Technip Presentation Knut Bø, Nyttårsoil Seminar, Orkanger 14. januar 2009
Contents I. II. III. IV Technip at a glance Market Position & Trends Financial Performance Strategy Going Forward V. 2
I. Technip at a glance 3
Technip Today Worldwide leader in engineering, project management and technologies, serving the oil & gas industry for 50 years 23,000 employees in 46 countries, Industrial assets on 5 continents, a fleet of 16 vessels (19 vessels end 2010) 2007 revenues: 7.9 billion Offshore Onshore Subsea Solutions across the value chain 4
Two Complementary Business Models SUBSEA OFFSHORE ONSHORE Capital intensive: fleet and manufacturing units Negative working capital Vertical integration from engineering to manufacturing & construction Negative capital employed: low fixed assets Negative working capital High degree of outsourcing & sub-contracting Project management skills Proprietary technologies & know-how Solid Balance Sheet Strong footprint with both IOCs & NOCs 5
Subsea Services Architectures Flexible Pipes (in house manufacturing) Deep Water Installation & Construction Rigid Pipelines Pipelaying Inspection, Repair & Maintenance Products Vertical integration In-house technologies Worldwide leadership First class assets Umbilicals (in house manufacturing) 6
Offshore TPG 500 Unideck Semi-submersible Spar EDP FPSO Engineering Innovative concepts Proprietary platform design Proven track record in engineering and construction 7
Onshore Refining & Heavy Oil Clean Fuels Grass Roots Heavy Oil upgraders Hydrogen Gas Processing Gas Treatment GTL LNG Petrochemicals Ethylene Polyolefins Aromatics Fertilizers Project management know-how Strong process engineering capabilities Proprietary technologies (Hydrogen, Ethylene ) Solid reputation with NOCs & IOCs 8
Worldwide Presence Orkanger Los Angeles Calgary Houston Stavanger Pori Evanton Aberdeen Oslo St. Petersburg Newcastle The Hague St. John s London Le Trait Düsseldorf Paris Lyon Rome Barcelona Athens Monterrey Abu Dhabi Doha New Delhi Shanghai Mumbai Chennai Bangkok Bogota Caracas Barra do Riacho Lagos Dande Luanda Lobito Port Harcourt Kuala Lumpur Singapore Jakarta Tanjung Langsat (operational in 2010) Balikpapan Vitória Rio de Janeiro Perth Regional Headquarters / Operating centers Manufacturing plants (flexible pipelines) Manufacturing plants (umbilicals) Construction yards Spoolbases 9
Technip: a Fleet of 19 Vessels by 2010 Current fleet: 16 vessels 3 new vessels Deep Blue Deep Pioneer Sunrise 2000 Venturer Skandi Arctic New build Diving Support Vessel Class III Largest & most sophisticated in its category Statoil frame agreement - delivery 1Q 2009 Constructor Seamec Princess Apache Orelia New Brazilian deepwater pipelay vessel Delivery planned for 4Q 2009 Wellservicer Skandi Achiever Normand Pioneer Seamec 2 Seamec 3 Geoholm Alliance Seamec 1 New deepwater rigid pipelay vessel High transit speed (20 knots) Worldwide operations Delivery 4Q 2010 10
II. Market Position & Trends 11
Market evolution: Subsea Key Indicators Market by Region Umbilicals Installed (km) 8,000 6,000 4,000 2,000 0 Subsea Trees (units by onstream year) 2006 2007 2008F 2009F 2010F 2011F 800 600 400 200 0 5.9 2005 7.5 7.9 9.6 10.0 10.3 2006 2007 2008F 2009F 2010F Asia Pacific USA Brazil Africa & Med. Mid. East, India North Sea, Canada Ultra deep water: strong growth driven by the Atlantic triangle Emerging deep water provinces such as India, Indonesia & Malaysia North Sea / Eastern Canada: still a large number of subsea tiebacks Asia Pacific: sustained activity driven by regional energy demand (gas) Sources: Quest Offshore Resources, Technip 12
Market evolution: Onshore Technip Backlog Anticipated Market Growth as of June 30, 2008 4,073 million Petrochems Ethylene Polyolefins PTA Refining 36% 14% Grassroots & upgrade Oil sands H 2 Other 4 % Gas processing Gas treatment LNG GTL 46% Ethylene capacity addition Crude distillation capacity addition Natural gas liquefaction capacity (mt) 12 8 4 0 2005 2012 (mb/d) 3 2 1 0 2005 2012 (mt) 300 200 100 0 2005 2012 Sources: Cedigaz, UBS, IEA, OPEC 13
III. Financial Performance 14
2008 Full Year Outlook* Revenue Subsea Onshore / Offshore Group ~ 2,650 million ~ 4,650 million ~ 7,300 million Operating Margin Subsea Well above 18.0% Onshore / Offshore (combined) reaffirmed 3.8% Group > 8.0% Net Cash Situation Upper end of 1.1-1.3 billion range at year end 2008 * Based upon current exchange rates 15
IV. Strategy Going Forward 16
Technip s main Capex projects to fuel Subsea organic growth +20% New DSV New DSV Vessels Capacity Increase (2007-2010) +40% 2010 Capacity ~ 5,800 Vessel-days/year Le Trait Flexible Pipes +40% ~ 1,100 km/year* Houston Umbilicals +25% ~ 700 km/year New pipelay vessel new acquired for DSV upgrade New plant (Asiaflex) +50% Lobito upgrade Vitória New pipelay vessel Technip s 2007-2010 Capex program: 1.3-1.4 billion Subsea: >85% *standardized 8 inch internal diameter 17
Technological Solutions to address new challenges: Deeper Water Arctic Spar Spar 2,000 Chukchi Sea 1,500 1,000 Houston 500 Orphan Basin Barents Sea 0 meters Nakika (Shell) Reeled Pipe-in-pipe Steel Catenary Risers Water depth: 2,000 meters Perdido (Shell) Spar operating at the deepest water depths: 2,350 meters Subsea pipelines (depth: 2,950 meters) Technologies for New Frontiers (Shtokman, above 73.20 N) Winterized topsides Ice resistant hull Double disconnection systems: mooring lines and risers Towards 3,000 meters and beyond Source: Technip 18
Technological Solutions to address new challenges: Floating LNG solutions Cryogenic flexible pipe Processing system FPSO Subsea services & product provider LNG carrier FPSO LNG (FLNG) Interface of technologies and know-how is key 19
Onshore Technologies Development Hydrogen: Enhanced Heat Transfer 25 to 30% increase in hydrogen production Improvement in the overall efficiency CO 2 reduction: ~20,000 tons/ y i.e. 6,000 passenger cars LNG: Cryogenic rigid pipe-in-pipe Robust & heavy duty No expansion loops Extremely safe and fire resistant Integrity monitoring system Certified ABS/BV/DNV Long distance Onshore, on trestle or subsea Ethylene: Increased Selectivity Increased efficiency CO 2 reduction Constant capacity furnace size is reduced minimize investment of new furnaces Increased Ethylene Production by >10% of existing furnaces of the same size HH 2 2 market leadership Integrated qualified innovative solutions Proprietary technologies 40% Technip Source: Technip 20