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Technip’s Second Quarter 2016 Results: Strong Operating Performance; Cost Reduction Delivery Ahead of Schedule; 2016 Objectives Upgraded
Regulatory News:
Technip (Paris:TEC) (ISIN:FR0000131708) (ADR:TKPPY):
SECOND QUARTER 2016: STRONG OPERATING PERFORMANCE
-
Adjusted revenue at €2.8 billion: stable versus 1Q 16; balanced
between both business segments
-
Adjusted Operating Income From Recurring Activities1
at €260 million
-
Order intake at €1.5 billion
-
Balance sheet strengthened with record €2.2 billion adjusted
net cash
-
Diluted EPS2 up to €1.03; Net Income
of €123 million
COST REDUCTION DELIVERY AHEAD OF SCHEDULE
-
Cost reduction plan ahead of schedule with €900 million savings to be
delivered by 2016 (previously €700 million) out of the total planned
of €1 billion
FULL YEAR 2016 OBJECTIVES UPGRADED
-
Adjusted Subsea revenue between €4.7 and €5.0 billion, adjusted
Operating Income From Recurring Activities1 around €680
million
-
Adjusted Onshore/Offshore revenue between €5.7 and €6.0 billion,
adjusted Operating Income From Recurring Activities1 around
€280 million
1 Adjusted operating income from recurring activities after
income/(loss) of equity affiliates.
2 As per IFRS,
diluted earnings per share are calculated by dividing income/(loss)
attributable to the parent company’s shareholders, restated for
financial interest related to dilutive potential ordinary shares, by the
weighted average number of outstanding shares during the period, plus
the effect of dilutive potential ordinary shares related to the
convertible bonds, 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
and still outstanding IFRS 2 charge is lower than the average market
share price during the EPS reference period.
Note: The second quarter 2016 results presented in this press
release were prepared on the adjusted basis as described in Technip’s
fourth quarter 2015 press release. These results reflect the financial
reporting framework used for management purposes.
-
2Q 16 revenue at €2,096 million within IFRS framework and €2,813
million within adjusted framework
-
2Q 16 net income at €123 million within both IFRS and adjusted
frameworks
On July 26, 2016, Technip’s Board of Directors approved the second
quarter 2016 adjusted consolidated financial statements.
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€ million (except Diluted Earnings per Share)
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2Q 15
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2Q 16
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Change
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1H 15
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1H 16
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Change
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Adjusted Revenue
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3,098.4
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2,812.9
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(9.2)%
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5,981.7
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5,575.0
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(6.8)%
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Subsea
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1,553.8
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1,369.3
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(11.9)%
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2,841.4
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2,751.6
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(3.2)%
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Onshore/Offshore
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1,544.6
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1,443.6
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(6.5)%
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3,140.3
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2,823.4
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(10.1)%
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Adjusted Underlying EBITDA1
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353.0
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324.4
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(8.1)%
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596.7
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629.1
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5.4%
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Adjusted EBITDA Margin
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11.4%
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11.5%
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14bp
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10.0%
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11.3%
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131bp
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Adjusted Underlying OIFRA2
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281.5
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259.7
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(7.7)%
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453.2
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496.3
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9.5%
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Subsea
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250.3
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200.1
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(20.1)%
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415.5
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381.5
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(8.2)%
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Onshore/Offshore
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53.2
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73.5
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38.2%
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76.7
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143.2
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86.7%
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Adjusted Operating Margin3
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9.1%
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9.2%
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15bp
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7.6%
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8.9%
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133bp
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One-off Charge
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(570.4)
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(57.0)
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nm
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(570.4)
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(89.5)
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nm
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Underlying Net Income4
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183.0
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175.3
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(4.2)%
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291.0
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320.7
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10.2%
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Net Income of the Parent Company
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(306.9)
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123.3
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nm
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(220.8)
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237.7
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nm
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Diluted Earnings per Share5 (€)
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(2.71)
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1.03
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nm
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(1.95)
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1.97
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nm
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Order Intake
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1,510
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1,482
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3,011
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2,412
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Backlog
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18,824
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13,533
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18,824
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13,533
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1 Adjusted operating income from recurring activities after
income/(loss) of equity affiliates excluding exceptional items,
depreciation and amortization. No exceptional items in 1H16.
2
Adjusted operating income from recurring activities after income/(loss)
of equity affiliates excluding exceptional items. No exceptional items
in 1H16.
3 Adjusted operating income from recurring
activities after income/(loss) of equity affiliates excluding
exceptional items, divided by adjusted revenue. No exceptional items in
1H16.
4 Net income of the parent company excluding
exceptional items. See annex V.
5 As per IFRS, diluted
earnings per share are calculated by dividing income/(loss) attributable
to the parent company’s shareholders, restated for financial interest
related to dilutive potential ordinary shares, by the weighted average
number of outstanding shares during the period, plus the effect of
dilutive potential ordinary shares related to the convertible bonds,
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 and still
outstanding IFRS 2 charge is lower than the average market share price
during the EPS reference period.
Thierry Pilenko, Chairman and CEO, commented: “Operationally, the
second quarter performance highlighted our teams’ continued drive to win
new business, execute our clients’ current projects, reduce our cost
base and maintain our balance sheet strength. The result was a solid
quarter of profit and cash generation. Strategically, the agreement to
merge with FMC Technologies shows our determination to drive change in
our industry, as it evolves in response to a lower oil price; the merger
process is progressing well, with significant milestones completed.
Quarterly performance highlights
Regarding second quarter performance, the key elements include:
-
Strong Subsea activity across our regions, delivering an OIFRA at €200
million and margin at 14.6% on revenues down 12%;
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A resilient Onshore/Offshore performance, with OIFRA at €74 million
and margin at 5.1% on revenues down 7%;
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Our cost reduction program is ahead of schedule and expected to
deliver €900 million already by 2016, demonstrating our ability to
build a leaner business faster
-
Strong cash conversion: cash flow of €205 million drove record net
cash to €2.2 billion end of June;
-
Order intake of €1.5 billion, in line with 2Q15 and well ahead of
1Q16, with projects providing visibility and additional workload for
both our people and assets.
Within Subsea, our vessels were active on North Sea projects such as
Kraken and Edradour, and notably in West Africa on GirRI (Angola), TEN
(Ghana) and Moho Nord (Congo). In Brazil, we renewed the charters of
both our Brazilian-flagged pipelay vessels, the Skandi Niteroi and
Skandi Vitoria.
In Onshore/Offshore, we inaugurated the largest ethylene cracker project
in the Americas – Etileno XXI for Braskem (Mexico). In Malaysia, our
first Tension Leg Platform (TLP) sailed away on Malikai for Shell and
Petronas FLNG Satu has been moored. The Yamal project continued its
solid progress through the quarter, with 48 modules having departed
their fabrication yards since the beginning of 2016. Order intake
included a mix of early stage, reimbursable and technology-related work,
as well as additional scopes on larger projects such as Yamal.
Accordingly, in light of the strong performance in the first half, we
have upgraded our 2016 objectives:
-
Adjusted Subsea revenue between €4.7 and €5.0 billion, adjusted OIFRA
around €680 million (previously between €640 and €680 million);
-
Adjusted Onshore/Offshore revenue between €5.7 and €6.0 billion,
adjusted OIFRA around €280 million (previously between €240 and €280
million).
Market environment and outlook
The recent rise in the oil price coupled with evident deflation across
the supply chain in oil and gas gives all market participants more
confidence to plan for the long term. We are therefore seeing continued
focus from clients seeking to get upstream projects to work – notably
fast track projects like tie-backs and brownfield, but also larger,
strategic investments. This should not create undue optimism. We
continue to expect for some time yet a slow rate of new orders and
continued competitive pressure across the industry, notably for offshore
developments: the prolonged and harsh downturn has not ended.
By contrast, we continue to see good interest among our clients in
investing in downstream facilities in the current environment.
Technip continues to position itself at an early stage for work across
our portfolio of activities, particularly for large or complex projects
that require integrated skills and experience across different market
segments, or where technology expertise is critical. Our order intake
over recent quarters, as in the second quarter, reflects these strengths
in both offshore/subsea and onshore/downstream.
Technip and FMC Technologies combination
On May 19th, we announced our intention to combine with FMC
Technologies. The transaction brings together two market leaders and
their talented employees, building on the proven success of their
existing alliance and joint venture, Forsys Subsea, uniting innovative
technologies, common cultures and values, enabling rapid integration.
The combined company will harness a new generation of comprehensive
solutions in Subsea, Surface and Onshore/Offshore to reduce the cost of
producing and transforming hydrocarbons. The merger process is on track.
In June we reached two significant milestones ahead of schedule:
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We signed the official merger agreement mid-June, following the
conclusion of the works council consultation process in Europe;
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We received a successful early conclusion of the U.S. antitrust review
from U.S. regulators.
Internally, the planning for the two companies’ integration is gathering
momentum. In June, we announced the senior leadership team and the
principles and organization of the merger integration. We expect further
milestones over the coming months and will continue to communicate in
tandem with FMC Technologies on our progress.
Conclusion
Our second quarter results again show Technip’s focus – in our
day-to-day operations and our strategy – on meeting our clients’ needs
for solid execution and early engagement to drive their project costs
down. Project execution and cost reduction supported our profitability
and cash flow and we maintained a strong balance sheet. With FMC
Technologies, we will be an even broader oil and gas services company:
providing technology, equipment and project management expertise.
Together, we will drive change by redefining the production and
transformation of oil and gas – to win projects, gain new markets, and
continue to build talents – and creating long-term value for all our
stakeholders.”
I. ORDER INTAKE AND BACKLOG
1. Second Quarter 2016 Order Intake
During second quarter 2016, Technip’s order intake was €1.5
billion. The breakdown by business segment was as follows:
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Order Intake1 (€ million)
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2Q 2015
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2Q 2016
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Subsea
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892
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754
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Onshore/Offshore
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618
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728
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Total
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1,510
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1,482
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Subsea order intake included a major contract for the development
of the Bahr Essalam natural gas field, located in the Central
Mediterranean Sea, approximately 110 kilometers off the Libyan coast.
The project covers the overall design, detailed engineering and project
management, as well as procurement, installation, tie-ins,
pre-commissioning and commissioning. The scope of work also includes
modifications to the Sabratha platform regarding the topsides. A range
of vessels from the Group’s fleet will be involved in the project.
In Norway, Technip was awarded a contract to supply umbilicals to the
Oseberg Vestflanken 2 field covering project management, engineering and
manufacturing of over 9 kilometers of static steel tube umbilical, which
will be fabricated in Technip Umbilicals’ facility in Newcastle, UK.
Additionally, Technip signed work orders on a new frame agreement to
provide diving support and IRM services in the North Sea.
In Brazil, the charter contracts for the Skandi Vitoria and the Skandi
Niteroi were both renewed.
Onshore/Offshore order intake included a contract to provide
basic engineering and proprietary equipment for a grassroots ethylene
cracking furnace at the Saudi Kayan petrochemical complex in Jubail,
Saudi Arabia. The furnace will be based on Technip’s proprietary USC®
furnace technology and this award shows once again the potential of our
technology, equipment and consulting activities.
In Russia, Technip awarded a service contract in joint-venture with
Rostec for the existing GazpromNeft Refinery covering the engineering,
procurement and construction management services for the construction of
a new Crude Distillation Unit - Vacuum Distillation Unit complex.
Additionally, order intake included conversion into backlog of
contracted work (non-backlog elements) on various projects, as well as
some Front-End Engineering Designs (FEEDs) and other early stage studies.
Listed in annex IV are the main contracts announced since April 2016 and
their approximate value if publicly disclosed.
2. Backlog
At the end of second quarter 2016, Technip’s backlog was €13.5
billion, compared with €14.9 billion at the end of first quarter 2016
and €18.8 billion at the end of second quarter 2015.
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Estimated Backlog2 Scheduling
as of June 30, 2016 (€ million)
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Subsea
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Onshore/Offshore
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Group
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2016 (6 months)
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2,187
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2,594
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4,781
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2017
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2,199
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3,272
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5,471
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2018 and beyond
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1,492
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1,789
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3,281
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Total
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5,878
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7,655
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13,533
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1 Order intake includes all projects for which revenues are
consolidated in our adjusted financial statements.
2
Backlog includes all projects for which revenues are consolidated in our
adjusted financial statements.
II. SECOND QUARTER 2016 OPERATIONAL & FINANCIAL HIGHLIGHTS – ADJUSTED
BASIS
1. Subsea
Subsea main operations for the quarter were as follows:
-
In the Americas:
-
In the US Gulf of Mexico, the Deep Blue vessel completed
its class renewal dry-dock, while engineering and procurement
phases continued for the Blind Faith, Thunderhorse South, South
Santa Cruz and Barataria developments. Meanwhile, at our Mobile
spoolbase, pipe welding was completed for Stones DC2.
-
In Brazil, at our manufacturing plants in Vitória and Açu,
flexible pipe production continued for the pre-salt fields of Lula
Alto, Iracema Norte, Iracema Sul and Libra Extended Well Test.
Meanwhile, charters of Skandi Vitoria and Skandi Niteroi were
renewed after the former’s return from Africa and the latter’s
dry-dock.
-
In the North Sea, offshore operations restarted in Scotland
with the North Sea Atlantic on Quad 204 and the Deep Energy on Kraken.
In Norway, the Apache started working on Gullfaks Rimfaksdallen and
the Deep Arctic completed its campaign on Alvheim. Finally, the Skandi
Africa and Deep Energy vessels were mobilized on Edradour and began
the installation of pipelines and manifold at the end of the quarter.
-
In Asia Pacific, the Deep Orient vessel performed its first
installation campaign of flexible pipes for Jangkrik in Indonesia and
was also mobilized on Prelude in Australia on offshore operations
related to the jumper metrology.
-
In West Africa, the G1200 vessel continued its offshore
campaign on Moho Nord in Congo, while the Skandi Africa completed its
first installation phase on the same project. In Ghana, offshore works
continued on T.E.N. with the Deep Pioneer vessel. In Angola, the
remaining umbilical installation campaign for phase 2 of the GirRI
project was successfully completed by the Skandi Vitoria and on Kaombo
engineering and procurement progressed and umbilicals fabrication
continued in our manufacturing plants.
Overall, the Group vessel utilization rate for the second quarter
of 2016 was 77%, below the 89% in the second quarter of 2015 and the 82%
in the first quarter of 2016, mainly explained by planned dry-docks of
Deep Blue and Skandi Niteroi, as mentioned above.
Subsea financial performance is set out in the following table:
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€ million
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2Q 2015
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2Q 2016
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Change
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Subsea
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Adjusted Revenue
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1,553.8
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1,369.3
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(11.9)%
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Adjusted EBITDA
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311.6
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255.7
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(17.9)%
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Adjusted EBITDA Margin
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20.1%
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18.7%
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(138)bp
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Adjusted OIFRA after Income/(Loss) of Equity Affiliates*
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250.3
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200.1
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(20.1)%
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Adjusted Operating Margin
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16.1%
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14.6%
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(150)bp
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* No one-off charge accounted in Subsea adjusted operating income from
recurring activities.
2. Onshore/Offshore
Onshore/Offshore main operations for the quarter were as follows:
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In the Middle East, the installation progressed on the FMB
platforms offshore Qatar with the completion of the G1201 campaign. In
Abu Dhabi, fabrication continued for the Umm Lulu complex and neared
completion for Upper Zakum 750 field.
-
In Asia Pacific, the Malikai tension leg platform (TLP) sailed
away offshore Malaysia, while the Petronas FLNG Satu reached the
Kanowit gas field and completed the mooring chains connection.
Meanwhile, still in Malaysia, the Block SK316 project received its
Ready For Start Up certificate. In South Korea, integration activities
continued on the Prelude FLNG hull with the furnace commissioning. In
Brunei, construction progressed after execution of a third shutdown
for the Maharaja Lela & Jamalulalam Sud project.
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In Europe and Russia, the shipment of modules continued for the
Yamal LNG project, with 48 modules having departed their fabrication
sites since the beginning of 2016. Also in Russia, performance tests
started running for a grassroots furnace in Kazan. In Slovakia, site
activities started on the Duslo ammonia plant, while in the Czech
Republic, piling activities began on the Litvinov polyethylene plant.
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In Africa, early works continued for the MIDOR refinery
modernization and expansion project in Egypt.
-
In the Americas, construction activities continued on the
CPChem polyethylene plant in Texas and on Sasol’s world-scale ethane
cracker and derivative complex near Lake Charles, Louisiana. At the
same time, construction also progressed for the Juniper platform in
Trinidad and Tobago. In Mexico, the Etileno XXI petrochemical project
was inaugurated.
Onshore/Offshore financial performance is set out in the
following table:
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€ million
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2Q 2015
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2Q 2016
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Change
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Onshore/Offshore
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Adjusted Revenue
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1,544.6
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1,443.6
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(6.5)%
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Adjusted Underlying OIFRA after Income/(Loss) of Equity Affiliates
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53.2
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73.5
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38.2%
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Adjusted Underlying Operating Margin
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3.4%
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5.1%
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165bp
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Adjusted OIFRA after Income/(Loss) of Equity Affiliates
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(131.2)
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73.5
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nm
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Adjusted Operating Margin
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(8.5)%
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5.1%
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nm
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3. Group
The Group’s adjusted operating income from recurring activities after
income/(loss) of equity affiliates is set out in the table below.
Corporate charges fell to €14 million from €22 million in the second
quarter 2015.
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€ million
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2Q 2015
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2Q 2016
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Change
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|
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Group
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|
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Adjusted Revenue
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3,098.4
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|
2,812.9
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(9.2)%
|
|
|
Adjusted Underlying OIFRA after Income/(Loss) of Equity Affiliates
|
|
281.5
|
|
259.7
|
|
(7.7)%
|
|
|
Adjusted Underlying Operating Margin
|
|
9.1%
|
|
9.2%
|
|
15bp
|
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates
|
|
97.1
|
|
259.7
|
|
167.5%
|
|
|
Adjusted Operating Margin
|
|
3.1%
|
|
9.2%
|
|
610bp
|
|
In the second quarter of 2016, compared to a year ago, the estimated
translation impact from foreign exchange was negative €166
million on adjusted revenue and negative €9 million on adjusted
operating income from recurring activities after income/(loss) of equity
affiliates.
4. Adjusted Non-Current Items and Group Net Income
Adjusted non-current operating items of €(57) million were booked in the
quarter related to restructuring plan. We now expect to deliver €900
million of cost savings in 2016 out of the total target of €1 billion.
In addition, we booked €(15) million of costs related to the combination
with FMC Technologies.
Adjusted financial result in the second quarter of 2016 included
€17 million of interest expenses on long-term debt and a €13 million
negative impact from changes in foreign exchange rates and the fair
market value of hedging instruments.
|
|
|
|
|
|
|
|
|
|
€ million (except Diluted Earnings per Share and Diluted Number of
Shares)
|
|
2Q 2015
|
|
2Q 2016
|
|
Change
|
|
|
Adjusted OIFRA after Income/(Loss) of Equity Affiliates
|
|
97.1
|
|
259.7
|
|
167.5%
|
|
|
Adjusted Underlying OIFRA after Income/(Loss) of Equity Affiliates
|
|
281.5
|
|
259.7
|
|
(7.7)%
|
|
|
Adjusted Non-Current Operating Result
|
|
(397.8)
|
|
(71.8)
|
|
nm
|
|
|
Adjusted Financial Result
|
|
(28.4)
|
|
(24.2)
|
|
(14.8)%
|
|
|
Adjusted Income Tax Expense
|
|
24.2
|
|
(40.6)
|
|
nm
|
|
|
Adjusted Effective Tax Rate
|
|
nm
|
|
24.8%
|
|
nm
|
|
|
Adjusted Non-Controlling Interests
|
|
(2.0)
|
|
0.2
|
|
nm
|
|
|
Net Income of the Parent Company
|
|
(306.9)
|
|
123.3
|
|
nm
|
|
|
Underlying Net Income
|
|
183.0
|
|
175.3
|
|
(4.2)%
|
|
|
Diluted Number of Shares
|
|
113,121,323
|
|
125,154,724
|
|
10.6%
|
|
|
Diluted Earnings per Share (€)
|
|
(2.71)
|
|
1.03
|
|
nm
|
|
5. Adjusted Cash Flow and Statement of Consolidated Financial Position
As of June 30, 2016, the cash and cash equivalents were as
follows (€ million):
|
|
|
|
|
|
Adjusted Cash1 as of March 31, 2016
|
|
4,319.4
|
|
|
Adjusted Cash Generated from/(used in) Operating Activities
|
|
441.1
|
|
|
Adjusted Cash Generated from/(used in) Investing Activities
|
|
(110.0)
|
|
|
Adjusted Cash Generated from/(used in) Financing Activities*
|
|
(116.6)
|
|
|
Adjusted FX Impacts
|
|
(39.0)
|
|
|
Adjusted Cash1 as of June 30, 2016
|
|
4,494.9
|
|
|
*out of which dividends paid for €101 million
|
|
As of June 30, 2016, the adjusted net cash position was €2,192
million, up €205 million compared with €1,987 million as of March 31,
2016.
Adjusted capital expenditures for the second quarter of
2016 were €39 million, compared with €87 million one year ago.
The Group’s balance sheet remained robust and liquid. Adjusted shareholders’
equity of the parent company as of June 30, 2016 was €4,716 million,
compared with €4,536 million as of December 31, 2015.
1 Adjusted cash and cash equivalents, less bank overdraft.
III. FULL YEAR 2016 OBJECTIVES UPGRADED
-
Adjusted Subsea revenue between €4.7 and €5.0 billion, adjusted
Operating Income From Recurring Activities1 around
€680 million (previously between €640 and €680 million)
-
Adjusted Onshore/Offshore revenue between €5.7 and €6.0 billion,
adjusted Operating Income From Recurring Activities1
around €280 million (previously between €240 and €280 million)
1 Adjusted operating income from recurring activities after
income/(loss) of equity affiliates.
°
° °
The information package on Second Quarter 2016 results includes this
press release and the annexes which follow, as well as the presentation
published on Technip’s website: www.technip.com
NOTICE
Today, Thursday, July 28, 2016, Chairman and CEO Thierry Pilenko, along
with Group CFO Julian Waldron, will comment on Technip’s results and
answer questions from the financial community during a conference call
in English starting at 9:30 a.m. Paris time.
To participate in the conference call, you may call any of the following
telephone numbers approximately 5 - 10 minutes prior to the scheduled
start time:
|
France / Continental Europe:
|
|
|
+33 (0) 1 70 77 09 47
|
|
UK:
|
|
|
+44 (0) 203 367 9462
|
|
USA:
|
|
|
+1 855 402 7764
|
The conference call will also be available via a simultaneous,
listen-only audio-cast on Technip’s website.
A replay of this conference call will be available approximately two
hours following the conference call for three months on Technip’s
website and at the following telephone numbers:
|
|
|
|
Telephone Numbers
|
|
|
Confirmation Code
|
|
France / Continental Europe:
|
|
|
+33 (0) 1 72 00 15 00
|
|
|
302204#
|
|
UK:
|
|
|
+44 (0) 203 367 9460
|
|
|
302204#
|
|
USA:
|
|
|
+1 877 642 3018
|
|
|
302204#
|
Cautionary note regarding forward-looking statements
This press release 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 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 press release 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.
****
°
° °
Technip is a world leader in project management, engineering and
construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most
complex Offshore and Onshore infrastructures, close to 32,500 people are
constantly offering the best solutions and most innovative technologies
to meet the world’s energy challenges.
Present in 45 countries, Technip has state-of-the-art industrial assets
on all continents and operates a fleet of specialized vessels for
pipeline installation and subsea construction.
Technip shares are listed on the Euronext Paris exchange, and its ADR is
traded in the US on the OTCQX marketplace as an American Depositary
Receipt (OTCQX: TKPPY).
|
|
|
|
ANNEX I (a) 1
ADJUSTED CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
Second Quarter
Not audited
|
|
First Half
Not audited
|
|
|
€ million (except Diluted Earnings per
Share and Diluted
Number of Shares)
|
|
2015
|
|
2016
|
|
Change
|
|
2015
|
|
2016
|
|
Change
|
|
|
Revenue
|
|
3,098.4
|
|
2,812.9
|
|
(9.2)%
|
|
5,981.7
|
|
5,575.0
|
|
(6.8)%
|
|
|
Gross Margin
|
|
266.6
|
|
414.5
|
|
55.5%
|
|
602.6
|
|
803.3
|
|
33.3%
|
|
|
Research & Development
Expenses
|
|
(23.7)
|
|
(22.6)
|
|
(4.6)%
|
|
(41.6)
|
|
(41.1)
|
|
(1.2)%
|
|
|
SG&A and Other
|
|
(157.5)
|
|
(135.6)
|
|
(13.9)%
|
|
(308.9)
|
|
(272.1)
|
|
(11.9)%
|
|
|
Share of Income/(Loss) of
Equity Affiliates
|
|
11.7
|
|
3.4
|
|
(70.9)%
|
|
16.7
|
|
6.2
|
|
(62.9)%
|
|
|
OIFRA after Income/(Loss) of
Equity Affiliates
|
|
97.1
|
|
259.7
|
|
167.5%
|
|
268.8
|
|
496.3
|
|
84.6%
|
|
|
Non-Current Operating Result
|
|
(397.8)
|
|
(71.8)
|
|
nm
|
|
(403.8)
|
|
(104.3)
|
|
nm
|
|
|
Operating Income
|
|
(300.7)
|
|
187.9
|
|
nm
|
|
(135.0)
|
|
392.0
|
|
nm
|
|
|
Financial Result
|
|
(28.4)
|
|
(24.2)
|
|
(14.8)%
|
|
(67.3)
|
|
(67.3)
|
|
0.0%
|
|
|
Income/(Loss) before Tax
|
|
(329.1)
|
|
163.7
|
|
nm
|
|
(202.3)
|
|
324.7
|
|
nm
|
|
|
Income Tax Expense
|
|
24.2
|
|
(40.6)
|
|
nm
|
|
(13.9)
|
|
(87.3)
|
|
nm
|
|
|
Non-Controlling Interests
|
|
(2.0)
|
|
0.2
|
|
nm
|
|
(4.6)
|
|
0.3
|
|
nm
|
|
|
Net Income/(Loss) of the
Parent Company
|
|
(306.9)
|
|
123.3
|
|
nm
|
|
(220.8)
|
|
237.7
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Number of Shares
|
|
113,121,323
|
|
125,154,724
|
|
10.6%
|
|
113,353,706
|
|
124,498,527
|
|
9.8%
|
|
|
Diluted Earnings per Share (€)
|
|
(2.71)
|
|
1.03
|
|
nm
|
|
(1.95)
|
|
1.97
|
|
nm
|
|
1 Note that statements disclosed in annexes I(a) and I(c) do
not report underlying results. Please refer to annex V for the
underlying net income reconciliation.
|
|
|
|
ANNEX I (b)
FOREIGN CURRENCY CONVERSION RATES
|
|
|
|
|
|
|
|
Closing Rate as of
|
|
Average Rate of
|
|
|
|
|
Dec. 31,
2015
|
|
Jun. 30,
2016
|
|
2Q 2015
|
|
2Q 2016
|
|
1H 2015
|
|
1H 2016
|
|
|
USD for 1 EUR
|
|
1.09
|
|
1.11
|
|
1.11
|
|
1.13
|
|
1.12
|
|
1.12
|
|
|
GBP for 1 EUR
|
|
0.73
|
|
0.83
|
|
0.72
|
|
0.79
|
|
0.73
|
|
0.78
|
|
|
BRL for 1 EUR
|
|
4.31
|
|
3.59
|
|
3.39
|
|
3.96
|
|
3.31
|
|
4.13
|
|
|
NOK for 1 EUR
|
|
9.60
|
|
9.30
|
|
8.56
|
|
9.32
|
|
8.64
|
|
9.42
|
|
|
|
|
|
ANNEX I (c) 1
ADJUSTED ADDITIONAL INFORMATION BY BUSINESS SEGMENT
|
|
|
|
|
|
|
|
Second Quarter
Not audited
|
|
First Half
Not audited
|
|
|
€ million
|
|
2015
|
|
2016
|
|
Change
|
|
2015
|
|
2016
|
|
Change
|
|
|
SUBSEA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,553.8
|
|
1,369.3
|
|
(11.9)%
|
|
2,841.4
|
|
2,751.6
|
|
(3.2)%
|
|
|
Gross Margin
|
|
314.0
|
|
263.0
|
|
(16.2)%
|
|
540.3
|
|
509.2
|
|
(5.8)%
|
|
|
OIFRA after Income/(Loss) of
Equity Affiliates
|
|
250.3
|
|
200.1
|
|
(20.1)%
|
|
415.5
|
|
381.5
|
|
(8.2)%
|
|
|
Operating Margin
|
|
16.1%
|
|
14.6%
|
|
(150)bp
|
|
14.6%
|
|
13.9%
|
|
(76)bp
|
|
|
Depreciation and Amortization
|
|
(61.3)
|
|
(55.6)
|
|
(9.3)%
|
|
(123.7)
|
|
(115.4)
|
|
(6.7)%
|
|
|
EBITDA
|
|
311.6
|
|
255.7
|
|
(17.9)%
|
|
539.2
|
|
496.9
|
|
(7.8)%
|
|
|
EBITDA Margin
|
|
20.1%
|
|
18.7%
|
|
(138)bp
|
|
19.0%
|
|
18.1%
|
|
(92)bp
|
|
|
ONSHORE/OFFSHORE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
1,544.6
|
|
1,443.6
|
|
(6.5)%
|
|
3,140.3
|
|
2,823.4
|
|
(10.1)%
|
|
|
Gross Margin
|
|
(47.4)
|
|
151.5
|
|
nm
|
|
62.3
|
|
294.1
|
|
nm
|
|
|
OIFRA after Income/(Loss) of
Equity Affiliates
|
|
(131.2)
|
|
73.5
|
|
nm
|
|
(107.7)
|
|
143.2
|
|
nm
|
|
|
Operating Margin
|
|
(8.5)%
|
|
5.1%
|
|
nm
|
|
(3.4)%
|
|
5.1%
|
|
nm
|
|
|
Depreciation and Amortization
|
|
(10.2)
|
|
(9.1)
|
|
(10.8)%
|
|
(19.8)
|
|
(17.4)
|
|
(12.1)%
|
|
|
CORPORATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIFRA after Income/(Loss) of
Equity Affiliates
|
|
(22.0)
|
|
(13.9)
|
|
(36.8)%
|
|
(39.0)
|
|
(28.4)
|
|
(27.2)%
|
|
|
Depreciation and Amortization
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1 Note that statements disclosed in annexes I(a) and I(c) do
not report underlying results. Please refer to annex V for the
underlying net income reconciliation.
|
|
|
|
|
|
|
|
ANNEX I (d)
ADJUSTED REVENUE BY GEOGRAPHICAL AREA
|
|
|
|
|
|
|
|
Second Quarter
Not audited
|
|
First Half
Not audited
|
|
|
€ million
|
|
2015
|
|
2016
|
|
Change
|
|
2015
|
|
2016
|
|
Change
|
|
|
Europe, Russia, Central Asia
|
|
1,154.5
|
|
1,358.2
|
|
17.6%
|
|
2,182.7
|
|
2,378.7
|
|
9.0%
|
|
|
Africa
|
|
524.7
|
|
398.2
|
|
(24.1)%
|
|
943.7
|
|
895.0
|
|
(5.2)%
|
|
|
Middle East
|
|
220.5
|
|
159.5
|
|
(27.7)%
|
|
505.2
|
|
380.3
|
|
(24.7)%
|
|
|
Asia Pacific
|
|
482.8
|
|
314.8
|
|
(34.8)%
|
|
958.9
|
|
728.1
|
|
(24.1)%
|
|
|
Americas
|
|
715.9
|
|
582.2
|
|
(18.7)%
|
|
1,391.2
|
|
1,192.9
|
|
(14.3)%
|
|
|
TOTAL
|
|
3,098.4
|
|
2,812.9
|
|
(9.2)%
|
|
5,981.7
|
|
5,575.0
|
|
(6.8)%
|
|
|
|
|
|
ANNEX II
ADJUSTED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
Dec. 31, 2015
Audited
|
|
Jun. 30, 2016
Not audited
|
|
|
€ million
|
|
|
|
|
Fixed Assets
|
|
6,507.9
|
|
6,363.8
|
|
|
Deferred Tax Assets
|
|
481.8
|
|
508.4
|
|
|
Non-Current Assets
|
|
6,989.7
|
|
6,872.2
|
|
|
Construction Contracts – Amounts in Assets
|
|
652.0
|
|
647.8
|
|
|
Inventories, Trade Receivables and Other
|
|
3,366.5
|
|
3,618.3
|
|
|
Cash & Cash Equivalents
|
|
4,501.4
|
|
4,495.0
|
|
|
Current Assets
|
|
8,519.9
|
|
8,761.1
|
|
|
Assets Classified as Held for Sale
|
|
26.4
|
|
0.7
|
|
|
Total Assets
|
|
15,536.0
|
|
15,634.0
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity (Parent Company)
|
|
4,536.4
|
|
4,715.5
|
|
|
Non-Controlling Interests
|
|
8.5
|
|
8.3
|
|
|
Shareholders’ Equity
|
|
4,544.9
|
|
4,723.8
|
|
|
Non-Current Financial Debts
|
|
1,626.0
|
|
1,555.5
|
|
|
Non-Current Provisions
|
|
243.0
|
|
217.2
|
|
|
Deferred Tax Liabilities and Other Non-Current
Liabilities
|
|
215.0
|
|
204.8
|
|
|
Non-Current Liabilities
|
|
2,084.0
|
|
1,977.5
|
|
|
Current Financial Debts
|
|
937.1
|
|
748.0
|
|
|
Current Provisions
|
|
435.7
|
|
523.9
|
|
|
Construction Contracts – Amounts in Liabilities
|
|
2,308.2
|
|
2,036.0
|
|
|
Trade Payables & Other
|
|
5,226.1
|
|
5,624.8
|
|
|
Current Liabilities
|
|
8,907.1
|
|
8,932.7
|
|
|
Total Shareholders’ Equity & Liabilities
|
|
15,536.0
|
|
15,634.0
|
|
|
|
|
|
|
|
|
|
Net Cash Position
|
|
1,938.3
|
|
2,191.5
|
|
|
Adjusted Statement of Changes in Shareholders’ Equity (Parent
Company)
|
|
Not audited (€ million):
|
|
Shareholders’ Equity as of December 31, 2015
|
4,536.4
|
|
Net Income
|
237.7
|
|
Other Comprehensive Income
|
29.3
|
|
Capital Increase
|
136.6
|
|
Treasury Shares
|
2.6
|
|
Dividends Paid
|
(236.6)
|
|
Other
|
9.5
|
|
Shareholders’ Equity as of June 30, 2016
|
4,715.5
|
|
|
|
|
ANNEX III (a)
ADJUSTED CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
First Half
Not audited
|
|
|
€ million
|
|
2015
|
|
2016
|
|
|
Net Income/(Loss) of the Parent Company
|
|
(220.8)
|
|
|
|
237.7
|
|
|
|
|
Depreciation & Amortization of Fixed Assets
|
|
186.1
|
|
|
|
132.8
|
|
|
|
|
Stock Options and Performance Share Charges
|
|
15.2
|
|
|
|
8.4
|
|
|
|
|
Non-Current Provisions (including Employee Benefits)
|
|
137.6
|
|
|
|
5.0
|
|
|
|
|
Deferred Income Tax
|
|
(100.6)
|
|
|
|
(86.2)
|
|
|
|
|
Net (Gains)/Losses on Disposal of Assets and Investments
|
|
(26.7)
|
|
|
|
13.0
|
|
|
|
|
Non-Controlling Interests and Other
|
|
7.7
|
|
|
|
15.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Generated from/(used in) Operations
|
|
(1.5)
|
|
|
|
326.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Working Capital Requirements
|
|
370.9
|
|
|
|
197.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Operating Activities
|
|
|
|
369.4
|
|
|
|
523.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
(144.6)
|
|
|
|
(62.1)
|
|
|
|
|
Proceeds from Non-Current Asset Disposals
|
|
2.0
|
|
|
|
(71.0)
|
|
|
|
|
Acquisitions of Financial Assets
|
|
(2.5)
|
|
|
|
-
|
|
|
|
|
Acquisition Costs of Consolidated Companies, Net of Cash Acquired
|
|
(32.4)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Investing Activities
|
|
|
|
(177.5)
|
|
|
|
(133.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Borrowings
|
|
(107.5)
|
|
|
|
(261.8)
|
|
|
|
|
Capital Increase
|
|
21.3
|
|
|
|
0.7
|
|
|
|
|
Dividends Paid
|
|
(88.9)
|
|
|
|
(100.8)
|
|
|
|
|
Share Buy-Back and Other
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in) Financing Activities
|
|
|
|
(175.1)
|
|
|
|
(361.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Effects of Foreign Exchange Rate Changes
|
|
|
|
222.0
|
|
|
|
(34.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents
|
|
|
|
238.8
|
|
|
|
(6.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Overdrafts at Period Beginning
|
|
(0.9)
|
|
|
|
(0.1)
|
|
|
|
|
Cash and Cash Equivalents at Period Beginning
|
|
3,738.3
|
|
|
|
4,501.4
|
|
|
|
|
Bank Overdrafts at Period End
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
|
Cash and Cash Equivalents at Period End
|
|
3,976.5
|
|
|
|
4,495.0
|
|
|
|
|
|
|
|
|
238.8
|
|
|
|
(6.4)
|
|
|
|
|
|
ANNEX III (b)
ADJUSTED CASH & FINANCIAL DEBTS
|
|
|
|
|
|
€ million
|
|
Dec. 31, 2015
Audited
|
|
Jun. 30, 2016
Not audited
|
|
|
Cash Equivalents
|
|
2,555.7
|
|
2,392.1
|
|
|
Cash
|
|
1,945.7
|
|
2,102.9
|
|
|
Cash & Cash Equivalents (A)
|
|
4,501.4
|
|
4,495.0
|
|
|
Current Financial Debts
|
|
937.1
|
|
748.0
|
|
|
Non-Current Financial Debts
|
|
1,626.0
|
|
1,555.5
|
|
|
Gross Debt (B)
|
|
2,563.1
|
|
2,303.5
|
|
|
Net Cash Position (A – B)
|
|
1,938.3
|
|
2,191.5
|
|
ANNEX IV
CONTRACT AWARDS
Not audited
The main contracts we announced during second quarter 2016 were
the following:
Subsea Segment:
-
A four-year extension of a five-year initial contract signed in
January 2011 for the Flexible Pipes Logistic Base in Vitória (BAVIT).
The scope covers storage, handling, inspection, testing, load-out,
internal cleaning and maintenance of flexibles pipes. The base has a
300t handling capacity, storage capacity for 220 reels and serves as
the main load-out point for all pre-salt flexible pipes: Petrobras
S.A., Vitória, Brazil,
-
An engineering services contract to provide multi-disciplinary
engineering services as part of an engineering panel. This contract
covers all client operated onshore, offshore and subsea producing
assets. Under the agreement, Technip and Genesis may provide a
comprehensive suite of engineering services, including concept select
and feasibility studies, front-end engineering and design (FEED),
detailed engineering, production engineering support, engineering
assessment and review, as well as Genesis’ specialist technical
services: Woodside, Australia,
-
A contract to supply the umbilical to the Oseberg Vestflanken 2 field
offshore Norway. The contract covers project management, engineering
and manufacturing of over 9 kilometers of static steel tube umbilical.
The umbilical includes a large bore integrated service line and
multiple power cables. Technip Umbilicals’ facility in Newcastle, UK,
will manufacture the project: Statoil ASA, Norway,
-
A major contract to develop the Bahr Essalam, Phase II development in
the Central Mediterranean Sea. This natural gas field development will
be tied back to the Sabratha platform in a water depth of
approximately 190 meters. The overall scope of work covers the overall
design, detailed engineering and project management, as well as
procurement, installation, tie-ins, pre-commissioning and
commissioning. A range of vessels from the Group’s fleet will be
involved in the project: Mellitah Oil & Gas B.V. Libyan Branch, a
consortium between National Oil Corporation and ENI North Africa,
Libya.
Onshore/Offshore Segment:
-
A contract to provide proprietary equipment for the world’s first
commercial High Severity Fluid Catalytic Cracking (HS-FCC™) unit. The
HS-FCC cracks heavy hydrocarbons into lighter olefins such as
propylene and lighter fuels such as gasoline. It will be constructed
as part of the expansion of the existing residue conversion facilities
at the S-Oil refinery: Daelim Industrial Company, Onsan, South
Korea,
-
A contract to provide basic engineering and proprietary equipment for
a grassroots ethylene cracking furnace at the Saudi Kayan
petrochemical complex. The furnace will be based on Technip’s
proprietary USC® furnace technology. Technip’s operating center in
Milton Keynes, UK, will execute this project: CTCI, Jubail, Saudi
Arabia.
Since June 30, 2016, Technip has also announced the award of the
following contracts, which were included in the backlog as of
June 30, 2016:
Subsea Segment:
-
A frame agreement to provide Inspection, Repair and Maintenance (IRM)
services for 2016 with possible extension to include 2017 and 2018 on
the client’s North Sea subsea infrastructure. The frame agreement
covers provision of equipment, including diving equipment, underwater
intervention and engineering services, Onshore management and
engineering support, provision of ancillary personnel and equipment to
support execution of the work, diver inspection, ROV inspection,
maintenance, repair, construction and decommissioning. Repsol
Sinopec Resources UK Limited, UK.
Onshore/Offshore Segment:
-
A significant service contract awarded to RusTechnip for the existing
GazpromNeft Refinery covering the engineering, procurement and
construction management services (EPsCm) for the construction of a new
Crude Distillation Unit - Vacuum Distillation Unit complex. PJSC
GAZPROM NEFT, Omsk, Russia.
Since June 30, 2016, Technip has also announced the award of the
following contracts, which were not included in the backlog as of
June 30, 2016:
Subsea Segment:
-
A large subsea contract for the development of the Greater Enfield
Project, covering project management, design, engineering,
procurement, installation and pre-commissioning (EPIC) of carbon steel
production flowline, carbon steel water injection flowline, flexible
risers and flowlines, umbilicals, subsea structures and valves and
multi-phase pump system. The flexible pipes will be manufactured in
Asiaflex, located in Malaysia, the umbilicals will be supplied by
Technip Umbilicals’ facility located in Newcastle, UK and the offshore
installation at a water depth of between 340 and 850 meters will use
several vessels from Technip’s fleet. The operation is scheduled for
completion in 2018. Woodside, North West Shelf, Australia.
Onshore/Offshore Segment:
-
A Master Services Agreement (MSA) for a 12 mtpa Liquefied Natural Gas
(LNG) export terminal. The MSA will be utilized to execute engineering
services necessary to develop the project including the Front End
Engineering Design (FEED) and supporting the Federal Energy Regulatory
Commission (FERC) process. SCT&E LNG Inc, Monkey Island, Louisiana,
USA.
|
|
|
|
ANNEX V
UNDERLYING NET INCOME RECONCILIATION
Not audited
|
|
|
|
|
|
€ million
|
|
Second
Quarter
2016
|
|
First
Half
2016
|
|
|
|
|
|
|
|
|
|
Net Income of the Parent Company
|
|
123.3
|
|
237.7
|
|
|
One-off charges in OIFRA
|
|
-
|
|
-
|
|
|
Charges from Non-Current Activities
|
|
57.0
|
|
89.5
|
|
|
Other
|
|
14.8
|
|
14.8
|
|
|
Taxes & Financial Result
|
|
(19.8)
|
|
(21.3)
|
|
|
Underlying Net Income
|
|
175.3
|
|
320.7
|
|
****
The annex VI presents the first half IFRS consolidated financial
statements and a reconciliation to the adjusted basis.
****
|
|
|
|
ANNEX VI (a)
CONSOLIDATED STATEMENT OF INCOME
Not audited
|
|
|
|
|
|
€ million
|
|
First Half
|
|
|
(except Diluted Earnings per Share, and
Diluted Number of
Shares)
|
|
2015
IFRS
|
|
2016
IFRS
|
|
Change
|
|
|
|
Adjustments
|
|
2016
Adjusted
|
|
|
Revenue
|
|
5,336.4
|
|
4,287.4
|
|
(19.7)%
|
|
|
|
1,287.6
|
|
5,575.0
|
|
|
Gross Margin
|
|
597.5
|
|
758.1
|
|
26.9%
|
|
|
|
45.2
|
|
803.3
|
|
|
Research & Development Expenses
|
|
(41.6)
|
|
(41.1)
|
|
(1.2)%
|
|
|
|
-
|
|
(41.1)
|
|
|
SG&A and Other
|
|
(308.7)
|
|
(262.8)
|
|
(14.9)%
|
|
|
|
(9.3)
|
|
(272.1)
|
|
|
Share of Income/(Loss) of Equity
Affiliates
|
|
17.5
|
|
13.2
|
|
(24.6)%
|
|
|
|
(7.0)
|
|
6.2
|
|
|
OIFRA after Income/(Loss) of
Equity Affiliates
|
|
264.7
|
|
467.4
|
|
76.6%
|
|
|
|
28.9
|
|
496.3
|
|
|
Non-Current Operating Result
|
|
(403.8)
|
|
(104.3)
|
|
nm
|
|
|
|
-
|
|
(104.3)
|
|
|
Operating Income
|
|
(139.1)
|
|
363.1
|
|
nm
|
|
|
|
28.9
|
|
392.0
|
|
|
Financial Result
|
|
(66.2)
|
|
(63.4)
|
|
(4.2)%
|
|
|
|
(3.9)
|
|
(67.3)
|
|
|
Income/(Loss) before Tax
|
|
(205.3)
|
|
299.7
|
|
nm
|
|
|
|
25.0
|
|
324.7
|
|
|
Income Tax Expense
|
|
(10.9)
|
|
(62.3)
|
|
nm
|
|
|
|
(25.0)
|
|
(87.3)
|
|
|
Non-Controlling Interests
|
|
(4.6)
|
|
0.3
|
|
nm
|
|
|
|
-
|
|
0.3
|
|
|
Net Income/(Loss) of the Parent
Company
|
|
(220.8)
|
|
237.7
|
|
nm
|
|
|
|
-
|
|
237.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Number of Shares
|
|
113,353,706
|
|
124,498,527
|
|
9.8%
|
|
|
|
|
|
|
|
|
Diluted Earnings per Share (€)
|
|
(1.95)
|
|
1.97
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
ANNEX VI (b)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
€ million
|
|
Dec. 31, 2015
IFRS
(audited)
|
|
Jun. 30, 2016
IFRS
(not audited)
|
|
|
|
Adjustments
|
|
Jun. 30, 2016
Adjusted
(not audited)
|
|
|
Fixed Assets
|
|
6,539.0
|
|
6,406.2
|
|
|
|
(42.4)
|
|
6,363.8
|
|
|
Deferred Tax Assets
|
|
430.4
|
|
455.0
|
|
|
|
53.4
|
|
508.4
|
|
|
Non-Current Assets
|
|
6,969.4
|
|
6,861.2
|
|
|
|
11.0
|
|
6,872.2
|
|
|
Construction Contracts – Amounts in
Assets
|
|
637.6
|
|
647.8
|
|
|
|
-
|
|
647.8
|
|
|
Inventories, Trade Receivables and
Other
|
|
3,116.5
|
|
3,503.0
|
|
|
|
115.3
|
|
3,618.3
|
|
|
Cash & Cash Equivalents
|
|
2,919.1
|
|
2,808.3
|
|
|
|
1,686.7
|
|
4,495.0
|
|
|
Current Assets
|
|
6,673.2
|
|
6,959.1
|
|
|
|
1,802.0
|
|
8,761.1
|
|
|
Assets Classified as Held for Sale
|
|
26.4
|
|
0.7
|
|
|
|
-
|
|
0.7
|
|
|
Total Assets
|
|
13,669.0
|
|
13,821.0
|
|
|
|
1,813.0
|
|
15,634.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ Equity (Parent Company)
|
|
4,536.4
|
|
4,715.5
|
|
|
|
-
|
|
4,715.5
|
|
|
Non-Controlling Interests
|
|
8.5
|
|
8.3
|
|
|
|
-
|
|
8.3
|
|
|
Shareholders’ Equity
|
|
4,544.9
|
|
4,723.8
|
|
|
|
-
|
|
4,723.8
|
|
|
Non-Current Financial Debts
|
|
1,626.0
|
|
1,555.5
|
|
|
|
-
|
|
1,555.5
|
|
|
Non-Current Provisions
|
|
242.0
|
|
216.2
|
|
|
|
1.0
|
|
217.2
|
|
|
Deferred Tax Liabilities and Other Non-
Current Liabilities
|
|
207.6
|
|
189.1
|
|
|
|
15.7
|
|
204.8
|
|
|
Non-Current Liabilities
|
|
2,075.6
|
|
1,960.8
|
|
|
|
16.7
|
|
1,977.5
|
|
|
Current Financial Debts
|
|
937.1
|
|
748.0
|
|
|
|
-
|
|
748.0
|
|
|
Current Provisions
|
|
433.7
|
|
521.9
|
|
|
|
2.0
|
|
523.9
|
|
|
Construction Contracts – Amounts in
Liabilities
|
|
908.4
|
|
815.9
|
|
|
|
1,220.1
|
|
2,036.0
|
|
|
Trade Payables & Other
|
|
4,769.3
|
|
5,050.6
|
|
|
|
574.2
|
|
5,624.8
|
|
|
Current Liabilities
|
|
7,048.5
|
|
7,136.4
|
|
|
|
1,796.3
|
|
8,932.7
|
|
|
Total Shareholders’ Equity &
Liabilities
|
|
13,669.0
|
|
13,821.0
|
|
|
|
1,813.0
|
|
15,634.0
|
|
|
Statement of Changes in Shareholders’ Equity (Parent Company)
|
|
IFRS, Not audited (€ million):
|
|
Shareholders’ Equity as of December 31, 2015
|
|
4,536.4
|
|
Net Income
|
|
237.7
|
|
Other Comprehensive Income
|
|
29.3
|
|
Capital Increase
|
|
136.6
|
|
Treasury Shares
|
|
2.6
|
|
Dividends Paid
|
|
(236.6)
|
|
Other
|
|
9.5
|
|
Shareholders’ Equity as of June 30, 2016
|
|
4,715.5
|
|
|
|
|
ANNEX VI (c)
CONSOLIDATED STATEMENT OF CASH FLOW
Not audited
|
|
|
|
|
|
|
|
First Half
|
|
|
€ million
|
|
2015 IFRS
|
|
2016 IFRS
|
|
|
|
Adjustments
|
|
2016 Adjusted
|
|
|
Net Income/(Loss) of the Parent Company
|
|
(220.8)
|
|
|
|
237.7
|
|
|
|
|
|
-
|
|
|
|
237.7
|
|
|
|
|
Depreciation & Amortization of Fixed Assets
|
|
186.1
|
|
|
|
132.6
|
|
|
|
|
|
0.2
|
|
|
|
132.8
|
|
|
|
|
Stock Options and Performance Share
Charges
|
|
15.2
|
|
|
|
8.4
|
|
|
|
|
|
-
|
|
|
|
8.4
|
|
|
|
|
Non-Current Provisions (including Employee
Benefits)
|
|
137.6
|
|
|
|
5.0
|
|
|
|
|
|
-
|
|
|
|
5.0
|
|
|
|
|
Deferred Income Tax
|
|
(96.8)
|
|
|
|
(79.5)
|
|
|
|
|
|
(6.7)
|
|
|
|
(86.2)
|
|
|
|
|
Net (Gains)/Losses on Disposal of Assets
and Investments
|
|
(26.7)
|
|
|
|
13.0
|
|
|
|
|
|
-
|
|
|
|
13.0
|
|
|
|
|
Non-Controlling Interests and Other
|
|
6.9
|
|
|
|
48.2
|
|
|
|
|
|
(32.5)
|
|
|
|
15.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Generated from/(used in)
Operations
|
|
1.5
|
|
|
|
365.4
|
|
|
|
|
|
(39.0)
|
|
|
|
326.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Working Capital Requirements
|
|
56.2
|
|
|
|
17.1
|
|
|
|
|
|
180.0
|
|
|
|
197.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in)
Operating
Activities
|
|
|
|
57.7
|
|
|
|
382.5
|
|
|
|
|
|
141.0
|
|
|
|
523.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
(144.4)
|
|
|
|
(61.8)
|
|
|
|
|
|
(0.3)
|
|
|
|
(62.1)
|
|
|
|
|
Proceeds from Non-Current Asset Disposals
|
|
2.0
|
|
|
|
(71.2)
|
|
|
|
|
|
0.2
|
|
|
|
(71.0)
|
|
|
|
|
Acquisitions of Financial Assets
|
|
(2.5)
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Acquisition Costs of Consolidated
Companies, Net of Cash
acquired
|
|
(32.4)
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in)
Investing
Activities
|
|
|
|
(177.3)
|
|
|
|
(133.0)
|
|
|
|
|
|
(0.1)
|
|
|
|
(133.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Borrowings
|
|
(107.6)
|
|
|
|
(261.8)
|
|
|
|
|
|
-
|
|
|
|
(261.8)
|
|
|
|
|
Capital Increase
|
|
21.3
|
|
|
|
0.7
|
|
|
|
|
|
-
|
|
|
|
0.7
|
|
|
|
|
Dividends Paid
|
|
(88.9)
|
|
|
|
(100.8)
|
|
|
|
|
|
-
|
|
|
|
(100.8)
|
|
|
|
|
Share Buy-Back and Other
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Generated from/(used in)
Financing
Activities
|
|
|
|
(175.2)
|
|
|
|
(361.9)
|
|
|
|
|
|
-
|
|
|
|
(361.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Effects of Foreign Exchange Rate
Changes
|
|
|
|
109.5
|
|
|
|
1.6
|
|
|
|
|
|
(36.5)
|
|
|
|
(34.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in Cash and Cash
Equivalents
|
|
|
|
(185.3)
|
|
|
|
(110.8)
|
|
|
|
|
|
104.4
|
|
|
|
(6.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Overdrafts at Period Beginning
|
|
(0.9)
|
|
|
|
(0.1)
|
|
|
|
|
|
-
|
|
|
|
(0.1)
|
|
|
|
|
Cash and Cash Equivalents at Period
Beginning
|
|
2,685.6
|
|
|
|
2,919.1
|
|
|
|
|
|
1,582.3
|
|
|
|
4,501.4
|
|
|
|
|
Bank Overdrafts at Period End
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
|
|
-
|
|
|
|
(0.1)
|
|
|
|
|
Cash and Cash Equivalents at Period End
|
|
2,499.7
|
|
|
|
2,808.3
|
|
|
|
|
|
1,686.7
|
|
|
|
4,495.0
|
|
|
|
|
|
|
|
|
(185.3)
|
|
|
|
(110.8)
|
|
|
|
|
|
104.4
|
|
|
|
(6.4)
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727006665/en/ Copyright Business Wire 2016
Source: Business Wire
(July 28, 2016 - 1:00 AM EDT)
News by QuoteMedia
www.quotemedia.com
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