2014
Delivering
Results
Activity and Sustainable Development Report
TECHNIP in 2014
10.7
adjusted
revenue
ListeD
on the Euronext
Paris Exchange
48
countries
€ 20.9 billion
backlog at the end of 2014
38,000 people
27
vessels
including 6 under construction
operating
€825 Adjusted
income from
million recurring activities
Industrial assets
on all continents
DELIVERING RESULTS
IS WHAT WE DO
Technip is a world leader in project management, engineering
and construction for the energy industry.
From the deepest subsea oil and gas developments to the
largest and most complex offshore and onshore infrastructures,
the men and women of Technip are committed to offering
smart and cost-effective solutions as well as most innovative
technologies to meet the world’s energy challenges.
With a presence in 48 countries, we have state-of-theart industrial assets on all continents and operate a fleet
of specialized vessels for pipeline installation and subsea
construction. Our conceptual engineering skills and innovative
technologies, as well as the focus we put on early engagement,
enable us to help our clients optimize their projects.
Our wide portfolio of solutions positions us
as a valued partner for our client base, in order to deliver
safe and successful projects that are nothing short of amazing.
Because taking it further is what we do.
Delivering subsea operations
With a unique integrated approach
Our teams take constant care in the fabrication of each pipe manufactured
in our plants. Excellence and innovation are gathered to serve
the major progress to which our Group is contributing today.
While subsea projects are getting closer to water depths of up to
3,000 meters, Technip is constantly pushing back the limits of deepwater
operations by making pipes and field installations stronger and smarter.
Our integrated approach sets us apart: we master the whole value-chain
of a project. This ensures maximum reliability, which is key to meet
deepwater challenges.
Delivering Offshore operations
With customized product range
In the offshore business, our activities include engineering, procurement,
construction (EPC) and installation of fixed and floating platforms.
We use a large portfolio of technological solutions to answer
the challenges faced by our clients. We are leveraging our expertise
in full-range of offshore facilities, as well as our strong know-how with
added-value process skills and proprietary platform design.
Delivering Onshore operations
With a portfolio of leading market technologies
At Technip, in the onshore business, we deliver to our clients all the
experience we have acquired for almost 60 years, combined with a large
technology solutions portfolio. We are working on onshore facilities
that the energy sector needs, in particular for oil and gas industry
players. Technip is one of the global leaders for the refining business
and petrochemical units. We also reinforced our position on project
management consultancy activities by leveraging our expertise
in the management of complex projects.
Delivering sustainability
With a long-term added-value
At Technip, we strive to create added value on the long-term for the social,
economic and environmental benefits of all our stakeholders.
Embedding sustainable development in everything we do and building
trust with our stakeholders is the basis of our approach.
contents
34
38,000 men and women
actively delivering projects
22
62
Message from
the Chairman and CEO,
Thierry Pilenko
Delivering added-value
in the long-term
technip in 2014
operations
SUSTAINABILITY
Technip worldwide • 14
2014 in review • 16
Message from the Chairman
& CEO • 22
Message from the Head of SD • 24
Governance & Organization • 26
2014 in figures • 30
Markets & Strategy • 36
Our activities • 39
Subsea • 39
Offshore • 45
Onshore • 51
Innovation & Technology • 57
Quality • 60
Human Resources • 64
​​​
Health,
safety and security • 68
​​​National content and community
support • 72
​​​Environment • 76
Ethics and compliance • 80
Indicators • 82
Glossary • 94
TECHNIP IN 2014
One Technip delivering
strong operational
performance
TECHNIP IN 2014
OPERATIONS
sustainability
14
​Technip worldwide
16
2014 in REVIEW
22
Message from the Chairman and CEO
24
Message from the Head
of Sustainable Development
26
Governance and organization
30
​​2014 in figures
12_13
TECHNIP In 2014
OPERATIONS
sustainability
Newscastle
Calgary
Boston
Weymouth
Claremont
St. John’s
Le Trait
Mobile
Houston
Mexico City
TECHNIP
WORLDWIDE
Ciudad del Carmen
Bogota
A multi-local company
Wherever our clients operate, we have the resources
to make their projects a success, with more than
38,000 people in 48 countries, industrial assets
on all continents and a leading-edge fleet
of 27 vessels including 6 under construction.*
Regional Headquarters / Operating centers
Manufacturing plants (flexible pipelines)
Caracas
Port-of-Spain
Vitória
Açu
Macaé
Rio de Janeiro
Port of Angra
REGION
Manufacturing plants (umbilicals)
MANUFA
Construction yard
MANUFA
Logistic bases
CONSTR
Spoolbases
LOGISTI
* As of February 2015.
Technip | 2014 Activity and Sustainable Development Report
SPOOLB
Orkanger
Evanton
Aberdeen
Stavanger
Oslo
Milton Keynes
London
Lisbon
Paris
Lyon
Marseille
Pori
St. Petersburg
Zoetermeer Warsaw
Düsseldorf
Frankfurt
Antwerp
Moscow
Rome
Barcelona
Athens
Seoul
Cairo
Kuwait
Al-Khobar
Doha
Abu Dhabi
New Delhi
Shanghai
Mumbai
Chennai
Bangkok
Kuala Lumpur
Lagos
Accra
Rayong
Ho Chi Minh City
Miri Batam
Balikpapan
Singapore
Tanjung Langsat
Dande
Jakarta
Luanda
Lobito
Perth
NAL HEADQUARTERS / O PERATING CENTERS
3
15
2
7
Rigid Reel-Lay
& J-Lay
Flexible-Lay
& Construction
Rigid s-Lay
& Heavy Lift
Diving & Multi
Support Vessels
ACTURING PLANTS (FLEXIBLE PIPELINES)
ACTURING PLANTS (UMBILICALS)
RUCTION YARD
IC BASES
BASES
14_15
TECHNIP In 2014
OPERATIONS
sustainability
2014 IN REVIEW
02
The Coral do Atlantico and
Estrela do Mar, Technip’s new
pipe-lay support vessels (PLSV),
were built to meet pre-salt
demands in Brazil.
Also available at
2014activityandsd.technip.com
01
Our Bronze Class ranking in
the RobecoSAM Sustainability
Awards recognizes
our commitment
and sustainability actions.
03
The Kaombo project is the largest
subsea contract ever awarded
to Technip and strengthens our
position in the ultra-deepwater
market. Leveraging our alliance
with Heerema, we bring unrivaled
capabilities to our clients.
Technip | 2014 Activity and Sustainable Development Report
05
Technip’s new state-of-the-art
manufacturing plant in Açu,
Brazil, has delivered its first
flexible pipes for pre-salt
developments.
04
Technip has been certified
as a Top Employer 2014
in 19 countries, showing that
our ambitious global HR policy
is rolled out everywhere
we operate.
06
Technip held its first global
Gender Diversity Forum in Paris,
as part of our strategic priority
to develop a common
understanding and gender inclusive
language and create a vision
for the future.
For more information,
please see p. 67
16_17
TECHNIP In 2014
OPERATIONS
sustainability
07
Awarded in 2014 and located
in Siberia, the Yamal LNG
project will comprise three
liquefaction trains of 5.5 million
tons per year that are among
the world’s largest.
08
Our new manufacturing facility
at Technip Umbilicals
in Newcastle is one of the
most capable steel tube
umbilical assembly plants
in the world.
09
The last unit of the Jubail
Export Refinery project
was successfully and
safely completed.
For more information,
please see p. 55
Technip | 2014 Activity and Sustainable Development Report
11
Technip and IFPEN renewed
their partnership in offshore
oil production, focusing on
technological innovation to
meet offshore deepwater
market requirements.
10
The Heidelberg Spar delivery
demonstrates the Group’s
leadership for this type of
floating platforms and ability
to tackle ultra-deepwater
developments.
For more information,
please see p. 49
12
The modernization of our
French manufacturing plant
in Le Trait, including the
inauguration of a new crane,
strengthens our leadership
and expertise in flexible pipe
technology.
18_19
TECHNIP In 2014
OPERATIONS
sustainability
14
Awarded to the TechnipSamsung Heavy Industries
Consortium by Shell in 2012,
the Prelude FLNG project
will help unlock new energy
resources offshore and has
the potential to revolutionize
natural gas production.
13
With the RAPID UIO contract,
Technip is proud to be able
to support Petronas in an
expanded presence to deliver
this project of strategic importance
to Malaysia.
15
Our newly built multipurpose
construction vessel, the North
Sea Atlantic, will deliver
pipelay, subsea construction
and survey projects and was
designed to meet the highest
clients’ requirements.
Technip | 2014 Activity and Sustainable Development Report
17
Covering Project Management
Consultancy (PMC) services,
the Nasr Phase II contract
consolidates Technip’s position
as one of the top-tier Project
Management Consultancy
companies worldwide.
16
Technip was awarded a substantial
contract for the Juniper field,
offshore Trinidad in 2014. Leveraging
our unique combination of
complementary assets, technologies
and capabilities, this project offers
comprehensive platform and
subsea design, as well as detailed
engineering solutions.
18
In 2014, more than
10,300 snapshots were posted
on the dedicated One Technip
Day website. A real
One Technip spirit shared
all over the world! As part
of this initiative, more than
€10,000 have been raised in
favor of the UNICEF.
20_21
TECHNIP In 2014
OPERATIONS
sustainability
INTERVIEW
“More than ever, our clients
need close relationships with
contractors of choice such
as Technip, in order to help them
optimize their investments.”
Thierry Pilenko,
Chairman and CEO
2014 was an eventful year for the whole
industry. Looking back, what observations
can you make on the Group’s performance?
Indeed, 2014 was marked by serious turbulences in the oil
and gas business. Nonetheless, we succeeded in reinforcing
our position throughout the year. For instance, we recorded
an unprecedented order intake of 15.3 billion euros,
increasing our backlog to 21 billion euros, with diversified
and high quality projects. We also delivered major projects,
such as Heidelberg in the Gulf of Mexico, Jubilee Phase 1A
in Ghana or the Jubail refinery in Saudi Arabia.
While oil services activities encountered significant
headwinds, emphasized by the oil price drop, further
increasing the pressure put by clients on their supply chains,
our reaction has been strong and rapid. Technip brought
down its selling, general and administrative expenses by
69 million euros in 2014. We also streamlined our activities,
exiting from non-strategic activities and reducing our fleet
to 27 vessels.
Technip | 2014 Activity and Sustainable Development Report
In parallel, Technip continued to invest and recruit
selectively. To expand our portfolio of technological
solutions, we acquired the Zimmer® polymer business.
In terms of equipment, an upgrade plan was launched
at our site in Le Trait, in France and investments were made
at our umbilical plant in Newcastle, UK. Additionally,
we continued to develop our talents and added specific
skills to our engineering teams.
What are the key points of Technip’s results
for 2014?
Despite a very changing market, we achieved the objectives
we had set earlier in the year.
Our adjusted revenue grew by 16% at 10.72 billion euros,
crossing the symbolic 10 billion threshold for the first time.
Our adjusted operating profit reached 825 million euros with
particularly strong performance in the technology, services
and equipment parts of our business.
Subsea delivered ahead of our expectations, boosted by
a solid operational performance in all regions. Onshore/
Offshore delivered adjusted revenue higher than expected.
However, operationally, as indicated mid-2014, conditions
were challenging in a number of respects, reflected in a fall
in adjusted operating income of this segment. Looking
beyond the results, I would like to applaud the work of our
teams. The passion they demonstrate remains a powerful
driving force for our Group. In 2014, all our employees
focused hard on our safety and our quality programs, with
clear improvements in both areas.
What are your financial objectives for 2015?
For 2015, based on our record 21 billion euros backlog, we are
able to give clear guidance for revenue and profit growth and
our main focus will again be on delivering our projects in line
with our clients’ expectations. We are not only managing
our own costs but our clients increasingly see our range
of technologies, services, products and project experience
as compelling in managing their project costs too. With all
of this in mind, combined with Technip’s robust balance sheet,
we propose an 8% increase of our dividend with a scrip
alternative. Indeed, we are confident in our ability to create
value in the coming years for all our stakeholders.
We will therefore continue our efforts to improve our
contribution as a responsible player. We operate in
48 countries and are committed to supporting the
development of local economies, for example through
partnerships supporting knowledge transfer.
What is the outlook for Technip?
More than ever, our clients need close relationships with
contractors of choice such as Technip, in order to help them
optimize their investments. Regardless of the oil price level,
they have stressed their need to improve the costs of their
projects. Whether through our design studies or our
technologies, we have the skills which can enable them
to significantly improve returns on their projects, including
deep offshore and frontiers areas. Where we have had early
engagement with our clients, they have seen our ability
to deliver substantial optimization. We will also continue
to add new areas of expertise in order to broaden our
position as a valued partner for our clients. This is what
we have done early 2015 by signing an agreement to form
an exclusive alliance with FMC Technologies and to launch
the Forsys Subsea joint venture.
I am convinced that, in the current context, Technip is well
positioned to make the difference and strengthens
its leading position in the oil and gas services industry.
Watch the video of the interview at
2014activityandsd.technip.com
22_23
TECHNIP IN 2014
OPERATIONS
SUSTAINABILITY
INTERVIEW
“DEVELOPING A CULTURE OF
BUSINESS RESPONSIBILITY DELIVERS
LONG-TERM ADDED-VALUE.”
Colette Casimir, Senior Vice President,
Head of Sustainable Development
WHAT ARE EXAMPLES OF HOW YOU ARE EMBEDDING
SUSTAINABLE DEVELOPMENT IN THE COMPANY?
In line with our commitment to the 10 principles of the
United Nations Global Compact, our strategy is based
on four pillars: building a sustainable future, developing
people, protecting people and the environment
and encouraging local development. For the first pillar,
our activities in 2014 focused mainly on increasing internal
TECHNIP | 2014 ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT
awareness and competencies and engaging with our
key stakeholders. We continued to build management
support right up to the top of the organization through
a series of workshops with representatives of key
departments and Group executives. Technip’s Board
of Directors has decided to put forward one of its
independent directors to enhance the visibility of
sustainable development and improve the integration
of its stakes at the highest level of the Group.
We also initiated discussions with some of our clients
and suppliers to agree on key sustainability priorities.
We dedicated a specific attention in promoting Eco-Design,
either through training on Leadership in Energy and
Environmental Design standard or in boosting the
application of Life-Cycle Assessment methodology
in projects. We have moved forward on the “Technip Reference
MATERIALITY MATRIX
High
Relevance for Stakeholders
HOW DID TECHNIP SUSTAINABLE DEVELOPMENT
STRATEGY EVOLVE IN 2014?
2014 was a year during which we focused on embedding
sustainable development more deeply and more widely
within the organization.
In this regard, we have engaged with a large range of our
internal and external stakeholders in order to reinforce
the understanding of their expectations towards the material
aspects on which Technip should focus on. We undertook
this ’materiality assessment’ using the Global Reporting
Initiative framework (in compliance with its G4 guidelines).
This assessment (see illustration below) helped us to
list our top priorities which are now being integrated
within our strategy.
We firmly believe that sustainable development needs
to be part of our company culture, in the same way that
safety and quality are. Our goal is to enhance a culture
of business responsibility that will generate long-term
added value and will foster profitable and sustainable
growth for all our stakeholders.
Medium
Meeting clients requirements
& expectations
Protecting the
environment
Investing in national
capacities
Maintaining the highest
ethical standard
Developing & protecting
people
Building long-term relationships
with local communities
Relevance for Technip
High
Catalogue of Sustainable and Innovative Solutions”, involving
our centers of excellence for technological innovation and
expertise, such as our Innovation & Technology Center,
Technip Stone & Webster Process Technology, Group
Intellectual Property Department and the Expert Network.
For protecting people and the environment, we have
reinforced our actions towards Human Rights and
climate change.
Finally, local development happens mainly through
community support and national content. I am particularly
proud of our national content best practices in Angola,
Colombia, Congo, Ghana and Malaysia, where we are
increasing the level of locally sourced employees and
fostering the transfer of technical knowledge to nationals.
This has been made possible through close relationships
with universities, as illustrated by the Memoranda
of Understanding we signed in India and in Malaysia.
How do you measure this growing maturity?
Transparency and measurability are vital parts of our
sustainable development strategy. Working closely with
our internal stakeholders on the definition of relevant
indicators measuring our performance will help us growing
our maturity taking into account the Global Reporting
Initiative (GRI-G4) framework.
We are also proud of our Bronze Class ranking in the
RobecoSAM Sustainability Awards and our inclusion
in the Dow Jones Sustainability Indices (DJSI) since 2001.
What are your objectives for 2015?
Sustainable development is a journey, not a destination.
As we mature, the goal is to embed and inspire positive
energy inside and outside the organization. For example,
starting in 2015, we will engage with our top 20 suppliers
and subcontractors to make sure their organizations
are also improving in terms of sustainability. We expect
the “Technip Reference Catalogue of Sustainable and
Innovative Solutions” to move ahead and support deeper
dialogue with key clients on Technip’s approach
to anticipate the impact of climate change on the
infrastructures delivered.
Finally, we will produce in 2015 a sustainable development
procedure to help integrating sustainability more and more
inside our project tendering and execution, the priority
being to initiate the discussions on sustainability matters
with our clients at the earliest stage of the life-cycle
of our projects.
Watch the video “Sustainable Development in action” at
2014activityandsd.technip.com
24_25
TECHNIP In 2014
OPERATIONS
sustainability
Governance and Organization
Continuous
enhancement delivers
improved governance
At Technip our commitment to delivering results extends all the way up
to the Executive Committee and to the Board of Directors.
e ffective decision-making
delivers clear direction
The Chairman and Chief Executive Officer (CEO) is
responsible for the general management of Technip
and is assisted by the Executive Committee.
As of February 2015, the Executive Committee is comprised
of the Chairman and CEO, two Presidents from our
business segments (Subsea and Onshore/Offshore)
and one President from the operational business.
The Group Chief Financial Officer, Group Human
Resources Director and Group General Counsel represent
three key support functions.
The Executive Committee prepares decisions for approval
by the Board of Directors, including those related to
objectives, strategic orientations, budgets, accounts,
investments and divestments. It supervises the monitoring
of major contracts and evaluates key investment decisions.
It also examines plans and recommendations regarding
internal audits, information systems and
telecommunications, human resources and asset
management. Two special committees report to
the Chairman and CEO: the Ethics and Compliance
Committee and the Disclosure Committee.
Technip | 2014 Activity and Sustainable Development Report
❶
❶Knut Boe
President North Sea
Canada
❷Hallvard Hasselknippe
President Subsea
“In 2014, we focused on enhancing
our strategic industrial assets,
like our investment in our stateof-the art manufacturing plant
in Newcastle, UK, designed to meet
the demand of the steel tube
umbilical market worldwide.”
❺Thierry Parmentier
Group Human Resources
Director
“Working together as “One Technip”
is key to deliver our projects
successfully. Unity was at the
heart of our actions in 2014:
we strengthened the employer
brand, promoted gender intelligence
and focused on skills development
through intergenerational
knowledge sharing.”
❷
“In 2014 we further strengthened
our client relationships among
others by entering several long
term frame agreements.
Leveraging our unique subsea
vertical integration we continued
to provide differentiating and
competitive solutions from concept
phase to execution to our clients.”
❻Nello Uccelletti
President Onshore/
Offshore
“We focus on strategic early
engagement in the project lifecycle
of our clients to develop optimized
cost- and schedule-driven projects,
while strengthening new revenue
streams such as our PMC activities
based on consultancy services
for project management.”
❹
❸
❸Julian Waldron
Group Chief Financial
Officer
❹Thierry Pilenko
Chairman and
Chief Executive Officer
“We invested in 2014 selectively
and developed our strategic assets,
as illustrated by the €68 million
modernization plan initiated for
our manufacturing plant based
in France. At the same time,
we pursued our cost reduction
efforts and our focus on CAPEX
discipline.”
“We ended 2014 with a record
backlog of €21 billion of high
quality and diversified projects,
confirming the visibility we have
in our business beyond 2015. In
a changing market environment,
we are closely engaged with our
clients to help them manage their
project costs, through our range
of technologies, products and
services.”
❼JOhn Harrison
Group General Counsel
“At Technip, we strive to conduct
business to the highest ethical
standards transposing our general
principles into concrete operating
procedures.”
❻
❺
❼
TECHNIP In 2014
OPERATIONS
sustainability
composition of the board
of directors
as of february 28, 2015
t
ransparent dialogue
with shareholders
Each year, we organize meetings with shareholders owning
more than 0.5% of Technip’s share capital and proxy
advisors in order to present and explain our corporate
governance and especially the resolutions to be submitted
at the following Annual General Meeting. These meetings
in Continental Europe, the UK and the USA are a great
opportunity for us to exchange views with the participants
and take into consideration their recommendations and
guidelines in order to achieve excellence in governance.
Onboarding and development of Board members
To increase the time-to-efficiency of board members,
we plan to further improve our induction program,
concentrating on Technip’s business segments
in addition to key specificities of the Group and
its industry. Board members have the opportunity
to meet the Executive Committee’s members and key
operational staff. Current board members will be
invited to attend “refresher” courses on a wide variety
of projects. In addition to press reports, we have
also planned to share with board members the external
information sources currently made available
to management.
Technip | 2014 Activity and Sustainable Development Report
Reflecting our commitment to Gender Diversity
With five women and eight nationalities out of
12 members, the Board illustrates Technip’s strong
commitment to diversity and complies with legislation,
which requires women to make up at least 40%
of the board members of French listed companies
in 2016.
In order to assist in the performance of its duties,
the Board of Directors has established four special
committees: an Audit Committee, a Nominations and
Remunerations Committee and a Strategic Committee,
all three of which were formed in 2003 and an Ethics
and Governance Committee which was formed in 2008.
These Committees are mainly made up of independent
directors or totally for the Nominations and
Remunerations Committee. Each Committee deeply
works on matters belonging to the scope of competencies
for which it was formed in order to propose
recommendations to the Board of Directors as a whole.
Thierry Pilenko
CHAIRMAN AND CEO
OF TECHNIP
Olivier Appert
Chairman of IFP Énergies
nouvelles
Pascal Colombani*
Chairman of the Board
of Directors of Valeo
Leticia Costa*
DEAN GRADUATE PROGRAMS
AT INSPER
Marie-Ange Debon
SENIOR EXECUTIVE VICE PRESIDENT
OF SUEZ ENVIRONNEMENT
IN CHARGE OF THE INTERNATIONAL
DIVISION
C. Maury Devine*
Corporate director
Manisha Girotra*
CHIEF EXECUTIVE OFFICER OF
MOELIS & COMPANY INDIA PRIVATE
LIMITED
Alexandra Bech Gjørv*
Partner in Advokatfirmaet
Hjort Da
Gérard Hauser*
Corporate Director and Senior
Independent Director of Technip
John O’Leary*
Chief Executive Officer
of Strand Energy
Joseph Rinaldi*
Partner in Davis Polk
& Wardwell
Pierre-Jean Sivignon*
Chief Financial Officer
of Carrefour Group
* Independent Director
28_29
TECHNIP In 2014
OPERATIONS
sustainability
2014 in figures
Key financial figures
2014 was a year of record backlog for Technip with € 20.9 billion of firm
orders with clients and record visibility beyond 2015 thanks to many multiyear projects. A diversified portfolio was maintained with a major focus on
early involvement and technology to better serve clients’ needs in order to
build fit-for-purpose solutions. Major awards were won like Kaombo in Angola
and Yamal LNG in Russia boosting revenue and backlog.
adjusted Revenue*
(€ million)
adjusted Operating
Income from Recurring
Activities* (€ million)
824.6
10,724.5
2014
2014
834.5
9,285.1
2013
2013
Subsea adjusted revenue in 2014
delivered ahead of expectations.
Operational performance was strong
across all regions. Subsea adjusted
operating margin was 13% for full year
2014 versus 14.1% in 2013, reflecting
the backlog growth with a balanced
range of contract sizes from small
to major projects and a mix of deep
and shallow water projects across
all regions, in particular West Africa,
Brazil and North Sea.
In 2014, Technip pursued the
rationalization of its fleet to prepare
for multi-year projects in 2015 and
beyond. At the same time, Technip
launched the start-up investments
of the new plants in Açu, Brazil and
Newcastle, UK. Two pipe-lay support
vessels (PLSV) were delivered in Brazil.
Onshore/Offshore adjusted revenue
was supported notably by the
ramp-up on the Yamal LNG project
Technip | 2014 Activity and Sustainable Development Report
in Russia and other projects such as
a Program Management Consultancy
(PMC) contract for the RAPID project
in Malaysia and USA downstream
projects. Onshore/Offshore
performance was impacted by
a number of operational factors,
including lower activity on later stage
projects compared to early stage
projects. Onshore/Offshore adjusted
operating margin was 4.7% for full
year 2014 versus 6.7% in 2013.
ADJUSTED
Net cash*
(€ million)
1,125.3
As of December 31, 2014, the Group’s adjusted
net cash position was €1,125 million compared
to €832 million at the end of December 2013.
Concerning adjusted capex, we spent €376 million
in 2014. Technip’s investment in key differentiating
assets during the year included the start-up costs
of the new flexible pipe plant in Açu, Brazil and
the steel umbilical plant in Newcastle, UK, as well
as the delivery our new construction vessel
North Sea Atlantic and two PLSVs in Brazil. Technip
also made several divestments to focus on its core
activities. These included the closure of Technip
Offshore Wind, the sale of Technip TPS, a subsidiary
specialized in building engineering and the sale
of the US and Indian diving businesses.
2014
831.6
2013
Backlog
(€ million)
At the end of the fourth quarter 2014, Technip’s
backlog rose to the record level of €20.9 billion
(firm orders with clients), compared with €15.5 billion
at the end of 2013. This backlog is diversified
by geography, market split, customer and nature
of contract, as per Technip’s strategy to remain
differentiated in the current market environment.
Technip’s portfolio of projects also provides record
visibility, mainly due to multi-year projects which
support the Group’s plants and assets utilization
rates. Indeed, some subsea projects such as Kaombo
or Juniper will be in offshore phases after 2016
while some onshore projects like Yamal LNG have
construction phases planned after 2016.
20,936
2014
15,475
2013
* In 2014, Technip applied for the first time inter alia IFRS 11 – Joint Arrangements. In its full year financial statements, Technip has incorporated the most
recent interpretation of the guidelines concerning this standard issued by IFRIC in which all single project joint arrangements structured through
incorporated entities can be only accounted as joint ventures. Technip will continue to report and provide forward looking information on an adjusted
basis corresponding to its previous framework in order to ensure consistency and comparability between periods and projects and to share with all
market participants the financial reporting framework used for management purposes.
30_31
TECHNIP In 2014
OPERATIONS
sustainability
Technip and
the stock market
Technip’s shares are listed on the Euronext Paris exchange and in
the United States, within the OTC market in the form of American
Depositary Receipts (ADR), one Technip share representing four ADRs.
As of December 31, 2014, Technip’s shares ranked 39th on the CAC
40 by weighted capitalization (0.59%).
In 2014, Technip built a strong backlog of €20.9 billion and our
approach remains focused on project execution excellence,
diversified order intake, capital and cost discipline and engaging
early with clients to provide them with differentiated assets
to serve them with cost-driven and technological solutions.
Dividend for the fiscal year
(€ per share)
(1) Recommendation of Technip’s Board of Directors to be approved during
the Annual General Meeting
2.00
(1)
2014
1.85
2013
We maintain our progressive dividend policy and
propose an 8% increase with a scrip alternative,
reflecting our confidence in our ability to create
value in the coming years for all our stakeholders.
Technip | 2014 Activity and Sustainable Development Report
A challenging market environment, due mainly to the sharp
drop in the price of oil (-44% year-on-year for West Texas
Intermediate), had a negative impact on the share prices of oil
and gas services’ companies. Technip’s share price decreased
by 29% in 2014, from €70.00 as of December 31, 2013 to €49.42
as of December 31, 2014. In the same period, the transaction
volume of Technip shares rose by 25%.
Sustainable Development indexes
Sustainable development concerns are integrated into Technip’s
approach to project execution and in defining and applying its
values. Thanks to our achievements in sustainable development,
the Group has been part of the Dow Jones Sustainability
Indexes (DJSI) since 2001. In January 2015, the Bronze Medal
in RobecoSAM’s Yearbook confirmed the Group’s status as one
of the sustainability leaders in its industry. Besides, Technip
is part of the Euronext Vigeo Eurozone 120 list.
Shareholders and investors contacts
Technip’s financial communications team is available to answer
questions and provide information to individual shareholders,
institutional investors and financial analysts in both English
and French:
Individual shareholders relations
Tel.: +33 (0)1 47 78 66 75
E-mail: actionnaires@technip.com
Investors and analysts relations
Tel.: +33 (0)1 47 78 68 34
E-mail: investor-relations@technip.com
More information on Technip and its share ownership is available
in the Shareholders section of our website www.technip.com
Treasury
shares
1.2%
Institutional
Investors
North America
Others
5.8%
37.6%
IFP Énergies
nouvelles
2.5%
Employees
1.8%
Bpifrance
Shareholding structure
as of November 2014
5.2%
Source: Thomson Reuters, Shareholder Analysis, Nov 2014
Individual
shareholders*
7.5%
Institutional
Investors
France
13.8%
Institutional
Investors
Rest of world
15.0%
Institutional
Investors
UK & Ireland
9.6%
* Some nominative shareholders were previously classified under unidentified and are now included in retail shareholders. November 2013
and May and November 2014 have been restated accordingly. The overall number of retail shareholders has remained constant.
Technip’s
Financial
Calendar
April 23
February 18
2014 fourth
quarter and
full-year
results
2015 first
quarter results
Annual General
Meeting of
Shareholders
July 30
2015 second
quarter results
October 29
2015 third
quarter results
2015
Main
exhibitions
MARCH
25-27
OMC
Ravenna,
Italy
MAY 4-7
OTC HOUSTON
Houston, USA
NOVEMBER 9-12
ADIPEC,
Abu Dhabi, UAE
JUNE 2-5
OCTOBER 27-29
JUNE 2-6
OCTOBER 27-30
WGC
Paris, France
OGA
Kuala Lumpur,
Malaysia
OTC Brazil
Rio de Janeiro, Brazil
GASTECH
Singapore, Singapore
32_33
OPERATIONS
38,000 men
and women actively
delivering projects
TECHNIP IN 2014
OPERATIONS
sustainability
36
markets & sTRATEGY
39
Our activities
391Subsea / 45 Offshore / 51 Onshore
57
innovation & technology
60
Quality
34_35
TECHNIP In 2014
OPERATIONS
sustainability
Markets & Strategy
Integrated approach
delivers differentiation
in shifting market
s
olid backlog delivers
long-term visibility
The short-term visibility of future oil prices remained
unclear as the year’s closed. In the mid-term, however,
the International Energy Agency (IEA) estimates that
worldwide oil consumption will grow by 15 million barrels
per day (mb/d) between 2015 and 2035. To meet this
demand the world’s oil producers will need to develop
over 30 mb/d of new reserves. For natural gas,
the IEA sees an increase of nearly 50% in production
by 2035 versus 2011. On the upside, lower prices
mean cheaper feedstock, which benefit downstream
industries like petrochemicals.
Despite challenging current market conditions, our backlog
close to €21 billion in confirmed orders at the end of
2014 enables us to have long-term visibility. To continue
to deliver profitable and sustainable growth, we remain
focused on a strategic framework based on early
Technip | 2014 Activity and Sustainable Development Report
involvement, technology, integrated approach with
key differentiating assets, execution capabilities and
a diversified portfolio.
Expanded portfolio
Our business is diversified both geographically and between
our three activities – Subsea, Offshore and Onshore –
providing us with multiple, balanced revenue streams.
Moreover, relatively recent additions to our portfolio grew
strongly in 2014. For example, while Technip PMC, our
business unit which offers Project Management Consultancy
services – from the definition to the operational phases –
is only two years of operation, PMC projects won to date
represent an estimated revenue potential exceeding
USD 1 billion, providing excellent visibility over the next five
years. Leveraging our wide portfolio of solutions, including
conceptual technology and FEED resources, we get
involved very early in projects. It generates recurrent
revenue in the short-term while better positioning us
for potential award of engineering, procurement and
1 Investing in our assets is key in our integrated approach.
2 Technip focuses on delivering substantial optimization
thanks to its early engagement in projects.
1
Close to
€21 billion
backlog of confirmed orders
at the end of 2014
construction (EPC) contracts in the mid-term. Technip
Stone & Webster Process Technology generates EPC work
opportunities and provides recurrent margins from
technology licensing.
Pursuing our integrated approach
We continued to be more vertically integrated. In 2014,
we opened a new flexible pipe manufacturing plant in Açu,
Brazil, inaugurated a steel umbilicals production facility
in Newcastle, UK and announced a €68 million investment
plan for our flagship flexible pipe plant in Le Trait, France.
2
Strengthening our portfolio of downstream technologies,
we also acquired the Zimmer® polymer process technology
business of Air Liquide Global E&C Solutions Germany.
In addition, to boost our engineering capabilities in the
offshore business, we acquired an equity share in Kanfa,
a topsides/processing technology specialist and we took
majority stake in Inocean, a firm specialized in hull design,
bringing additional competencies and strengthening our
position in the North Sea market.
Our execution capabilities have also been reinforced
through closer ties with clients, for example in the form
of alliances and frame agreements, like we did in 2014 with
Petronas Carigali Sdn Bhd in signing a five-year framework
agreement for engineering, procurement, construction
& installation (EPCI) or supply-only of flexible pipes for
company’s projects in Malaysia. Another example is the
signature between Technip in Italy and Biochemtex, which
is the major shareholder of Beta Renewables, of an alliance
agreement for future Biochemtex Second Generation
Bioethanol projects.
36_37
TECHNIP In 2014
OPERATIONS
sustainability
1 The modernization of Technip’s flexible pipe manufacturing
plant in Le Trait is part of our technological innovation and
differentiation strategy.
2 Technip’s operating center in Houston, USA, is in charge of
the engineering and project management of the Juniper project.
1
€68 M
investment plan for our
flagship flexible pipe plant
in Le Trait, France
c
lient focus delivers answers
to long-term challenges
In the context of market volatility, the main aim of our
business model is to meet our clients’ needs, delivering
cost- and schedule-driven solutions. The growing complexity
of field development calls for larger, more integrated and
more experienced partners who are able to anticipate the
challenges energy companies face and provide end-to-end
schedule-driven and cost-optimized solutions. An example
Technip | 2014 Activity and Sustainable Development Report
2
of this would be BP’s decision to award us a substantial
engineering, procurement, installation and commissioning
(EPIC) contract for its Juniper project in Trinidad and Tobago.
We had been involved in the project from the early stage,
thanks to our expertise in offshore and subsea. We were
selected for the EPIC, firstly because we were able to drive
the client’s costs down by optimizing the field architecture
and secondly because we could provide not only the
engineering, installation and commissioning of the topsides
and jacket, but also the subsea pipelines and umbilicals.
Finally, our strategy also enables us to help customers
control capital and operating costs by making decisions
early on that yield efficiencies when operations begin.
For example, in the Papa-Terra field offshore Brazil, Technip
flexible integrated production bundle (IPB) risers were
chosen by Petrobras to increase the temperature of the
heavy oil after maintenance shutdowns, enabling the wells
to be restarted quickly, safely and sustainably without
injecting costly chemicals.
opErations
Subsea
New Açu manufacturing plant
in Brazil progressing
on ramp-up
•
Unique integrated approach:
covering design, engineering,
project management, manufacturing
of rigid pipes, flexibles and
umbilicals, spooling, pipelay
and installation
€4.9 billion
adjusted revenue
almost
70
13
Inauguration of new factory,
one of the world’s largest steel
tube umbilical assembly plant, in
Newscastle-Upon-Tyne, UK
•
Among our largest projects:
Moho (Congo), Pazflor (Angola),
Quad 204 (United Kingdom), Kaombo
(Angola), Jangkrik (Indonesia) and
Block 15/06 (Angola)
% adjusted
operating
projects
between €10 –
100 million
€9.7backlog
billion
margin
12
projects
between €100 –
350 million
€68 million
modernization plan for Le Trait, France,
flexible pipe plant
7 manufacturing plants
27 vessels including 6 under construction
38_39
TECHNIP In 2014
OPERATIONS
sustainability
SUBSEA
Integrated approach
and close ties
deliver access
to differentiating
technology and assets
p
artnerships deliver
new projects
Developing fields in deep waters of 3,000 meters raises
geographical challenges and implies to solve technical
hurdles of producing heavy, corrosive hydrocarbons at
higher pressure and extreme temperatures. In this context
of falling oil prices and high costs, making the right
decisions in the early stages of a project translates into
offering fit-for-purpose solutions for field development.
It is why the choice of technology partners is more critical
than ever. Close relationships between clients and
solutions providers drive cost optimization.
Stronger, deeper relationships
In 2014 we saw an increased interest among our subsea
clients towards building and strengthening partnerships
with us, in order to benefit from our integrated approach
and technology. One good example of this was the
signature in November 2014 of a five-year framework
Technip | 2014 Activity and Sustainable Development Report
agreement with Petronas Carigali Sdn Bhd (PCSB) for
engineering, procurement, construction & installation
(EPCI) or supply-only of flexible pipes for company’s
projects in Malaysia. Our Asiaflex Products flexible pipe
manufacturing plant located in Johor, Malaysia, will
execute the framework agreement and manage the project
teams in Kuala Lumpur and the regionally dedicated
construction vessel, the Deep Orient.
In the North Sea, we extended our long-standing
relationship with Statoil, ExxonMobil and Gassco with
the renewal of a subsea services framework agreement
for the maintenance of underwater pipelines, requiring
advanced technology. The new contract replaces the
existing frame agreement that ran for eight years. We will
provide subsea services for four years, with the option
to renew for additional periods up to seven years. The area
of operation includes continental areas from the Barents
Sea to the Mediterranean Sea, the Baltic Sea and North
Atlantic Ocean as well as Newfoundland, Canada.
1 Asiaflex Products is the first flexible pipe and umbilical
manufacturing facility in Asia.
2 In 2014, we added expertise to broaden our position as a valued
partner and showed flexibility to adapt to clients demands.
1
Wins around the world
2014 started with two new ultra-deepwater contracts
in Brazil, covering the supply of flexible pipes for pre-salt
fields. Production began in 2014 at our Flexibras plant
in Açu, Brazil. The flexible pipes were designed by
the R&D team at our Flexi France plant in Le Trait, France.
Another kind of partnership yielded a strong win in 2014.
Total E&P Angola awarded the Technip Heerema
Alliance with a major lump-sum contract for the EPCI
and pre-commissioning of the subsea umbilicals, risers
and flowlines for the Kaombo project. This contract
is the direct result of establishing a strategic alliance with
Heerema in 2012. Valued at approximately USD 3.5 billion
with a Technip share of around 55%, it is the largest subsea
contract ever awarded to Technip and strengthens our
position in the ultra-deepwater market. The challenges
of production at these depths are such that major
industry players need a partner who can offer them
additional capabilities and leading-edge technologies,
R&D and assets.
2
2014 year also saw a number of additional major wins
in many areas in the world, reinforcing our geographicallydiversified position. We continued to expand our footprint
in Angola with the award of the Block 15/06 subsea project.
In the North Sea region, Technip was awarded a large
contract by Total E&P UK for the Edradour Development.
In Asia Pacific, we reinforced our position with a major
contract for the Jangkrik project as well as a substantial
subsea contract for Bangka development, both located
in Indonesia. In the Middle East, we strengthened our
presence with a substantial contract with Dubai Petroleum
Establishment (DPE). This new project came just a couple
months after we successfully completed our first subsea
project for DPE in the South West Fateh and Falah fields,
reflecting the client’s growing confidence in our
capabilities and our rising prominence in the Middle East
subsea market.
In the US Gulf of Mexico, our unique integrated approach
to the subsea business, from conception to fabrication
40_41
TECHNIP In 2014
OPERATIONS
sustainability
“Close relationships
between clients
and solutions
providers drive
cost optimization.”
Flexible pipes are fabricated in Technip’s plants around the world.
and installation, resulted in two contracts. Anadarko,
a long-standing client, selected Technip to design,
manufacture and install the Pipeline End Termination and
End Manifolds for its K2 Riser Base Gas Lift project. Deep
Gulf Energy chose Technip to develop the subsea tie-back
to the Devils Tower Truss Spar located in Mississippi
Canyon Block 773.
s
trategic assets deliver
competitive advantage
Through their relationships with us, our clients benefit
from our unique integrated approach. In addition
to the design and engineering work, Technip is the
only player to both fabricate and install flexible pipes
in the world.
Investing in manufacturing
In 2014, we announced a major modernization plan
of what we consider to be the cornerstone of our subsea
Technip | 2014 Activity and Sustainable Development Report
integrated approach: the Flexi France plant in Le Trait,
France. It focuses on the installation of new-generation
machines and site optimization to fit 12-meter diameter
reels that will provide room for twice as many flexible
pipes on each reel. The investment will also create
a new area dedicated to testing the next generation of
flexible pipes. The investment amounts to €68 million
and will reinforce our global leading position in the
production of flexible pipes, for the development
of subsea oil and gas fields.
Le Trait is one of the four flexible pipe plants in the Group.
The others are located in Vitória and Açu, Brazil and
Tangjung Langsat, Malaysia. Açu, which began production
in 2014, is the most technologically-advanced plant in the
world and is also leading pre-salt R&D efforts for flexible
pipes. Together with Technip’s plant in Vitória, our logistics
bases in Macaé and Angra, as well as our operating center
in Rio de Janeiro, it is helping the Group expand our
business capabilities in the highly technological
challenging Brazilian pre-salt market.
RESULTS DELIVERED
VESSELS IN ACTION
AROUND THE WORLD
Our vessel utilization rate averaged 80%
in 2014, compared to 75% in 2013 and peaking
at 88% in the second quarter. Our fleet
maintenance operations went as planned,
with the Deep Blue returning to work
in the third quarter.
In the US Gulf of Mexico, several ongoing
projects in offshore phase were completed,
mainly performed by the Deep Blue, Deep
Energy and Global 1200 vessels. The Deep
Energy was also active in the North Sea,
working on the Bøyla and Åsgard projects.
Also, North Sea Atlantic went to work soon
after delivery on Åsgard.
80%
vessel utilization rate average
in 2014
We will also focus on improvements for the rigid pipe
fabrication facility (spoolbase) in Mobile, Alabama,
USA, which will be supported by a portion of the proceeds
from the divestment of our North American diving assets
to Ranger Offshore Inc. in 2014. We also inaugurated
in May 2014 a new umbilicals plant at our manufacturing
site in Newcastle-Upon-tyne, UK. It is one of the world’s
most advanced steel tube umbilical manufacturing systems
and houses a state-of-the-art vertical helix assembly
machine (VHAM) and large carousels to accommodate
the larger diameters and longer lengths of umbilicals
that clients require for increasingly complex field
The Deep Orient and the Global 1201
were mobilized in Asia Pacific. The former
completed its offshore campaign on Panyu
project in China and the latter completed
offshore works on the Laila and D12 projects
in Malaysia. The Global 1201 vessel also
progressed on the Greater Western Flank
rigid pipelay operations in Australia before
heading to the United Arab Emirates to install
the Jalilah B pipelines.
In West Africa, the Deep Pioneer performed
pipelay operations for the Block 15/06
development for most of the year. Across
the Atlantic in Brazil, the Coral do Atlantico,
one of our two new PLSVs, began operations
and the Skandi Vitória, one of our vessels
on long-term charter, began installation of
flexible pipes in the Papa-Terra pre-salt field.
42_43
TECHNIP In 2014
OPERATIONS
sustainability
The North Sea Atlantic is our newly built multipurpose construction vessel designed to deliver pipelay, subsea construction and survey projects.
developments. Our other umbilical manufacturing
sites are in Houston, USA; Lobito, Angola and Tangjung
Langsat, Malaysia.
Fleet continues to be optimized
Further in 2014, the final link of the integration chain – our
fleet of vessels – continued to be optimized. We currently
have 21 vessels in service and six under construction. The
North Sea Atlantic successfully entered into service this
year. This multipurpose construction vessel is designed
to meet the highest requirements for subsea work.
Although she will work predominantly in the North Sea,
she is suitable for deepwater operations worldwide.
As further demonstration of our commitment to the
Brazilian pre-salt market, the two pipelay support vessels
(PLSV) built as part of the Technip-Odebrecht partnership
signed in 2011 were inaugurated in April 2014.
Finally, 2014 saw the one-year service anniversary for
the Deep Energy, the fastest and one of the largest pipelay
vessels ever built. In 2014, she installed more than 20 km
Technip | 2014 Activity and Sustainable Development Report
of umbilicals and flowlines for the Anadarko Lucius project
in the Gulf of Mexico before heading to the North Sea
where she laid over 50 km of pipeline for the Marathon
Bøyla project and worked on the Åsgard Subsea
Compression project.
And joining the fleet in summer 2015 will be the Skandi
Africa, the new flagship for deepwater construction
with its 650 meters tiltable system tower for flexible pipe
lay operations and 900 tonnes AHC crane. The new diving
support vessel for the North Sea Canada region is also
under construction.
opErations
Offshore
Expertise in full range
of offshore facilities:
mastering design of all platform
types (FLNG, Spars, fixed platforms
and FPSO), added-value process skills
and project execution capabilities
•
FLNG leadership:
two facilities under construction
after front-end engineering design
(FEED) completion for Shell
and Petronas; several conceptual
studies for various clients
€5.8
BILLION
onshore/offshore
ADJUSTED REVENUE
40
almost
4.7
%
Main offshore
ongoing projects:
Shell Prelude (Australia),
Umm Lulu (UAE), Martin Linge (Norway),
Block SK316 (Malaysia)
and HEJRE (Denmark)
•
Investments in offshore
competencies:
SHARE PURCHASE IN KANFA,
a topsides/processing technology
specialist and majority stake
in Inocean, a Norwegian firm
specialized in hull design
onshore/offshore
ADJUSTED OPERATING
MARGIN
onshore/offshore
projects between
€10 – 100 million
18
€11.2
BILLION
onshore/offshore
backlog
onshore/offshore
projects between
€100 –600 million
15th Spar delivered
out of 19 Spars in operation worldwide
44_45
x_45
TECHNIP In 2014
OPERATIONS
sustainability
offshore
Expertise and experience
at any depth deliver
strong global footprint
and backlog
c
onventional offshore delivers
a strong foundation
In the offshore business, Technip is one of the few
operators capable of offering solutions for any offshore
challenges. In terms of capabilities, we provide conceptual
studies and front-end engineering design (FEED) as well
as project management and engineering, procurement,
construction (EPC) of fixed and floating platforms.
Our portfolio of solutions spans from fixed platforms
for shallow water and Spars to semi-submersibles, tension
leg platforms (TLP) and floating production for deep
to ultra-deepwater.
Conventional shallow-water projects represent the vast
majority of offshore investments today. But conventional
is not synonymous with easy. New shallow-water
developments, no matter where they are located, are
increasingly challenging. In 2014, we saw significant
developments around the globe of these types of projects.
Technip | 2014 Activity and Sustainable Development Report
From the Americas…
In September 2014, we won a substantial engineering,
procurement, installation and construction (EPIC) contract
from BP Trinidad and Tobago LLC for the development of
the Juniper project, to be located off the South East coast
of Trinidad. The scope of work consists of design, detailed
engineering, procurement, construction, load out
and mechanical completion of 4,000-tonne topsides
that can process 590 million standard cubic feet per day
of gas and a 5,500-tonne jacket. Leveraging our integrated
approach, the contract also covers provision and
installation of subsea infrastructure.
… to the North Sea
In the North Sea, Technip in consortium with Samsung
Heavy Industries, continued to work on the topsides for
a fixed production platform that will be installed in Total
E&P Norge’s Martin Linge development. The design of the
platform topside according to the Norwegian regulations
represents an engineering challenge. Thanks to a pro-active
1
1
“The combination
of our technologies and
capabilities in the subsea,
offshore and onshore
business, has enabled
us to consolidate our
position of FLNG leader.”
weight control approach, we aim to maintain the overall
weight of topside, which will enable each of the four
modules to be installed with just one lift.
In 2014, the jacket and wellhead unit were delivered for
the HEJRE project, which was awarded to Technip, in
partnership with DSME, in 2012. Located offshore Denmark
2
Our employees are committed to delivering high quality solutions.
2
at a water depth of 70 meters, HEJRE includes a 11,500-tonne
topside supported by a 7,500-tonne jacket and is designed
to process high pressure and high temperature
hydrocarbon fluids. The platform also offers living
quarters for 70 people. The contract covers engineering,
procurement, fabrication, hook-up and commissioning
assistance for the fixed wellhead, process platform and
associated facilities. Furthermore, in 2014 we acquired
a stake in Kanfa, a topsides/processing technology
specialist and we took majority stake in Inocean,
a firm specialized in hull design, bringing additional
competencies and strengthening our position in the
North Sea market.
From the Middle East…
In this region, Abu Dhabi Marine Operating Company
(ADMA-OPCO) awarded us a contract for project
management consultancy (PMC) services for the
EPC phases of the Zakum Oil Lines Replacement
Project-Phase 1 (ZKOL). The ZKOL project will replace
46_47
TECHNIP In 2014
OPERATIONS
sustainability
1
2
Our expertise covers a wide range of offshore infrastructures.
1
90,000 tonnes
weight of the Umm Lulu large
offshore super complex
aged oil pipelines in the Zakum field, aiming to enhance
integrity assessment and sustain oil production.
The first phase consists of about 90 kilometers
of oil pipelines replacement and associated wellhead
towers modification work.
In Abu Dhabi, work continued on the Umm Lulu project,
which was awarded in 2013 to a consortium of Technip
and National Petroleum Construction Company (NPCC
Technip | 2014 Activity and Sustainable Development Report
2
consortium). Umm Lulu is a large offshore super
complex totaling over 90,000 tonnes. We are responsible
for the engineering of the project and share the
procurement and commissioning works with NPCC.
The platform’s topsides will be installed using our
floatover method, which allows a high proportion
of the hook-up and pre-commissioning work to be
completed onshore prior to load-out, thereby significantly
reducing both the duration and cost of the offshore
commissioning phase.
… to Asia
In Malaysia, we continued to make progress on the central
processing platform and a bridge-linked wellhead, as part
of an engineering, procurement, construction, installation
and commissioning (EPCIC) contract that was awarded
to a joint venture between Technip and Malaysia Marine
and Heavy Engineering. This facility is part of the Block
SK316 gas field development in Sarawak, Malaysia,
in a water depth of 104 meters.
RESULTS DELIVERED
anadarko Heidelberg Spar
In late 2014, we delivered the Heidelberg
Spar to Anadarko Petroleum, one month
ahead of schedule and just two years after
construction began in our yard in Pori, Finland.
The Heidelberg Spar is the 15th Spar delivered
by Technip (out of 19 Spars in operation
worldwide) and demonstrates the Group’s
leadership for this kind of floating platform.
Heidelberg is the result of a long-standing
relationship with Anadarko, which has, over
the years, made extensive use of Technip’s
know-how and expertise in Spar technology.
f lng delivers competitive
advantage
The market for floating liquefied natural gas
(FLNG) facilities continues to mature. Once
considered as a new way of bringing remote
offshore gas resources to the market, FLNG
is increasingly seen as an economically
environmentally advantageous and an
economically feasible alternative to developing
onshore liquefaction facilities. Depending on
the field’s location, FLNGs may be more
competitive than an onshore LNG plant.
In this context, we continued to progress on two
of the market’s most important FLNG projects.
Our integrated approach, with a combination
of proprietary technologies and capabilities
in the subsea, offshore and onshore business,
has enabled us to consolidate our position
of FLNG leader.
The Heidelberg Spar will join its twin, Lucius,
which we delivered last year to Anadarko and
which is currently in operations in the Gulf
of Mexico. It has a capacity of more than
80,000 barrels of oil and 2.3 million cubic
meters of natural gas per day.
The two twin-truss Spars were developed
using a “design one; build two” strategy,
enabling Anadarko to benefit from optimized
cost- and schedule-driven projects.
Technip’s operating center in Houston,
Texas, USA, provided the overall project
management and engineering. The detailed
hull design and fabrication were carried
out by our construction yard in Pori, Finland.
48_49
TECHNIP In 2014
OPERATIONS
sustainability
Awarded to the Technip Samsung Heavy Industries Consortium by Shell, the Prelude FLNG project will help unlock new energy resources offshore.
Prelude first Turret Mooring System modules
are being integrated
For the Shell Prelude FLNG project, which was awarded
to the Technip Samsung Consortium in 2012, the first
modules of the turret mooring system (TMS) have been
delivered to the Samsung Heavy Industries yard located
in Geoje, South Korea, where they are currently being
integrated, as well as the topsides’ modules. Technip
is also executing a large subsea installation contract
for Prelude, covering the management of key interfaces
with the hook-up and commissioning of the Prelude
FLNG facility.
The consortium also has a 15-year master agreement with
Shell for the design, construction and installation of
multiple FLNG facilities over the span of the contract.
Technip | 2014 Activity and Sustainable Development Report
Topside work begins for Petronas FLNG
In April 2014, Petronas launched the hull of its first floating
liquefied natural gas (PFLNG 1) facility at the Daewoo
Shipbuilding & Marine Engineering (DS ME) shipyard in
Okpo, South Korea. Soon after, work began on the topsides
designed by Technip’s operating centers in Kuala Lumpur,
Malaysia and Paris, France.
Our emergence as the leading FLNG engineering contractor
positions us well for future expansion of offshore
or near-shore FLNG.
opErations
Onshore
Expanded onshore
downstream position:
ethylene and petrochemicals
derivatives, refining,
liquefied natural gas (LNG)
& gas-to-liquids (GTL),
fertilizers
Very major project award:
Yamal LNG (Novatek, Total
and CNPC), A PROJECT LOCATED
IN SIBERIA, awarded to Technip
for 3 gas liquefaction trains
of 5.5 mtpa capacity each
€5.8 billion
onshore/offshore
adjusted revenue
40
almost
4.7
% Onshore/Offshore
ADJUSTED OPERATING €11.2 billion
onshore/offshore
projects between
€10 – 100 million
ONSHORE/OFFSHORE
BACKLOG
MARGIN
18
onshore/offshore
projects between
€100 – 600 million
Early involvement:
to address client needs for optimized
cost- and schedule-driven projects
Strategic acquisition:
Zimmer® polymer technology business
in order to continue to expand
our range of expertise
50_51
TECHNIP In 2014
OPERATIONS
sustainability
onshore
Early involvement
and Project Management
Consultancy deliver
growth and
future opportunities
e arly involvement and
technologies deliver
long-term value creation
In recent years, we have widened our portfolio
of onshore solutions, notably through the acquisition
of Stone & Webster process technologies in 2012
and pursued a strategy of early involvement, to meet
increasing client needs and expectations for optimized
cost- and schedule-driven projects.
Deep understanding yields important
EPC contracts
In May 2014, we finalized the award of a very major
engineering, procurement and construction (EPC)
contract for the Yamal LNG project. For 14 months prior
to the award, we had been involved in providing project
planning, detailed engineering, estimation and
procurement work for the client. This gave us a
comprehensive understanding of the project, around
Technip | 2014 Activity and Sustainable Development Report
which the project execution plan had been built. JSC
Yamal LNG selected Technip and its partners for the EPC
of three liquefaction trains that are among the world’s
largest. This award validates our strategy of collaborative
risk management with our clients with proper definition
of costs and schedule in a detailed project execution
scheme before content finalization.
Bolstering onshore technologies
Early involvement is also a key driver when it comes
to selecting processing technologies. Our successful
acquisition of Stone & Webster process technologies
in 2012 strengthened our portfolio of cutting-edge
solutions in refining, hydrogen, ethylene, petrochemicals
and GTL.
This enabled us to set up a worldwide technology licensing
business under the Technip Stone & Webster Process
Technology brand. In 2014, we further reinforced
our downstream technology portfolio by purchasing
1 The Yamal LNG facility will comprise three liquefaction trains
that are among the world’s largest.
2
Technip is a leading LNG player involved in several projects.
1
from Air Liquide Global E&C Solutions Germany all
of its Zimmer® polymer technology business. This new
polymers technology business is integrated into Technip
Stone & Webster Process Technology. In petrochemicals,
we also built on the expertise of our Badger Joint Venture
with ExxonMobil and on existing technology alliances with
leading players such as BP, Ineos, Sabic, Topsøe and Total.
Our technologies were at the heart of a major downstream
success in North America this year. Sasol awarded Technip
a contract to supply our proprietary ethylene technology
and front-end engineering design (FEED) for a world-class
ethane cracker to be located at Sasol’s Lake Charles site
in Louisiana, USA. Soon after, Sasol also selected us to
provide engineering and procurement for eight proprietary
Ultra Selective Conversion (USC®) furnaces for the same
Lake Charles cracker.
In biofuels, Technip in Italy and Biochemtex, which
is the major shareholder of Beta Renewables, signed
2
“In 2014, we
further reinforced
our downstream
technology portfolio.”
an alliance agreement for future Biochemtex Second
Generation Bioethanol projects. Biochemtex owns
the world’s leading second-generation bioethanol
technology (PROESA) that allows to produce biofuels
using non-edible biomass. We also won a contract for
Cargill’s new ethanol plant in Germany, reflecting our
position as a leading provider of biomass ethanol
production technology and demonstrating our
leadership in market-leading biofuel technologies.
52_53
TECHNIP In 2014
OPERATIONS
sustainability
1 Technip PMC provides experienced personnel to manage
projects on behalf of our customers.
2 Over the years, Technip, alone or in joint venture, has executed
several important projects in Ras Laffan Industrial City in Qatar.
1
f ast growing pmc business
delivers new source of revenues
As projects have become bigger and more complex, we
have pursued an onshore strategy focused on early project
involvement and delivery.
One important development has been the growth
of Technip Project Management Consultancy (PMC),
the business unit which was launched in 2013. In only
two years, the projects won and to be executed
by Technip PMC represent an estimated revenue
potential exceeding USD 1 billion, providing good
visibility over the next five-years.
Headquartered in London, Technip PMC manages
the development and execution of projects on behalf
of our clients through highly experienced personnel.
Carrying out large-scale projects requires people with
the right experience of execution and project management
Technip | 2014 Activity and Sustainable Development Report
2
tools plus a keen understanding of how to deliver projects
successfully. Technip PMC gathers all the know-how
and expertise we have acquired over the years, in executing
some of the world’s most challenging projects.
Linking FEED to PMC and to execution
In June 2014, Petronas awarded Technip, as leader of a joint
venture with Fluor, a substantial PMC contract for the
Refinery and Petrochemical Integrated Development
(RAPID) project located in the state of Johor, Malaysia.
The contract includes overall project and site management
of the RAPID project and provision of project management
services for 22 specific engineering, procurement,
construction and commissioning (EPCC) packages.
A couple months after this contract was awarded, Petronas
also announced that our joint venture with Fluor would
be responsible for the execution of the utilities,
interconnecting and off-sites (UIO) work for the RAPID
project. Our operating center in Kuala Lumpur, Malaysia,
is in charge of the execution.
RESULTS DELIVERED
Outstanding safety record in Jubail
In 2014, we handed over our portions of
the 400,000 barrels-per-day Al Jubail refinery
to its owner, Saudi Aramco Total Refining
and Petrochemical Company’s (SATORP),
a joint venture between France’s Total and
Saudi Aramco. This massive grassroots project
has been our largest single onshore project
since 2009.
From the start, safety was both client’s and
Technip’s main priority. We spent 90 million
man-hours executing our portion of Jubail
without a single Lost Time Incident.
USD 1 billion
Technip PMC estimated
revenue potential
The PMC and UIO contracts followed the FEED that we
were awarded in 2012 for the RAPID project, demonstrating
the “pull-through” value of early involvement.
PMC takes off in Middle East
Originally we were contracted for program
management services (PMS), which included
FEED, developing capital and operating cost
estimates, preparing the EPC bid packages,
and providing management services during
the EPC execution. SATORP later awarded us
two EPC contracts for the hydro and catalytic
cracking conversion process units, some utility
units and the network and process control
system of the entire refinery.
The SATORP Al Jubail complex came on
stream mid-2014, eight years after the first
agreements were signed and just five years
after construction began.
Also this year, Abu Dhabi Marine Operating Company
(ADMA-OPCO) selected Technip PMC for the management
of the EPC works of the Nasr Phase II Full Field
Development project – Packages 1, 2 & 3. The scope
of work covers the overall management of the EPC
phases under execution in the United Arab Emirates,
Singapore and South Korea. Earlier in February 2014,
54_55
TECHNIP In 2014
OPERATIONS
sustainability
At Technip, we are committed to meeting our clients’ safety requirements on our onshore projects.
“We have pursued
a strategy focusing
on early involvement.”
Technip | 2014 Activity and Sustainable Development Report
ADMA-OPCO attributed a subsea PMC contract for the
EPC phases of Zakum Oil Lines Replacement Project-Phase
1 (ZKOL) to Technip PMC. These new awards, in addition
to the five-year Project Management Consultancy services
contract awarded by Kuwait Oil Company (KOC) at the
end of 2013, continue to reinforce our position in project
management consultancy within the region, where we have
risen to the top of the field in a short span of time.
Innovation & Technology
Deeper cooperation
delivers technology
breakthroughs
600+ patent families
registered,
in over 90 countries
•
Global network
of more than 500 experts
•
Over 10 R&D centers,
covering our business segments,
worldwide (Benelux, Brazil,
France, India, UK, US)
•
R&D: more than ever a
key driver for
competitiveness
at a time when clients are looking
to optimize their investments
One Innovation
& Technology Center,
a central hub for the management
of subsea technology developments,
based in Rueil-Malmaison, France
•
Capitalizing on R&D:
from carbon fiber armor
to anti-H2S polymer sheath to ensure
environment protection
•
Innovation & Technology:
a strategic focus
as key differentiator
•
ALMOST €85 MILLION
annual R&D investment
56_57
TECHNIP In 2014
OPERATIONS
sustainability
1 ETH-PiP is a technology qualified for continuous heating
over 25 years at operating temperatures up to 120°C.
2 Anti-H S layer is a new Technip patented technology that
2
expands the domain of application of flexible pipes.
“Our research work
is complemented by
in-field technology
development.”
r
esearch partnerships deliver
out-of-the-box thinking
Research co-development plays an important role in our
innovation and technology strategy. In 2014, Technip renewed
partnerships with leading research institutes. We extended
the framework agreement with IFP Energies nouvelles (IFPEN)
to respond to the new challenges of the ultra-deep offshore
developments. This alliance builds on more than 40 years
of close collaboration between Technip and IFPEN, a
public-sector research and training center. The work will focus
on developing technologies for flexible and rigid pipes as well
as umbilicals.
The renewal of this partnership paves the way for continued
collaboration on ongoing initiatives such as the anti-H2S
polymer sheath (a patented solution) for flexible pipes,
or risers with composite carbon fiber armor, which both
enable Technip to address the challenges associated with
ultra-deepwater projects. This partnership covers new areas
of research such as flow assurance and asset integrity
Technip | 2014 Activity and Sustainable Development Report
management to optimize life-of-field services. The agreement
leverages the expertise of IFPEN’s applied research teams and
the Institute’s industrial-scale testing facilities.
We also renewed our technology partnership with France’s
Alternative Energies and Atomic Energy Commission (CEA).
The Commission is a renowned expert in material sciences
and robotics, especially for applications in hostile and
inaccessible environments. Our collaboration with CEA has
led to breakthroughs in real-time pipe monitoring using
miniature embedded sensors, or to the development of a
collaborative robot to perform one of the flexible end fitting
difficult and labour intensive mounting operations.
w
orking with clients
delivers innovation
Our research work is complemented by in-field technology
development. By working hand in hand with clients and
industry partners, we are helping solve some of the major
flow assurance challenges, such as hydrate formation
RESULTS DELIVERED
Helping Statoil develop
a subsea factory
340 meters below the rough and frigid waters
of the Norwegian Sea, Statoil is revolutionizing
gas production, accompanied by Technip.
1
2
in production flowlines and riser systems. Technip is a leader
in electrically trace heated pipe-in-pipe systems (ETH-PiP)
enabling to maintain a minimum temperature in the
production system, either during transient period
(shut-down) or during steady state production, in order
to avoid hydrate formation and/or wax deposition, hence
preventing pipeline blockage and consequent impact
on production and the environment.
On projects where we worked in conjunction with
ExxonMobil, Total, Woodside Energy and IFPEN, we have
taken ETH-PiP a step further by developing a solution
that uses active heating to dissociate hydrate plugs safely.
The final successful testing of this technology was
completed in 2014 and the results were presented at the
8th International Conference on Gas Hydrates. Another
example of how we use our innovations to enable clients
to deliver their own breakthroughs is the Special Handling
System we have developed for Statoil’s Åsgard development
(see “results delivered” box). To extend the lifespan of the Åsgard field,
Statoil is installing a subsea compression
system using a ship-borne Special Handling
System (SHS), which has been designed,
built and will be operated by Technip.
Subsea gas compression opens up new
possibilities for Statoil in deeper waters
and further offshore, by enabling operations
in areas where offshore facilities are more
complex to develop, like harsh environment.
It is also an important step towards realizing
a subsea factory – a processing facility
on the seabed that is remotely controlled
from the shore.
Once the compressors come online in 2015,
Technip will provide module support. The
SHS will be fitted permanently on the North
Sea Giant, our highly advanced inspection,
maintenance and repair vessel, capable of
retrieving and reinstalling any of the 400-tonne
compression modules in heavy seas with up
to nine-meter waves.
58_59
TECHNIP In 2014
OPERATIONS
sustainability
quality
Investing in quality
delivers a true
culture of excellence
Quality has always been a strategic priority for Technip.
With a strong focus on execution, our teams are mobilized
to successfully deliver projects to help our clients
tackle complex challenges. In order to improve the
quality performance of our projects, we implemented
methodologies, processes, knowledge and risk
management, key performance indicators and
measurement systems. The following step in our quality
journey was Quartz, our three-year Quality program
developed in 2013.
1,500
managers attended
a Quartz Leadership
Workshop in 2014
Technip | 2014 Activity and Sustainable Development Report
w
idespread engagement delivers
change in mindset
We rolled out Quartz in 2014. Quartz focuses on
integrating the quality mindset from the very start
of our activities; it is designed to reenergize individual
passion for quality by giving all employees the tools
needed to manage risks, anticipate problems and share
experiences with each other.
The first and most important facet of Quartz is quality
leadership, which is defined as empowering everyone
to be a quality leader. To foster it, in 2014, the
program’s main objective was awareness and education.
1,500 managers attended Quartz Leadership Workshops
held throughout the year. Within one week of deploying
the new Quartz e-learning tools, over 2,200 people
had completed the online training.
The year’s awareness activities reached a momentum
in November 2014, which was World Quality Month.
RESULTS DELIVERED
All our employees focus hard on our safety and quality programs.
To mark the occasion, quality days were held throughout
the organization, attracting almost 2,000 attendees.
The Quartz intranet portal was relaunched in the
same month and received 11,000 unique visitors in the
same period – out of a workforce of more than 38,000.
Another important part of education is sharing best
practices. During the workshops held in November, nearly
80 new “lessons learned” were collected from project
team members. These best practices are shared across the
Group and available to all to never stop learning.
increased effectiveness delivers
measurable progress
Quartz is a three-year program that will continue to ramp
up in intensity and scope throughout the company.
The goal of Quartz is to embed a culture of operational
excellence and continuous improvement in the Group
by 2016.
As an illustration of the measurable impact of Quartz
on improving quality on operation, we can point out that
about 130 quality excellence projects were implemented
by the end of 2014. These projects are initiatives to
improve operational performance or business excellence.
Quality Alerts have more visibility and are now treated
as an opportunity to learn and improve. Before Quartz,
Technip used to record on average 6-8 quality alerts
annually. In 2014, 32 alerts were reported.
Supplier and subcontractor management is another
important part of Quartz. Technip now proactively
evaluates suppliers and subcontractors to reduce
operational risks that could adversely affect quality
and costs. With Quartz, in 2014 alone, about 40 of them
carried out technical-risk base assessment.
These and many other Quartz initiatives have resulted
in improvements in operations performance and business
excellence. We estimate that up to end 2014, Quartz,
in its initial implementation, has created the opportunity
to reduce the inefficiency and so improve performances
by €25-30 million in our main operations. “One Manufacturing”
raises customer satisfaction
The flexible pipes we are fabricating are
designed to take up challenges – to resist
internal and external pressure, extreme
temperatures and corrosive mediums.
Quality is key.
In 2014, our four flexible pipe plants
implemented the “One Manufacturing”
approach, an excellence program aimed
at producing flexible pipes with the same level
of quality, whether they are manufactured
in Brazil, France or Malaysia. The objective
is to continue improve customer satisfaction
by increasing the quality of our products.
Developed by an international and multidisciplinary team, “One Manufacturing” was
deployed among over 4,500 employees in the
plants over the course of the year 2014. It took
existing best practices and combined them
into a common strategic plan. It is built
on a framework called “BEST”, which stands
for BEtter and Safer Together.
Today, our four flexible pipe plants share
the same suppliers and logistic strategies
and have aligned their technical processes.
This enables Technip to streamline the global
planning of production: any plant can produce
any order with the same high level of quality.
60_61
sustainAbility
Delivering
added-value
in the long-term
technip in 2014
operation
SUSTAINABILITY
64
human RESOURCES
68
health, safety & security
72
National content & community support
76
Environment
80
Ethics & compliance
62_63
TECHNIP In 2014
OPERATIONS
sustainability
human resources
Cooperation between
all delivers shared
achievements
19 countries
certified as a Top Employer
in 2014
•
25% of Technip’s
EMPLOYEES
are women
Technip | 2014 Activity and Sustainable Development Report
48 countries,
118 nationalities
•
1st company
in the energy industry
certified to the EDGE standard,
the global standard for gender
equality in the workplace
Knowledge sharing across generations is a priority at Technip.
t
eaming up across the business
delivers sustainable solutions
Enabling “One Technip”
An increasing number of our major projects, such as Yamal
LNG, in Russia and Kaombo, in Angola, are multi-center
driven: the scope of work includes different packages that
are executed by several operating centers, manufacturing
plants and dedicated construction yards. Working together
as “One Technip” is key to successful execution.
In this respect, Human Resources (HR) work closely
with the business as a partner to attract, select
and align the mobilization of staff, to ensure a successful
execution of the project. This process benefits from
the current deployment of the Job Classification project
(see next section). Close cooperation between business
and HR is crucial to manage staffing challenges and
ensure employee engagement remains at the highest
possible level.
Another way we work as “One Technip” is through workload
sharing. In this challenging business environment affected by
the oil price drop, we reassigned workload within the Group
to ensure that entities remained active at optimal levels.
Strengthening our employer brand
In 2014, we were certified as a Top Employer in 19 countries
(eight in Europe, four in the Americas and seven in Asia
Pacific) and two continents (Asia Pacific and Europe).
This certification has been awarded by the independent
Top Employers Institute, a specialist in the field
of research into HR management and working conditions.
This award recognizes the excellence of our Human
Resources practices and teams. We will continue working
to expand the number of countries in which we are
certified, with the aim of obtaining the global
certification in 2015.
In addition, we have embraced social media to raise
the attractiveness of Technip as a global employer. Over
95% of our 280,000 LinkedIn followers are not Technip
64_65
TECHNIP In 2014
OPERATIONS
sustainability
In 2014, we continued to develop our talents and we added specific skills in our teams.
employees. In 2014, we created a “careers” tab on our
Facebook page. At the end of the year the corporate
page counted more than 30,000 fans. We also use Twitter
for attraction and recruitment purposes by sharing one
job opportunity by week.
increased understanding
delivers empowerment
across the company
Increasing gender diversity
Gender Diversity is an absolute priority for Technip for
which a specific strategy and action plan was executed
in 2014 and will continue during 2015 and beyond. Gender
Intelligence workshops with the Regional Executive
Committees of all regions were completed by July 2014,
in order to raise awareness on this topic. A cascade plan,
following “Train the Trainer” workshops to bring knowledge
in-house, was initiated in three regions in 2014 and will be
extended to all regions in 2015.
Technip | 2014 Activity and Sustainable Development Report
To promote this critical topic throughout the whole
company, an internal and external communications plan
was also implemented in 2014. Activities included holding
our first ever Gender Diversity Forum, introducing a global
visual identity for Gender Diversity at Technip, dedicating
the July 2014 issue of the horizons internal magazine
to Gender Diversity and sponsoring the Global Summit
of Women held in Paris in June 2014.
As a result of these and many other efforts, Technip
became the first company in the energy industry to be
certified to the EDGE (Economic Dividends for Gender
Equality) standard, the global standard for gender equality
in the workplace.
Speaking a common HR language
To empower employees to drive their own careers with
Technip, the Human Resources department and the
business have been working together on the Job
Classification project. 2014 was a turning point for
this initiative. After rich and positive discussions with
RESULTS DELIVERED
the social partners and approval by Technip’s senior
executives, the deployment of our new Job Classification
system started in 2014 and will be completed globally in
2015. The system provides all employees, managers and HR
with a common language when talking about jobs, which
enables us to define and describe potential careers within
Technip more clearly. It also supports internal mobility
because it is now much easier to compare job descriptions
and responsibilities across business segments, regions
and departments.
Furthermore, we encourage employees to have regular
career talks with their HR representatives. These dialogues
are an opportunity to take time out of day-to-day
activities and reflect on future career paths.
Knowledge sharing across generations
Intergenerational knowledge sharing is a priority at Technip.
For example, our Project Leader Development Program
transfers knowledge from experienced mentors to a new
generation of project managers. The Program currently
has 60 mentors and 110 participants. In addition, technical
experts, including recently retirees, lead a wide range
of training courses to new hires and specialists through
Technip University.
Actually, 6% of Technip’s workforce is over the age
of 60 and their combined experience and knowledge is
a priceless asset that the Group cannot afford to lose.
For several years now, our goal has been to transfer their
knowledge to younger generations through special training
programs and missions. For example, in 2014, we sponsored
a 12-day workshop in Ghana, run by a recently retired
Technip engineer, on the fundamentals of subsea
engineering for final year students at the Regional
Maritime University.
Gender Diversity Forum
On September 29, 2014, Technip held its first
global Gender Diversity Forum in Paris.
It was attended by 70 participants, including
Technip leaders and representatives from
all the regions and external guests, including
two Technip clients and partners on gender
diversity actions as well as one member
of the Board of Directors.
The purpose of the Forum was to share some
of the actions and commitments from the
different regions, to help create a common
understanding and gender inclusive language
and to define a vision for the future of Gender
Diversity at Technip. A specific workshop
was dedicated to the latter topic, with a vision
exercise for the future which consisted of
drawing a picture on a flipchart representing
what Gender Diversity will look like in 2015.
The Forum was also the opportunity to
celebrate some of the excellent achievements
of women at Technip.
Across social relations
Technip has built a culture based on trust, mutual respect
and dialogue. The quality and frequency of the discussion
with our social partners remain a key priority for Group
HR. In 2014, 40 collective bargaining agreements were
entered into within 14 entities and 174 agreements were
in force within 24 entities. Furthermore, the European
Works Council includes 14 employee representatives who
meet twice a year.
66_67
TECHNIP In 2014
OPERATIONS
sustainability
health, safety & security
Ambitious policy
delivers improved
performance
0.19 total
recordable case frequency
(TRCF) in 2014, VERSUS 0.26 in 2013
•
2,200 HSE audits
conducted
Technip | 2014 Activity and Sustainable Development Report
9,200 Leadership
and Management visits
•
709,000 hours
of HSE training
Our employees strive to strictly apply our health, safety and environment (HSE) policy.
A total of 202 million man-hours were worked at Technip’s
facilities, offices and sites worldwide in 2014.
a
ctionable data delivers
effective systems and tools
HSE is essential to our industry and is an absolute priority
for Technip. We work continuously to improve employees’
working conditions in terms of health, safety and
environment. Everyone at Technip is responsible for
ensuring a safer environment on our worksites throughout
the world.
Our total recordable case frequency (TRCF), which measures
the recordable incidents per 200,000 hours worked,
decreased from 0.26 in 2013 to 0.19 in 2014. In addition,
we managed to further decrease the frequency of incidents
that could potentially lead to serious injuries from 0.14 to
0.12, demonstrating our continued efforts to improve
our systems and processes but also our safety culture.
10,200
employees attended
Pulse training
in 2014
The pace of leadership and management visits remained
high, with over 9,200 leadership and management
visits conducted worldwide last year. In addition,
top management now conducts detailed reviews
of all reported incidents that could potentially lead
to serious injuries within 10 days of the occurrence.
This reflects the priority given to safety and ensures
that the required corrective action is taken rapidly
in order to avoid recurrence.
68_69
TECHNIP In 2014
OPERATIONS
sustainability
1 Doing the right thing is an absolute commitment
for Technip and a priority in our industry.
2 From project sites to offices, our people strive everyday
to reach the highest HSE standards.
1
2
In 2014, we worked extensively on improving our systems
and tools. We implemented five performance standards
to further harmonize the management of the main high
risk activities (works at height, lifting and rigging, confined
spaces, excavations and trenching and road and travels)
and will continue to implement and improve the existing
ones in 2015.
communications, such as tool box talks, incident alerts,
safety moments and active communication by
our managers and supervisors in the workplace.
After its initial rollout in 2013, our 12 Safety Actions
campaign was extended and refreshed in 2014. These
actions, which must be learned and adopted by everyone
to ensure a greater level of safety on Technip sites, consist
of six Do’s and six Don’ts. Years of HSE data show us that
if workers respect the 12 Safety Actions they can
significantly reduce the risk of accidents for themselves
and their co-workers. Dedicated videos and a mobile
application were developed in 2014 to support the training
and give additional practical examples in an understandable
and user-friendly manner. This was complemented by
ongoing e-learning, classroom training and other day-to-day
Procedures and systems are only half of the story when
it comes to safety. Employee engagement holds the
other key to create a culture of safety. Consequently,
we empower them to become safety leaders. The first
way is through training.
Our Pulse program is the main way we develop a positive
HSE culture within Technip. It aims to create awareness
of the challenges posed by safety and of the human,
material and financial costs of accidents. So far, more than
33,000 employees have attended Pulse sessions, ranging
from senior managers and managers/supervisors to the
general workforce and engineers.
Technip | 2014 Activity and Sustainable Development Report
e nabling personal leadership
delivers sustainable culture
of safety
RESULTS DELIVERED
9,200
leadership visits and
management walkthroughs
The cornerstone of Pulse is a special leadership and
communication program that trains each employee to
become safety leaders. The goal is to train 75% of Technip’s
employees by 2015. In 2014, Technip top management and
executives conducted more than 800 HSE leadership visits
and 9,200 management walkthroughs. In 2015, we will focus
on the implementation of the Pulse program on our projects
around the globe involving our clients and contractors.
The second way we empower employees is through
behavior-based safety (BBS). Several programs are currently
implemented in our regions. These programs work by
showing how individual actions affect those around us.
They demonstrate how all employees play a life-saving role
in HSE best practices.
In 2014, we extended the implementation of BBS programs
into a wider range of activities and conducted a
comprehensive review of the most effective BBS Programs
amongst our regions. Based on the results, we developed a
common framework for Technip that we plan to implement
in all our operational activities in the next three years,
starting with a focus on our plants and vessels in 2015.
Behavior-based safety in action
In October 2012, Technip won a major onshore
contract as part of a joint venture for the
design and construction of the new Etileno
XXI petrochemical complex in the Mexican
state of Veracruz. The million tonne-per-year
ethylene cracker will be the most modern
and efficient in operation in the Americas.
No onshore facility this big or complex has
ever been built in the region.
A vast BBS program was implemented
in 2013 for most of the people recruited
for the 16,000 strong workforce, with
over 220,000 hours of HSE training and more
than 46,000 BBS observation and coaching
sessions. Today, more than 95% of observations
are reported as safe for over 58 million manhours worked.
As further evidence of the effectiveness
of BBS, in 2014, 10 million man-hours were
worked with no time lost to injury, an average
of three million per month. In less than two
years, the TRCF at Etileno XXI has dropped by
nearly 70%, from 0.85 to 0.27.
Combined with Pulse, BBS will ensure that everyone at
Technip sees safety as a value as well as a priority. We are
empowering employees to take responsibility for the safety
of their co-workers and not just themselves and encouraging
them to go beyond the call of duty when it comes to HSE.
70_71
TECHNIP In 2014
OPERATIONS
sustainability
National content & community support
Supporting local
communities delivers
future development
c
ontributing locally delivers
strong national content
Operating in 48 countries around the world, Technip
has always focused on increasing national capabilities.
In 2014, 80% of employees were nationals and 84%
of staff in management positions were nationals.
Today, we have over 118 nationalities contributing
to the “One Technip” approach.
With every new contract comes the opportunity to
improve the employability of locally sourced staff, to
reinforce our relationship with community stakeholders
and to build a durable presence in the country. To ensure
the effectiveness of our approach, each of the regions
implements a strategy guided by our Group principles
but adapted to the local context and regulations.
Hiring talents locally depends on the availability
of a trained and qualified talent pool. Hence, in 2014,
we continued to work closely with universities
Technip | 2014 Activity and Sustainable Development Report
in several countries to help develop the next generation
of engineers and technicians. One example is the signing
of a Memorandum of Understanding (MoU) between
Technip in India and the Indian Institute of Technology
in Madras, to establish a broad partnership in areas
including research collaborations with the ocean, civil
and metallurgical and materials engineering departments.
We can also illustrate this will with the MoU between
“In 2014, we continued to
work closely with universities
in several countries
to help develop the next
generation of engineers
and technicians.”
1 2 We increasingly focus on integrating sustainable development
approach to our projects and we foster to encourage partnerships
with local stakeholders.
1
Technip in Malaysia and Curtin University Sarawak which
aims to enhance their commitment in training, knowledge
sharing and development programs.
Our vision of national content is not restricted to local
employment; it is also a source of diversity for our
leadership and project teams. The 2014-15 class of
the Global Leadership Program comprised 38 candidates
representing a wide cross-section of nationalities. This
program is the breeding ground for our next generation of
leaders. Furthermore, our Project Management Knowledge
Transfer program, which develops talent in this key
domain, involved 77 participants of 14 nationalities in 2014.
Another way for us to encourage the development
of the local economy and labor force is through
suppliers and subcontractors. As a first step, we require
our local partners to comply with the United Nations
Global Compact and we strive to monitor their
compliance regularly.
In 2014, 40% (corresponding to approximately 1.95 billion
euros) of the overall Procurement expenditure is certified
2
84%
of staff in management positions
were nationals in 2014
to be sourced in the same country of purchase, reflecting
our commitment to contributing to the economies of
countries where we operate.
In 2014, we appointed a National Content and Local
Communities Coordinator at Group level, to promote
and harmonize the integration of local content in
the supply chain. It is also important that our local
subcontractors work to apply the same high standards
as Technip. That is why in 2014, they received more
than 28,000 hours of Pulse for the Workforce training,
Technip’s unique global HSE leadership program,
in addition to the standard HSE awareness training
that subcontractors receive.
72_73
TECHNIP In 2014
OPERATIONS
sustainability
c
lose relationships deliver
sustained local engagement
Technip’s approach to local communities spans from
supporting long-term programs, such as the READY Fund
(the French Red Cross disaster preparedness and response
fund), to providing assistance, for example in the case
of a local emergency.
For long-term initiatives, we foster open and transparent
relationships with key local stakeholders to ensure that
positive results will last long after Technip has built and
handed over the project to the operator. Most of them
focus on youth, health and education, with strong
commitment to supporting local partners and universities.
For example, in Colombia, we support “Merquemos Juntos”,
a local cooperative organization started 19 years ago
to promote economic empowerment for women
as a way of counteracting the violence endemic
Technip | 2014 Activity and Sustainable Development Report
40%
of the overall Procurement
expenditure is certified to be sourced
in the same country of purchase
to the Barrancabermeja region. “Merquemos juntos” is an
association that gives work to women, head of households
and consists in several projects: community restaurants
where lunches are served, grocery shops and microcredits
grants that empower small businesses. To date, over
2,200 people have directly benefited from this program.
Other illustrations of our engagement include Technip in
Malaysia, which is helping a local indigenous community
in the country to become economically self-sufficient
thanks to ecotourism. Another example is Technip in Brazil,
RESULTS DELIVERED
1 A long lasting presence in Brazil since 1977.
2 At Technip, national content is one of our strategic priorities.
Helping develop
the talent of the future
1
2
which is helping underprivileged young people prepare for
university entrance exams. Most recently, in 2014, Technip
in Angola began assisting the Arnaldo Janssen Centre,
which offers medical care, social welfare and vocational
training to the street children of Luanda.
As far as our assistance programs are concerned, the
Technip Relief and Development Fund supports non-profit
social and general interest projects through donations.
It also contributes to emergency missions. The donations
are distributed to the international Federation of Red
Cross/Red Crescent. Technip also renewed its support
for the Red Cross READY Fund in 2014 and as part of the
partnership with the Red Cross, the Corporate Doctor
spent three weeks working in Guinea to contribute
to fight Ebola.
Colombia and Malaysia are two countries
facing a shortage of adequately qualified local
talents for local energy projects. To help
Colombia staff fulfill its new offshore
developments with local content, Technip
has established a long-term agreement with
the University of Los Andes, one of region’s
top engineering schools. With the help of our
clients Anadarko and Shell, we have been
sending experts from our offices in Houston to
teach exploration, drilling, subsea engineering
and safety, maintenance and operations of
offshore facilities. In 2014 the course consisted
of 14 modules and 112 hours of teaching. Since
2012, 103 students have completed the course.
In 2015, Ecopetrol, the national oil company,
will join the program and the number of
modules will increase to 17 totaling 136 hours.
In Malaysia, Technip has developed programs
aimed exclusively at young Malaysians.
The training combines theory, onsite learning
and formal certification for piping and
structural engineering. These initiatives
are coordinated through partnerships with
the governmental agencies SHRDC (Selangor
Human Resources Development Centre)
and TalentCorp.
We have also signed memoranda of
understanding with four different Malaysian
universities. 114 piping engineers have been
trained and certified as a result and Technip has
hired 90 of them since 2006. We have trained,
certified and hired 15 Malaysian structural
engineers since 2012. Finally, 383 Malaysian
employees have been seconded in overseas
assignments within Technip since 2009.
74_75
TECHNIP In 2014
OPERATIONS
sustainability
Environment
Innovation
delivers
sustainable benefits
GROUP’S ENVIRONMENTAL
OBJECTIVES:
1.
Improvement: proactive environmental
management
2. PREVENTION: REDUCING THE IMPACT
ON THE ENVIRONMENT
AND MANAGING RISK
3. REDUCTION: IN ENERGY, NATURAL
RESOURCES USE AND WASTE GENERATION
Technip | 2014 Activity and Sustainable Development Report
World ENVIRONMENT Day
celebrated in June 2014
in more than
22 countries across
the Group
•
More than 75%
of non-hazardous waste
sent to recycling
Technip fosters responsible best practice sharing.
At Technip, we strive to reduce the environmental
footprint of our operations and also those of our
clients. We are convinced that our approach combining
sustainability and innovation in the solutions we deliver
to our clients generates progress for all stakeholders.
increasing skills
and awareness delivers
better performance
Our sustainable development strategy focuses on
leveraging innovation to increase environmental
protection, energy efficiency and natural resources
conservation as part of our solutions and our operations.
Eco-design is a key driver in this sustainable and innovative
strategy. This is why in June 2014, more than 70 Technip
engineers attended a seminar and training on “Leadership
in Energy and Environmental Design”, the international
certification program that recognizes best-in-class
sustainable solutions and practices. The initiative was
followed by additional training sessions and actions
held at regional level.
To give higher visibility, both internally and externally
to our most sustainable innovations, we decided
to create the “Technip Reference Catalogue of Sustainable
and Innovative Solutions”. We have identified some
of the best solutions involving our centers of excellence
for technological innovations and expertise such
as Technip Stone and Webster.
To foster the implementation of eco-design best practices,
we successfully applied Life-Cycle Assessment (LCA)
methodology in two projects. Moreover, we developed
a new Integrated Waste Management solution to minimize
waste-to-landfill and create local employment.
Internally, we continued to implement measures to reduce
the energy consumption and environmental impact
of our plants, vessels and offices. Most of our vessels are
equipped to use low-sulfur fuel oil, to comply with new
regulations on Emission Control Areas effective January
76_77
TECHNIP In 2014
OPERATIONS
sustainability
Technip is striving to reduce the environmental impact of its activities.
2015. They also operate Shipboard Energy Efficiency
Management Plans to identify and apply a wide range
of energy efficiency and CO2 emissions reduction methods.
In addition, our two newest plants in Açu, Brazil and
Newcastle-upon-Tyne, UK, integrate state-of-the-art energy
saving and natural resources conservation. Our offices
have been running a Green Office program since 2010,
which is now producing good results.
These and other initiatives have enabled Technip
to achieve an 85C Carbon Disclosure Project
score in 2014, up from 66C in 2011: these are
the scores made from a survey ranking both the
transparency and the performance of our climate
change strategy.
As part of our membership in World Ocean Council, Technip
participates in the Underwater Noise Modeling and Arctic
protection working groups. Being member of Kyoto Club,
Technip is promoting an open dialogue with institutions
and non-profit organizations on climate change, low carbon
economy, bio-based industry and green buildings.
Technip | 2014 Activity and Sustainable Development Report
r
einforced leadership delivers
sustainable technology
As a technology leader in the energy industry, we are pursuing
the development of sustainable technologies. We focus
on energy consumption and reduction of the risk of
pollution. For example, we have adopted double-walled
self-containment tanks for light hydrocarbons in our
projects worldwide and our work on pipe integrity
monitoring – as part of our R&D Morphopipe program –
70
engineers completed Leadership
in Energy and Environmental
Design training
RESULTS DELIVERED
reduces the risk of failure due to asset fatigue. Our
electrically trace heated pipe-in-pipe (ETH-PiP) technology
eliminates the need to dissolve gas hydrate plugs with
chemicals that could be harmful to environment.
We are also active in technology partnerships. In 2014,
we formed an alliance with Biochemtex, which controls
PROESA, the world’s leading second-generation bioethanol
technology that converts non-edible biomass into biofuels.
This alliance aims to achieve industry leading capital
productivity, through the highest standards of HSE,
operability, accelerated technological innovation, project
execution related developments and reduced project
life cycle.
As part of our commitment to the development of
sustainable and innovative solutions for our customers,
we were awarded a contract by Shell UK Limited for
the front-end engineering design (FEED) for the onshore
elements of the Peterhead Gas Carbon Capture and
Storage (CCS) demonstration project in Scotland.
The project is designed to capture, compress and transport
by pipeline one million tonnes a year of carbon dioxide
to an offshore gas reservoir for long-term storage beneath
the North Sea. The FEED scope includes a grassroots
carbon capture and compression plant and modifications
to an existing combined cycle gas turbine power plant.
Environmental education
Technology alone cannot ensure sustainability.
That is why at the Flexibras plant in Açu, Brazil,
we invested not only in wastewater treatment,
solar heating, rainwater collection and
waste management technologies, but also
in education to the community.
The goal was to raise awareness among local
students and teachers about the region’s
ecosystem and natural heritage. Over the span
of two months, 48 students from eight local
public schools and 26 teachers attended
a special training, consisting of classroom work
and field classes.
The courses were developed and delivered
in conjunction with the Brazilian Instituto
Federal Fluminense (federal institute of
higher education) and the Municipal Board
of Education and Culture.
The work the students did was presented
during a local environmental fair, to further
insist on the importance to respect
and protect the local eco-system
to a wider audience.
Another successful example of partnership is the Large
Scale Vortex Burner, a new technology jointly developed
by Technip and Air Products, which ensures ultra-low NOx
emissions (gases formed whenever combustion occurs in
the presence of nitrogen), higher efficiency and improved
reliability for a wide range of furnaces.
78_79
TECHNIP In 2014
OPERATIONS
sustainability
Ethics & compliance
Ethical behavior
delivers
competitiveness
One of Technip’s corporate values is “Doing the right
thing” which means conducting business to the highest
ethical standards.
Technip maintains a strong commitment to conducting
business with honesty, integrity and fairness. We strive
to conduct business to the highest standards and in
compliance with the legislation in place. The Group is
a signatory of the United Nations Global Compact. Our
employees are thoroughly trained and we regularly update
our procedures to ensure they meet such highest standards.
e xpanded organization delivers
greater engagement
Our compliance program has a dedicated structure that
stretches from the Board of Directors to every level
of the Group. The first pillar is the Ethics and Governance
Committee. Created in December 2008, it is composed
of Board members and assists the Board of Directors in
Technip | 2014 Activity and Sustainable Development Report
11
people are part of the Ethics
and Compliance Committee
promoting best practices. One of its main tasks is to monitor
the adherence to ethical principles within the Group.
The second pillar is the Ethics and Compliance Committee.
Composed of 11 senior managers from across the Group, it
reports directly to the Chairman and Chief Executing Officer
(CEO). It oversees the implementation of Technip’s Ethics
Charter and related policies and procedures. Headed by
the Group Chief Compliance Officer (GCCO), it submits an
annual review to the Chairman and CEO and recommends
RESULTS DELIVERED
improvements. It was very active in 2014, notably on
reviewing charitable contributions, gifts and hospitality,
training and donations. All Technip employees can report
to the Ethics and Compliance Committee suspected
non-compliance actions, through an independently
managed whistleblowing process.
Rounding out the organization is the GCCO, who is in charge
of applying and enforcing the Ethics Charter and all
applicable anti-corruption policies and procedures. The
GCCO also implements and monitors Technip’s Ethics and
Compliance program across the Group and reports directly
to the Group General Counsel and the Board of Directors
via the Ethics and Governance Committee. Regional
Compliance Officers are in charge of applying Technip’s
anti-corruption and compliance policies at regional level.
c
lear guidance delivers
strict compliance
To govern our business operations, we have implemented
several ethics-related operational standards that transpose
our general principles into concrete operating procedures.
These policies are continually enhanced and revised when
necessary. They apply to all operations worldwide.
For example, the Doing Business Abroad-Anti-Corruption
policy provides a clear and comprehensive Group-wide
framework to help employees operate with honesty and
integrity. We also pay particular attention to any factors
that could cast doubt on the honesty and integrity of third
parties involved in Technip’s business. Our due diligence
procedures for commercial consultants, joint ventures/
consortia, customs agents and freight forwarders as well as
subcontractors, enable us to assess and manage corruption
risks while conducting business globally.
Ethics training expanded
In 2014, Technip continued with the regular
training organized by Regional Compliance
Officers and the Ethics and Compliance
Committee. A special e-learning module
was developed and launched to train
specifically identified employees on export
control regulations, with a particular focus
on the rules of export control and embargoes
of the European Union and of the
United States.
The first objective of the Technip Ethics
Charter is to offer opportunities for success
to all our suppliers, partners and
subcontractors in a spirit of fair competition
and mutually rewarding collaboration. Hence,
in 2014, Technip continued to train specifically
identified employees on antitrust regulations
and competition law, both at Corporate
and Regional level.
Finally, a new e-learning program was
developed in 2014 and will be launched
in 2015. The aim is to ensure that specifically
identified employees within the Group
are appropriately educated on anti-corruption
compliance on a regular basis.
These and other policies have contributed to a large-scale
initiative to create Technip’s first Code of Conduct. It is
currently in the final stages of completion and will be ready
for publication in 2015. It will then be made available
worldwide and will serve as guidance to employees and
as a resource for stakeholders to better understand the role
and importance of compliance within Technip.
80_81
INDICATORS
INDICATORS
84
Reporting scOpe
86
Social data
88
Environmental Indicators
90
Summary of ADJUSTED FINANCIAL information
91
GLOBAL REPORTING INITIATIVE
94
Glossary
82_83
INDICATORS
Reporting
scOpe
Social data 2014
The 2014 reporting scope follows the
financial and legal scopes of consolidation.
This includes 84 entities belonging to the
Group as of December 31, 2014, including
entities that were acquired or newly
consolidated in 2014 (current scope).
For consistency purposes and to facilitate
the comparison between two consecutive
years, the reporting carried out on training
and absenteeism does not take into account
data collected from entities that have
not been consolidated within the Group
throughout the entire year.
The scope covers: (i) personnel on the
payroll and (ii) contracted workforce as
agency personnel and contractors working
on vessels and industrial sites throughout
the Group except those working on
construction sites.
The input, collection and consolidation
of social data have been established using
a common software tool across the Group.
A protocol defining the social indicators
is reviewed and improved each year
based upon feedback from the entities
and auditors.
Environmental data 2014
The environmental reporting scope covers
all existing entities consolidated in the
Group, excluding entities acquired in 2014.
It follows the Group’s requirements defined
for recording Health, Safety and
Environment (HSE) incidents, indicators and
man-hours worked. Environmental data are
thus recorded and reported at Group level
when Technip owns or manages the site
and if Technip is responsible for directly
Canada
USA
managing the work.
Mexico
They include Technip
employees, contracted
workforce and
sub-contractors working
on these sites.
For environmental reporting purposes,
the Group’s operations are divided into
Colombia
four categories: construction sites,
industrial sites, fleet and offices. The
reporting requirements applicable to each
category are defined in Group’s guidelines,
regularly updated and improved, the last
version being fully applied since 2014.
Environmental data are collected and
reported by sites throughout the year
by means of a common HSE data
management system used across the entire
Group. Data are then consolidated at
Group level and internal reports
on the Group’s environmental
performances are issued every quarter.
Since 2012, data are audited by a third
party in the framework of the French
Grenelle II Law on non-financial reporting.
Additional information on the reporting
scope and methodology as well as
examples of initiatives and best practices
are presented in annex E of the 2014
Reference Document.
Technip | 2014 Activity and Sustainable Development Report
Venezuela
Brazil
Finland
Finland
Norway Norway
UK
The Netherlands
The Netherlands
Germany Germany
UK
France
Spain
France
Italy
Italy
Spain Greece
Greece
UAE
UAE
India
India
Thailand Thailand
Vietnam Vietnam
Ghana
Malaysia Malaysia
Brunei
Ghana
Brunei
Singapore Singapore
Indonesia Indonesia
Angola
Angola
Australia Australia
Countries in which Technip entities have reported their social and/or environmental data
(including offices, construction sites and industrial sites).
Countries in which Technip has carried out initiatives in favor of local communities in 2014.
84_85
REASONS for DEPARTURES (permanent employees)
INDICATORS
(Coverage rate: 100% of permanent employees on payroll for
entities present in the Group as of December 31, 2014)
Social data
BREAKDOWN OF TOTAL WORKFORCE per CONTRACT
(Coverage rate: 100% of employees on payroll and contracted
workforce)
2,284
1,997
Lay-off/redundancy/dismissal
1,308
597
Transfers between entities
195
174
Other reasons
206
196
3,993
2,964
12/31/2014
12/31/2013
3,710
19%
81%
24,723
29%
71%
3,934
4%
96%
32,367
25%
75%
3,747
19%
81%
26,108
27%
73%
2,388
7%
93%
32,243
25%
75%
Total
(Coverage rate: 100% of employees on payroll)
12/31/2014
12/31/2013
32,367
32,243
Permanent employees
28,862
28,593
Temporary employees (fixed-term)
3,505
3,650
Contracted workforce
5,930
6,588
Contracted workers at industrial sites
(plants, spoolbase and yard) and fleet
1,778
2,537
Other contracted workforce (agency
personnel and contracted workers
not at industrial sites and fleet)
4,152
4,051
38,297
38,831
BREAKDOWN OF EMPLOYEES BY GEOGRAPHIC ZONE
(Coverage rate: 100% of employees on payroll)
Europe
2013
BREAKDOWN ACCORDING TO GENDER
Employees on payroll
Total workforce
2014
Voluntary reasons of leaving
(resignations, retirements)
12/31/2014
12/31/2013
11,331
11,239
Americas
8,941
8,924
Asia Pacific
8,662
8,690
Middle East
2,354
2,427
Managers (2)
Women
Men
Non Managers
Women
Men
Blue Collar employees(3)
Women
Men
Total
Women
Men
(2) Employees who appraise subordinates in accordance with the “Human Resources Without Borders”
program.
(3) Employees who perform physical work. A blue collar employee with a management role, as defined
above, will be qualified as a “Manager”.
BREAKDOWN WOMEN/MEN BY GEOGRAPHIC ZONE
(Coverage rate: 100% of employees on payroll)
Africa
791
737
12/31/2014
Russia & Central Asia
288
226
32,367
32,243
Africa
Asia Pacific
Europe
Russia & Central Asia
Middle East
North America
South America
Total
Total employees on payroll
PAYROLL EMPLOYEES: HIRES AND DEPARTURES
(Coverage rate: 100% of employees on payroll for entities present
in the Group as of December 31, 2014)
Hires
2014
2013
6,240
7,055
Permanent employees
3,852
4,611
Temporary employees (fixed-term)
2,388
2,444
Departures
6,085
5,595
Permanent employees
3,993
2,964
Temporary employees (fixed-term)
2,092
2,631
0.96
1.56
Renewal rate of permanent positions (1)
(1) Start/termination of permanent positions.
Technip | 2014 Activity and Sustainable Development Report
Women
Men
149
2,143
3,113
131
297
1,003
1,139
7,975
642
6,519
8,218
157
2,057
2,735
4,064
24,392
12/31/2014
12/31/2013
21,990
15,449
6,280
5,253
PROFIT SHARING (IN € THOUSANDS)
Amounts allocated to incentive profit
sharing (France, Spain, Italy)
Amounts allocated to mandatory profit
sharing (France)
ABSENTEEISM (excluding reasons other
than illness or injury)
TRAINING OF EMPLOYEES ON PAYROLL
(Coverage rate: 99% of employees on payroll)
(Coverage rate: 99% of employees on payroll)
2014
2013
Occupational illness
0.03%
0.01%
Women (2)
Occupational injury
0.04%
0.04%
Training hours by gender
(2)
2014
2013(3)
901,808
801,392
218,213
194,921
Men (2)
683,595
606,471
Non-occupational illness/injury
1.79%
1.83%
Training hours by topic
973,449
874,472
Total (illness/injury)
1.86%
1.88%
Technical training
297,080
301,162
Non-technical training
(including management, cross disciplines,
IT and certification)
309,557
216,895
28,051
22,990
210,508
234,769
77,168
76,397
BREAKDOWN OF EXPATRIATES BY HOME OFFICE
(Coverage rate: 100% of employees on payroll)
Project management training
Health, safety, security
(including Pulse training)
12/31/2014
12/31/2013
Europe
831
785
Asia Pacific
332
392
Middle East
239
172
Human rights, ethics and Technip values
awareness training
29,525
22,259
South America
106
110
Others
21,560
n/a
North America
89
66
9
3
Number of employees on payroll
who benefited from at least one
training course during the year
25,678
25,153
Russia & Central Asia
Africa
2
2
Total
1,608
1,530
Languages
Women
6,509
6,622
Men
19,169
18,531
(2) Excluding Pulse hours.
(3) Adjustments made with reference to the 2013 Activity and Sustainable Development Report.
ORGANIZATION OF WORKING HOURS
(Coverage rate: 100% of employees on payroll except overtime
hours, which coverage rate is 51%)
AGE PYRAMID – 12/31/2014
12/31/2014
12/31/2013
31,747
31,637
Number of full-time employees
(Coverage rate: 100% of employees on payroll)
Number of part-time employees
Number of employees working in shifts
65+: 1.9%
55 to 59: 6.2%
Overtime hours
(France and main headquarters)
60 to 64: 3.9%
50 to 54: 7.5%
620
606
2,908
2,972
1,115,298
1,310,954
employees per Geographic zone
45 to 49: 9.8%
40 to 44: 12.7%
Europe: 35%
Americas: 28%
35 to 39: 16.4%
30 to 34: 21.4%
25 to 29: 15.8%
-25 years: 4.4%
Russia and
Central Asia: 1%
Africa: 2%
Middle East: 7%
Asia Pacific: 27%
86_87
INDICATORS
Environmental
Indicators
2014 breakdown
2014
2013
Construction
sites
Industrial
sites
Fleet
Offices
Energy consumption
98,158
27,010
82,138
9,321
0
Fuel-oil, diesel, gasoline (MWh)
Natural gas and LPG (MWh)
1,163,134
1,842,349
301,069
57,381
798,413
6,271
Electricity (MWh)
134,429
122,398
16,859
52,554
0
65,016
1,395,721
1,991,757
400,066
119,256
798,413
77,986
332,610
497,101
98,692
17,224
213,682
3,012
53,618
42,103
6,248
14,966
0
32,404
386,228
539,204
104,940
32,190
213,682
35,416
1,539,844
1,418,924
352,419
576,422
138,828
472,175
956,162
808,456
308,684
108,995
165,688
372,795
547,105
156,558
481,448
36,956
25,192
3,509
5,939
5,881
442
3,160
1,831
506
553,044
162,439
481,890
40,116
27,023
4,015
291
Total energy consumption (MWh)
6,699
Greenhouse gas (GHG) emissions
Direct / Scope 1 emissions (ton eq CO2)
Indirect / Scope 2 emissions (ton eq CO2)
Total GHG emissions (ton eq CO2)
Water and Wastewater
Total water consumption (m3)
Industrial, domestic and ballast effluents (m3) (1)
Waste generated
Non-hazardous waste (metric ton) (2)
Hazardous waste (metric ton)
Total waste generated (metric ton) (2)
Annual expenditure on environmental protection
3,001
2,481
916
829
965
Provisions and guarantees to cover environmental risks (k€)
Total capital expenditure committed (k€)
0
0
0
0
0
0
Decontamination costs (k€)
0
0
0
0
0
0
Number of fines and compensation awards
0
0
0
0
0
0
Amount of fines and compensation awards (k€)
0
0
0
0
0
0
Total environmental expenditure (k€)
3,001
2,481
916
829
965
291
Man-hours worked in sites contributing
to environmental reporting (million)
154.3
158.4
85.4
14.5
8.1
46.2
Energy consumption (kWh/man-hour worked) (3)
9.05
12.57
4.69
8.20
98.04
1.69
Greenhouse gas emissions (kg eq CO2/man-hour worked) (3)
2.50
3.40
1.23
2.21
26.24
0.77
Water consumption (liter/man-hour worked) (3)
9.98
8.96
4.13
39.65
17.05
10.21
Waste generated (kg/man-hour worked) (2) (3)
3.58
1.03
5.64
2.76
3.32
0.09
Performance indicators
(1) Effluents treated in water treatment plants either on site or offsite and discharged into the natural environment, including ballast water from vessels.
(2) Including around 350,000 metric tons of clean soil excavated from construction sites and dedicated to future environmental restoration and backfilling.
(3) Man-hours worked considered in the performance indicators are equal to man-hours worked in sites contributing to environmental reporting.
Technip | 2014 Activity and Sustainable Development Report
Technip’s main environmental indicators in 2014
In 2014, the coverage in terms of environmental reporting remained stable compared to 2013, both in terms of number of sites
reporting and total number of man-hours worked.
Efforts pursued since several years by all types of site (construction, industrial, vessels, offices) in order to reduce their
energy consumption are now producing good results with a significant decrease in energy and greenhouse gas emissions
performance indicators.
Data related to water has slightly increased despite reusing and recycling practices carried out by a majority of sites.
A significant increase in non-hazardous waste quantities can be noted, due to clean soil excavated on major construction sites
which will be reused for backfilling and for environmental restoration projects. In 2014, six new indicators on waste management
have been developed, detailing the final destination of waste (sent to recycling, incineration or landfill); in 2014, recycling was
the primary method of disposal for both hazardous (for around 36%) and non-hazardous waste (for around 76%).
Energy consumption (kWh/man-hour worked) (3)
9.05
2014
12.57
2013
16.88
2012
Water consumption (liter/man-hour worked) (3)
9.98
2014
8.96
2013
17.88
2012
Atmospheric emissions (kg eq CO2/man-hour worked) (3)
2.50
2014
3.40
2013
4.57
2012
Waste generated (kg/man-hour worked) (2) (3)
3.58
2014
2013
2012
1.03
0.84
88_89
Summary OF ADJUSTED
FINANCIAL information
INDICATORS
ADJUSTED(1) CONSOLIDATED STATEMENT
OF INCOME
ADJUSTED(1) CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Full Year – Audited
€ million
(Except Diluted Earnings per Share,
and Diluted Number of Shares)
Revenue
2014
2013
10,724.5
9,285.1
1,514.2
1,605.1
Gross Margin
Research & Development Expenses
SG&A and Other
Share of Income/(Loss) of Equity
Affiliates
(82.6)
(75.5)
(625.2)
(694.7)
18.2
(0.4)
OIFRA after Income/(Loss) of Equity
Affiliates
824.6
834.5
Non-Current Operating Result
(73.6)
–
Operating Income
751.0
834.5
Financial Result
(128.5)
(78.6)
Income / (Loss) before Tax
622.5
755.9
Income Tax Expense
(180.1)
(185.9)
(5.8)
(6.9)
436.6
563.1
Non-Controlling Interests
Net Income/(Loss) of the Parent
Company
Diluted Number of Shares
125,270,614
Diluted Earnings per Share (€)
124,777,476
3.65
4.68
2014 FINANCIAL PERFORMANCE
Backlog (€ billion)
2014
Dec. 31, 2014 Dec. 31, 2013
Audited
Audited
€ million
Fixed Assets
6,414.2
Deferred Tax Assets
Non-Current Assets
2013
4
8
12
16
20
6,237.0
756.3
405.0
Inventories, Trade Receivables and Other
3,297.0
3,172.1
Cash & Cash Equivalents
3,738.3
3,205.4
Current Assets
7,791.6
6,782.5
Assets Classified as Held for Sale
Total Assets
Shareholders’ Equity (Parent Company)
3.2
4.0
14,600.0
13,023.5
4,156.8
4,363.4
Non-Controlling Interests
11.8
17.3
Shareholders’ Equity
4,375.2
4,174.1
Non-Current Financial Debts
2,356.6
2,214.3
232.9
261.5
Non-Current Provisions
Deferred Tax Liabilities and Other
Non-Current Liabilities
Non-Current Liabilities
249.1
247.7
2,838.6
2,723.5
Current Financial Debts
256.4
159.5
Current Provisions
328.3
218.2
Construction Contracts – Amounts
in Liabilities
2,258.2
1,721.4
Trade Payables & Other
4,543.3
4,026.8
7,386.2
14,600.0
1,125.3
6,125.9
Net Cash Position
0
260.1
6,805.2
Construction Contracts – Amounts
in Assets
Current Liabilities
Total Shareholders’ Equity & Liabilities
20.9
5,976.9
391.0
13,023.5
831.6
24
Adjusted operating income from recurring activities
(€ million)
Adjusted revenue (€ billion)
2014
10.7
2013
2014
825
2013
0
2
4
6
8
10
12
0
200
400
600
800
1 000
1 200
(1) The adjustment elements refer to the proportionate consolidation of incorporated entities linked to construction projects in partnership. The joint arrangements, in which the Group is involved can be mainly
divided in two categories: those concluded for the construction of a specific project and those concluded for the construction and the operation of vessels, notably the pipelay support vessels in Brazil (PLSV).
Project execution in partnership is one of the key elements of Technip business and as a consequence, Technip decided, for management purposes, to continue to report construction projects in proportionate
consolidation, whatever the legal structuring of the joint arrangement and whether the legal arrangement includes incorporated entities containing part or all of the arrangement and to share this reporting
with all market participants. The pipelay support vessel entities remain consolidated under equity method, their management and operation mode answering clearly to the definition of a joint venture
according to IFRS 11.
Technip | 2014 Activity and Sustainable Development Report
GLOBAL REPORTING INITIATIVE
GENERAL STANDARD DISCLOSURES (GRI*G4)
In green: aspects related to Technip commitment to the ten principles of the UN Global Compact.
ADJUSTED(1) CONSOLIDATED STATEMENT
OF CASH FLOWS
€ million
Full Year – Audited
2014
2013
Net Income/(Loss) of the Parent
Company
436.6
563.1
Depreciation & Amortization
of Fixed Assets
283.3
217.8
Stock Options and Performance
Share Charges
40.0
46.0
Non-Current Provisions
(including Employee Benefits)
(35.4)
22.9
Deferred Income Tax
21.4
12.1
Net (Gains)/Losses on Disposal
of Assets and Investments
(7.1)
(18.7)
Non-Controlling Interests and Other
Cash Generated from/
(used in) Operations
Change in Working Capital
Requirements
Net Cash Generated from/
(used in) Operating Activities
Capital Expenditures
Proceeds from Non-Current Asset
Disposals
23.8
43.2
762.6
886.4
104.9
419.2
867.5
1,305.6
(375.6)
(575.2)
86.0
79.3
Acquisitions of Financial Assets
(36.7)
–
Acquisition Costs of Consolidated
Companies, Net of Cash acquired
Net Cash Generated from/
(used in) Investing Activities
Net Increase/(Decrease) in Borrowings
(58.8)
(8.2)
Capital Increase
Dividends Paid
Share Buy-Back and Other
Net Cash Generated from/
(used in) Financing Activities
Net Effects of Foreign Exchange Rate
Changes
Net Increase/(Decrease) in Cash
and Cash Equivalents
Bank Overdrafts at Period Beginning
Cash and Cash Equivalents at Period Beginning
Bank Overdrafts at Period End
Cash and Cash Equivalents at Period End
(385.1)
(504.1)
80.0
501.1
11.7
25.6
(206.5)
(186.0)
(44.6)
(40.0)
(159.4)
300.7
211.4
(138.3)
534.4
963.9
(2.4)
(0.3)
3,205.4
2,239.4
(0.9)
(2.4)
3,738.3
3,205.4
534.4
963.9
General
External
Standard
Section/Page
Assurance**
Disclosures
Strategy and analysis
ASDR: Interviews of Thierry Pilenko
G4-1
–
and Colette Casimir p. 22 to 25
Organizational profile
✓
G4-3
Section 5.1.1 p. 31
✓
Section 6 p. 37 to 53
G4-4
✓
Section 5.1.4 p. 31
G4-5
http://www.technip.com/en/about-us/
✓
technip-worldwide/main-locationsG4-6
country
✓
Section 8.1 p. 56 to 61
G4-7
✓
Section 3.1 p. 7, 8 and Section 6.1 p. 38 to 42
G4-8
Section 3.2 p. 8 to 10, Section 8.1 p. 56 to
61, Section 10 p. 74 to 76
–
G4-9
and 17.1.1 p. 111 to 113
Annex E, Section 3.2 p. 271 to 274
✓
G4-10
and 3.5.1 p. 283
✓
Annex E, Section 3.6 p. 284 to 285
G4-11
Section 6.5 p. 52 and Annex E, Section 5.1
✓
G4-12
p. 313 to 316
Section 6.1.2 p. 42, Section 8.1 p. 56 to 61
✓
G4-13
and Section 20.1. Note 2 p. 146
Section 4 p. 11 to 30, Annex E, Sections 3.7,
✓
G4-14
3.8, 3.9 p. 285 to 291
Section 4.8 p. 25 to 30, Annex E Section 1.2
p. 261 and 262, Section 3.9 p. 289 to 291
–
G4-15
and Section 4.1.2 p. 292
✓
Annex E, Section 1.1.3. p. 254 to 258
G4-16
Identified material aspects and boundaries
✓
Section 8.1 p. 56
G4-17
✓
Annex E, Section 1.1.3.c p. 257
G4-18
✓
Annex E, Section 1.1.3.c p. 258
G4-19
Annex E Section 1.1.3.d p. 258 and Section 7
✓
G4-20
(Specific Standard Disclosures Table)
p. 327
Annex E Section 1.1.3.d p. 258 and Section 7
✓
G4-21
(Specific Standard Disclosures Table)
p. 327
✓
G4-22
No restatement of information
✓
No significant changes
G4-23
Stakeholder engagement
✓
Annex E, Section 1.1.3.a p. 254
G4-24
✓
Annex E, Section 1.1.3.a p. 254
G4-25
Annex E, Section 1.1.3.a p. 254, Section 1.1.5
✓
G4-26
p. 259 and Section 2.4.1 p. 266
Annex E, Section 1.1.3.b p. 256 and Section
✓
G4-27
1.3 p. 263
Report profile
✓
January 1, 2014 to December 31, 2014
G4-28
✓
December 31, 2013
G4-29
✓
Annual
G4-30
✓
Colette Casimir
G4-31
Annex E, Section 7 p. 326 to 328
✓
G4-32
and Annex F p. 329 to 331
Annex E, Section 1.1.5 p. 259 and Annex F
✓
G4-33
p. 329 to 331
Governance
Section 14 p. 84 to 91 and Section 16 p. 102
✓
to 110, Annex C p. 232 to and Annex E,
G4-34
Section 1.1.2 p. 252 to 254
Ethics & integrity
Annex E, Section 1.1.1 p. 252, Section 1.1.2 p.
✓
G4-56
252 to 254 and 1.2 p. 261 to 263
* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.
** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document.
In 2014, Technip decided to publish information related to sustainable development ’in accordance’ with the Core
option of the Global Reporting Initiative (GRI) G4 guiding principles. The GRI is an international organization which
promotes transparency regarding non-financial information, stakeholder’s engagement and the definition of the
material aspects of a company. The table below shows the G4 indicators relevant for Technip and where to find it
in this report and in Technip Reference Document 2014.
90_91
SPECIFIC STANDARD DISCLOSURES (GRI*G4) In green: Aspects related to Technip commitment to the ten principles of the UN Global Compact.
Material
Aspects
Indicators, Disclosure
on Management
Approach (DMA)
Coverage
Boundary
Within Technip
Boundary
Outside Technip
External
Assurance**
CATEGORY: ENVIRONMENTAL
G4-DMA: Annex E, Section 4.2.2 p. 297 to 301
Energy use
Emissions:
Greenhouse Gas
(GHG)
G4-EN3: Annex E, Section 4.2.2.a p. 297 to 299
G4-EN5: Annex E, Section 4.2.2.a p. 297 to 299
✓
Offices, Fleet,
Industrial sites,
Construction sites
Suppliers
✓
G4-DMA: Annex E, Section 4.2.2.b p. 299 to 300
✓
G4-EN15: Annex E, Section 4.2.2.b p. 299 to 300
G4-EN16: Annex E, Section 4.2.2.b p. 299 to 300
G4-EN18: Annex E, Section 4.2.2.b p. 299 to 300
Offices, Fleet,
Industrial sites,
Construction sites
✓
Clients,
Suppliers
G4-EN20: Annex E, Section 4.2.2.c p. 300 to 301
✓
✓
Fleet, Industrial sites,
Construction sites
Clients,
Suppliers
G4-EN21: Annex E, Section 4.2.2.c p. 300 to 301
Hazardous
substances*
Clients,
Suppliers
–
–
DMA: Annex E, Section 4.2.4 p. 304 to 306
✓
G4-EN24: Annex E, Section 4.2.4 p. 304 to 306
G4-EN8: Annex E, Section 4.2.3.a p. 301 to 302
G4-EN22: Annex E, Section 4.2.3.b p. 302 to 303
DMA: Annex E, Section 4.2.3.c p. 303 to 304
Solid waste*
✓
Fleet, Industrial sites,
Construction sites
G4-EN12: Annex E, Section 4.2.5 p. 306 to 307
DMA: Annex E, Sections 4.2.3a and b p. 301 to 303
Water &
wastewater*
–
✓
G4-DMA: Annex E, Section 4.2.5 p. 306 to 307
G4-EN11: Annex E, Section 4.2.5 p. 306 to 307
✓
✓
G4-DMA: Annex E, Section 4.2.2.c p. 300 to 301
Biodiversity and
ecosystems
✓
G4-EN6: Annex E, Section 4.2.2.a p. 297 to 299
G4-EN19: Annex E, Section 4.2.2.b p. 299 to 300
Emissions: other
air pollutants
✓
G4-EN23: Annex E, Section 4.2.3.c p. 303 to 304
G4-EN25: Annex E, Section 4.2.3.c p. 303 to 304
Fleet, Industrial sites,
Construction sites
Clients,
Suppliers
Offices, Fleet,
Industrial sites,
Construction sites
Clients,
Suppliers
Offices, Fleet,
Industrial sites,
Construction sites
Clients,
Suppliers
✓
✓
✓
✓
✓
✓
✓
CATEGORY: SOCIAL
Labor practices and decent work
G4-DMA: Annex E, Section 3.2.2 p. 273 to 274
General conditions
of employment
G4-LA1: Annex E, Section 3.2.2.a p. 273
–
Employees
✓
G4-LA3: Annex E, Section 3.2.2.b p. 273 to 274
Diversity and equal
opportunity
G4-DMA: Annex E, Section 3.4 p. 280 to 283
G4-LA12: Annex E, Section 3.4 p. 280 to 283
✓
–
Employees
✓
–
DMA: Annex E, Sections 3.7 and 3.8 p. 285 to 288
Safe and healthful
workplace*
G4-LA6: Annex E, Sections 3.7 and 3.8 p. 285 to 288
Employees
G4-LA8: Annex E, Section 3.6 p. 284 and 285
G4-LA9: Annex E, Section 3.3.2 p. 279 to 280
G4-LA11: Annex E, Section 3.3.1 p. 275 to 278
✓
✓
DMA: Annex E, Section 3.3 p. 275 to 280
Employee
development*
Contracted
workforce
–
Employees
✓
✓
* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.
Fully Partly
** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document.
.In 2014, Technip decided to publish information related to sustainable development ’in accordance’ with the Core option of the Global Reporting Initiative (GRI) G4 guiding principles. The GRI is an international
organization which promotes transparency regarding non-financial information, stakeholder’s engagement and the definition of the material aspects of a company. The table below shows the G4 indicators relevant
for Technip and where to find it in this report and in Technip Reference Document 2014.
Technip | 2014 Activity and Sustainable Development Report
SPECIFIC STANDARD DISCLOSURES (GRI*G4) – CONTINUED In green: Aspects related to Technip commitment to the ten principles of the UN Global Compact.
Material
Aspects
Indicators, Disclosure
on Management
Approach (DMA)
Coverage
Boundary
Within Technip
Boundary
Outside Technip
External
Assurance**
Employees
Contracted workforce,
Local communities, Clients,
Suppliers, Sub-contractors,
NGOs
✓
Local communities,
NGOs
–
CATEGORY: SOCIAL
Human rights
Human rights
G4-DMA: Annex E, Section 5.2 p. 316 to 318
Indigenous and local
communities rights
G4-DMA: Annex E, Section 6 p. 322 to 325
Society
G4-DMA: Annex E, Section 1.2.1 p. 262 and 263
Anti-corruption
Employees
G4-SO4: Annex E, Section 1.2.1 p. 262 and 263
Contracted workforce,
Clients, Suppliers,
Sub-contractors, Investors,
Shareholders, Authorities
DMA: Annex E, Section 5 p. 313 to 322
Local content*
Risk & crisis
management*
Local communities,
Clients, NGOs
G4-EC8: Annex E, Section 5 p. 313 to 322
Clients, Suppliers,
Sub-contractors
DMA: Section 4 p. 11 to 30 and Annex E,
Sections 1.1.2 p. 253 and 254
Local communities, Clients,
Investors, Shareholders
G4-SO4: Annex E, Section 1.2.1 p. 262 and 263
DMA: Annex E, Section 2.3 p. 266
Responsible
marketing & sales*
DMA: Annex E, Section 1.2.3 p. 263
–
✓
–
DMA: Annex E, Section 5.1 p. 313 to 316
Asset integrity
and emergency
preparedness*
–
✓
G4-EC6: Annex E, Section 5.1 p. 313 to 316
G4-EC9: Annex E, Section 5.1 p. 313 to 316
Sustainability in
the supply chain*
✓
Fleet,
Industrial sites,
Construction sites
✓
–
–
Local communities, Clients,
Sub-contractors
✓
Clients,
Suppliers
–
Clients, Suppliers,
Investors, Shareholders,
Authorities
–
Contracted workforce,
Local communities, Clients,
Suppliers, Sub-contractors
–
Product responsibility
Compliance with
laws & regulations
G4-DMA: Annex E, Section 1.2 p. 261 to 263
Security
practices*
DMA: Annex E, Section 3.9 p. 289 to 291
Product safety*
DMA: Annex E, Section 2.2 p. 264 to 266
Local communities,
Clients, Suppliers
–
Innovative
technology*
DMA: Annex E, Section 2.4 p. 266 to 269
Clients,
Suppliers
–
Clients, Suppliers
–
Clients, Investors,
Shareholders, Authorities
–
Employees,
Offices, Fleet,
Industrial sites,
Construction sites
CATEGORY: ECONOMIC
Fair and long-term
business relations*
Corporate governance
and integrity*
Client satisfaction*
DMA: Annex E, Section 1.2.2 p. 263
DMA: Annex E, Section 1.1.2 p. 252 to 254
G4-38: Section 14 p. 84 to 91
DMA: Annex E, Section 2 p. 263 to 269
G4-PR5: Annex E, Section 2.1 p. 263 to 264
* Aspect identified as material by Technip stakeholders but not reported by GRI G4 guidance.
** The statement of external assurance is located in Annexe F, Section 1 page 330 of the 2014 Reference Document.
.
–
✓
Clients
✓
Fully Partly
92_93
Glossary
Anti-H2S: The anti H2S layer is a
leak-proof sheath made of a
composite material which is
placed between the pressure
sheath and the pressure vault
of a flexible pipe. The metallic
oxide additives within the layer
will chemically react with the
H 2 S entering the ’Anti H 2 S’
sh eat h af te r p e r m eatio n
through the pressure sheath.
This reaction will act as a barrier to H2S during all the service
life of the flexible pipe.
with their stakeholders on a
voluntary basis. CSR concerns
actions by companies over and
above their legal obligations
towards society and the environment (definition of the EU
Commission).
Bi-metallic: Pipe construction
with a corrosion resistant alloy
(CRA) layer on the inner surface
of the carbon steel pipe. This is
obtained either through a CRA
liner mechanically bonded to
the carbon steel pipe (i.e.
Mechanically Lined Pipe – MLP)
or through the deposit of CRA
metallurgically bonded to the
carbon steel pipe inner surface
by welding overlay (i.e. Cladded
pipe).
EPIC (Engineering, Procurement, Installation, Commissioning): An EPIC or “turnkey”
contract integrates the responsibility going from the conception to the final acceptance
of one or more elements of
a production system. It can be
awarded for all, or part, of a
field development.
Biomass-based fuel: These
include, but are not limited to
wood, sawdust, grass cuttings,
biodegradable domestic refuse,
charcoal, agricultural waste,
crops and dried manure.
Carbon fiber armor: An exclusive technology for the composition of flexible risers, for use
in deepwater, allowing them to
weigh 50% less than traditional
flexible pipes while offering
excellent corrosion and fatigue
resistance.
CCS (Carbon Capture and
Storage): The CCS is a solution
for reducing greenhouse gas
emissions from industrial
installations in response to
global warming.
C S R (C o r p o r a t e S o c i a l
Responsibility): A concept
whereby companies integrate
social and environmental concerns in their business operations and in their interaction
EPC (Engineering, Procurement, Construction): Type of
contract comprising management and engineering services,
procurement of equipment and
materials, construction.
ETH-PIP Technology: Reelable
electrically trace heated pipein-pipe: a new technology
developed and qualified by
Technip for use in shallow and
deepwater applications alike
and qualified by Technip and
Total for higher temperature
applications. Successful deployment of ETH-PIP will
enhance or enable production
operability in certain flow and
temperature conditions, where
subsea pipelines transporting
hydrocarbons are liable to
blockage through the formation of hydrates or wax.
FEED (Front-End Engineering
Design): Engineering studies
whose detail allows the client
to launch the bidding process
for the execution of the
project.
FLNG (Floating liquefied
natural gas unit): In a FLNG
solution, the gas liquefaction
installations are situated directly above the offshore gas field,
thus making the construction
of long subsea pipelines and
Technip | 2014 Activity and Sustainable Development Report
large onshore infrastructure
unnecessary.
Floatover: Installation method
of an integrated production
deck (topsides) on a fixed or
floating offshore structure
without heavy lift operations.
Flowline: A flexible or rigid
pipe, laid on the seabed, which
allows the transportation of
oil/gas production or injection
of fluids. Its length can vary
from a few hundred meters to
several kilometers.
FPSO (Floating, Production,
Storage and Offloading): A
converted ship or custom-built
vessel used as a support of oil
and gas installations and for
temporary storage of the oil
prior to transport.
Furnace: Furnace is an enclosed
structure in which material is
heated to high temperatures to
produce ethylene and other
products. This occurs in two
sections. In the radiant section,
the tubes receive heat through
thermal radiation and the
pyrolysis reaction (cracking)
takes place. In the convection
section, the flue gas is cooled
to deliver high thermal efficiency by recovering the remaining
heat.
Global Compact: International
initiative of the United Nations,
launched in 2000. It unites
public and private businesses
around 10 universal principles
relating to human rights, labor
and the environment. Technip
has been an official member
of the Global Compact since
2003.
Greenhouse gas: Any of the atmospheric gases that contribute to the greenhouse effect by
absorbing infrared radiation
produced by the solar warming
of the Earth’s surface. Greenhouse gases include carbon
dioxide, methane, nitrous oxide
and water vapor. These gases
can be naturally occurring or
produced by human activity.
GRI (Global Reporting Initiative): A group of stakeholders
engaged in ensuring that
reporting on economic, environmental and social performance by all organizations
becomes as stringent and systematic as financial reporting.
The GRI achieves this vision by
providing a framework for
reporting sustainable development. The components of this
reporting framework are developed through a comprehensive
approach to reaching decisions
by consensus among the various stakeholders.
GTL (Gas-to-Liquids): Transformation of natural gas into
liquid fuels (Fischer Tropsch
technology).
HDPE: High-density polyethylene.
HSE (Health, Safety and Environment): Defines all measures
taken by Technip to guarantee
the occupational health and
safety of individuals and the
protection of the environment
during the performance of it
business activities, whether in
offices or on construction sites.
HVS (Heave and Vor texInduced Motion Suppressed)
semi-submersible platform: A
low-motion semi-submersible
platform, reducing the fatigue
on risers connected to it, enabling it to support large diameter steel catenary risers in water
depths that would not be possible for conventional semis. As
such, it is a technology suited
to deepwater developments.
Hydrogen: Hydrogen is widely
used in petroleum refining
processes to remove impurities
found in crude oil such as sulfur, olefins and aromatics to
meet the product fuels specifications. Removing these components allows gasoline and
diesel to burn cleaner and thus
makes hydrogen a critical
component in the production
of cleaner fuels needed by
modern, efficient internal combustion engines.
IPB (Integrated Production
Bundle): A patented flexible
riser combining multiple functions of production and gas lift,
incorporating both active heating and passive insulation. The
IPB ensures regular flow in difficult conditions.
ISO 9001: A standard dealing
with qualit y management
standards. It sets out the
requirements that organizations must meet to comply
with the standard.
ISO 14001: A standard dealing
with environmental management systems.
Jumper: A short section of
pipe for the connection of two
subsea structures.
Lean & Six Sigma: To improve
competitiveness, Lean focuses
on cost and schedule improvement and Six Sigma on quality
by redu cing defec t rate.
Technip integrated a quality
program based on these methods at the end of 2010.
Liquefied Natural Gas (LNG):
Natural gas, liquefied by cooling its temperature to -162°C,
thus reducing its volume
600 times, allowing its transport by boat.
Manifold: A piece of pipe with
several lateral outlets and/or
inlets for connecting one pipe
with others.
MEG: Mono-ethylene glycol,
used to control hydrate formation in production fluids.
Natural gas: Consists primarily
of methane (CH4) as well as
some carbon dioxide and other
impurities such as sulfur-based
gases.
Petrochemicals: Industry relating to chemical compounds
derived from hydrocarbons.
Pipe-in-Pipe or Flowline: Steel
pipes assembly consisting of a
standard production pipe surrounded by a so-called carrier
pipe. The gap between the carrier and production pipes is
filled with an insulation material (a high thermal performance
material can be used).
Pipeline installation: Technip’s fleet masters the three
installation methods for rigid
pipes: J-Lay (a vertical lay system, in deep water), S-Lay (the
most common installation
method for steel pipe in medium to shallow water. A horizontal lay from the back of a vessel,
under tension, which gives it an
“S” configuration) and reeledlay (an onshore assembly of
rigid steel pipeline, made of
long sections welded together
as they are spooled onto a vessel-mounted reel for transit
and subsequent cost-effective
unreeling onto the seabed.
Minimum welding is done
at sea), as well as Flexible-Lay
(including the Vertical Lay System – VLS, a proprietary technology for installation of flexible pipes in deep water).
PLET (Pipeline End Termination): Subsea structure to connect rigid flowline and flexible
riser.
PRS (Pipeline Repair System):
this system comprises a wide
range of equipment for pipeline
repair, both manned and
remotely operated, including
welding machines, installation
structures or pipeline retrieval
tools.
Pulse: A Technip program aiming to develop a positive HSE
culture through leadership and
communication.
Quartz: A Technip quality program aiming to educate, inform
and motivate Technip’s employees and stakeholders to
sustain a culture of excellence
and continuous improvement
of our business.
Riser: Pipe or assembly of flexible or rigid pipes used to transfer produced fluids from the
seabed to surface facilities and
transfer injection or control
fluids from the surface facilities
to the seabed.
SA 8000 (Social Accounta­
bility 8000): An international
standardized code of conduct
for improving working conditions worldwide.
Semi-submersible platform:
Offshore platform that is stabilized by pontoons whose
degree of immersion can be
changed through ballasting and
de-ballasting.
Shale gas: Natural gas held in
shale, rocks made up of thin
layers of fine-grained sediments. Shale formations have
very low permeability.
SMK : Technip’s proprietary
coil technology used in a
furnace. Enabling selectivity
optimization to obtain very
large capacity furnaces. The
largest capacity furnace in the
world u ses SM K ™ tech n o ­
log y and has a capacity of
210,000 tons per year of ethylene per furnace cell.
TM
Sour water stripper: Removal
of H2S and ammonia from sour
water in order to reuse or
dispose of it.
Spar: A cylinder-shaped floating of fshore drilling and
production platform partially
submerged that is particularly
well-adapted to deep water by
using top tensioned risers and
surface wellheads.
Spool: Short length pipe connecting a subsea pipeline and a
riser, or a pipe and a subsea
structure.
SSIV: Subsea Isolation Valve.
SST (Spiral Stacket Turret): A
flexible hose-based alternative
to the traditional mechanical
swivel stack to be used in floating units.
Sustainable Development:
Development that meets the
needs of the present without
compromising the ability of future generations to meet their
own needs (Definition from the
United Nations’ 1987 Report of
the World Commission on Environment and Development).
Synthesis gas: Gas mixture
that primarily contains varying
amounts of hydrogen and carbon monoxide and often some
carbon dioxide.
Technip PMC (Project Management Consultancy): Technip’s business unit in charge of
assisting its customers in
achieving their business objectives, from the Technology
& Licensor selection phase to
the management of multinational consortia in the execution and successful delivery of
world-scale, lump-sum turnkey
projects.
Template: A steel protection
structure with integrated manifolds and wellheads.
Teta wire: Wire with a specific,
patented, T-shape used in flexible pipe to resist the radial
effect of the internal pressure.
Used for high pressure and
harsh environments.
Wye piece: A connection
between two pipelines which
allows pigging to be performed
from either of the pipelines.
Adjectives used in Technip press releases
to define contracts
Amount in €
Onshore and offshore Subsea
contracts
contracts
< 50 million
No adjective
No adjective
50 – 100 million
Significant
Important
100 – 250 million
Important
Substantial
250 – 500 million
Substantial
Large
500 – 1000 million
Large
Major
1000 + million
Major
Major
94_95
Our Bronze Class ranking in the RobecoSAM
Sustainability Awards recognizes our commitment
and sustainability actions.
This document is published by the Technip Group Communications department.
To obtain copies, please contact:
Group Communications
Technip
89, avenue de la Grande Armée – 75116 Paris – France
Tel.: +33 (0)1 47 78 24 23
Email: press@technip.com
www.technip.com
E-accessible version for visualy impaired
e-accessibility publication
The digital version of this document is conform to Web content
accessibility standards, WCAG 2.0, and is certified ISO 14289-1.
Its design enables people with motor disabilities to browse through
this PDF using keyboard commands. Accessible for people with visual
impairments, it has been tagged in full, so that it can be transcribed
vocally by screen readers using any computer support. It has also been
tested in full and validated by a visually-impaired expert.
e-accessible version
Photos: Anadarko, British Petroleum, DSME, Thierry Gonzales, Laurent Masurel, North Sea Shipping, Odebrecht,
Petronas, Jérôme Retru, Samsung Heavy Industries, SATORP, Shell, Technip photo library – all rights reserved.
Printed on a FSC paper by a certified Imprim’Vert printer.
This document is printed on Printspeed Offset. April 2015.
Design and production:
You can find more information on:
2014activityandsd.technip.com
https://twitter.com
/TechnipGroup
https://www.facebook.com
/TechnipGroup
https://www.linkedin.com
/company/technip
https://www.youtube.com
/user/TechnipGroupe
Société anonyme with a share capital of 86,885,591.71 euros
89, avenue de la Grande Armée • 75116 Paris – France • Tel.: +33 (0)1 47 78 24 23
589 803 261 RCS Paris • SIRET 589 803 261 00223
www.technip.com