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Technip's Third Quarter Results: 2010 Outlook Revised Upwards

28 October 2010

Technip's Board of Directors approved the unaudited third quarter 2010 consolidated accounts. Chairman and CEO Thierry Pilenko commented: "In the third quarter, Technip continued to execute well on both its ongoing operations and strategy. Accordingly we are able to raise our 2010 operating margin outlook. We now expect a Subsea operating margin around 16.5% and close to 6% for Onshore/Offshore combined.

Third quarter Group operating margin of 10.3% was above our expectations and reflected strong operational performance in both our Onshore/Offshore and Subsea segments. We delivered Qatargas 3&4 LNG Train 6 in Qatar (and Train 7 subsequently in October) and continued to progress on other key projects in Onshore/Offshore. In Subsea we progressed on large projects such as Jubilee in Ghana and started offshore operations on Block 31 in Angola. In the Gulf of Mexico, in spite of concerns raised by the tragic incident, there has been no negative impact to our 2010 activity. Our visibility for the medium term is now improving as several deepwater developments seem to regain momentum.

We continued to grow a well-diversified backlog across our business segments, geographies, technologies and clients. Order intake for the quarter was €1.6 billion, giving a book-to-bill ratio for the quarter and year-to-date above 1. It included high-end projects in Subsea, in particular in the North Sea and Brazil, where flexible pipe technologies continue to thrive with the recent Papa-Terra Integrated Product Bundle (IPB) award following the Tupi pilot contract earlier this year. We gained numerous projects in Onshore/Offshore such as KJO in the Middle East and two hydrogen plants in North America.