCC2: Petro-Rabigh, Saudi Arabia & IRPC, Thailand McKee & Memphis refineries, USA Petrochina Chengdu refinery, China ~35% installed capacities with ~120 references ~25% of licensing over the past 10 years ~25% of installed capacities over the past 10 years including 7 EPC Leading position around key proprietary technologies1 through Badger JV Strong track-record and technology partnership with Sasol Resid FCC2: world leader, >75 references DCC2: unrivalled performance, >10 references World leader with ~40% market share, inc. alliance with Air Products, >240 references Petrochemicals
Technip Stone & Webster Process Technology Leading Position in Growing Markets
Refining GTL Hydrogen S&W Ethylene
47
Technip Ethylene
Strong Track Record Recent Key Projects
(1) Ethylbenzene / Styrene Monomer (EBSM), Cumene, Bisphenol A (BPA) (2) RFCC: Resid Fluid Catalytic Cracking. DCC: Deep Catalytic Cracking
47 Second Quarter 2013 Results
Engineering & project management centers Flexible/umbilical manufacturing plant: Asiaflex, Malaysia, 1st and only one in Asia Logistic base: Batam, Indonesia Fabrication yard: MHB1, Malaysia, with solid platform track record, Vessel
48
Asia Pacific: Dedicated Assets for High Potential Market
Perth Bangkok Shanghai Singapore Jakarta Balikpapan Tanjung Langsat
~8,900 people Founded in 1982
Technip in Asia Pacific
1 8.5% participation
Batam
Assets & Activities
Woodside GWF, Subsea, Australia Prelude FLNG, Onshore/Offshore, Australia FLNG FEED, Onshore/Offshore, Malaysia Biodiesel plant, Onshore/Offshore, Singapore
Key Projects
Deep Orient Asiaflex, Malaysia
Regional Headquarter / Operating centers Logistic base Flexible & umbilical manufacturing plant
Kuala Lumpur New Delhi Mumbai Chennai Seoul Miri Rayong Ho Chi Minh City
As of June 30, 2013
G1201
2 Operating partly in Asia Pacific
Second Quarter 2013 Results
Al-Khobar Doha Abu Dhabi Dubaï Baghdad
Engineering & project management centers Wide range of services: from conceptual and feasibility studies to lump sum turnkey projects Construction methods center & supervision hub
49
Middle East: Largest Engineering Capacity in the Region
Operating centers
Assets & Activities
OAG Package 1 on Das Island Facilities, UAE ASAB 3, UAE Khafji Crude Related Offshore, Saudi Arabia and Kuwait Upper Zakum 750K FEED, UAE KGOC Export Pipeline, Saudi Arabia and Kuwait
Key Projects
~2,500 people Founded in 1984
Technip in Middle East
Asab 3, UAE Upper Zakum 750+, UAE
As of June 30, 2013
Second Quarter 2013 Results
Cambridge Weymouth Calgary Los Angeles Monterrey Mexico City Ciudad del Carmen Houston Carlyss Mobile
Regional Headquarter / Operating centers
Engineering & project management centers with Subsea, and Onshore/Offshore capabilities Spoolbases
Mobile, Alabama Carlyss, Lousiana
Umbilical plant
Channelview, Texas
Vessels
50
North America: Solid Reputation With Enhanced Portfolio of Downstream Technologies
Spoolbases Manufacturing plants (umbilicals)
Assets & Activities
Reel-lay tie-backs in the Gulf of Mexico Lucius Spar, Gulf of Mexico BP 10-year spar agreement, Gulf of Mexico Shell subsea engineering frame agreement with Genesis, US & Brazil Recurring activities, US & Mexico
Light reel-lay Inspection, repair & maintenance, diving support & surveys
Key Projects
Chickasaw Deep Blue1
1 Operating partly in the Gulf of Mexico
~3,900 people Founded in 1971
North America
Duco umbilical plant, USA Mobile spoolbase, USA Lucius Spar, Gulf of Mexico Pioneer
As of June 30, 2013
Quad 204, EPCI, UK Islay, ETH-PIP1 EPCI, UK Åsgard Subsea Compression, Norway Åsgard Hot Tap, 1st remote retrofit tee hot-tap operation, Norway Bøyla, PIP2 EPCI, Norway
Aberdeen
- St. John’s
Evanton London Newcastle Pori Oslo Orkanger Stavanger Haugesund Milton Keynes
Engineering & project management centers Spoolbases
Orkanger, Norway Evanton, UK
Steel tube/thermoplastic umbilical plant
Duco Newcastle, UK
Yard: Pori, Finland, specialized in Spar platforms fabrication Offshore wind: headquarters in Aberdeen, UK Vessels
51
North Sea Canada: Market Leadership in a Growing Market
~4,800 people 1st office founded in 1978
Technip in North Sea Key Projects Assets & Activities
Wellservicer Orelia Alliance Pori, Finland
Spoolbases Construction yard Manufacturing plants (umbilicals) Regional Headquarter / Operating centers
Apache II Skandi Arctic
1 ETH-PIP: Electrically Trace Heated Pipe-In-Pipe 2 PIP: Pipe-In-Pipe
As of June 30, 2013
Regional Headquarter / Operating centers
Brazil: Building upon Solid & Profitable Business
52 Port of Angra Macaé Açu Vitoria
Rio de Janeiro
Wide range of assets: High-end manufacturing plants: Flexibras and Açu (world’s most technologically advanced plant) Nine Flexible Pipelay vessels (PLSVs) on long- term charters including under construction:
two 650 ton: Norway two 300 ton: Brazil two 550 ton: Korea
Commitment to R&D: taking pre-salt development further Vertical integration: providing supply chain & logistic solutions
Differentiating Assets & Activities
Iracema Sul, Sapinhoá & Lula Nordeste Flexible pipe supply for ultra-deep pre-salt development Strengthening capacity to serve fast growing Brazilian subsea market P-76 FPSO Papa Terra Integrated Production Bundle
Key Projects & Awards
Flexibras, Brazil
~4,300 People Founded in 1977 Exceed national content requirements Operational discipline Flexible supply expertise
Technip in Brazil
+35 years
Port and Logistic bases Manufacturing plants (flexible pipelines) Second Quarter 2013 Results
Technip in Brazil: Steady Development to Provide Unmatched Local Content
2011
Garoupa Platform 1st flexible pipe installed 100m water depth Roncador Field Development & P-52 Platform 1,800m water depth
1977 2007
P-58/P-62 Brazilian FPSOs award Acquisition of Angra Porto logistic base
2009
1st IPB2 in Brazil 1st Brazilian PLSV: Skandi Vitória
2010
Flexibras: 1st Flexible plant
1986 2001
Acquisition of UTC Engineering
1995
1st LTC1 with Petrobras: Sunrise 2nd Brazilian PLSV: Skandi Niteroi
~20 people ~3,700 people ~2,000 people
53
1 Long Term Charter 2 Integrated Production Bundle
Flexible pipe frame agreement with Petrobras
2012
As of June 30, 2013
Second Quarter 2013 Results
Listed on NYSE Euronext Paris
Shareholding Structure, May 2013 (Nov. 2012)
54
North America 33.5% / (31.7%) Treasury Shares 2.3% / (2.0%) Employees 2.6% / (2.6%) IFP Energies Nouvelles 2.5% / (2.5%) Rest of World 19.6% / (18.1%) French Institutional Investors 15.5% / (16.4%) Individual Shareholders 6.2% / (5.1%) Others 2.4% / (4.7%) UK & Ireland 10.2% / (11.7%) Institutional Investors 83.0% / (83.1%) FSI 5.2% / (5.2%)
Source: Thomson Reuters, Shareholder Analysis, May 2013
Second Quarter 2013 Results
55
Technip’s Share Information
ISIN: FR0000131708
Bloomberg: TEC FP Reuters: TECF.PA SEDOL: 4874160
OTC ADR ISIN: US8785462099
OTCQX: TKPPY
Convertible Bonds:
OCEANE 2010 ISIN: FR0010962704 OCEANE 2011 ISIN: FR0011163864
Private Placement Notes: ISIN: FR0010828095
Second Quarter 2013 Results
56
Bloomberg ticker: TKPPY CUSIP: 878546209 OTC ADR ISIN: US8785462099 Depositary bank: Deutsche Bank Trust Company Americas Depositary bank contacts: ADR broker helpline: +1 212 250 9100 (New York) +44 207 547 6500 (London) e-mail: adr@db.com ADR website: www.adr.db.com Depositary bank’s local custodian: Deutsche Bank Amsterdam Technip has a sponsored Level 1 ADR
Second Quarter 2013 Results