First Half Euros in millions (except EPS and E/ADS) 2004 2003 Change ------------------------------ -- Backlog at June 30 6,334 7,572 - 16.3% -- Revenues 2,521 2,163 + 16.6% -- Income from Operations (EBITA) 121 97 + 24.7% -- Net Income 1 (19) ns -- Net Income before Non-Operating Items and Goodwill Amortization 67 37 + 81.1% -- Fully Diluted EPS (EUR) 2.51 1.55 + 61.9% -- Fully Diluted E/ADS ($) 0.76 0.47 + 61.7%
On July 28, 2004, the Board of Directors of Technip approved the unaudited second quarter and first half 2004 consolidated accounts.
Daniel Valot, Chairman and CEO, commented: "The strong increase in revenues and net income as well as the sound treasury position recorded during the first half of 2004 are in line with our announced targets. These results are the consequence of the substantial order intake which the Group achieved in 2002 and 2003 combined with the progress we made in cost cutting and risk management. On this basis, we feel comfortable that we should be able to fulfill our full year objectives.
"In our Offshore activities, new order intake was high enough to keep our Offshore backlog close to the record level reached one year ago. As we anticipated, in the Onshore activities our backlog decreased during the first half of 2004. A significant number of contracts should be awarded in this sector over the next twelve months: numerous bids and proposals are under preparation for large-size projects in the areas of gas treatment, gas liquefaction, GTL, steam crackers, hydrogen units, power plants and hydrometallurgy.
"Synergies on a regional level are developing at a fast pace. In countries such as Brazil and Australia, which in the past were accessible to us only for subsea pipeline projects, Technip has over the past six months been awarded large contracts for the construction of offshore platforms as well as onshore facilities.
"For the coming years, in our markets, it is becoming increasingly clear that the fastest growing segments should be the development of deep and ultra-deep offshore fields and the monetization of large stranded gas reserves. Given its skills, experience, assets and proven know-how, Technip is very well-positioned to take advantage of this expected growth."
I. OPERATIONAL HIGHLIGHTS
During the first half of 2004, Technip's order intake was EUR 1,969 million. Listed below are the main contracts which came into force during the period along with their approximate values (Technip's share):
-- two contracts awarded by Woodside Energy Ltd as part of the Otway Gas Project which include the subsea development of the Geographe and the Thylacine gas fields, both located offshore Australia as well as the associated onshore gas plant (EUR 200 million);
-- several contracts for hydrogen plants located in North America, the Middle East and Northern Europe (USD 257 million);
-- a contract awarded by BP for the development of the Greater Plutonio field, located offshore Angola in Bloc 18, between 1,200 and 1,500 m water depth (EUR 143 million);
-- a contract awarded by Petrobras for the engineering and construction of the P-51 semi-submersible production platform (USD 160 million);
-- a contract awarded by Kerr-McGee Corp. for the engineering and construction of a Spar floating production platform for the Constitution field in the Gulf of Mexico;
-- several contracts for power, infrastructure, chemical and life science facilities in Western Europe and South America (EUR 94 million);
-- a contract awarded by Woodside Energy Ltd. for the development of the Enfield oil field located offshore Western Australia in the Carnarvon Basin (EUR 50 million);
-- two contracts awarded by Shell and Eni for sub sea developments (Pierce and Stirling, respectively) in the UK North Sea (EUR 26 million);
-- a contract awarded by Dow Chemical Company and Petrochemical Industries Company to provide engineering services for a new ethylene plant to be constructed in Shuaiba, Kuwait; and
-- a Front End Engineering Design (FEED) service contract awarded by ChevronTexaco for the development of the Tahiti Project facilities in deepwater Gulf of Mexico.
As of June 30, 2004, the backlog(1) amounted to EUR 6,334 million versus EUR 7,572 million registered at June 30, 2003. It should be noted that currency variations and changes in the scope of consolidation reduced the backlog by approximately EUR 153 million and EUR 160 million, respectively. The Offshore backlog remained strong at EUR 2,877 million. The Onshore-Downstream and Industries combined backlog was EUR 3,457 million, lower by 23.6% than its level one year ago. As a result, the share of Offshore contracts in the Group backlog has further increased, moving from 40.2% at the end of June 2003 to 45.4% at the end of June 2004.
(1) The remaining portion of contracts in force.
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