My dear colleagues of Technip,
I am happy to share with you the highlights of the last 12 months and give you the outlook on 2015.
First of all, thanks to every one for your commitment. Your day-to-day engagement is key to the success of Technip.
In 2014 we had many achievements.
We have delivered some major projects across the world and in all of our segments. I am thinking for example of Jubilee 1A in Ghana, Jubail in Saudi Arabia, Heidelberg in the Gulf of Mexico or PMP in Qatar to name just a few.
We have also booked a high level of diversified contracts in all regions: they include Yamal LNG in Russia or Kaombo in Angola which are two outstanding projects in terms of size and complexity, and great challenges for the teams.
To add to the list of our accomplishments, we have continued to invest. We have invested in new technologies as illustrated by the recent acquisition of Zimmer technologies in the petrochemical business; we have invested in our plants, with a new machine in our umbilical plant in Newcastle or the modernization of our flexible plant in Le Trait; we have also launched new vessels with the Coral do Atlantico and the Estrela do Mar in Brazil.
All of this will enable us to explore the new frontiers of our industry and thus prepare ourselves for the future.
Milestones of the past months also include our intention, announced in November, to make an offer on CGG in order to expand our portfolio of solutions by integrating reservoir technologies. Unfortunately the discussions with CGG about this industrial project did not result in an agreement, therefore we decided that we would stop this project.
December 2014
Season’s Greetings from Thierry Pilenko, Chairman & CEO
I realize there might have been some frustration within the company during that period as we have not been able to explain in detail the nature of this operation, as the discussions were obviously confidential. And for some of you, especially for those working in the downstream business, the oil and gas reservoir could seem far away from your daily activity.
For years, Technip, through Genesis and its subsea activities, has been helping its clients to define the development of their offshore fields. Having the knowledge and understanding of the reservoir would have helped us to propose even better integrated offers to our clients.
This is something our clients are asking of us, and this is something we want to be able to propose.
A central part of our ongoing strategy is to broaden our range of solutions and competencies to better serve our clients and enhance our position across the oil and gas value chain. For example, this is something that Technip has done with success by putting Technip and the Coflexip talents under the same roof. And we will continue to do it, in the same spirit, to reinforce our leadership in the sector.
Now, let me say a few words about our business environment which has changed significantly in 2014.
The oil price has fallen sharply by nearly 50% over the last 6 months. This has led our clients to significantly reduce their investments and cut their costs. At the same time, they expect more value for their money. In this turbulent period, we face tougher competition and our stock price is affected, as is it for all other players.
Looking forward, in this demanding, and somewhat uncertain context, we will build on our strengths. In particular, we can rely:
First on our record backlog, close to 20 billion euros which provides us long term visibility.
Second, on our differentiated technologies.
And third, on our global footprint.
December 2014
Season’s Greetings from Thierry Pilenko, Chairman & CEO
All of this gives us a strong position to start 2015.
More than ever, we need to stay on course with our strategy of Sustainable and Profitable Growth. This requires a strong focus on excellence in project execution and an early involvement in the projects of our clients.
Transversal programs such as Pulse for safety, Quartz for quality, Diversity and Compliance must also continue to progress.
In HSE we have made good progress by reducing our total recordable case frequency of accidents, but sadly we have still had fatalities on our sites this year, and this is not acceptable.
Finally let me conclude on a more personal note.
You, the women and men of Technip, are our most valuable assets. It is important now, to live by our values and work together as a team. I trust you to further reinforce cooperation between the different parts of the Group with the spirit of One Technip. I have full confidence in you and in our company’s future.
I am very proud of everything we accomplish together. Therefore I will propose to the Board
of Directors to extend my tenure for another term.
And again, thank you for your hard work and dedication to Technip!
I wish you and your loved ones a happy and healthy 2015.
Thank you.
My dear colleagues of Technip,
I am happy to share with you the highlights of the last 12 months and give you the outlook on 2015.
First of all, thanks to every one for your commitment. Your day-to-day engagement is key to the success of Technip.
In 2014 we had many achievements.
We have delivered some major projects across the world and in all of our segments. I am thinking for example of Jubilee 1A in Ghana, Jubail in Saudi Arabia, Heidelberg in the Gulf of Mexico or PMP in Qatar to name just a few.
We have also booked a high level of diversified contracts in all regions: they include Yamal LNG in Russia or Kaombo in Angola which are two outstanding projects in terms of size and complexity, and great challenges for the teams.
To add to the list of our accomplishments, we have continued to invest. We have invested in new technologies as illustrated by the recent acquisition of Zimmer technologies in the petrochemical business; we have invested in our plants, with a new machine in our umbilical plant in Newcastle or the modernization of our flexible plant in Le Trait; we have also launched new vessels with the Coral do Atlantico and the Estrela do Mar in Brazil.
All of this will enable us to explore the new frontiers of our industry and thus prepare ourselves for the future.
Milestones of the past months also include our intention, announced in November, to make an offer on CGG in order to expand our portfolio of solutions by integrating reservoir technologies. Unfortunately the discussions with CGG about this industrial project did not result in an agreement, therefore we decided that we would stop this project.
December 2014
Season’s Greetings from Thierry Pilenko, Chairman & CEO
I realize there might have been some frustration within the company during that period as we have not been able to explain in detail the nature of this operation, as the discussions were obviously confidential. And for some of you, especially for those working in the downstream business, the oil and gas reservoir could seem far away from your daily activity.
For years, Technip, through Genesis and its subsea activities, has been helping its clients to define the development of their offshore fields. Having the knowledge and understanding of the reservoir would have helped us to propose even better integrated offers to our clients.
This is something our clients are asking of us, and this is something we want to be able to propose.
A central part of our ongoing strategy is to broaden our range of solutions and competencies to better serve our clients and enhance our position across the oil and gas value chain. For example, this is something that Technip has done with success by putting Technip and the Coflexip talents under the same roof. And we will continue to do it, in the same spirit, to reinforce our leadership in the sector.
Now, let me say a few words about our business environment which has changed significantly in 2014.
The oil price has fallen sharply by nearly 50% over the last 6 months. This has led our clients to significantly reduce their investments and cut their costs. At the same time, they expect more value for their money. In this turbulent period, we face tougher competition and our stock price is affected, as is it for all other players.
Looking forward, in this demanding, and somewhat uncertain context, we will build on our strengths. In particular, we can rely:
First on our record backlog, close to 20 billion euros which provides us long term visibility.
Second, on our differentiated technologies.
And third, on our global footprint.
December 2014
Season’s Greetings from Thierry Pilenko, Chairman & CEO
All of this gives us a strong position to start 2015.
More than ever, we need to stay on course with our strategy of Sustainable and Profitable Growth. This requires a strong focus on excellence in project execution and an early involvement in the projects of our clients.
Transversal programs such as Pulse for safety, Quartz for quality, Diversity and Compliance must also continue to progress.
In HSE we have made good progress by reducing our total recordable case frequency of accidents, but sadly we have still had fatalities on our sites this year, and this is not acceptable.
Finally let me conclude on a more personal note.
You, the women and men of Technip, are our most valuable assets. It is important now, to live by our values and work together as a team. I trust you to further reinforce cooperation between the different parts of the Group with the spirit of One Technip. I have full confidence in you and in our company’s future.
I am very proud of everything we accomplish together. Therefore I will propose to the Board
of Directors to extend my tenure for another term.
And again, thank you for your hard work and dedication to Technip!
I wish you and your loved ones a happy and healthy 2015.
Thank you.
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