Technip: Second Quarter Results
SECOND QUARTER 2008
- Revenue stable yoy at €1.8 billion, and increased 6.1% excluding exchange rates translation impact
- Strong operating performance in Subsea: EBITDA up 21.7% yoy at 24.8%
- Offshore/Onshore continue to improve with combined operating margin 3.7%
- Significant increase in Net Income, up 29.4% yoy to €103 million
- Sound Backlog of €8.1 billion
FULL YEAR 2008 OUTLOOK
- Group revenue ~€7.4 billion with Subsea revenue of €2.7 billion
- Subsea operating margin >18%
- Offshore and Onshore combined operating margin of 3.8% reaffirmed
- Group operating margin revised upward ~8%
July 31, 2008 12:45 AM Eastern Daylight Time
PARIS--(BUSINESS WIRE)--Regulatory News:
Technip: (Paris:TEC) (ISIN:FR0000131708):
|€ in millions,
|2Q 07||2Q 08||% change||ex. FX impact||1H 07||1H 08||% change||ex. FX impact|
(1) Calculated as Operating Income from recurring activities pre depreciation and amortization
(2) From recurring activities
On July 30, 2008, Technip’s Board of Directors approved the non-audited second quarter 2008 consolidated accounts. Thierry Pilenko, Chairman and CEO, commented: “Second quarter Group net income increased 29.4% on a stable revenue year-on-year. The Subsea business continues to perform well thanks to good execution of projects and the successful completion of a few projects resulting in an EBITDA margin of 24.8%, the strongest quarterly Subsea performance to date, in spite of delayed activity in Nigeria due to security incidents. In the Offshore business, major milestones have been achieved on the Akpo FPSO and the Perdido Spar projects. Onshore projects are in general progressing according to plan. Delivery of the first LNG train on QatarGas II, Train 4, is planned for late summer. The combined Offshore and Onshore operating margin of 3.7%, is on track for the 3.8% full year target.
We anticipate that activity in the second half of 2008 will be sustained in the Subsea business and significant awards from West Africa are expected before year end, further extending our backlog and visibility in this segment. Whilst we have observed delays in projects awards in the Offshore and Onshore segments, the workload of our engineering centers continues to be very high, fueled by existing projects as well as numerous conceptual or detailed studies for which we have been retained. We expect that some of these studies will result in projects to be awarded by the end of 2008 / first half 2009.
The overall market remains buoyant, particularly for gas and unconventional oil projects but project award processes have been slower than in the recent years because of cost and price volatility and human and technical resources constraints. We expect 2008 revenue to be approximately €7.4 billion with a margin revised upward in Subsea above 18%, an Onshore-Offshore margin target maintained at 3.8% and an overall Group margin of about 8%. This quarter we completed two acquisitions: EPG, which will strengthen our presence and expertise in the Benelux area and Eurodim, which broadens our patent portfolio, particularly in offshore LNG transfer technology.”
I. SECOND QUARTER 2008
1. Operational Highlights
The Subsea business segment project execution remains very good. Main events were:
- High vessel utilization rate of 82% during the second quarter 2008,
- Technip’s flexible pipe manufacturing plants continue to work at full capacity,
- Successful completion in June of the MA-D6 phase I project, offshore India,
- Offshore Nigeria the Agbami field project was slowed down by security events which occurred during the second quarter,
- Engineering is progressing well and procurement has started on Pazflor (Angola).
The Offshore business segment has several projects nearing completion:
- Perdido Spar hull is currently in Texas being fitted with belly-side strakes and prepared for wet tow for hand over to Shell in the coming weeks,
- Akpo FPSO sailed away from Korea on June 26th and is expected in Nigeria this October,
- In Brazil the P-51 semi-submersible is nearing completion and sail-away is planned for October, P-56 engineering and procurement are progressing inline with plans,
Diversification of the Pori yard (Finland) is advancing quickly, as previously subcontracted projects are brought in-house including reels, buoyancy cans and pressure vessels.
On the Tahiti Spar project, Technip and Chevron are continuing their discussions to resolve their contractual differences relative to the shackles replacement. Arbitration as per the contract cannot be excluded. The replacement of mooring shackles on the other Spar project is progressing according to plan.
The large projects are ongoing in the Onshore business segment:
- In Qatar the LNG and Gas treatment projects are progressing according to plan. QatarGas II first train, number 4, to be delivered at summer end. Negotiations on Qatargas III & IV project are progressing between the client and Chiyoda/Technip joint venture,
- LNG Project in Yemen is inline with plan,
- In Saudi Arabia, the Khursaniyah field development is delayed for reasons outside Technip’s responsibility and thus has no material financial impact; on the Yansab project, most of the ethylene and propylene production plant systems will be handed over during the second half of 2008,
- Dung Quat refinery in Vietnam is progressing according to plan,
- CNRL Horizon project in Canada, the hydrogen plant and the heavy oil upgrader units are nearing completion,
- In Poland the Gdansk refinery for Grupa Lotos is progressing well,
- In UAE, delivery and installation of the first OAG modules on Das Island are advancing according to schedule.
2. Order intake and Backlog
During the second quarter 2008, Technip’s order intake was €1,407.6 million compared to €1,684.6 million during the second quarter 2007 and €1,592.3 million during the first quarter 2008. Subsea enjoyed strong order intake, yet no major EPC lumpsum contracts were awarded during the quarter in both Offshore and Onshore. Listed in annex II (d) are the main contracts that came into force during the second quarter 2008 along with their approximate value (Technip’s share) if publicly disclosed. The breakdown of the order intake by business segment for the second quarter is as follows:
|2Q 2007||2Q 2008|
At the end of second quarter 2008 Group backlog amounted to €8,053.2 million, compared to €9,669.7 million at the end of second quarter 2007 and €8,625.3 million at the end of first quarter 2008. The backlog breakdown by business segment is as follows:
|June 30, 2007||June 30, 2008|
(1) 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.
Technip’s capex for the second quarter 2008 amounted to €79.7 million (cash impact) compared to €30.5 million for the same quarter 2007, inline with full year forecast of €400 million.
II. SECOND QUARTER 2008 FINANCIAL RESULTS
Second quarter 2008 Group revenue was €1,823.7 million, stable year-on-year. Excluding exchange rate translation impact, revenue increased 6.1% compared to last year. This negative change impact of €133.9 million on Group revenue was primarily due to the 16% depreciation of the US dollar and associated currencies compared to last year.
- Subsea revenue was flat at €603.1 million, compared to €606.0 million during second quarter 2007. The major contributing projects were the MA-D6 in India and Agbami in Nigeria despite delays aforementioned,
- Offshore revenue was €159.2 million, down 12.9% compared to the same period last year. In the second quarter 2007 the Akpo FPSO and Dalia FPSO were strong contributors,
- Onshore revenue was essentially flat, up 0.5% to €1,061.5 million compared to €1,055.8 million during second quarter 2007. Main contributors were the Khursaniyah project in Saudi Arabia, the four LNG projects in Qatar and Yemen, the three large ethylene steam-cracker projects in Qatar, Kuwait and Saudi Arabia, the two contracts for CNRL in Canada, as well as the Dung Quat refinery in Vietnam.
2. Operating Income from Recurring Activities
Second quarter 2008 Group operating income from recurring activities was €157.5 million, up 23.0% compared to €128.1 million in the second quarter 2007. Excluding foreign exchange translation impact, operating income year-over-year was up 26.5%. Operating margin from recurring activities continues to improve at 8.6% compared to 6.9% for the same quarter year ago.
- Subsea operating income from recurring activities was €118.6 million during second quarter 2008, up 26.3% compared to the same period a year ago. EBITDA margin was strong at 24.8% versus 20.3% for the same quarter last year. Operating margin from recurring activities reached 19.7%, compared to 15.5% during second quarter 2007, thanks to good execution of projects and successful closeout of a few projects,
- Offshore operating income from recurring activities was flat at €8.9 million, compared to €9.0 million during the second quarter 2007. The associated margin was 5.6% during the second quarter 2008 with a good contribution from the Perdido Spar project compared to 4.9% a year ago,
- Onshore operating income from recurring activities during the second quarter 2008 was up 6.8% at €36.1 million, compared to €33.8 million year ago. The associated margin was 3.4% during the second quarter 2008 compared to 3.2% a year ago.
The combined operating margin for Offshore/Onshore was 3.7%.
Financial income on projects accounted as revenue, amounted to €7.7 million during the second quarter 2008, of which €3.2 million for Onshore, which is a significant decrease compared to €23.3 million and €18.1 million during second quarter 2007, respectively.
3. Income from Activity Disposal
There was no income from activity disposal in the second quarter 2008. During second quarter 2007, income from activities disposal, amounted to €(0.2) million.
4. Operating Income
Second quarter 2008 Group operating income amounted to €157.5 million, up 23.1% compared to €127.9 million recorded a year ago.
Net financial charges were €14.0 million including a €3.7 million negative impact of foreign currency exchange rate variation and from IAS 32-39 on hedging instruments’ fair market value.
Income tax was €40.2 million. The effective tax rate was 28.0% compared to 28.4% one year ago.
Net income was up 29.4% at €103.0 million, compared to €79.6 million during the second quarter 2007.
Diluted EPS was €0.97 in the second quarter 2008, an increase of 29.2%, compared to €0.75 one year ago.
Average number of shares during the period on a diluted basis is calculated as per IFRS. For the second quarter 2008 this number of shares stood at 105,645,849 versus 105,510,784 shares for the second quarter 2007.
6. Cash and Balance Sheet
At the end of June 2008, the net cash position decreased to €1,465.9 million compared to €1,591.0 million March 31, 2008.
During the first half 2008 cash generated from operations increased 31.4% to €268.9 million compared to the same period year ago, working capital declined by €172.3 million inline with the main projects progress. Capital expenditures for the first half 2008 amounted to €147.8 million.
Cash generated from operations increased 17.6% during second quarter 2008 to €145.6 million and during the same period, working capital declined by €107.8 million inline with the main projects progress. Capital expenditures amounted to €79.7 million.
Shareholders’ equity, excluding minority interests, as of June 30, 2008 was €2,269.9 million compared to €2,178.4 million as of December 31, 2007.
7. 2008 Full Year Outlook
- Subsea revenue of €2.7 billion on strong third and fourth quarters foreseen in particular in the North Sea and North America,
- Offshore and Onshore combined revenue for around €4.7 billion consistent with backlog scheduling,
- Group revenue of around €7.4 billion.
- Subsea: revised upward to above 18.0%,
- Offshore and Onshore: combined margin maintained at 3.8%
- Therefore Group operating margin updated to around 8.0%
Net Cash situation: €1.1 to €1.3 billion at year end 2008
In accordance with French AMF General Regulation Article 222-4, the half year financial report will be published today on the Group's website: www.technip.com as well as the second quarter and first half 2008 results information package including this press release, the annexes that follow and a presentation
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, 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 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 is one of the world’s leading 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, Not Audited
|€ in millions
(except EPS, E/ADS and number of shares)
|Second Quarter||First Half|
|Research & Development Expenses||(8.6||)||(10.7||)||(19.5||)||(19.2||)|
|SG&A & Other Operating Expenses||(87.6||)||(97.4||)||(181.5||)||(181.7||)|
|Operating Income from Recurring activities||157.5||128.1||294.4||236.0|
|Income from Sale of Activities||-||(0.2||)||-||14.4|
|Financial Income (Charges)||(14.0||)||(13.5||)||(22.3||)||(34.1||)|
|Income of Equity Affiliates||0.2||0.3||0.4||1.7|
|Profit Before Tax||143.7||114.7||272.5||218.0|
|Tax on Sale of Activities||-||-||-||(7.2||)|
|Number of shares on a diluted basis||105,645,849||105,510,784||105,459,931||104,971,742|
EPS (€) on a Diluted Basis (1)
E/ADS ($) on a Diluted Basis (2)
1) As per IFRS, the Earnings Per Share (diluted) is calculated by dividing profit or loss attributable to Parent Company’s Shareholders by, the weighted average number of outstanding shares during the period, plus the effect of dilutive stock options and performance shares calculated according to the “Share Purchase Method” (IFRS 2), less treasury shares. In conformity with this method, anti dilutive stock options are ignored in calculating EPS. Dilutive options are taken into account if the subscription price of the stock options plus the future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end of the plan of stock option) is lower than the share average market price during the period.
2) 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 1.5748 as of June 30, 2008.
ANNEX I (b)
CONSOLIDATED BALANCE SHEET
|€ in millions||June 30, 2008
|Dec. 31, 2007
|Deferred Taxes and Other Non-Current Assets||194.9||184.7|
|Inventories, Customer & Other Receivables||1,872.9||1,953.4|
|Cash & Cash Equivalents||2,155.8||2,401.5|
|Shareholders’ Equity (Parent Company)||2,269.9||2,178.4|
|Deferred Taxes and Other Non-Current Liabilities||183.9||174.2|
|Accounts Payable & Other Advances Received||2,923.2||2,938.3|
|TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES||7,927.5||8,099.3|
|Changes in Shareholders’ Equity (Parent Company), Not Audited|
|Shareholders’ Equity as of December 31, 2007||2,178.4|
|First half 2008 Net Income||192.9|
|IAS 32 and 39 Impacts||26.4|
|Translation Adjustments and Other||(8.7||)|
|Shareholders’ Equity as of June 30, 2008||2,269.9|
ANNEX I (c)
CONSOLIDATED STATEMENT OF CASH FLOWS
|€ in millions||First Half|
|Depreciation of Property, Plant & Equipment||71.8||71.3|
|Stock Option and Performance Share Charges||6.2||4.0|
|Long-Term Provisions (Including Employee Benefits)||1.3||2.3|
|Reduction of Goodwill Related to Realized Income Tax Loss Carry Forwards not previously Recognized||-||2.5|
|Deferred Income Tax||(3.5||)||(10.2||)|
|Capital (Gain) Loss on Asset / Activity Sales||-||(15.0||)|
|Minority Interests and Other||0.2||2.0|
|Cash from Operations||268.9||204.6|
|Change in Working Capital||(172.3||)||115.4|
|Net Cash Provided by (Used in) Operating Activities||96.6||320.0|
|Cash Proceeds from Asset Sales||0.9||1.5|
|Change of Scope of Consolidation||-||66.1|
|Net Cash Provided by (Used in) Investment Activities||(146.9||)||1.8|
|Increase (Decrease) in Debt||(6.5||)||(20.7||)|
|Net Cash Provided by (Used in) Financing Activities||(125.6||)||(350.8||)|
|Foreign Exchange Translation Adjustment||(70.2||)||(25.2||)|
|Net Increase (Decrease) in Cash and Cash Equivalents||(246.1||)||(54.2||)|
|Cash and Cash Equivalents at Period Beginning||2,401.5||2,402.8|
|Bank overdraft at Period Beginning||(1.1||)||(4.3||)|
|Cash and Cash Equivalents at Period End||2,155.8||2,351.6|
|Bank overdraft at Period End||(1.5||)||(7.3||)|
ANNEX I (d)
TREASURY AND FINANCIAL DEBT - CURRENCY RATES
|€ in millions||Treasury and Financial Debt|
|June 30, 2008
|Dec. 31, 2007
|June 30, 2007
|Cash & Cash Equivalents (A)||2,155.8||2,401.5||2,351.6|
|Non Current Debts||652.8||653.3||661.5|
|Gross Debt (B)||689.9||697.2||849.5|
|Net Financial Cash (Debt) (A - B)||1,465.9||1,704.3||1,502.1|
€ versus Foreign Currency Conversion Rates
|Statement of Income||Balance Sheet as of|
|2Q 08||2Q 07||1H 08||1H 07||June 30
ANNEX II (a)
REVENUE BY REGION
|€ in millions||Second Quarter||First Half|
|Europe, Russia, C. Asia||401.9||294.0||36.7||%||681.4||547.1||24.6||%|
ANNEX II (b)
ADDITIONAL INFORMATION BY BUSINESS SEGMENT
|€ in millions||2Q 08||2Q 07||Change|
|Operating Income from Recurring Activities||118.6||93.9||26.3||%|
|Operating Income from Recurring Activities||8.9||9.0||(1.1||)%|
|Operating Income from Recurring Activities||36.1||33.8||6.8||%|
(1) Calculated as Operating Income from recurring activities pre depreciation and amortization
ANNEX II (c)
ORDER INTAKE & BACKLOG
|€ in millions||Order Intake by Business Segment|
|Backlog by Business Segment|
June 30, 2008
Dec. 31, 2007
June 30, 2007
|Backlog by Region|
June 30, 2008
Dec. 31, 2007
June 30, 2007
|Europe, Russia, C Asia||1,772.6||1,691.8||1,649.6|
|June 30, 2008 Backlog Estimated Scheduling|
|2008 (6 months)
|2010 and Beyond||820||56||235||1,111|
ANNEX II (d)
First half 2008, Technip’s order intake reached €2,999.9 million compared to €3,165.9 million in 2007, a decrease of 5.2% year-on-year. Listed below are the main contracts that came into force during the first half 2008 along with their approximate value (Group share) if publicly disclosed:
- a contract with Motor Oil for the engineering, procurement and construction management (EPCM) of a crude oil distillation unit at the Corinth refinery, Greece,
- a contract with KNM Process Systems Sdn Bhd to provide assistance in the detailed engineering of the fatty acids methyl ester transesterification unit for a biodiesel production plant to be located at the port of Kuantan, Malaysia,
- two Subsea contracts with Petrofac Energy Developments Ltd (Petrofac) for the development of the Don West and Don South West oil fields, North Sea (approximately EUR 36 million),
- a partnership with Areva to develop major mining projects. The objective is to double Areva's uranium production capacity in the next five years, starting with approximately 10 new mining operations, mostly in Africa,
- a Front End Engineering Design (FEED) contract with Shtokman Development Company for the onshore portion of the first phase of the Shtokman gas project in Russia,
- a contract with Husky Oil Operations Limited, a subsidiary of Husky Energy for the engineering, procurement, installation and commissioning (EPIC) of the development of the Husky White Rose oil field's North Amethyst Satellite (approximately €190 million),
- a frame agreement with BP to provide all diving construction services for extensions to existing hydrocarbon field development projects in the North Sea. Technip will be the exclusive provider of these services for the next two years, with two additional 12 month options available to BP,
- two contracts in joint venture with Subsea 7 for subsea installation and pipeline supply in New Zealand with Shell Todd Oil Services Limited and in Vietnam with MISC Berhad,
- a lump sum contract with Rominserv and Rompetrol Rafinare which covers licensing, basic engineering, detailed engineering, procurement and supply of main equipment and materials for a hydrogen plant to be constructed in Romania (approximately €40 million),
- a service contract with Nautilus Minerals Singapore Pte Ltd which covers engineering and project management services for the delivery and commissioning of all components for a riser and lifting system for the Solwara 1 subsea mining operations located offshore Papua New Guinea,
- a 3 year frame agreement with Oilexco North Sea Ltd to provide subsea services for development of UK North Sea fields which could include conceptual engineering, project management, procurement, construction, installation, provision of diving support, trenching, support and umbilical installation vessels, inspection, repair and maintenance (approximately €190 million),
- two services contracts in joint venture with Chiyoda and Fluor, for two LNG developments in Australia for Woodside,
- a contract with StatoilHydro for the engineering, procurement, construction and installation (EPCI) for a substructure of a floating wind turbine,
- a LSTK contract, as the leader of a consortium with Dodsal, with Transco for extension of the Fujairah water transmission system in the United Arab Emirates (approximately US$610 million),
- a cost plus fee services contract with Neste Oil Corporation for the engineering and management of procurement and construction activities for a new generation biodiesel plant in The Netherlands,
- a 4-year charter with Petrobras in a 50/50 joint venture with DOF for the first Brazilian pipelay vessel with a 4-year additional option (approximately US$250 million), plus a separate contract between Technip and Petrobras for engineering and support services for offshore operations of the vessel,
- a lump sum contract with StatoilHydro for the engineering, procurement, construction and installation (EPCI) for the Gjoa field development in Norway (approximately €60 million),
- a lump sum installation contract with Callon Petroleum Company for the Entrada oil field development in the Gulf of Mexico,
Since July 1st, 2008, Technip also announced the following contracts award which are included in the backlog as of June 30th, 2008:
- a LSTK contract, as the leader of a consortium with Pireco, with TIFERT which covers engineering, procurement and construction (EPC) for a sulphuric acid unit to be built in Tunisia,
- a LSTK contract with Agip in Nigeria for the development of the OYO oil field in Block OML 120/121 offshore Nigeria (approximately €75 million).
As of July 1st, 2008, Technip also announced the following contract award which is not included in the backlog as of June 30th, 2008:
- a major framework agreement for the engineering, procurement of equipment, construction and installation (EPCI) of subsea flowlines for a major development program in offshore West Africa; the first call-off contract signed under the frame agreement has an estimated value of €300 million.
This first call-off contract is for the development of the Plutao, Saturno, Venus and Marte (PSVM) fields located off the coast of Angola in block 31 for BP. It covers 45 kilometers of ridid water injection flowlines and 20 kilometers of rigid gas injection flowlines, with an option for 70 kilometers of rigid gas export flowlines. The offshore work will take place in 2010 using the Deep Blue.
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