Technip: Full Year 2007

• Order intake up 17%
• Revenue increased 14% to €7.9 billion
• SURF operating income from recurring activities up 83%
• Onshore-Downstream: profitability impacted by significant charges and legacy contract portfolio clarified
• Recommendation to raise 2007 dividend to €1.20

OUTLOOK FOR 2008

• Growth in Subsea (SURF) revenue of 10% with Group revenue around €8 billion
• Operating margin in Subsea above 15%
• Onshore (Onshore-Downstream + Industries) and Offshore (Offshore Facilities) on average 3.8%
• Therefore, Group operating margin above 7.3%

 

February 21, 2008 01:00 AM Eastern Standard Time

PARIS--(BUSINESS WIRE)--

Regulatory News:

“Technip ends 2007 with contrasting results but starts 2008 on surer footing and with better visibility. ”

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Technip (Paris:TEC) (ISIN:FR0000131708):

€ in Millions, (except EPS and E/ADS)		4Q07		4Q06		2007		2006
Revenue		2,101.2		1,982.3		7,886.5		6,926.5
Operating Income*		- 108.0		113.8		247.0		333.2
Operating Margin*		- 5.1%		5.7%		3.1%		4.8%
Net Income		- 97.5		63.0		126.3		200.1
EPS on a Diluted Basis (€)						1.20		1.86
E/ADS on a Diluted Basis ($)						1.76		2.71
Ordinary dividend per share (€)						1.20**		1.05
* from recurring activities    **Subject to shareholders’ approval

On February 20, 2008, Technip’s Board of Directors approved the audited full year 2007 consolidated accounts.

Thierry Pilenko, Chairman and CEO, commented: “Technip ends 2007 with contrasting results but starts 2008 on surer footing and with better visibility.

First, the excellent performance of the Subsea business (SURF), which achieved a record 15.8% operational margin in 2007 with four consecutive quarters of continuous improvement. We believe this regained momentum reflects our technological leadership and our vertically integrated business model.

Second, the financial status of the Onshore legacy projects has been clarified. These projects which include the four gas projects in Qatar won in the 2004 - 2006 period were affected by unpredictable costs escalation and a severe shortage of resources during the construction phase. As a consequence we recognized significant charges in 2007 which had a material impact on our margins. These measures on completed, nearly completed and ongoing projects significantly reduce the uncertainty of the outcome of these projects.

Third, our order intake grew 17% in 2007, and at year end our EUR 9.4 billion backlog is more balanced: the Subsea business, our most profitable segment, represents 37% of the backlog compared to 26% a year ago, the relative weight of the different regions is more homogeneous thanks to our growth in Europe and Africa and we increased the proportion of the lower-risk projects in the Onshore portfolio.

On the assets side, we accelerated investments in the second half of 2007 in order to fuel the growth of Subsea. We completed the expansion of the existing manufacturing capacity in Brazil and in France, started construction of a new flexible pipe plant in Asia, added two vessels to our fleet and launched the fabrication of two additional vessels for a total investment of approximately EUR 1 billion over the 2007 - 2010 period.

The fundamentals of our industry remain very strong with good visibility both onshore and offshore extending the growth trend beyond the end of the decade. From new deepwater developments to life extension of mature fields, from existing refinery upgrades to grass-root oil or gas projects, Technip is extremely well-positioned to take advantage of this market and has the right technical skills and a solid balance sheet to support growth with a strong focus on profitability.

In this environment Technip has set its 2008 financial goals as follows: Group revenue around EUR 8 billion, with 10% revenue growth in the Subsea segment, and therefore a Group operating profit above 7.3%.

Confident in our capacity to create long-term shareholder value, the Board of Directors recommends raising our 2007 dividend per share to EUR 1.20.”

I. FOURTH QUARTER 2007

A. OPERATIONAL HIGHLIGHTS

In the SURF⁽¹⁾ business segment, ongoing projects progressed well in all regions. The utilization rate of the Group’s vessel fleet reached 83% during the quarter and the flexible pipe manufacturing plants enjoyed a high level of activity. The Agbami project progressed very well as the fabrication of both flexible pipes and umbilicals as well as the first phase of offshore installation were completed. Capitalizing on the success of the Dalia SURF project and the development of Integrated Production Bundle flexible pipe, Technip was awarded its largest SURF contract to date - the Pazflor project in Angola.

In the Offshore Facilities business segment, topside modules were installed on the Akpo FPSO hull at the yard in Korea and modules interconnection is ongoing. On the Perdido Spar project for the Gulf of Mexico, hull construction is progressing in the Pori yard in Finland.

Concerning the Tahiti Spar project and as requested by the customer, new mooring shackles were delivered to the client in January 2008 as anticipated.

On the other SPAR project affected by metallurgical problems on certain mooring shackles, Technip's solution to the client, including replacement shackles is progressing as anticipated. The replacement costs of these shackles will be borne by insurance.

In the Onshore-Downstream business segment, a large number of projects are under construction in the Middle-East, Vietnam and Canada. Technip, as member of the TSKJ Joint Venture, successfully delivered the LNG Train 6 in Nigeria on schedule.

After an unprecedented number of large contract awards to the Oil & Gas service sector, 2007 was characterized by significant constraints as construction companies struggled to provide adequate resources to cope with the sharp increase in worldwide demand.

As a result of this difficult environment Technip took the following charges during the fourth quarter 2007, the full details of which can be found in the press release published on January 30, 2008:

• EUR 200 million covered all four gas projects in Qatar. This charge was calculated based on the forecasted results at completion of these four projects; Qatargas II, Rasgas III, Qatargas III&IV, AKG2.
• EUR 70 million covered three projects: two in Asia Pacific (one completed and the other on-going) and one in North America (97% completed).

In the Industries business segment, projects are progressing well.

B. FOURTH QUARTER 2007 FINANCIAL RESULTS

1. Revenue

At EUR 2,101.2 million, fourth quarter 2007 Group revenue was up 6.0% compared to the fourth quarter 2006.

During the fourth quarter 2007, the 9% depreciation of the US dollar and associated currencies, had a negative impact of EUR 78.9 million on the Group revenue.

2. Operating Income from Recurring Activities

As a consequence of the EUR 270 million charges recorded on Onshore-Downstream projects in the fourth quarter 2007, Group operating income from recurring activities is a loss of EUR 108.0 million, compared to a profit of EUR 113.8 million recorded during the fourth quarter 2006.

Financial income from contracts accounted as revenue, amounted to EUR 17.3 million during the fourth quarter 2007, EUR 10.6 million being associated with Onshore-Downstream.

Operating income from recurring activities excludes income from the sale of activities as follows:

3. Income from Activity Disposal

During the fourth quarter 2007, income from activity disposal amounted to a loss of EUR 0.8 million and represented exchange rate adjustments in the SURF segment (EUR -0.6 million on the disposal of PSSL and PSSI) and in the Offshore Facilities segment (EUR -0.2 million for the 50% sale of Technip’s stake in Gulf Island Fabricator Inc.).

4. Operating Income

During the fourth quarter 2007, Group operating income represented a loss of EUR 108.8 million, compared to the EUR 113.8 million profit recorded a year ago.

5. Results

Net financial charges were EUR 11.1 million including a EUR 1.9 million negative impact of foreign currency exchange rate variation and from IAS 32-39 on hedging instruments’ fair market value.

Income tax was a credit of EUR 20.5 million as a consequence of deferred tax assets recorded in the fourth quarter.

Net income was a loss of EUR 97.5 million, compared to the EUR 63.0 million profit during the fourth quarter 2006.

Average number of shares during the period on a diluted basis is calculated as per IFRS. For the fourth quarter 2007 this number of shares stood at 105,608,009 and 105,525,845 shares for the fourth quarter 2006.

Diluted EPS and E/ADS was minus EUR 0.92 and minus USD 1.35 in the fourth quarter 2007 compared to EUR 0.60 and USD 0.87 respectively, one year ago.

6. US GAAP

In the fourth quarter 2007 net income reconciled to U.S. generally accepted accounting principles (U.S. GAAP) amounted to minus EUR 115.3 million.

II. FULL YEAR 2007

A. ORDER INTAKE AND BACKLOG

In 2007, Technip’s order intake reached EUR 7,197.8 million compared to EUR 6,143.1 million in 2006. Listed in the annex II (d) are the main contracts that came into force in 2007 along with their approximate value (Group share) if publicly disclosed. The breakdown of the order intake by business segment in 2007 is as follows:

	- SURF		45.9%
	- Offshore Facilities		7.8%
	- Onshore-Downstream		42.2%
	- Industries		4.1%

As of December 31, 2007, the Group backlog amounted to EUR 9,389.5 million, compared to EUR 10,272.8 million a year ago. The breakdown of the backlog by business segment, as of December 31, 2007, is as follows:

	- SURF		37.0%	(2)
	- Offshore Facilities		5.9%
	- Onshore-Downstream		54.7%
	- Industries		2.4%

B. ASSETS AND CAPEX

Technip’s capex amounted to EUR 262 million in 2007 (cash impact).

Flexible pipe manufacturing plants

• Expansion of the production capacity of the Le Trait, France and Vitoria, Brazil flexible pipe manufacturing plants by 20% and 50%, respectively, was completed in 2007.
• New development programs included the expansion of the Vitoria plant’s storage area and installation of a new large capacity crane, 800 tons, in Le Trait, France to facilitate the loading of vessels. These programs are progressing well and should be completed in 2008 and 2009, respectively.
• Technip signed (early 2008) an agreement with the Tanjung Langsat Port for a 20-hectare (49-acre) land lease to set up a new flexible pipe manufacturing plant in Malaysia.

Vessel Fleet

• During the year 2007, two additional vessels joined the fleet. The Seamec Princess, after conversion works, is operational for shallow water Indian work for the Indian market. The Skandi Achiever, a new diving support vessel, was delivered to Technip (8-year charter agreement) and is assigned to UK North Sea activities. Today, Technip’s fleet totals 16 vessels.
• Technip awarded STX Heavy Industries, in Korea/China, a contract for the construction of its new pipelay vessel. This 194m-long vessel will have twin 2,800 ton reels. She will have a top tension capacity of 450 tons for laying rigid steel pipes and flexible products up to 18" in diameter through a dedicated lay tower installed at the stern. She will also be equipped with a 150 ton crane, a PLET (pipeline end terminations) handling system and accommodation for 140 people. With a transit speed of 20 knots, she has been specifically designed to minimize intercontinental transit days and allow her efficient deployment in all deep water regions of the world.
• The Skandi Arctic, 50% owned by Technip, is another new diving support vessel and will be dedicated to the Norwegian North Sea. She is expected to be delivered in 2008.
• Finally, a new flexible pipelay vessel dedicated to the Brazilian market is expected to join the fleet in 2009, pending contract signature.

This was a successful first year for Technip’s 2007 - 2010 EUR 1 billion capex program, which is on track to further expand the SURF asset base.

C. FULL YEAR 2007 FINANCIAL RESULTS

1. Revenue

Full year 2007 Group revenue was EUR 7,886.5 million, up 13.9% compared to 2006.

• SURF revenue reached EUR 2,478.2 million, up 12.2% compared to 2006, generated by the Agbami (Nigeria), P-52 and PDET (Brazil) and Stybarrow (Oceania) projects, as well as medium and small size projects in the North Sea.
• Offshore Facilities revenue was EUR 738.8 million, down 38.2% as expected compared to the same period one year ago. The main contributors were the Akpo FPSO (Nigeria) as well as the Perdido Spar project (Gulf of Mexico).
• Onshore-Downstream revenue was EUR 4,436.7 million, up 33.7% compared to EUR 3,317.8 million during 2006. Main contributors were the Khursaniyah project in Saudi Arabia, the four LNG projects in Qatar and Yemen, three large ethylene steam-cracker projects in Qatar, Kuwait and Saudi Arabia, the Horizon heavy oil project in Canada, as well as the Dung Quat refinery in Vietnam.
• In the Industries segment, 2007 revenue was EUR 232.8 million, up 14.1% compared to one year ago.

In 2007, the 9% depreciation of the US dollar and associated currencies had a negative impact of EUR 280.2 million on the Group revenue.

2. Operating Income from Recurring Activities

Following the EUR 320 million charge recorded on Onshore-Downstream projects in 2007, Group operating income from recurring activities was EUR 247.0 million, down 25.9% compared to EUR 333.2 million recorded in 2006. The associated margin ratio was 3.1%, down from 4.8% recorded in 2006.

• SURF operating income from recurring activities was EUR 390.9 million during 2007, up 83.0% compared to the same period a year ago. The associated margin ratio reached a record level at 15.8%, compared to 9.7% in 2006. This takes into account EUR 25 million in insurance compensation received on a Mediterranean project which adversely impacted Group accounts in 2005.
• Offshore Facilities operating income from recurring activities was EUR 35.2 million, compared to EUR 62.3 million in 2006, a sharp decrease due to the finalization of several projects during 2006 (Dalia FPSO, Shah Deniz TPG500 and East Area). The associated margin ratio was 4.8% in 2007 compared to 5.2% in 2006.
• Onshore-Downstream operating income from recurring activities for 2007 was a loss of EUR 172.5 million, compared to a EUR 68.4 million profit in 2006, including the EUR 320 million charges as announced.
• Industries business segment operating income from recurring activities was EUR 15.2 million, up 34.5% compared to EUR 11.3 million in 2006. The associated margin ratio was 6.5% compared to 5.5% a year ago.

Financial income from contracts accounted as revenue, amounted to EUR 90.9 million 2007, EUR 63.6 million associated with Onshore-Downstream and EUR 26.8 million with SURF and Offshore Facilities.

Operating income from recurring activities does not include the following income from activity disposal:

3. Income from Activity Disposal

In 2007, income from activity disposal amounted to EUR 19.9 million and came from the following:

• In SURF: the sale of PSSL and PSSI during first quarter 2007 (EUR 17.0 million) after an EUR 8.0 million goodwill amortization.
• In Offshore Facilities: the 50% sale Technip’s minority ownership stake in Gulf Island Fabricator Inc. (EUR 2.9 million) during third quarter 2007.

In 2006, income from activity disposal amounted to EUR 26.9 million and came from the following:

• In Offshore Facilities; the sale of GMF assets during first quarter (EUR 21.5 million)
• In Onshore-Downstream; the sale of several assets during the second quarter (EUR 5.4 million)

4. Operating Income

In 2007, Group operating income was EUR 266.9 million, down 25.9% compared to the EUR 360.1 million a year ago. Operating margin ratio stood at 3.4% compared to 5.2% a year ago.

5. Net Income

Net financial charges were EUR 64.6 million, including a EUR 20.9 million negative impact of foreign currency exchange rate variation and from IAS 32-39 on hedging instruments’ fair market value.

Income tax was EUR 68.0 million. The effective tax rate stood at 37.3%, as Technip decided not to recognize some of its deferred tax assets on charges recorded in 2007.

Tax on income activity disposal income amounted to EUR 9.1 million in 2007.

Net income was EUR 126.3 million, down 36.9% compared to 2006.

Average number of shares during the period on a diluted basis is calculated as per IFRS. For the full year 2007 this number of shares stood at 104,996,104 and 108,849,404 shares in 2006.

Diluted EPS and E/ADS decreased 35.2% to EUR 1.20 and USD 1.76 in 2007 compared to EUR 1.86 and USD 2.71, in 2006.

6. US GAAP

The 2007 net income reconciled to U.S. generally accepted accounting principles (U.S. GAAP) amounted to EUR 127.7 million.

7. Cash and Balance Sheet

At the end of 2007, the net cash position increased to EUR 1,704.3 million compared to EUR 1,540.3 million at the end of 2006. This was primarily due to cash generated from operations (EUR 192.2 million), the change in working capital (EUR 633.5 million), proceeds (EUR 86.8 million), dividend payment (EUR 274.7 million), share buy-backs (EUR 86.2 million) and capital expenditures (EUR 261.8 million).

Shareholders’ equity as of December 31, 2007 was EUR 2,178.4 million, compared to EUR 2,401.3 million as of December 31, 2006. This reduction is mainly due to the dividend payment which occurred on May 3, 2007 for an amount of EUR 274.7 million.

⁽¹⁾ SURF: Subsea Umbilical Riser and flowlines

⁽²⁾ Concerning long term frame agreement for offshore inspection repair and maintenance, Technip books in its backlog the estimated expected value of these activities for the current year only.

REMINDER: NEW REPORTING STRUCTURE AS OF JANUARY 1, 2008

As of January 1, 2008, Technip’s financial statements will be reported on the following three business segments in addition to the corporate segment:

• SUBSEA: formerly SURF,
• OFFSHORE: formerly Offshore-Facilities,
• ONSHORE: combining Onshore-Downstream and Industries,

Comparable information will be provided for the relevant periods.

The information package on the fourth quarter and full year 2007 results includes this press release and the annexes which follow as well as the presentation published on the Group's web site (www.technip.com).

Cautionary note regarding forward-looking statements

This 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 other 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, 2006; 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 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 or 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.

With a workforce of 23,000 people, Technip ranks among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services. The Group is headquartered in Paris.

The Group’s main operations and engineering centers and business units are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the USA, Brazil, Abu-Dhabi, China, India, Malaysia and Australia.

In support of its activities, the Group manufactures flexible pipes and umbilicals, and builds offshore platforms in its manufacturing plants and fabrication yards in France, Brazil, the UK, the USA, Finland and Angola, and has a fleet of specialized vessels for pipeline installation and subsea construction.

The Technip share is listed in Paris on Euronext Paris.

ANNEX I (a)
CONSOLIDATED STATEMENT OF INCOME
IFRS, Audited
Euros in Millions (except EPS, E/ADS and average number of shares)		Fourth Quarter				Full Year
		2007		2006		2007		2006
Revenue		2,101.2		1,982.3		7,886.5		6,926.5
Gross Margin		- 6.7		233.6		641.4		724.4
Research & Development Expenses		- 12.7		- 11.0		- 42.0		- 34.9
SG&A & Other Operating Income (Expense)		- 88.6		- 108.8		- 352.4		- 356.3
Operating Income from Recurring Activities		-108.0		113.8		247.0		333.2
Income from Sale of Activities		-0.8		0.0		19.9		26.9
Operating Income		-108.8		113.8		266.9		360.1
Financial Income (Charges)		- 11.1		- 16.7		- 64.6		- 61.5
Income of Equity Affiliates		0.7		- 3.0		2.8		- 2.6
Profit Before Tax		-119.2		94.1		205.1		296.0
Income Tax		20.5		- 30.7		- 68.0		- 92.2
Tax on Income from Sale of Activities		- 0.1		-		- 9.1		- 1.9
Minority Interests		1.3		- 0.4		- 1.7		- 1.8
Net Income		-97.5		63.0		126.3		200.1
Net Income		- 97.5		63.0		126.3		200.1
Restatement of Redemption Premium on Convertible Bonds		-		-		-		1.9
Restated Net Income		- 97.5		63.0		126.3		202.0
Average Number of Shares during the period on a diluted basis		105,608,009		105,525,845		104,996,104		108,849,404
EPS (€) on a Diluted Basis		- 0.92		0.60		1.20		1.86
E/ADS ($) on a Diluted Basis (1)		- 1.35		0.87		1.76		2.71
1. Earnings per American Depositary Share (E/ADS) are in U.S. dollars and, for all periods, are calculated based upon diluted EPS in euros converted into US dollars using the Federal Reserve Bank of New York noon buying rate (USD/EUR) of 1.4603 as of December 31, 2007.

ANNEX I (b)
CONSOLIDATED BALANCE SHEET
IFRS, Audited
Euros in Millions		Dec. 31, 2007		Dec. 31, 2006*
Fixed Assets		3,279.1		3,241.1
Deferred Taxes and Other Non-Current Assets		184.7		115.3
NON-CURRENT ASSETS		3,463.8		3,356.4
Construction Contracts		280.6		591.1
Inventories, Customer & Other Receivables		1,953.4		1,651.7
Cash & Cash Equivalents		2,401.5		2,402.8
CURRENT ASSETS		4,635.5		4,645.6
Assets Held for Sale		-		61.5
TOTAL ASSETS		8,099.3		8,063.5
Shareholders’ Equity (Parent Company)		2,178.4		2,401.3
Minority Interests		18.4		15.5
SHAREHOLDERS’ EQUITY		2,196.8		2,416.8
Non-Current Debts		653.3		676.6
Non-Current Provisions		109.7		124.1
Deferred Taxes and Other Non-Current Liabilities		174.2		161.6
NON-CURRENT LIABILITIES		937.2		962.3
Current Debts		43.9		185.9
Current Provisions		123.0		73.8
Construction Contracts		1,860.1		2,138.5
Accounts Payable & Other Advances Received		2,938.3		2,267.4
CURRENT LIABILITIES		4,965.3		4,665.6
Liabilities Directly Related to Assets Held for Sales		-		18.8
TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES		8,099.3		8,063.5

Changes in Shareholders’ Equity (Parent Company)
Shareholders’ Equity as of December 31, 2006				2,401.3
Full year 2007 Net Income				126.3
Capital Increases				36.6
IAS 32 and 39 Impacts				1.1
Dividend Payment				- 274.7
Treasury Shares				- 86.2
Translation Adjustments and Other				- 26.0
Shareholders’ Equity as of December 31, 2007				2,178.4

* Following the analysis supervised by Technip auditors and performed between the date of the FY 2006 results press release issuance and the 2006 Annual Report, “construction contracts” was modified, increasing the total amount of the balance sheet as of December 31, 2006 by EUR 364.7 million with no impact on the statement of income and on the shareholders equity.

ANNEX I (c)
CONSOLIDATED STATEMENT OF CASH FLOWS
IFRS
Audited
Euros in Millions		Full Year
		2007				2006
Net Income		126.3				200.1
Depreciation of Property, Plant & Equipment		162.9				159.8
Split Accounting of Convertible Bonds		0.0				10.0
Stock Option and Performance Share Charge		9.9				2.5
Long-Term Provisions (Including Employee Benefits)		- 9.3				17.8
Reduction of Goodwill Related to Realized Income Tax Loss Carry Forwards not previously Recognized		2.5				9.0
Deferred Income Tax		- 79.0				- 26.0
Capital (Gain) Loss on Asset / Activity Sales		- 20.2				- 25.3
Minority Interests and Other		- 0.9				4.7
Cash from Operations		192.2				352.6
Change in Working Capital		633.5				594.2
Net Cash Provided by (Used in) Operating Activities				825.7				946.8
Capital Expenditures		- 261.8				- 157.2
Cash Proceeds from Asset Sales		20.5				40.4
Change of Scope of Consolidation		66.9				-3.1
Net Cash Provided by (Used in) Investment Activities				- 174.4				- 119.9
Increase (Decrease) in Debt		- 175.9				- 6.4
Capital Increase		36.6				30.3
Dividend Payment		- 274.7				- 141.7
Share Repurchases		- 86.2				- 63.4
Convertible Bond Softcall Adjustment		-				- 304.5
Net Cash Provided by (Used in) Financing Activities				- 500.2				- 485.7
Foreign Exchange Translation Adjustment				- 152.4				- 126.2
Net Increase (Decrease) in Cash and Cash Equivalents				- 1.3				215.0
Cash and Cash Equivalents at Period Beginning		2,402.8				2,187.8
Cash and Cash Equivalents at Period End		2,401.5				2,402.8
				1.3				- 215.0

ANNEX I (d)
TREASURY AND CURRENCY RATES
IFRS
Audited
Euros in Millions		Treasury and Financial Debt
		Dec. 31, 2007		Sept. 30, 2007		Dec. 31, 2006
Cash Equivalents		1,815.9		2,005.9		1,791.2
Cash		585.6		421.3		611.6
Cash & Cash Equivalents (A)		2,401.5		2,427.2		2,402.8
Current Debts		43.9		60.1		185.9
Non Current Debts		653.3		655.5		676.6
Gross Debt (B)		697.2		715.6		862.5
Net Financial Cash (Debt) (A - B)		1,704.3		1,711.6		1,540.3

Euro vs. Foreign Currency Conversion Rates
		Statement of Income				Balance Sheet as of
		FY 07		FY 06		Dec. 31 2007		Dec. 31 2006
USD		1.37		1.26		1.47		1.32
GBP		0.68		0.68		0.73		0.67

ANNEX II (a)
REVENUE BY REGION
IFRS
Not audited
Euros in Millions		Fourth Quarter						Full Year
		2007		2006		Change		2007		2006		Change
Europe, Russia, C. Asia		308.5		305.9		0.8%		1,218.8		1,399.2		-12.9%
Africa		202.4		343.5		-41.1%		954.8		1,254.4		-23.9%
Middle East		932.2		705.0		32.2%		3,246.6		2,070.7		56.8%
Asia Pacific		298.0		206.3		44.4%		1,032.2		806.7		28.0%
Americas		360.1		421.6		-14.6%		1,434.1		1,395.5		2.8%
TOTAL		2,101.2		1,982.3		6.0%		7,886.5		6,926.5		13.9%

ANNEX II (b)
ADDITIONAL INFORMATION BY BUSINESS SEGMENT
IFRS
Not audited
Euros in Millions		4Q 07		4Q 06		Change		FY 07		FY 06		Change
SURF
Revenue		647.7		635.8		1.9%		2,478.2		2,209.2		12.2%
Gross Margin		162.1		118.7		36.6%		558.8		373.5		49.6%
Operating Income from Recurring Activities		120.1		70.3		70.8%		390.9		213.6		83.0%
Depreciation		- 48.3		- 49.6		-2.6%		- 137.0		- 132.3		3.6%
OFFSHORE FACILITIES
Revenue		172.3		294.6		-41.5%		738.8		1,195.5		-38.2%
Gross Margin		25.6		41.5		-38.3%		95.6		133.1		-28.2%
Operating Income from Recurring Activities		5.9		20.8		-71.6%		35.2		62.3		-43.5%
Depreciation		- 2.1		- 2.5		-16.0%		- 8.5		- 9.3		-8.6%
ONSHORE-DOWNSTREAM
Revenue		1,217.2		1,001.8		21.5%		4,436.7		3,317.8		33.7%
Gross Margin		-202.0		66.1		nm		-44.5		189.1		nm
Operating Income from Recurring Activities		-233.6		32.1		nm		-172.5		68.4		nm
Depreciation		- 4.1		- 2.8		46.4%		- 13.2		- 10.3		28.2%
INDUSTRIES
Revenue		64.0		50.1		27.7%		232.8		204.0		14.1%
Gross Margin		12.4		7.3		69.9%		36.3		28.7		26.5%
Operating Income from Recurring Activities		6.0		3.0		100.0%		15.2		11.3		34.5%
Depreciation		- 0.6		- 0.3		100.0%		- 1.4		- 1.0		40.0%
CORPORATE
Operating Income		- 6.4		- 12.4		-48.4%		- 21.8		- 22.4		-2.7%
Depreciation		- 0.7		- 1.7		-58.8%		- 2.9		- 6.9		-58.0%
nm: not meaningful

ANNEX II (c)
ORDER INTAKE & BACKLOG
Not audited
Euros in Millions		Order Intake by Business Segment
		Fourth Quarter						Full Year
		2007		2006		Change		2007		2006		Change
SURF		1,500.1		780.6		92,2%		3,295.5		2,240.9		47.1%
Offshore Facilities		200.6		374.5		-46,4%		563.9		787.3		-28.4%
Onshore-Downstream		365.9		453.6		-19,3%		3,040.4		2,914.0		4.3%
Industries		35.0		47.3		-26,0%		298.0		200.9		48.3%
TOTAL		2,101.6		1,656.0		26,9%		7,197.8		6,143.1		17.2%
		Backlog by Business Segment
		As of Dec. 31, 2007		As of Dec. 31, 2006		Change
SURF		3,477.1		2,718.9		27.9%
Offshore Facilities		550.9		741.6		-25.7%
Onshore-Downstream		5,136.8		6,650.4		-22.8%
Industries		224.7		161.9		38.8%
TOTAL		9,389.5		10,272.8		-8.6%
		Backlog by Region
		As of Dec. 31, 2007		As of Dec. 31, 2006		Change
Europe, Russia, C Asia		1,691.8		933.3		81.3%
Africa		1,623.3		1,338.4		21.3%
Middle East		3,198.0		4,936.5		-35.2%
Asia Pacific		944.0		1,195.8		-21.1%
Americas		1,932.4		1,868.8		3.4%
TOTAL		9,389.5		10,272.8		-8.6%

		December 31, 2007 Backlog Estimated Scheduling
		SURF		Offshore Facilities		Onshore- Downstream		Industries		Group
2008		2,100		400		3,200		150		5,850
2009		600		151		1,500		70		2,321
2010 and Beyond		777				437		5		1,219
TOTAL		3,477		551		5,137		225		9,390

ANNEX II (d)

ORDER INTAKE

Not audited

In 2007, Technip’s order intake reached EUR 7,197.8 million compared to EUR 6,143.1 million in 2006. Listed below are the main contracts that came into force in 2007 along with their approximate value (Group share) if publicly disclosed:

a contract, in consortium with Bechtel, with Saudi Aramco for the conversion of the Khursaniyah (Saudi Arabia) gas plant project into a lumpsum turnkey contract (approximately EUR 600 million). The contract was originally awarded to this consortium in March 2005 on a time unit rate basis,

a contract with Grupa Lotos S.A. for an hydrocracking unit in its Gdansk refinery in Poland (approximately EUR 472 million),

a contract with Abu Dhabi Gas Liquefaction Limited for gas compression plants and associated facilities to be located on Das Island, United Arab Emirates (EUR 460 million),

two SURF contracts with Aker-Kvaerner for flexible pipelines for an oil field located off the eastern coast of India (approximately EUR 270 million),

three major contracts with Petrobras, for pipelines related to deepwater development projects offshore Brazil (approximately EUR 200 million),

a contract, as a partner of the Technip / Keppel FELS consortium, with Petrobras for the realization of the P-56 semi-submersible platform in Brazil,

a contract with PKN Orlen S.A. on lump sum turnkey basis for services and procurement of materials and equipments and on cost plus fee basis for the construction of a paraxylene complex in its Plock refinery in Poland (approximately EUR 160 million),

a SURF([1]) contract with Petrobras for the Roncador field development offshore Brazil (approximately EUR 115 million),

a SURF contract with Talisman Energy for the YME field development offshore Norway (approximately EUR 110 million),

a contract with Abu Dhabi Marine Operating Company (ADMA-OPCO) for the Zakum gas processing facilities offshore Abu Dhabi, United Arab Emirates (approximately EUR 100 million),

an EPCM reimbursable contract in joint venture with Hatch with Xstrata Nickel, for the construction of the Koniambo nickel smelter unit located in New Caledonia. Awarded in January 2006, the final confirmation was awarded for Xstrata Nickel (approximately EUR 100 million),

a SURF contract with British Petroleum for the Skarv field development offshore Norway (approximately EUR 90 million),

an EPCM reimbursable contract with Total for the construction of a new kerosene hydrodesulphurization unit in the Leuna refinery, near Leipzig, Germany (approximately EUR 90 million),

a contract with Murphy West Africa, Ltd., for the Azurite field development offshore the Republic of the Congo (approximately EUR 80 million),

a contract with Eramet for engineering studies and assuming a go-ahead decision of the general contracting services for a laterite treatment plant on the island of Halmahera, Indonesia,

a contract with CEPSA for a hydrogen plant to be located at their Huelva refinery in Spain (approximately EUR 60 million),

a SURF contract with BHP Billiton for the Shenzi field development in the Gulf of Mexico,

a lumpsum front-end engineering design (FEED) contract with Qatar Petroleum for the Al Shaheen refinery to be built in Messaieed, Qatar (approximately EUR 44 million),

a turnkey contract with Elf Petroleum Nigeria Ltd. for the loading, transport and installation of the topsides for the OFP2 fixed platform on the Ofon field offshore Nigeria,

a SURF contract with Bluewater Industries, Inc. for the Mirage field development in the Gulf of Mexico,

a SURF contract, as a partner in the Asia Pacific Technip-Subsea 7 Joint Venture, with Woodside Energy Limited, for the Enfield field development offshore Australia,

a SURF contract with Statoil, for the Gjøa field development, offshore Norway (approximately EUR 24 million),

a SURF service contract with National Gas Company of Trinidad and Tobago for two pipelines to be installed offshore the islands of Trinidad and Tobago, in the Caribbean Sea (USD 30 million)

a SURF contract with Shell for the Ursa and Princess fields development in the Gulf of Mexico,

a SURF contract, as a partner in the Asia Pacific Technip-Subsea 7 Joint Venture, with Statoil for the Alve field development, offshore Norway (approximately EUR 18 million),

a project management service contract with Grupa Lotos for the Gdansk refinery in Poland,

a service contract with Fort Hills Energy L.P. for the transformation of heavy oil from the bitumen sands of Fort Hills Oil Sands project in Alberta, Canada,

a SURF contract, as a partner in the Asia Pacific Technip-Subsea 7 Joint Venture, with New Zealand Overseas Petroleum Limited for the Tui field development offshore New Zealand,

a SURF contract with Shell Oil and Gas Malaysia LLC., for the Cili Padi gas field development offshore Malaysia,

a lump sum project management contract with BYACO for an acetic acid plant in China,

a basic engineering design and support contract with INEOS for a polyethylene plant in China,

a SURF contract with Mariner Energy Inc. for the installation of umbilicals on the Bass Lite field in the Gulf of Mexico,

a service contract with Renault, Nissan and Mahindra to provide general contracting assistance for the construction of an automobile plant in India,

a basic design and engineering package contract with Sinopec Yangzi Petrochemical Co. Ltd. (YPC) for a syngas plant located in Nanjing, China,

a front end engineering design (FEED) contract with Biomass Investment Group (BIG) for their closed loop biomass power plant project in Florida, USA,

a contract with a subsidiary of PTT, the national petroleum company of Thailand, for the basic and detailed engineering of four generic wellhead platforms with associated subsea pipelines and tie-ins, for the Arthit gas field in the Gulf of Thailand,

a contract with Silicium de Provence for preliminary studies pertaining to a polycrystalline silicon production plant dedicated to photovoltaic applications in Saint-Auban, France,

a front-end engineering design (FEED) contract with Sonatrach for an ethane extraction project located in Arzew, Algeria, and

a contract with Petrobras for a new four year charter of the Sunrise 2000 flexible pipe lay vessel operating offshore Brazil (approximately EUR 150 million).

Since January 1, 2008, Technip has also announced the following contract awards which are included in the backlog as of December 31, 2007:

a contract, as the leader of a consortium with Acergy, with Total for the development of the Pazflor oil field, located offshore Angola (USD 1,860 million),

two SURF contracts with Petrobras America, a subsidiary of Petrobras, for the development of the Cascade and Chinook gas field in the Gulf of Mexico (over USD 300 million),

an EPCM reimbursable contract with Neste Oil Corporation for the construction of a new generation NExBTL renewable diesel plant to be built in Singapore and

a SURF contract with Shell for the ultra-deep water Perdido oil field development in the Gulf of Mexico.

 

Contacts

Technip
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kstewart@technip.com
or
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xdouince@technip.com
Or
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or
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or
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