Technip Updates on TSKJ Nigeria Matter, Preliminary Results
Ahead of the release of its full year results on February 18, Technip has reported on the TSKJ Nigeria matter, as well as its fourth quarter 2009 activity.
As previously disclosed in its public filings, Technip has been cooperating with the United States Securities and Exchange Commission ("SEC") and the United States Department of Justice ("DOJ") in the ongoing investigations involving the joint venture company TSKJ, of
which Technip has a 25% share, in relation to events which occurred between 1994 and 2004. Technip and the SEC and DOJ have discussed a resolution of all potential claims against the company arising from the investigation. While these discussions have not concluded, Technip will record an exceptional charge of €245 million in the fourth quarter 2009 reflecting the estimated costs of resolution based on the current status of the ongoing discussions.
Commenting on the exceptional charge, Technip Chairman and CEO Thierry Pilenko said, "Our discussions with the SEC and DOJ have intensified over the last weeks. There is now a roadmap to a satisfactory global resolution of all potential claims in the US arising from the investigation. This is why we are now able to estimate the monetary cost of a resolution in our fourth quarter 2009 accounts. A resolution will allow Technip to put this old issue behind us and focus on further developing our business worldwide.
"The potential resolution does not contemplate a criminal conviction for Technip's role in the TSKJ joint venture. Although the amount to be paid is substantial, Technip will continue its global business in a normal manner. Technip unequivocally condemns all unlawful or unethical conduct in all circumstances and via its enhanced compliance policies and processes is committed to carrying out its activities according to the spirit and letter of the law and our corporate values wherever it operates."
It is important to note that not all matters in resolution of the investigation have been finalized, and Technip expects some additional weeks of discussion; there can be no assurance that the potential resolution will proceed as described. Other than the above remarks, there have been no other changes in the TSKJ matter and Technip will make no further comment on the investigation.
Preliminary information on fourth quarter 2009 operating performance
Technip's operating performance was above expectations for the fourth quarter 2009 across all three segments and accordingly Technip expects full year 2009 results above its most recent guidance. Group revenue is estimated at €6,456 million and operating income from recurring activities at €677 million. The Group saw a strong quarter for new business and order intake is estimated at €1,934 million, leading to a year-end backlog of €8,018 million.
The Group ended with net cash on its balance sheet of €1,784 million. 2009 net income will be reduced by the TSKJ exceptional charge.
Commenting on fourth quarter 2009 operating performance, Thierry Pilenko added, "In 2009, our teams have delivered excellent project execution for our clients, and their efforts are also reflected in an operational performance ahead of our expectations."
The financial information above is based on estimates and is currently being audited. Technip will publish and comment further its fourth quarter and full year 2009 results, after review by Technip's Board of Directors, on February 18th as previously planned. Technip will
hold on that day as scheduled a press conference and a conference call for investors and analysts.
- Sasol Plans More Hiring for Louisiana Project (Oct 12)
- Bapco To Meet Technip-Led Consortium For Talks On Refinery Expansion (Aug 22)
- Fluor Wins Malaysia Isononanol Plant Contract (Aug 07)