Technip’s Second Quarter Results

Regulatory News:

Technip (Paris:TEC) (ISIN:FR0000131708):

SECOND QUARTER 2010 RESULTS

• Revenue of €1,485 million, of which €688 million in Subsea
• Group operating margin of 10.8%
• Net Income of €106 million
• Net cash of €1,498 million
• Backlog of €8,263 million, underpinned by an order intake of €1,521 million

FULL YEAR 2010 OUTLOOK CONFIRMED^*

• Group revenue around €5.9 - 6.1 billion
• Subsea revenue around €2.6 - 2.7 billion
• Subsea operating margin above 15%
• Onshore/Offshore combined operating margin stable year-on-year

^* second quarter average exchange rates

On July 20, 2010, Technip’s Board of Directors approved the unaudited second quarter 2010 consolidated accounts. Chairman and CEO Thierry Pilenko commented: "At the half of year, Technip remains on track to deliver its 2010 objectives, following two quarters of good project execution and delivery across all segments.

During the second quarter we made good progress on key projects in Subsea, and despite lower activity in the North Sea and Asia, we accordingly delivered a solid operating margin above our expectations at 16.9%. In Onshore/Offshore the underlying profitability of our newer book of business combined with the completion of key projects drove a satisfactory operating margin of 7.1%.

Order intake was €1,521 million split nearly 50:50 between Subsea and Onshore/Offshore. In Subsea, major orders include Tupi pilot in Brazil and Burullus in Egypt. In Onshore/Offshore, we took a significant reimbursable EPCIC order in Asia, a project for Eastern Europe and various other projects.

Our expectations for an improvement in the North Sea have been confirmed by a pick up in awards in the quarter notably on the Norwegian side: we expect this to continue in the second half. Brazil continues to show promise and prospects in the Middle East and Asia are substantial although competition remains intense particularly Onshore.

It is difficult to predict all of the repercussions from the tragic incident in the Gulf of Mexico. At this stage, there has been no adverse impact on our 2010 operations. The drilling moratorium will likely delay near-term FIDs for Subsea and Offshore order intake in the Gulf even if FEEDs and studies continue to be awarded. In the longer term we believe operators will everywhere prefer to work with contractors that have been investing consistently in safety, high-performing assets, operational excellence, and technology – elements that are central to Technip’s strategy.

For the balance of the year, we will continue to focus on the key drivers of our business: good project execution (notably for our Subsea projects in installation phase), and a balanced, profitable order intake. Furthermore Technip will continue to invest in its strategy, with a particular focus on local content and partnerships, technology and hiring key talent throughout our business.”

I. SECOND QUARTER 2010 REPORT

1. Operational Highlights

Subsea business segment’s main events were:

• In the Gulf of Mexico:
  • Cascade & Chinook project was successfully completed,
  • Offshore operations on other projects continued as planned,

• Pipelayer Apache II sea trials were completed in May. She successfully completed her first projects: Talisman Auk North and Burghley in the North Sea,
• Vessel utilization rate was 70% compared with 83% a year ago and 70% in the first quarter 2010,
• Offshore operations continued on Jubilee field in Ghana,
• Procurement and fabrication progressed well in preparation for offshore operations on Pazflor and Block 31 projects in Angola,
• Operations offshore Brazil on the Tupi gas export pipeline continued,
• Good activity at flexible pipe production units continued.

Offshore business segment’s main events were:

• FEED activities continued to progress as planned for Floating LNG contracts for Shell Prelude field near Australia and for Petrobras in Brazil,
• FEED activities progressed on Wheatstone gas processing platform for offshore Australia,
• Projects in Brazil and Asia progressed well.

In the Onshore business segment:

• Construction and pre-commissioning continued to progress for Qatargas 3&4 Trains 6 and 7 in Qatar,
• Dung Quat refinery in Vietnam was turned over to the Client,
• Saudi Arabian Khursaniyah gas plant, Trains 1 & 2 were turned over to the client,
• Second train of the Yemen LNG natural gas liquefaction plant turned over to the client,
• Construction activities and pre-commissioning progressed well, and commissioning started on the Gdansk refinery for Grupa Lotos in Poland,
• Engineering and procurement continued for the Jubail refinery in Saudi Arabia; early construction works started,
• Biodiesel plants for Neste Oil progressed well with construction in Rotterdam, The Netherlands, while commissioning started in Singapore,
• Basic engineering was completed while detailed engineering and procurement progressed as planned on the Yinchuan, Ningxia LNG in China.

2. Order intake and Backlog

During second quarter 2010, Technip’s order intake was €1,521 million compared with €873 million in second quarter 2009. The breakdown by business segment for the second quarter was as follows:

Subsea order intake of €773 million comprised notably of a wide variety of projects in the North Sea including Devenick for BP, the Marulk reeled pipe-in-pipe project for Eni and several frame agreements (BP, BG, and Statoil). We won several contracts in Brazil including Tupi 2Pilot, and in Egypt, where we were awarded the West Delta Deep Marine (WDDM) Phase VIIIa project for Burullus.

Onshore/Offshore order intake included a significant reimbursable EPCIC project in Asia, as well as an extension of the Artificial Island FEED in UAE for ZADCO and several small and medium-sized projects in Europe and Latin America.

Listed in annex II (d) are the main contracts announced during second quarter 2010 and their approximate value if publicly disclosed.

At the end of second quarter 2010, Technip’s backlog rose to €8,263 million, compared with €8,018 million at the end of fourth quarter 2009 and €6,066 million at the end of second quarter 2009. Approximately 35% of the backlog is expected to be executed in the second half of 2010.

The backlog breakdown by business segment is as follows:

3. Capital expenditures

Capital expenditure for second quarter 2010 was inline with expectations at €90 million compared with €175 million a year ago (which included the Apache II acquisition).

4. Other

The ongoing investigations led by the US Department of Justice ("DOJ”) and Securities and Exchange Commission ("SEC") have been resolved by the signature on June 28th, 2010 of a final agreement to fully resolve all potential claims arising from Technip’s participation in the TSKJ joint venture between 1994 and 2004. The agreements are in line with the disclosures made previously. Technip agreed to pay USD 240 million to the DOJ in eight equal installments over the next two years starting in the third quarter and to the SEC USD 98 million in July 2010.

II. SECOND QUARTER 2010 FINANCIAL RESULTS

1. Revenue

• Subsea’s major revenue contributors included Jubilee in Ghana, Caesar Tonga and Cascade & Chinook in the Gulf of Mexico, Pazflor and Block 31 in Angola, and various contracts in the North Sea and Brazil, for example the Tupi gas export pipeline,
• Offshore’s revenue included the Floating LNG contracts for Shell and Petrobras, the Wheatstone gas processing platform FEED in Australia, and numerous ongoing contracts in Asia,
• Onshore’s major revenue contributors were the Jubail refinery and Khursaniyah gas plant in Saudi Arabia, the Ningxia LNG in China and the Dung Quat Refinery in Vietnam.

Foreign exchange had a positive impact of €71 million on second quarter 2010 Group revenue compared with same quarter last year.

2. Operating Income from Recurring Activities

Subsea EBITDA margin was 21.1% versus 23.5% for the same quarter last year and operating margin was 16.9% versus 18.8% for the same quarter last year.

The successful completion of several projects drove the combined operating margin for Onshore/Offshore to 7.1% compared with 5.3% a year ago.

Foreign exchange had a positive impact of €13 million on second quarter 2010 Group operating income from recurring activities compared with same quarter last year.

Financial income on projects accounted as revenue amounted to €4 million during second quarter 2010 compared with €6 million in second quarter 2009.

3. Net Income

Financial charges for second quarter 2010 included a €7 million negative impact from currency variations and fair market value of hedging instruments, compared with a €16 million negative impact for the same quarter in 2009.

The effective tax rate in the quarter was 31.4% compared with 30.1% a year ago.

The average number of shares during the period on a diluted basis is calculated as per IFRS. For second quarter 2010 the number of shares stood at 108,076,795 versus 107,157,468 for the same quarter in 2009. The variation is mainly due to the diluted effect of the outstanding performance shares and stock options granted by the Board of Directors to Technip’s employees.

4. Cash and Balance Sheet

As of June 30, 2010, the Group’s net cash position was €1,498 million compared with €1,784 million as of December 31, 2009 and €1,561 million as of June 30, 2009.

During second quarter 2010, cash generated from operations amounted to €126 million compared with €160 million for the same quarter in 2009. Working capital movements had a €289 million negative impact.

Shareholders’ equity as of June 30, 2010 was €2,722 million compared with €2,717 million as of December 31, 2009.

III. FULL YEAR 2010 OUTLOOK

Full year 2010 outlook remains unchanged^*:

• Group revenue around €5.9 - 6.1 billion
• Subsea revenue around €2.6 - 2.7 billion
• Subsea operating margin above 15%
• Onshore/Offshore combined operating margin stable year-on-year

^* second quarter average exchange rates

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NOTICE

Today, July 22nd, 2010, Chairman and CEO Thierry Pilenko, along with CFO Julian Waldron, will comment on Technip’s results and answer questions from the financial community during a conference call in English starting at 10:00 a.m. CET.

To participate in the conference call, you may call any of the following telephone numbers approximately 5 - 10 minutes prior to the scheduled start time:

The conference call will also be available via a simultaneous, listen-only audio-cast on Technip’s website.

A replay of this conference call will be available approximately two hours following the conference call for 90 days on the Technip’s website and for two weeks at the following telephone numbers:

Cautionary note regarding forward-looking statements

This presentation contains both historical and forward-looking statements. These forward-looking statements are not based on historical facts, but rather reflect our current expectations concerning future results and events and generally may be identified by the use of forward-looking words such as "believe”, "aim”, "expect”, "anticipate”, "intend”, "foresee”, "likely”, "should”, "planned”, "may”, "estimates”, "potential” or other similar words. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among other things: our ability to successfully continue to originate and execute large services contracts, and construction and project risks generally; the level of production-related capital expenditure in the oil and gas industry as well as other industries; currency fluctuations; interest rate fluctuations; raw material (especially steel) as well as maritime freight price fluctuations; the timing of development of energy resources; armed conflict or political instability in the Arabian-Persian Gulf, Africa or other regions; the strength of competition; control of costs and expenses; the reduced availability of government-sponsored export financing; losses in one or more of our large contracts; U.S. legislation relating to investments in Iran or elsewhere where we seek to do business; changes in tax legislation, rules, regulation or enforcement; intensified price pressure by our competitors; severe weather conditions; our ability to successfully keep pace with technology changes; our ability to attract and retain qualified personnel; the evolution, interpretation and uniform application and enforcement of International Financial Reporting Standards (IFRS), according to which we prepare our financial statements as of January 1, 2005; political and social stability in developing countries; competition; supply chain bottlenecks; the ability of our subcontractors to attract skilled labor; the fact that our operations may cause the discharge of hazardous substances, leading to significant environmental remediation costs; our ability to manage and mitigate logistical challenges due to underdeveloped infrastructure in some countries where we are performing projects.

Some of these risk factors are set forth and discussed in more detail in our Annual Report. Should one of these known or unknown risks materialize, or should our underlying assumptions prove incorrect, our future results could be adversely affected, causing these results to differ materially from those expressed in our forward-looking statements. These factors are not necessarily all of the important factors that could cause our actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could have material adverse effects on our future results. The forward-looking statements included in this release are made only as of the date of this release. We cannot assure you that projected results or events will be achieved. We do not intend, and do not assume any obligation to update any industry information or forward-looking information set forth in this release to reflect subsequent events or circumstances.

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This presentation does not constitute an offer or invitation to purchase any securities of Technip in the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The information contained in this presentation may not be relied upon in deciding whether or not to acquire Technip securities.

This presentation is being furnished to you solely for your information, and it may not be reproduced, redistributed or published, directly or indirectly, in whole or in part, to any other person. Non-compliance with these restrictions may result in the violation of legal restrictions of the United States or of other jurisdictions.

Technip is a world leader in the fields of project management, engineering and construction for the oil & gas industry, offering a comprehensive portfolio of innovative solutions and technologies.

With 23,000 employees around the world, integrated capabilities and proven expertise in underwater infrastructures (Subsea), offshore facilities (Offshore) and large processing units and plants on land (Onshore), Technip is a key contributor to the development of sustainable solutions for the energy challenges of the 21st century.

Present in 48 countries, Technip has operating centers and industrial assets (manufacturing plants, spoolbases, construction yard) on five continents, and operates its own fleet of specialized vessels for pipeline installation and subsea construction.

The Technip share is listed on NYSE Euronext Paris exchange and over the counter (OTC) in the USA.

OTC ADR ISIN: US8785462099

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¹ As per IFRS, Earnings Per Share (diluted) is calculated by dividing profit or loss attributable to the Parent Company’s Shareholders by the weighted average number of outstanding shares during the period, plus the effect of dilutive stock options and performance shares calculated according to the "Share Purchase Method” (IFRS 2), less treasury shares. In conformity with this method, anti-dilutive stock options are ignored in calculating EPS. Dilutive options are taken into account if the subscription price of the stock options plus the future IFRS 2 charge (i.e. the sum of annual charge to be recorded until the end of the stock option plan) is lower than the average market share price during the period.

⁽¹⁾ Calculated as Operating Income from recurring activities before depreciation and amortization