Technip : First Half 2009 Financial Report

Regulatory News:

TECHNIP (Paris:TEC) (ISIN:FR0000131708)

I MANAGEMENT REPORT FOR THE FIRST HALF 2009

Second Quarter Results

First Quarter Results

Risks

Related Parties

II STATEMENT OF THE PERSON RESPONSIBLE FOR THE FIRST HALF 2009 FINANCIAL REPORT

III CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (FIRST HALF 2009)

IV STATUTORY AUDITORS’ REVIEW REPORT ON FIRST HALF-YEAR FINANCIAL INFORMATION FOR 2009

I – MANAGEMENT REPORT FOR THE FIRST HALF 2009

2009 SECOND QUARTER RESULTS

Technip second quarter results show
improved outlook for key 2009 indicators

SECOND QUARTER 2009

• Revenue of €1,732 million, of which €848 million in Subsea
• Group operating margin of 11.3%
• Net Income rose 12.8% year-on-year to €116 million
• Total net cash of €1,561 million
• Backlog of €6,066 million (excludes two contracts signed for the Jubail refinery in July)

FULL YEAR 2009 OUTLOOK

• Group revenue towards €6.4 billion at current exchange rates (previous outlook: €6.1 – 6.4 billion)
• Subsea revenue to show moderate growth (previous outlook: flat to moderate growth)
• Subsea operating margin towards 18% (previous outlook: 16% - 18%)
• Confirm year-on-year improvement of the Onshore / Offshore combined operating margin

€ in million, (except EPS)		2Q 08		2Q 09		% change		ex. FX impact		1H 08		1H 09		% change		ex. FX impact
Revenue		1,823.7		1,732.0		(5.0)%		(4.2)%		3,640.5		3,301.0		(9.3)%		(8.4)%
EBITDA(1)		195.3		241.5		23.7%		28.5%		366.2		432.2		18.0%		23.7%
EBITDA Margin		10.7%		13.9%		323 bp				10.1%		13.1%		303 bp
Operating Income(2)		157.5		196.0		24.4%		29.0%		294.4		349.9		18.9%		24.4%
Operating Margin		8.6%		11.3%		268 bp				8.1%		10.6%		251 bp
Net Income		103.0		116.2		12.8%				192.9		215.3		11.6%
EPS (€)		0.97		1.08		11.2%				1.83		2.01		10.1%

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

⁽²⁾ From recurring activities

On July 22, 2009, Technip’s Board of Directors approved the unaudited second quarter 2009 consolidated accounts. Thierry Pilenko, Chairman and CEO, commented: "Our second quarter performance illustrates well our 2009 priorities: good project execution, focus on profitability and selective order intake. We are accordingly able to improve our outlook for 2009. We now expect moderate growth in Subsea full year revenues and operating margins towards 18%, at the upper end of our initial outlook. Our Onshore / Offshore profitability continues to improve year-on-year. We now expect Group revenues towards €6.4 billion, also at the upper end of our initial outlook.

In the second quarter Subsea execution was again excellent, leading to revenues above expectations and a good operating margin. Onshore/Offshore, we continued to deliver on our major projects – for example in Qatar we have handed over Rasgas 3, Train 6 and Qatargas 2, Train 5 to our clients and in Saudi Arabia we reached final completion on the Yansab ethylene plant. We continued to carefully manage our cost base and our cashflow, and used our strong balance sheet to acquire a replacement for our Apache pipelay vessel. Our backlog reflects our policy to maintain a balanced business portfolio. Subsea order intake has averaged over €550 million per quarter for the last three quarters. Onshore, we announced in July (for third quarter) two major awards for the Jubail refinery project. This is a project we know well, having done the FEED and worked closely with the clients for the past 3 years to align the overall project costs with their objectives.

With continued uncertainty in the global economic situation, our clients remain prudent in their final investment decisions and focused on reducing project costs. The combination so far this year of a recovery in oil prices and significant deflation on equipment, bulk, construction and vessel costs are rendering projects more economical and, as a consequence, our tendering activity has been increasing.

For the remainder of the year, we will continue to focus on project execution and target various contracts of all sizes which reflect Technip’s technology strengths and on which we believe we have particular insight and value-added. In an environment which is still volatile Technip will stick to its strategic priorities, maintain investment in new assets and R&D focusing, on the Group’s key differentiating attributes.”

I. SECOND QUARTER 2009 REPORT

1. Operational Highlights

Subsea business segment continued to have excellent operational execution. Main events were:

• Engineering and procurement for Pazflor, Angola, are ongoing,
• White Rose North Amethyst, Canada, progressed well,
• Offshore operations successfully completed on MA-D6 Phase II offshore India,
• Successful fabrication and installation, in Brazilian deepwaters, of large diameter (11”) risers for P-51 and P-53 platforms export system,
• Cascade & Chinook will start offshore operations in the third quarter in the Gulf of Mexico,
• Vessel utilization rate of 83% during the second quarter 2009 compared to 82% a year ago,
• Flexible pipe production units continued to have good activity,
• Manufacturing procurement costs reduction program is on track,
• Ultra-deep water flexible pipe qualification program progressed well: offshore tests to be performed during second half of the year.

Offshore business segment main events were:

• Akpo FPSO offshore Nigeria, was turned over to the client,
• Execution on P-56 semi-submersible platform in Brazil is ongoing, construction progressed well,
• Commissioning on P-51 semi-submersible platform in Brazil progressed well,
• Mechanical completion certificate received from Petrobras on P-52 semi-submersible platform offshore Brazil,
• Hywind platform offshore Norway was installed, ready for hook-up and start-up by StatoilHydro,
• Diversification of our Pori yard in Finland continued resulting in satisfactory workload.

In the Onshore business segment:

• Three out of six LNG Trains in Qatar have been handed over to the client: QatarGas 2 Trains 4 (4Q 2008) and 5, RasGas 3 Train 6. Remaining 3 Trains: RasGas 3 Train 7, QatarGas 3 & 4 Trains 6 and 7, progressed as planned,
• LNG project in Yemen: first train nearing completion,
• First train at the Saudi Arabian Khursaniyah gas plant is nearly completed, pre-commissioning is ongoing,
• Client acceptance of Yansab ethylene production plant in Saudi Arabia,
• Ramp up of production of kerosene, diesel and LPG at Dung Quat refinery in Vietnam,
• Numerous other projects progressed:
  • All construction subcontracts for Gdansk refinery for Grupa Lotos in Poland awarded; project on schedule, Ready For Startup expected by year-end 2010,
  • OAG modules are being installed and connected on Dàs Island, United Arab Emirates and pre-commissioning activities have started,
  • Construction activities are ongoing on the biodiesel plants for Neste Oil, Rotterdam and Singapore.

2. Order intake and Backlog

During the second quarter 2009, Technip’s order intake was €873 million compared to €1,153 million in the first quarter 2009 and €1,408 million during the second quarter 2008. Order intake breakdown by business segment for the second quarter is as follows:

€ in million		2Q 08				2Q 09
Subsea1		658		46.8%		529		60.6%
Offshore		67		4.7%		120		13.7%
Onshore		683		48.5%		224		25.7%

¹ Concerning long-term frame agreements for offshore inspection repair and maintenance, Technip books in its backlog the estimated expected value of these activities for the current year only.

Subsea order intake of €529 million comprised a variety of projects for the Gulf of Mexico, including the Telemark and Clipper Corridor field developments for Bluewater Industries, Caesar/Tonga field development for Anadarko and many mid-size contracts in the North Sea.

Offshore was awarded small and medium-sized projects in Brazil, North America and Asia Pacific.

Onshore order intake comprised several small and medium-sized projects, including a lump sum engineering, procurement and construction management services (EPCM) mid-scale liquefied natural gas (LNG) plant to be built in Yinchuan, China for the Ningxia Hanas Natural Gas Company, as well as a FEED for a nitrogen fertilizer complex in Peru for CF Industries.

Listed in annex II (d) are the main contracts that were announced during the second quarter 2009 along with their approximate value if publicly disclosed.

At the end of the second quarter 2009 Group backlog was €6,066 million, compared to €6,928 million at the end of first quarter 2009. Approximately 50% of the backlog is estimated to be scheduled in the next 6 months of 2009.

The backlog breakdown by business segment is as follows:

€ in million		June 30, 2008				June 30, 2009
Subsea(2)		3,499		43.4%		3,116		51.4%
Offshore		482		6.0%		374		6.2%
Onshore		4,073		50.6%		2,576		42.4%

⁽²⁾ Concerning long-term frame agreements for offshore inspection repair and maintenance, Technip books in its backlog the estimated expected value of these activities for the current year only.

On July 10^th, post quarter-end, Technip announced the award of two contracts for the Jubail refinery in Saudi Arabia. These major awards, which confirm Technip’s leadership in grassroots refineries as well as our technological know-how and project management capabilities, will be executed by Technip’s engineering centers in Rome and Paris with assistance from Technip’s organization in the Middle East. The impact of these contracts on third quarter order intake is expected to amount to approximately US$3.2 billion.

3. Capital expenditures

Capital expenditure for the second quarter 2009 increased to €174.7 million compared to €79.7 million a year ago and €58.2 million in the first quarter 2009.

This includes the acquisition of:

• New state-of-the-art pipelay and construction vessel that will replace the Apache in 2010,
• Technology for steam cracking furnaces (an application for small amplitude helical tubing).

4. Other

There was no change relative to prior disclosures in the TSKJ Nigeria matter.

Technip continues to cooperate with the relevant authorities.

II. SECOND QUARTER 2009 FINANCIAL RESULTS

1. Revenue

€ in million		2Q 08		2Q 09		% change
Subsea		603.1		848.4		40.7%
Offshore		159.2		147.6		(7.3)%
Onshore		1,061.5		736.0		(30.7)%
Corporate		(0.1)		0.0		nm
Total		1,823.7		1,732.0		(5.0)%

• Subsea revenue major contributors were MA-D6 phase II in India, Pazflor in Angola, Cascade & Chinook in the Gulf of Mexico, White Rose North Amethyst off the eastern coast of Canada,
• Offshore revenue major contributors were P-56 semi-submersible platform in Brazil and Akpo FPSO offshore Nigeria,
• Onshore revenue major contributors were Grupa Lotos refinery in Poland, RasGas 3, AKG2 and QatarGas 3 & 4 in Qatar, Yemen LNG project, Transco Fujairah and Offshore Associated Gas (OAG) projects in the United Arab Emirates.

2. Operating Income from Recurring Activities

€ in million		2Q 08		2Q 09		% change
Subsea		118.6		159.1		34.1%
Offshore		8.9		8.8		(1.1)%
Onshore		36.1		38.3		6.1%
Corporate		(6.1)		(10.2)		67.2%
Total		157.5		196.0		24.4%

Subsea EBITDA margin was 23.5% versus 24.8% for the same quarter last year and operating margin reached 18.8% versus 19.7% for the same quarter last year.

The combined operating margin for Onshore / Offshore was 5.3% compared to 3.7% a year ago.

Foreign exchange had a negative impact of €7.2 million on second quarter 2009 Group operating income from recurring activities.

Financial income on projects accounted as revenue amounted to €5.9 million during the second quarter 2009 compared to €7.7 million in the second quarter 2008.

3. Net Income

€ in million		2Q 08		2Q 09		% change
Income from sale of activities		0.0		(7.8)		nm
Operating Income		157.5		188.2		19.5%
Financial charges		(14.0)		(22.7)		62.1%
Income from equity affiliates		0.2		0.7		nm
Income tax		(40.2)		(50.1)		24.6%
Minority Interests		(0.5)		0.1		nm
Net income		103.0		116.2		12.8%

Income from the sale of activities amounted to €(7.8) million in the second quarter 2009 corresponding to a provision booked for a risk on a previously ceased activity.

Financial charges for the second quarter included a €15.8 million negative impact from currency variations and fair market value of hedging instruments, compared to a €3.7 million negative impact for the same quarter in 2008.

The effective tax rate in the quarter was 30% compared to 28% one year ago.

The average number of shares during the period on a diluted basis is calculated as per IFRS. For the second quarter 2009 this number of shares stood at 107,157,468.

4. Cash and Balance Sheet

€ in million
Net cash as of March 31, 2009		1,878.1
Operating cash flow		159.9
Working capital		(79.7)
Capex		(174.7)
Dividend payment		(127.5)
Others including currency		(95.5)
Net cash as of June 30, 2009		1,560.6

As of June 30, 2009, the Group’s net cash position was €1,560.6 million compared to €1,878.1 million as of March 31, 2009 and €1,644.6 million as of December 31, 2008.

During the second quarter 2009, cash generated from operations amounted to €159.9 million compared to €145.6 million for the same quarter 2008. Working capital movements contributed €(79.7) million.

Technip paid a dividend of €1.20 per share on May 12, 2009, following approval by Shareholders at the AGM on April 30, 2009. The total amount was €127.5 million.

Shareholders’ equity as of June 30, 2009 was €2,657.4 million compared to €2,604.8 million as of March 31, 2009.

III. FULL YEAR 2009 OUTLOOK

• Group revenue towards €6.4 billion at current exchange rates (previous outlook: €6.1 – 6.4 billion)
• Subsea revenue to show moderate growth (previous outlook: flat to moderate growth)
• Subsea operating margin towards 18% (previous outlook: of 16% - 18%)
• Confirm year-on-year improvement of the Onshore / Offshore combined operating margin

°

° °

ANNEX I (a)
CONSOLIDATED STATEMENT OF INCOME
IFRS, not audited

€ in million (except EPS, and number of shares)		Second Quarter						First Half
		2008		2009		% ?		2008		2009		% ?
Revenue		1,823.7		1,732.0		(5.0)%		3,640.5		3,301.0		(9.3)%
Gross Margin		253.7		299.9		18.2%		495.4		562.3		13.5%
Research & Development Expenses		(8.6)		(14.0)		62.8%		(19.5)		(25.6)		31.3%
SG&A & Other Operating Expenses		(87.6)		(89.9)		2.6%		(181.5)		(186.8)		2.9%
Operating Income from Recurring activities		157.5		196.0		24.4%		294.4		349.9		18.9%
Income from Sale of Activities		-		(7.8)		nm		-		(2.6)		nm
Operating Income		157.5		188.2		19.5%		294.4		347.3		18.0%
Financial Income (Charges)		(14.0)		(22.7)		62.1%		(22.3)		(34.8)		56.1%
Income of Equity Affiliates		0.2		0.7		nm		0.4		1.4		nm
Profit Before Tax		143.7		166.2		15.7%		272.5		313.9		15.2%
Income Tax		(40.2)		(50.1)		24.6%		(79.0)		(94.5)		19.6%
Minority Interests		(0.5)		0.1		nm		(0.6)		(4.1)		nm
Net Income		103.0		116.2		12.8%		192.9		215.3		11.6%
Number of shares on a diluted basis		105,645,849		107,157,468				105,459,931		106,886,791
EPS (€) on a Diluted Basis (1)		0.97		1.08		11.2%		1.83		2.01		10.1%

⁽¹⁾ As per IFRS, the 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 share average market price during the period.

ANNEX I (b)
CONSOLIDATED BALANCE SHEET IFRS

€ in million		Dec. 31, 2008		June 30, 2009
		(audited)		(not audited)
Fixed Assets		3,387.7		3,574.7
Deferred Taxes		201.4		216.8
NON-CURRENT ASSETS		3,589.1		3,791.5
Construction Contracts		140.8		273.6
Inventories, Trade Receivables and Others		1,997.3		1,655.7
Cash & Cash Equivalents		2,404.7		2,379.2
CURRENT ASSETS		4,542.8		4,308.5
TOTAL ASSETS		8,131.9		8,100.0
Shareholders’ Equity (Parent Company)		2,473.4		2,631.8
Minority Interests		22.3		25.6
SHAREHOLDERS’ EQUITY		2,495.7		2,657.4
Non-Current Debts		734.2		782.3
Non-Current Provisions		104.2		108.5
Deferred Taxes and Other Non-Current Liabilities		142.0		133.2
NON-CURRENT LIABILITIES		980.4		1,024.0
Current Debts		25.9		36.3
Current Provisions		182.0		235.3
Construction Contracts		1,253.0		1,037.5
Accounts Payable & Others		3,194.9		3,109.5
CURRENT LIABILITIES		4,655.8		4,418.6
TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES		8,131.9		8,100.0

Changes in Shareholders’ Equity (Parent Company), not audited
Shareholders’ Equity as of December 31, 2008		2,473.4
First half 2009 Net Income		215.3
Capital Increases		0.0
IAS 32 and 39 Impacts		22.1
Dividend Payment		(127.5)
Treasury Shares		0.0
Translation Adjustments and Others		48.5
Shareholders’ Equity as of June 30, 2009		2,631.8

ANNEX I (c)
CONSOLIDATED STATEMENT OF CASH FLOWS
IFRS, not audited

		First Half
€ in million		2008				2009
Net Income		192.9				215.3
Depreciation of fixed assets		71.8				82.2
Stock Option and Performance Share Charges		6.2				13.8
Long-Term Provisions (including Employee Benefits)		1.3				3.0
Deferred Income Tax		(3.5)				(11.8)
Capital (Gain) Loss on Asset Sale		-				(0.7)
Minority Interests and Other		0.2				5.5
Cash from Operations		268.9				307.3
Change in Working Capital		(172.3)				(44.4)
Net Cash Provided by (used in) Operating Activities				96.6				262.9
Capital Expenditures		(147.8)				(232.9)
Cash Proceeds from Asset Sales		0.9				1.2
Acquisitions of Investments, net of cash acquired		-				(7.4)
Change of scope of consolidation		-				-
Net Cash Provided by (used in) Investment Activities				(146.9)				(239.1)
Increase (Decrease) in Debt		(6.5)				46.2
Capital Increase		6.0				-
Dividend Payment		(125.1)				(127.5)
Treasury Shares		-				-
Net Cash Provided by (used in) Financing Activities				(125.6)				(81.3)
Foreign Exchange Translation Adjustment				(70.2)				36.2
Net Increase (Decrease) in Cash and Equivalents				(246.1)				(21.3)
Cash and Equivalents at Period Beginning		2,400.4				2,400.5
Cash and Equivalents at Period End		2,154.3				2,379.2
				(246.1)				(21.3)

ANNEX I (d)
TREASURY AND FINANCIAL DEBT - CURRENCY RATES
IFRS

		Treasury and Financial Debt
€ in million		Dec. 31, 2008		June 30, 2009
		(audited)		(not audited)
Cash Equivalents		1,927.4		1,659.5
Cash		477.3		719.7
Cash & Cash Equivalents (A)		2,404.7		2,379.2
Current Debts		25.9		36.3
Non Current Debts		734.2		782.3
Gross Debt (B)		760.1		818.6
Net Financial Cash (Debt) (A - B)		1,644.6		1,560.6

€ versus Foreign Currency Conversion Rates

		Statement of Income								Balance Sheet as of
		2Q 08		2Q 09		1H 08		1H 09		Dec. 31 2008		June 30 2009
USD		1.56		1.36		1.53		1.33		1.39		1.41
GBP		0.79		0.88		0.77		0.89		0.95		0.85

ANNEX II (a)
REVENUE BY REGION
IFRS, not audited

€ in million		Second Quarter						First Half
		2008		2009		% ?		2008		2009		% ?
Europe, Russia, C. Asia		401.9		492.1		22.4%		681.4		867.4		27.3%
Africa		163.3		279.3		71.0%		363.5		458.7		26.2%
Middle East		550.3		325.8		(40.8)%		1,228.3		738.5		(39.9)%
Asia Pacific		279.9		199.3		(28.8)%		542.9		407.7		(24.9)%
Americas		428.3		435.5		1.7%		824.4		828.7		0.5%
TOTAL		1,823.7		1,732.0		(5.0)%		3,640.5		3,301.0		(9.3)%

ANNEX II (b)
ADDITIONAL INFORMATION BY BUSINESS SEGMENT
IFRS, not audited

€ in million		2Q 08		2Q 09		% ?
SUBSEA
Revenue		603.1		848.4		40.7%
Gross Margin		156.9		196.5		25.2%
Operating Income from Recurring Activities		118.6		159.1		34.1%
Depreciation and Amortization		(31.0)		(40.1)		29.4%
EBITDA(1)		149.6		199.2		33.2%
OFFSHORE
Revenue		159.2		147.6		(7.3)%
Gross Margin		21.7		24.4		12.4%
Operating Income from Recurring Activities		8.9		8.8		(1.1)%
Depreciation and Amortization		(2.2)		(2.5)		13.6%
ONSHORE
Revenue		1,061.5		736.0		(30.7)%
Gross Margin		74.7		79.0		5.8%
Operating Income from Recurring Activities		36.1		38.3		6.1%
Depreciation and Amortization		(3.9)		(3.1)		(20.5)%
CORPORATE
Operating Income from Recurring Activities		(6.1)		(10.2)		67.2%
Depreciation and Amortization		(0.7)		0.2		(128.6)%

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

ANNEX II (c)
ORDER INTAKE & BACKLOG
Not Audited

		Order Intake by Business Segment
		Second Quarter
€ in million		2008		2009		% ?
Subsea		658.1		528.7		(19.7)%
Offshore		66.5		119.9		80.3%
Onshore		683.0		224.3		(67.2)%
TOTAL		1,407.6		872.9		(38.0)%

		Backlog by Business Segment
€ in million		As of June 30, 2008		As of Dec. 31, 2008		As of June 30, 2009
Subsea		3,498.6		3,495.9		3,115.9
Offshore		481.5		461.1		373.9
Onshore		4,073.1		3,251.4		2,575.9
TOTAL		8,053.2		7,208.4		6,065.7

		Backlog by Region
€ in million		As of June 30, 2008		As of Dec. 31, 2008		As of June 30, 2009
Europe, Russia, C Asia		1,772.6		1,690.1		1,152.7
Africa		1,410.9		1,737.7		1,583.5
Middle East		2,148.1		1,501.0		1,182.2
Asia Pacific		804.5		658.5		618.8
Americas		1,917.1		1,621.1		1,528.5
TOTAL		8,053.2		7,208.4		6,065.7

		June 30, 2009 Backlog Estimated Scheduling
€ in million		SUBSEA		OFFSHORE		ONSHORE		GROUP
2009 (6 months) 2009		1,249		231		1,528		3,008
2010		1,443		130		1,000		2,573
2011 and Beyond		424		13		48		485
TOTAL		3,116		374		2,576		6,066

ANNEX II (d)
ORDER INTAKE
Not Audited

Second quarter 2009, Technip’s order intake reached €873 million compared to €1,408 for the same period the prior year and €1,153 million in the first quarter 2009. The main contracts that we announced during the second quarter 2009 were:

• Subsea awarded engineering, fabrication and installation contract by W&T Offshore Inc. for the Daniel Boone field development in the Gulf of Mexico. This field is located in Green Canyon Block 646, at a water depth of 1,349 meters and will be tied back to the Front Runner Spar,
• Subsea awarded a lumpsum contract by Bluewater Industries for the Telemark field development in the Gulf of Mexico. Located in Atwater Valley Block 63 at a water depth of 1,357 meters,
• Subsea contract awarded by Bluewater Industries for the Clipper Corridor field, which is in the Green Canyon Block 299 in the Gulf of Mexico,
• Subsea fabrication, transportation and installation of a flowline, and transportation and installation of an umbilical for the BHP Billiton operated Angostura gas project located offshore Trinidad & Tobago in approximately 30 meters of water,
• Subsea awarded a contract for the K2 field expansion project, operated by Anadarko Petroleum Corporation in the Gulf of Mexico. Two additional wells will be tied back to the existing subsea equipment and to the Marco Polo platform with production flowlines. These wells are at a water depth of approximately 1,200 meters
• Onshore awarded by Ningxia Hanas Natural Gas Company Ltd a lump sum services contract for two liquefied natural gas trains of 400,000 tons per year (LNG) to be built in Yinchuan, China. The contract covers the engineering, supply of main equipment, procurement and construction management services for facilities for natural gas pre-treatment, liquefaction, LNG storage and loading, utilities, offsites, buildings and other infrastructure.

Since July 1, 2009, Technip also announced the award of the following contracts that were included in the backlog as of June 30, 2009:

• Subsea was awarded two lump sum contracts by Anadarko Petroleum Corporation for the Caesar/Tonga field development in the Gulf of Mexico at water depths around 1,500 meters. Technip will design, supply and install pipe-in-pipe flowlines, as well as two umbilicals.

Since July 1, 2009, Technip also announced the award of the following contracts that were not included in the backlog as of June 30, 2009:

• Onshore awarded two major lump sum turnkey contracts for the hydro and catalytic cracking conversion process units and some of the utility units as well as the interconnecting network and process control system of the Saudi Aramco Total Refining and Petrochemical Company (SATORP) Jubail grassroots refinery in Saudia Arabia. This refinery will have a processing capacity of 400,000 barrels per day of Arabian heavy crude oil and will maximize production of diesel and jet fuels, and will also produce 700,000 tons per year (t/y) of paraxylene, 140,000 t/y of benzene and 200,000 t/y of polymer-grade propylene.

2009 FIRST QUARTER RESULTS

FIRST QUARTER 2009

• Revenue of €1.57 billion, of which €616 million in Subsea
• Good operating performance: Group operating margin from recurring activities rose to 9.8%
• Net Income rose to €99 million
• Total net cash of €1.88 billion
• Backlog of €6.93 billion

€ in million, (except EPS)		1Q 08		1Q 09		% change		excluding FX impact
Revenue		1,817		1,569		(13.6)%		(13.4)%
EBITDA(1)		171		191		11.6%		16.1%
EBITDA Margin		9.4%		12.2%		275 bp
Operating Income(2)		137		154		12.4%		17.1%
Operating Margin		7.5%		9.8%		227 bp
Net Income		90		99		10.2%
EPS (€)		0.85		0.93		9.0%

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

⁽²⁾ From recurring activities

On April 29, 2009, Technip’s Board of Directors approved the non-audited first quarter 2009 consolidated accounts. Thierry Pilenko, Chairman and CEO, commented: "Our first quarter performance is in line with our 2009 plans.

Operationally, we continued to execute well. Our major Subsea projects progressed according to plan: operations on the ABO project in Nigeria are now completed whilst Pazflor in Angola, and Cascade Chinook in the Gulf of Mexico are proceeding well. We set a world record in the Gulf of Mexico on the Shell’s Perdido Development with the installation of the deepest reeled flowline at a water depth of 2,961 meters (9,713 feet), and the deepest reeled steel catenary riser at a water depth of 2,469 meters (8,100 feet). Onshore, we concluded agreements concerning the 2 LNG trains of Qatargas III and IV in line with our expectations and previous comments. Our client inaugurated Qatargas II trains 4 and 5 in April. We achieved significant milestones on the Dung Quat refinery in Vietnam and the Yansab ethylene project in Saudi Arabia.

Financially, we delivered ahead of our expectations in Subsea where good project execution in the quarter again resulted in an improved margin year-on-year. In Onshore/Offshore, we are in line with our objective to improve our 2009 margins versus 2008.

Looking forward, market conditions remain uncertain, situation which has not changed since the publication of our 2008 full year results in February. Many major project investment decisions are subject to delays as certain clients look to their suppliers to bring down overall project costs before making final investment decisions. Some regions such as onshore North America, or the UK sector of the North Sea, are seeing the effects of the current economic downturn.

Nonetheless the flow of new business continues - our order intake in the quarter held up well, reflecting our strategy to focus on a broader range of potential business, both geographic and with regard to size. Some of our larger customers have confirmed their intention to proceed with a number of key, large projects which we have on our radar screen in particular Onshore. We have made progress in reducing our costs, even if it remains too early to take a view on whether these will keep pace with contract pricing.

Our engineering teams are demonstrating to clients their added value in driving a material reduction in the overall costs of projects through intelligent engineering design, procurement and project management. Our focus on project execution remains paramount as it drives benefits for our clients as well as Technip. We remain convinced that these skills and our strong balance sheet are enabling us to win business and assisting our clients to move ahead with investment decisions on their strategic projects.

Accordingly, we go into the second quarter able to reiterate our financial goals for the year and convinced of our ability to deliver value”.

I. FIRST QUARTER 2009 REPORT

1. Operational Highlights

The Subsea business segment continued to execute well on projects. Main events were:

• vessel utilization rate of 73% during the first quarter 2009 compared to 71% a year ago,
• flexible pipe production units continued to have good activity,
• engineering for Pazflor, Angola, progressed well and procurement is ongoing,
• ABO operations were completed in Nigeria,
• White Rose North Amethyst, Canada, progressed well,
• successful start of Normand Progress operations in Brazilian waters for Petrobras,
• offshore operations started on MAD6 Phase II offshore India,
• Cascade Chinook is advancing well for mid-summer installation in the Gulf of Mexico,
• world records set with the installation of the deepest reeled flowline (2,961 meters) and reeled steel catenary riser (2,469 meters) on the Perdido field in the Gulf of Mexico

The Offshore business segment main events were:

• first oil produced on Akpo FPSO offshore Nigeria,
• execution on P-56 semi-submersible in Brazil is ongoing, construction progressed well,
• first gas produced on P-51 offshore Brazil,
• Hywind Spar platform arrived in Stavanger, Norway for assembly of wind turbine and tow-out
• diversification of the Pori yard in Finland continued, although workload is currently low

In the Onshore business segment:

• agreement on QatarGas III & IV was signed, in line with our expectations and previous comments. QatarGas II Trains 4 and 5 were inaugurated on March 13, 2009. In recognition for the safety achievements on this project, Technip and its partners were awarded "Contractor of the Year” by ExxonMobil,
• LNG Project in Yemen progressed,
• Saudi Arabian Khursaniyah gas plant advanced according to plan,
• Ready for Startup was submitted to the client for the Yansab ethylene and propylene production plant in Saudia Arabia,
• first production of kerosene and diesel at Dung Quat refinery in Vietnam,
• numerous other projects progressed:
  • civil work close to completion on Gdansk refinery for Grupa Lotos in Poland
  • OAG modules are being installed and connected on Das Island, United Arab Emirates
  • biodiesel plants for Neste Oil, Rotterdam and Singapore

2. Order intake and Backlog

During the first quarter 2009, Technip’s order intake was €1,153 million compared to €1,592 million during the first quarter 2008 and €1,203 in the fourth quarter 2008.

Subsea signed several noteworthy contracts in Brazil. Many mid-size contracts were signed for projects for the Gulf of Mexico and various projects for the North Sea. Onshore was awarded many small and medium-sized projects including several projects in Europe and many projects rich in engineering man-hours. Offshore was awarded several small and medium-sized projects including an engineering contract for the floating production unit for the offshore portion of the Shtokman gas-condensate field in the Barents Sea, Russia. As expected, no major EPC lumpsum contracts were awarded during the quarter in either Onshore or Offshore. Listed in annex II (d) are the main contracts that came into force during the first quarter 2009 along with their approximate value if publicly disclosed. The breakdown of the order intake by business segment for the first quarter is as follows:

		1Q 08		1Q 09
Subsea(1)		45.9%		51.6%
Offshore		10.1%		7.8%
Onshore		44.0%		40.6%

At the end of the first quarter 2009 Group backlog amounted to €6,928 million, compared to €8,625 million at the end of the first quarter 2008 and €7,208 million at year-end 2008. Approximately 62% of the backlog is estimated to be scheduled in the next 9 months of 2009.

The backlog breakdown by business segment is as follows:

		March 31, 2008		March 31, 2009
Subsea(3)		3,474		3,423
Offshore		571		413
Onshore		4,580		3,092

⁽³⁾ Concerning long-term frame agreements for offshore inspection repair and maintenance, Technip books in its backlog the estimated expected value of these activities for the current year only.

3. Capex

Technip’s capex for the first quarter 2009 amounted to €58.2 million compared to €68.1 million for the same quarter 2008. The Skandi Arctic was christened in March. She is one of the most sophisticated diving vessels in the world and more than satisfies the demanding Norwegian regulations. During the first quarter, Technip signed financing agreements for the Skandi Arctic and the New Pipelay Vessel (NPV).

4. Other

The Paris Court of Appeal ruled in favor of Technip in the litigation against Interpipe SA (ITP) quashing the decision in first instance given in May 2006.

There was no change relative to prior disclosures in the TSKJ Nigeria matter.

II. FIRST QUARTER 2009 FINANCIAL RESULTS

1. Revenue

First quarter 2009 Group revenue was €1,569 million, a 13.6% decrease year-on-year. Foreign exchange impacts on revenue were negligible.

• Subsea revenue was €615.6 million, up 12.1% compared to €549.1 million in the same period last year. Major contributors were MAD6 phase II in India, Cascade Chinook in the Gulf of Mexico, White Rose North Amethyst off the eastern coast of Canada, as well as Pazflor in Angola.
• Offshore revenue was €147.1 million, down 21.3% compared to €186.8 million in the same period last year. Major contributors were P-56 semi-submersible in Brazil and Akpo FPSO offshore Nigeria.
• Onshore revenue was €806.3 million, down 25.4% compared to €1,080.7 million in the same period last year. Main contributors were QatarGas III & IV, Rasgas III in Qatar, Yemen LNG project, Grupa Lotos refinery in Poland and Offshore Associated Gas (OAG) project in United Arab Emirates.

2. Operating Income from Recurring Activities

First quarter 2009 Group operating income from recurring activities was €153.9 million compared to €136.9 million in the first quarter 2008. Foreign exchange had a negative impact of €6.4 million compared to the first quarter 2008.

• Subsea operating income from recurring activities was €118.4 million during the first quarter 2009, up 20.6% compared to the same period a year ago. EBITDA margin was 24.0% versus 23.0% for the same quarter last year. Operating margin from recurring activities reached 19.2%, compared to 17.9% during the first quarter 2008, mainly due to good project execution.
• Offshore operating income from recurring activities was €6.6 million, compared to €9.7 million during the first quarter 2008. The associated margin was 4.5% during the first quarter compared to 5.2% a year ago.
• Onshore operating income from recurring activities during the first quarter 2009 increased to €36.4 million, up 9.6% compared to €33.2 million a year ago. The margin was 4.5% during the first quarter 2009 compared to 3.1% for the same quarter last year.

The combined operating margin for Onshore/Offshore was 4.5% compared to 3.4% a year ago.

Financial income on projects accounted as revenue amounted to €2.8 million during the first quarter 2009, €2.4 million of which for Onshore. This compares with €14.5 million in the first quarter 2008, €8.4 million of which for Onshore.

3. Income from Sale of Activities

Income from the sale of activities amounted to €5.2 million in the first quarter 2009 relating to the release of provisions on a prior disposal (first quarter 2008 – nil).

4. Operating Income

Accordingly, first quarter 2009 Group operating income amounted to €159.1 million, compared to €136.9 million a year ago.

5. Net Result

Net financial charges for the quarter were €12.1 million including a €7.3 million negative impact from currency variations and fair market value of hedging instruments. This compares to a charge of €8.3 million in the first quarter 2008, which included a €3.2 million negative impact from currency variations and fair market value of hedging instruments.

The Income tax charge was €44.4 million. The effective tax rate in the quarter was 30.0% compared to 30.2% one year ago.

Net income was €99.1 million, compared to €89.9 million during the first quarter 2008.

Diluted EPS was €0.93 in the first quarter 2009, compared to €0.85 one year ago.

The average number of shares during the period on a diluted basis is calculated as per IFRS. For the first quarter 2009 this number of shares stood at 106,513,996 versus 105,314,199 shares for the first quarter 2008.

6. Cash and Balance Sheet

As of March 31, 2009, the Group’s net cash position was €1,878.1 million compared to €1,644.6 million as of December 31, 2008.

During the first quarter 2009, cash generated from operations amounted to €147.4 million compared to €123.3 million for the same quarter 2008. Working capital movements contributed €35.3 million. Capital expenditure for the first quarter 2009 amounted to €58.2 million compared to €68.1 million a year ago.

Shareholders’ equity as of March 31, 2009 was €2,604.8 million compared to €2,495.7 million as of December 31, 2008.

Technip will pay a dividend of €1.20 per share on May 12, 2009, assuming approval by Shareholders’ at the AGM on April 30, 2009.

ANNEX I (a)
CONSOLIDATED STATEMENT OF INCOME
IFRS, not audited

€ in million		First quarter
(except EPS and number of shares)
		2008		2009
Revenue		1,816.8		1,569.0
Gross Margin		241.7		262.4
Research & Development Expenses		(10.9)		(11.6)
SG&A & Other Operating Expenses		(93.9)		(96.9)
Operating Income from Recurring activities		136.9		153.9
Income from Sale of Activities		0.0		5.2
Operating Income		136.9		159.1
Financial Income (Charges)		(8.3)		(12.1)
Income of Equity Affiliates		0.2		0.7
Profit Before Tax		128.8		147.7
Income Tax		(38.8)		(44.4)
Minority Interests		(0.1)		(4.2)
Net Income		89.9		99.1
Number of shares on a diluted basis		105,314,199		106,513,996
EPS (€) on a Diluted Basis (1)		0.85		0.93

⁽¹⁾ As per IFRS, the 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 share average market price during the period.

ANNEX I (b)
CONSOLIDATED BALANCE SHEET IFRS, IFRS

€ in million		Dec. 31, 2008		March 31, 2009
		audited		not audited
Fixed Assets		3,387.7		3,456.6
Deferred Taxes		201.4		221.7
NON-CURRENT ASSETS		3,589.1		3,678.3
Construction Contracts		140.8		193.6
Inventories, Trade Receivables and Others		1,997.3		1,710.5
Cash & Cash Equivalents		2,404.7		2,689.8
CURRENT ASSETS		4,542.8		4,593.9
TOTAL ASSETS		8,131.9		8,272.2
Shareholders’ Equity (Parent Company)		2,473.4		2,578.3
Minority Interests		22.3		26.5
SHAREHOLDERS’ EQUITY		2,495.7		2,604.8
Non-Current Debts		734.2		780.3
Non-Current Provisions		104.2		104.3
Deferred Taxes and Other Non-Current Liabilities		142.0		126.5
NON-CURRENT LIABILITIES		980.4		1,011.1
Current Debts		25.9		31.4
Current Provisions		182.0		185.4
Construction Contracts		1,253.0		1,138.4
Accounts Payable & Others		3,194.9		3,301.1
CURRENT LIABILITIES		4,655.8		4,656.3
TOTAL SHAREHOLDERS’ EQUITY & LIABILITIES		8,131.9		8,272.2

Changes in Shareholders’ Equity (Parent Company)
Shareholders’ Equity as of December 31, 2008		2,473.4
First quarter 2009 Net Income		99.1
Capital Increases		-
IAS 32 and 39 Impacts		(57.6)
Dividend Payment(1)		-
Treasury Shares		-
Translation Adjustments and Others		63.4
Shareholders’ Equity as of March 31, 2009		2,578.3

⁽¹⁾ A dividend payment of €1.20, equivalent to approximately €127.5 million, was recommended by the Board of Directors to shareholders’ and will be voted upon at the AGM on April 30, 2009

ANNEX I (c)
CONSOLIDATED STATEMENT OF CASH FLOWS
IFRS, not audited

		First Quarter
€ in million		2008				2009
Net Income		89.9				99.1
Depreciation of fixed assets		34.0				36.8
Stock Option and Performance Share Charges		3.1				6.7
Long-Term Provisions (including Employee Benefits)		2.5				2.8
Deferred Income Tax		(6.1)				3.7
Capital (Gain) Loss on Asset Sale		-				(5.2)
Minority Interests and Other		(0.1)				3.5
Cash from Operations		123.3				147.4
Change in Working Capital		(64.5)				35.3
Net Cash Provided by (Used in) Operating Activities				58.8				182.7
Capital Expenditures		(68.1)				(58.2)
Cash Proceeds from Asset Sales		0.8				0.2
Acquisitions of Investments, net of cash acquired		-				-
Change of scope of consolidation		0.1				-
Net Cash Provided by (Used in) Investment Activities				(67.2)				(58.0)
Increase (Decrease) in Debt		47.5				47.3
Capital Increase		0.5				-
Dividend Payment		-				-
Treasury Shares		-				-
Net Cash Provided by (Used in) Financing Activities				48.0				47.3
Foreign Exchange Translation Adjustment				(106.3)				116.5
Net Increase (Decrease) in Cash and Equivalents				(66.7)				288.5
Bank overdraft at Period Beginning						(4.2)
Cash and Equivalents at Period Beginning		2.401,5				2,404.7
Bank overdraft at Period End						(0.8)
Cash and Equivalents at Period End		2,334.8				2,689.8
				(66.7)				288.5

ANNEX I (d)
TREASURY AND FINANCIAL DEBT - CURRENCY RATES
IFRS

		Treasury and Financial Debt
€ in million		Dec. 31, 2008		March 31, 2009
Cash Equivalents		1,927.4		2,001.7
Cash		477.3		688.1
Cash & Cash Equivalents (A)		2,404.7		2,689.8
Current Debts		25.9		31.4
Non Current Debts		734.2		780.3
Gross Debt (B)		760.1		811.7
Net Financial Cash (Debt) (A - B)		1,644.6		1,878.1

€ versus Foreign Currency Conversion Rates

		Statement of Income				Balance Sheet as of
		1Q 08		1Q 09		Dec. 31, 2008		March 31, 2009
USD		1.50		1.30		1.39		1.33
GBP		0.76		0.90		0.95		0.93

ANNEX II (a)
REVENUE BY REGION
IFRS, not audited

		First quarter
€ in million		2008		2009		Change
Europe, Russia, C. Asia		279.5		375.3		34.3%
Africa		200.2		179.4		(10.4)%
Middle East		678.0		412.7		(39.1)%
Asia Pacific		263.0		208.4		(20.8)%
Americas		396.1		393.2		(0.7)%
TOTAL		1,816.8		1,569.0		(13.6)%

ANNEX II (b)
ADDITIONAL INFORMATION BY BUSINESS SEGMENT
IFRS, not audited

€ in million		1Q 08		1Q 09		Change
SUBSEA
Revenue		549.1		615.6		12.1%
Gross Margin		143.7		163.9		14.1%
Operating Income from Recurring Activities		98.2		118.4		20.6%
Depreciation and Amortization		(28.2)		(29.5)		4.6%
EBITDA(1)		126.4		147.9		17.0%
OFFSHORE
Revenue		186.8		147.1		(21.3)%
Gross Margin		23.0		20.3		(11.7)%
Operating Income from Recurring Activities		9.7		6.6		(32.0)%
Depreciation and Amortization		(2.1)		(2.4)		14.3%
ONSHORE
Revenue		1,080.7		806.3		(25.4)%
Gross Margin		75.3		78.2		3.9%
Operating Income from Recurring Activities		33.2		36.4		9.6%
Depreciation and Amortization		(3.0)		(4.0)		33.3%
CORPORATE
Operating Income from Recurring Activities		(4.2)		(7.5)		78.6%
Depreciation and Amortization		(0.7)		(0.9)		28.6%

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

ANNEX II (c)
ORDER INTAKE & BACKLOG
Not audited

		Order Intake by Business Segment
		First Quarter
€ in million		2008		2009		Change
Subsea		731.3		594.4		(18.7)%
Offshore		161.3		90.5		(43.9)%
Onshore		699.7		467.9		(33.1)%
TOTAL		1,592.3		1,152.8		(27.6)%

		Backlog by Business Segment
€ in million		As of Dec. 31, 2008		As of March 31, 2009
Subsea		3,495.9		3,423.0
Offshore		461.1		412.7
Onshore		3,251.4		3,092.6
TOTAL		7,208.4		6,928.3

		Backlog by Region
		As of Dec. 31, 2008		As of March 31, 2009
€ in million
Europe, Russia, C Asia		1,690.1		1,398.7
Africa		1,737.7		1,728.4
Middle East		1,501.0		1,499.1
Asia Pacific		658.5		640.9
Americas		1,621.1		1,661.2
TOTAL		7,208.4		6,928.3

		March 31, 2009 Backlog Estimated Scheduling
€ in million		SUBSEA		OFFSHORE		ONSHORE		GROUP
2009 (9 months) 2009		1,931.7		281.3		2,110.4		4,323.4
2010		1,078.7		131.4		942.5		2,152.6
2011 and Beyond		412.6		0.0		39.7		452.3
TOTAL		3,423.0		412.7		3,092.6		6,928.3

ANNEX II (d)
ORDER INTAKE
Not audited

First quarter 2009, Technip’s order intake reached €1,152.8 million compared to €1,592.3 million in 2008, a decrease of 27.6% year-on-year. The main contracts that came into force during the first quarter 2009 were:

. Onshore lump sum Front-End Engineering Design (FEED) contract worth approximately €20 million for a new refinery to be built for State Company Oil Project (SCOP) in Karbala, Iraq,

. Offshore contract awarded by Shtokman Development AG for a concept definition of the floating production unit, FEED for the hull, turret and mooring system and topsides,

. Onshore lumpsum FEED contract worth approximately €10 million, for new units to be built at Lukoil Neftochim Burgas refinery in Burgas, Bulgaria,

. Subsea lumpsum contract awarded by ConocoPhillips Skandinavia for the Ekofisk VA water injection project located on the Norwegian Continental Shelf.

RISKS

The most significant risks the Group is facing have not changed since December 31, 2008. They are described in 2008 Annual Report.

RELATED PARTIES TRANSACTIONS

Technip signed an agreement of research cooperation on offshore deep waters with IFP (Institut Français du Pétrole). Related royalties amounted to €M 1.7 for the first half of 2009. These royalties are calculated under ordinary conditions of competition.

During first half of 2009 Technip paid € 191,360 to Mr Daniel Valot for his consulting contract.

There was no modification concerning related parties as described in 2008 Reference Document.

II – STATEMENT OF THE PERSON RESPONSIBLE FOR THE FIRST HALF 2009 FINANCIAL REPORT

II – STATEMENT OF THE PERSON RESPONSIBLE FOR THE FIRST HALF 2009

FINANCIAL REPORT

I hereby declare that to the best of my knowledge,

- the condensed interim consolidated financial statements for the first half of 2008 have been prepared in accordance with the applicable set of accounting standards and give a true and fair view of the assets, liabilities, financial position and results of Technip and of entities included in the consolidation,

- the first half 2008 management report describes the material events that occurred in the first six months of the year and their impact on accounts, together with the main related-party transactions and a description of the main risks and uncertainties for the remaining six months of the year.

Paris, July 23, 2009

Thierry Pilenko
Chairman and Chief Executive Officer

III- CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (FIRST HALF 2009)

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(FIRST HALF 2009)

1 - CONSOLIDATED INCOME STATEMENT

2- STATEMENT OF COMPREHENSIVE INCOME

3 - CONSOLIDATED BALANCE SHEET

4 - CONSOLIDATED CASH FLOW STATEMENT

5 - CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

6 - NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Accounting Principles

(a) Interim Condensed Information

(b) Accounting Principles

(c) Rules and Estimates

(d) Seasonality

Note 2 – Scope of Consolidation

Note 3 – Segment Information

Note 4 – Financial Income and Expenses

Note 5 – Income Tax

Note 6 – Earnings per Share

Note 7 – Property, Plant and Equipment (Tangible Assets)

Note 8 – Intangible Assets

Note 9 – Construction Contracts

Note 10 – Cash and Cash Equivalents

Note 11 – Shareholders’ Equity

(a) Changes in the Parent Company’s Common Stock

(b) Technip Shareholders

(c) Treasury Shares

(d) Dividends Paid

(e) Executive Stock Option Plans

(f) Free Shares Allocation Plans

Note 12 – Financial Debts Non-Current and Current

Note 13 – Provisions

Note 14 – Related Party Disclosures

Note 15 – Off-Balance Sheet Items

Note 16 – Litigations and Contingent Liabilities

Note 17 – Market Related Exposure and Financial Instruments

Note 18 – Subsequent Events

1 - CONSOLIDATED INCOME STATEMENT

In millions of Euro				1st Half Year 2009		1st Half Year 2008
		Notes
Revenues				3 301.0		3 640.5
Cost of Sales				(2 738.7)		(3 145.1)
Gross Margin				562.3		495.4
Research and Development Expenses				(25.6)		(19.5)
Selling Costs				(73.2)		(51.1)
Administrative Costs				(113.9)		(131.7)
Other Operating Income				16.8		8.0
Other Operating Expenses				(16.5)		(6.7)
Operating Income/(Loss) from Recurring Activities				349.9		294.4
Income from Sale of Activities				-		-
Charges from Sale of Activities				(2.6)		-
Operating Income/(Loss)				347.3		294.4
Financial Income		4		43.2		5.6
Financial Expenses		4		(78.0)		(27.9)
Share of Income / (Loss) of Associates Accounted for Using the Equity Method				1.4		0.4
Income / (Loss) before Tax				313.9		272.5
Income Tax Expense		5		(94.5)		(79.0)
Income / (Loss) from Continuing Operations				219.4		193.5
Income / (Loss) from Discontinued Operations				-		-
Net Income / (Loss) for the Year				219.4		193.5
Attributable to:
Shareholders of the Parent Company				215.3		192.9
Minority Interests				4.1		0.6
Earnings per Share (in Euros)		6		2.02		1.85
Diluted Earnings per Share (in Euros)		6		2.01		1.83

2- STATEMENT OF COMPREHENSIVE INCOME

In millions of Euro		1st Half Year 2009		1st Half Year 2008
Net Income / (Loss) for the Year		219.4		193.5
Exchange Differences on Translating Foreign Operations		31.3		(11.9)
Fair Value Adjustement on Available-for-Sale Financial Assets		4.2		5.0
Cash Flow Hedging		32.5		21.4
Taxes		(8.9)		(6.2)
Total comprehensive income for the year		278.5		201.8
Attributable to:
Shareholders of the Parent Company		273.7		202.1
Minority Interests		4.8		(0.3)

3 - CONSOLIDATED BALANCE SHEET

In millions of Euro		June 30, 2009	December 31, 2008
	Notes
Property, Plant and Equipment, Net	7	1 125.3	945.0
Intangible Assets, Net	8	2 412.4	2 409.2
Investments in Associates Accounted for Using the Equity Method		5.3	6.7
Other Financial Assets		22.8	18.6
Deferred Tax Assets		216.8	201.4
Available-for-Sale Financial Assets		8.9	8.2
Total Non-Current Assets		3 791.5	3 589.1
Inventories		216.9	226.2
Construction Contracts - Amounts in Assets	9	273.6	140.8
Advances Paid to Suppliers		137.6	192.5
Derivatives		65.0	40.4
Trade Receivables		925.0	1 123.5
Current Income Tax Receivables		53.1	82.6
Other Current Receivables		258.2	332.1
Cash and Cash Equivalents	10	2 379.2	2 404.7
Total Current Assets		4 308.5	4 542.8
Assets of Disposal Group Classified as Held for Sale		-	-
TOTAL ASSETS		8 100.0	8 131.9

3- CONSOLIDATED BALANCE SHEET (CONTINUED)

In millions of Euro		June 30, 2009	December 31, 2008
	Notes
Common Stock	11 a	83.4	83.4
Paid-in-Surplus		1 709.8	1 709.8
Retained Earnings		807.2	469.6
Treasury Shares	11 c	(143.8)	(143.8)
Foreign Currency Translation Reserve		(91.8)	(113.9)
Fair Value Reserve		51.8	20.3
Net Income		215.3	448.0
Total Equity Attributable to Shareholders of the Parent Company		2 631.8	2 473.4
Minority Interests		25.6	22.3
TOTAL EQUITY		2 657.4	2 495.7
Other Non-Current Financial Debts	12	782.3	734.2
Provisions	13	108.5	104.2
Deferred Tax Liabilities		110.6	100.8
Other Non-Current Liabilities		22.7	41.2
Total Non-Current Liabilities		1 024.0	980.4
Current Financial Debt	12	36.3	25.9
Trade Payables		1 602.7	1 703.9
Construction Contracts - Amounts in Liabilities	9	1 037.5	1 253.0
Derivatives		86.8	119.9
Provisions	13	235.3	182.0
Current Income Tax Payables		55.1	99.8
Other Current Liabilities		1 364.9	1 271.3
Total Current Liabilities		4 418.6	4 655.8
TOTAL LIABILITIES		5 442.6	5 636.2
Liabilities Directly Associated with the Assets Classified as Held for Sale		-	-
TOTAL EQUITY AND LIABILITIES		8 100.0	8 131.9

4 - CONSOLIDATED CASH FLOW STATEMENT

In millions of Euro		1st Half Year 2009		1st Half Year 2008
Net Income for the Period (Minority Interests included)		219.4		193.5
Depreciation of Property, Plant and Equipment and Intangible Assets		82.2		71.8
Stock Option and Free Shares Charge		13.8		6.2
Non-Current Provisions (including Employee Benefits)		3.0		1.3
Share of Income / (Loss) of Associates Accounted for Using the Equity Method		1.4		(0.4)
Net (Gains) / Losses on Disposal of Assets and Investments		(0.7)		-
Deferred Tax		(11.8)		(3.5)
		307.3		268.9
Decrease (Increase) in Advance to Suppliers		71.6		73.0
Decrease (Increase) in Construction Contracts - Amounts in Assets		(144.7)		(85.8)
Decrease (Increase) in Trade and Other Receivables		406.0		(126.5)
(Decrease) Increase in Construction Contracts - Amounts in Liabilities		(256.3)		(191.0)
(Decrease) Increase in Trade Payables and Other Payables		(121.0)		158.0
Net Cash Generated from Operating Activities		262.9		96.6
Purchases of Property, Plant and Equipment		(228.5)		(141.4)
Proceeds from Sales of Property, Plant and Equipment		0.2		0.9
Purchases of Intangible Assets		(4.4)		(6.4)
Acquisitions of Investments, Net of Cash Acquired		(7.4)		-
Proceeds from Sales of Investments		1.0		-
Changes in Scope of Consolidation		-		-
Net Cash Used in Investing Activities		(239.1)		(146.9)
Increase in Borrowings		91.2		25.0
Decrease in Borrowings		(45.0)		(31.5)
Capital Increase		-		6.0
Dividends Paid		(127.5)		(125.1)
Net Cash (Used in) / Generated from Financing Activities		(81.3)		(125.6)
Effects of Foreign Exchange Rate Changes on Cash and Cash Equivalents		36.2		(70.2)
Net Increase in Cash and Cash Equivalents		(21.3)		(246.1)
Cash and Cash Equivalents (including bank overdrafts) as of January 1st		2 400.5		2 400.4
Cash and Cash Equivalents (including bank overdrafts) as of June 30th		2 379.2		2 154.3
		(21.3)		(246.1)

5 - CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

In millions of Euro		Common Stock		Paid-in-Surplus		Retained Earnings		Treasury Shares		Foreign Currency Translation Reserve		Fair Value Reserve		Net Income (Parent Company)		Shareholders' Equity (Parent Company)		Minority Interests		Total Equity
As of January 1st, 2009		83.4		1 709.8		469.6		(143.8)		(113.9)		20.3		448.0		2 473.4		22.3		2 495.7
Net Income of 1st half year 2009		-		-		-		-		-		-		215.3		215.3		4.1		219.4
Other comprehensive Income		-		-		-		-		31.1		27.3		-		58.4		0.7		59.1
Total comprehensive income of 1st half year 2009		-		-		-		-		31.1		27.3		215.3		273.7		4.8		278.5
Capital Increase		-		-		-		-		-		-		-		-		-		-
Capital Decrease		-		-		-		-		-		-		-		-		-		-
Appropriation of Net Income 2008		-		-		448.0		-		-		-		(448.0)		-		-		-
Dividend		-		-		(127.5)		-		-		-		-		(127.5)		-		(127.5)
Treasury Shares		-		-		-		-		-		-		-		-		-		-
Stock Option Charge		-		-		-		-		-		13.5		-		13.5		-		13.5
Reclassification		-		-		10.3		-		-		(10.3)		-		-		-		-
Others		-		-		6.8		-		(9.0)		1.0		-		(1.2)		(1.5)		(2.7)
As of June 30, 2009		83.4		1 709.8		807.2		(143.8)		(91.8)		51.8		215.3		2 631.8		25.6		2 657.4
As of January 1st, 2008		81.9		1 640.0		458.0		(144.3)		(46.7)		63.2		126.3		2 178.4		18.4		2 196.8
Net Income of 1st half year 2008		-		-		-		-		-		-		192.9		192.9		0.6		193.5
Other comprehensive Income		-		-		-		-		(11.1)		20.3		-		9.2		(0.9)		8.3
Total comprehensive income of 1st half year 2008		-		-		-		-		(11.1)		20.3		192.9		202.1		(0.3)		201.8
Capital Increase		0.2		5.8		-		-		-		-		-		6.0		-		6.0
Capital Decrease		-		-		-		-		-		-		-		-		-		-
Appropriation of Net Income 2007		-		-		126.3		-		-		-		(126.3)		(0.0)		-		(0.0)
Dividends		-		-		(125.1)		-		-		-		-		(125.1)		-		(125.1)
Treasury Shares		-		-		-		-		-		-		-		-		-		-
Stock Option Charge		-		-		-		-		-		6.0		-		6.0		-		6.0
Reclassification		-		-		14.6		-		-		(14.6)		-		-		-		-
Others		-		-		2.5		-		-		-		-		2.5		(0.7)		1.8
As of June 30, 2008		82.0		1 645.8		476.3		(144.3)		(57.8)		74.9		192.9		2 269.9		17.3		2 287.2

6 - NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Technip’s principal business includes the following:

- Lump sum or cost plus engineering service contracts performed over a short period;

- Engineering, manufacturing, installation and commissioning service contracts lasting approximately 12 months;

- Turnkey projects related to complex industrial facilities with engineering, procurement, construction and start-up, in respect of industrial performances and a contractual schedule. The average duration of these contracts is three years but can vary depending on the contract.

The condensed interim consolidated financial statements are expressed in millions of Euros, unless specified otherwise.

The condensed interim consolidated financial statements have been approved by the Board of Directors as of July 22, 2009.

Note 1 – Accounting Principles

(a) Interim Condensed Information

The condensed interim consolidated financial statements for the six-month period ended 30 June, 2009 have been prepared in accordance with IAS 34 Interim Financial Reporting, standard of the IFRS framework as endorsed by the European Union and available on the internet site http://ec.europa.eu/internal_market/accounting/ias_fr.htm#adopted-commision.

The condensed interim consolidated financial statements only include a selection of disclosures and notes and thus must be read in conjunction with the full year consolidated financial statements as of December 31, 2008.

(b) Accounting Principles

Except for the adoption of new Standards and interpretations described below, the accounting policies applied in the condensed interim consolidated accounts for the six-month period ended June 30, 2009 are in conformity with those applied in the consolidated financial statements as of December 31, 2008.

Standards Applicable from January 1, 2009 with application within the Group:

The adoption by the Group of new standards applicable from January 1, 2009 had no significant impact on Group’s financial situation or performance.

IAS 1 (revised), Presentation of Financial Statements. The revised standard requires a separate presentation of owner and non-owner changes in equity. All ‘non-owner changes in equity’ are required to be shown in a specific statement. Entities can choose either to present one statement (the statement of comprehensive income) or two statements (the income statement and the statement of comprehensive income). The Group has elected to present two statements.

IFRS 8, Operating segment . This standard concerns additional information related to operating segment that shall be disclosed in the notes. The Group has elected to apply IFRS 8 by anticipation starting in 2008 annual financial statements.

IAS 23 (amendment), Borrowing Costs. The revised IAS 23 requires capitalization of borrowing costs that are directly attributable to the acquisition, construction or production of an asset. This amendment is prospective and therefore only applied to new qualifying assets beginning on or after January 1, 2009.

The following new standards and interpretations are not currently relevant for the Group:

IFRS 2 (amendment), Share-based payment. This amendment clarifies the definition of vesting condition and specifies the treatment for all cancellations.

IAS 32 (Amendment), Financial Instruments. This amendment clarifies the classification of a financial instrument (instruments redeemable at the option of the holder and instruments with obligations on liquidation).

IFRIC 9, Reassessment of embedded derivatives, and IAS 39 (amendment), Financial instruments: recognition and measurement. It clarifies the accounting treatment of embedded derivatives for entities using the reclassification amendment. This amendment allows entities to reclassify particular financial instruments out of the 'fair value through profit or loss' category in specific circumstances.

Standards with a mandatory Application after June 30, 2009:

Technip interim condensed consolidated financial statements at June 30, 2009 do not include the possible impact of standards published as of June 30, 2009 whose applications are only mandatory for periods starting after the ongoing exercise date:

IFRS 3 (revised) , Business Combination, and consequential amendments to

• IAS 27, Consolidated and separate financial statements
• IAS 28, Investments in associates
• IAS 31, interests in joint-ventures

This amendment is effective prospectively to business combinations for which the acquisition date is on or after July,1 2009.

IFRIC 16, Hedges of a net investment in foreign operation.

IFRIC 17, Distribution of non cash assets to owners.

IFRIC 18, Transfer of assets from customers.

(c) Rules and Estimates

Interim condensed consolidated financial statements have been prepared in accordance with the IFRSs: fair presentation, consistency, going concern, relative extent and business combinations. The consolidated assets have been evaluated under the historical cost convention, except for financial assets and derivative financial instruments, which have been measured at fair value. The Group interim condensed consolidated financial statements are presented in millions of €, except when otherwise indicated.

The preparation of financial statements in compliance with the IFRSs requires the use of certain critical accounting estimates. The main assessments and accounting assumptions made in the Group’s financial statements relate to the construction contracts, to the valuation of Group exposure to litigations and to residual goodwill valuation.

(d) Seasonality

Interim revenues and operating result are received seasonally due to a lower activity during last quarter of fiscal year for the Subsea segment due to poor climate conditions which can affect activities in the North Sea. That phenomenon varies from a year to the other. In compliance with the IFRSs, revenues are recognized following the same rules as for the annual closing, which means revenues related to this segment are reported for the six-month period.

Note 2 – Scope of Consolidation

in February 9, 2009 ,Technip Maritime Do Brazil has acquired 70% of the Brazilian company Terminal Portuario de Angra dos Reis S/A, owner of a lease agreement for port land located in Angra Porto. From the date of its acquisition, this company has realized a turnover of 0.6M€ and a loss of 0.1 M€.

In June 12, 2009, Technip Norge AS and Technip Coflexip Norge AS have acquired respectively 90% and 10% of the company North Ocean III KS, a Norwegian company which owns a vessel under construction (Apache 2).

There is no other change in the scope of consolidation compared to December 31, 2008.

Note 3 – Segment Information

Since 2008, Technip has organized the reporting of its operating performance along four segments:

- The Subsea segment, which includes the design, manufacture, procurement and installation of subsea equipment.

- The Offshore segment, which includes the design and construction of fixed or floating Facilities and surface installations.

- The Onshore segment, which includes the entire engineering and construction business for petrochemical and refining plants as well as facilities for developing onshore oil and gas fields, including gas treatment units, liquefied natural gas (LNG) units and onshore pipelines as well as the engineering and construction of non-petroleum facilities.

- The Corporate segment, which includes our holding company activities, the re-invoicing of Group services including IT Corporate expenses and re-insurance activity.

The segment results disclosed by Technip in its business segment information are the operating income from recurring activities and the operating income.

Consequently, the segment result does not include financial income and expenses (except financial result on contracts), income tax expense, nor the share of income/ (loss) of associates accounted for using the Equity Method.

In millions of Euro		1st Half Year 2009
		Subsea		Offshore		Onshore		Corporate		Not Allocable		Total Continuing Operations		Discontinued Operations		Total
Revenues		1 464.0		294.7		1 542.3		-		-		3 301.0		-		3 301.0
Gross Margin		360.4		44.7		157.2		-		-		562.3		-		562.3
Operating Income/(Loss) from Recurring Activities		277.5		15.4		74.7		(17.7)		-		349.9		-		349.9
Income from Sales of Activities		5.2		-		-		-		(7.8)		(2.6)		-		(2.6)
Operating Income/(Loss)		282.7		15.4		74.7		(17.7)		(7.8)		347.3		-		347.3
Financial Income / (Expenses)		-		-		-		-		(34.8)		(34.8)		-		(34.8)
Share of Income / (Loss) of Associates Accounted for Using the Equity Method		-		-		-		-		1.4		1.4		-		1.4
Income Tax Expense		-		-		-		-		(94.5)		(94.5)		-		(94.5)
Discontinued Operations		-		-		-		-		-		-		-		-
Net Income / (Loss) for the Year		-		-		-		-		-		219.4		-		219.4
Other Segment Information
Backlog		3 115.8		373.9		2 575.9		-		-		6 065.6		-		6 065.6
Order intake		1 123.2		210.3		692.2		-		-		2 025.7		-		2 025.7
In millions of Euro		1st Half Year 2008
		Subsea		Offshore		Onshore		Corporate (1)		Not Allocable		Total Continuing Operations		Discontinued Operations		Total
Revenues		1 152.2		346.0		2 142.2		0.1		-		3 640.5		-		3 640.5
Gross Margin		300.6		44.7		150.0		0.1		-		495.4		-		495.4
Operating Income/(Loss) from Recurring Activities		216.8		18.6		69.3		(10.3)		-		294.4		-		294.4
Income from Sales of Activities		-		-		-		-		-		-		-		-
Operating Income/(Loss)		216.8		18.6		69.3		(10.3)		-		294.4		-		294.4
Financial Income / (Expenses)		-		-		-		-		(22.3)		(22.3)		-		(22.3)
Share of Income / (Loss) of Associates Accounted for Using the Equity Method		-		-		-		-		0.4		0.4		-		0.4
Income Tax Expense		-		-		-		-		(79.0)		(79.0)		-		(79.0)
Discontinued Operations		-		-		-		-		-		-		-		-
Net Income / (Loss) for the Year		-		-		-		-		-		193.5		-		193.5
Other Segment Information
Backlog		3 498.6		481.5		4 073.1		-		-		8 053.2		-		8 053.2
Order intake		1 389.4		227.8		1 382.7		-		-		2 999.9		-		2 999.9

Note 4 – Financial Income and Expenses

The financial result is a charge of €M 34.8 as of June 30, 2009 to be compared with €M 22.3 as of June 30, 2008. The breakdown is as follows:

In millions of Euro		1st Half Year 2009		1st Half Year 2008
Interest Income from Treasury Management		19.5		8.1
Dividends from Non-Consolidated Investments		0.1		-
Financial Income related to Employee Benefits		2.2		1.8
Changes in Derivative Fair Value (excluding Hedging)		14.3		(4.3)
Inefficient Part of Hedging Instruments		7.0		-
Total Financial Income		43.2		5.6
In millions of Euro		1st Half Year 2009		1st Half Year 2008
Bond Interest Expense		(14.9)		(14.9)
Fees Related to Credit Facilities		(1.0)		(0.5)
Financial Expenses related to Employee Benefits		(5.3)		(4.2)
Interest Expenses on Bank Borrowings and Overdrafts, Commercial Papers		(8.6)		(3.8)
Net Foreign Currency Translation Losses		(44.4)		(0.7)
Inefficient Part of Hedging Instruments		-		(2.0)
Others		(3.8)		(1.8)
Total Financial Expenses		(78.0)		(27.9)
Net Financial Expenses		(34.8)		(22.3)

Note 5 – Income Tax

The income tax expense can be analyzed as follows:

In millions of Euro			1st Half Year 2009		1st Half Year 2008
Current Income Tax Credit/(Expense)			(106.3)		(82.5)
Deferred Tax Credit/(Expense)			11.8		3.5
Tax Credit/(Expense) as reported in the Consolidated Income Statement			(94.5)		(79.0)
Deferred Income Tax related to Items Booked Directly to Opening Equity			34.8		0.1
Deferred Income Tax related to Items Booked to Equity during the Year			(9.0)		(10.1)
Income Tax Expense as reported in the Consolidated Equity			25.8		(10.0)
Effective Tax rate			30.1%		29.0%

Note 6 – Earnings per Share

Earnings per share can be analyzed as follows:

In millions of Euro			1st Half Year 2009		1st Half Year 2008
Net Income Attributable to Shareholders of the Parent Company			215.3		192.9
In thousands
Weighted Average Number of Outstanding Shares during the Period (excluding Treasury Shares) used for Basic Earnings per Share			106 254		104 349
	Effect of Dilution :
	- Stock Options		13		543
	- Free Shares		620		568
Weighted Average Number of Outstanding Shares during the Period (excluding Treasury Shares) Adjusted for Diluted Earnings per Share			106 887		105 460
In Euro
Diluted Earnings per Share (1)			2.01		1.83
Basic Earnings per Share (2)			2.02		1.85

(1) Diluted earnings per share take into account the possible dilutive effects that may be generated by equity instruments (stock options, free shares).

(2) Basic earnings per share are calculated based on the average number of ordinary shares outstanding during the period, less the treasury shares.

During the first half-year 2009, the Group attributed free shares, which brought an additional dilution of the earnings per share, and stock options, with no complementary dilutive effect. During the first half-year 2008, no attribution of stock options or free shares was done except reattribution of outstanding stock options.

The average market price per Technip shares during the first half-year 2009 amounted to € 28.85 compared to € 54.42 during the first half-year 2008.

Note 7 – Property, Plant and Equipment

During the six months ended June 30, 2009, the Group acquired assets with a cost of €M 228.4. Investments are mainly made of vessels for €M 167 (Skandi Arctic, NPV, Skandi Vitoria, PLSV and Apache 2) and flexible plant under construction in Malaysia (€M 10.2). Maintenance investments amounted to €M 45.7.

The Group does not have any tangible asset acquired through a lease contract.

Note 8 – Intangible Assets

There was no significant change over the six-month period ended June 30, 2009. During the first half of 2009, no meaningful event occurred which might have caused to impair the value of goodwill or other intangible assets. Therefore no impairment test was performed as of June 30, 2009.

Note 9 – Construction Contracts

Additional information related to construction contracts can be analyzed as follows:

In millions of Euro		June 30, 2009		December 31, 2008
Construction Contracts - Amounts in Assets		273.6		140.8
Construction Contracts - Amounts in Liabilities		(1 037.5)		(1 253.0)
Total Construction Contracts, Net		(763.9)		(1 112.2)
Costs and Margins Recognized at the Percentage of Completion		12 306.8		12 346.0
Payments Received from Clients		(12 986.8)		(13 333.0)
Losses at Completion		(83.9)		(125.2)
Bid Costs		-		-
Total Construction Contracts, Net		(763.9)		(1 112.2)

The net position in liabilities was reduced during the period due to the percentage of completion of huge contracts granted in 2005 and 2006.

Note 10 – Cash and Cash Equivalents

Cash and cash equivalents can be analyzed as follows:

In millions of Euro		June 30, 2009		December 31, 2008
Cash at Bank and in Hands		719.7		477.3
Cash Equivalents		1 659.5		1 927.4
Total Cash and Cash Equivalents		2 379.2		2 404.7
Euro		863.9		880.4
U.S. Dollar		796.8		844.8
Pound Sterling		106.9		96.3
Japanese Yen		70.7		102.2
Canadian Dollar		21.5		32.6
Australian Dollar		30.8		31.0
Brazilian Real		259.2		136.1
Norwegian Crown		23.2		90.2
Others		206.2		191.1
Total Cash and Cash Equivalents per Currency		2 379.2		2 404.7
Historical Cost		1 659.5		1 927.4
Valuation Allowance		-		-
Total Marketable Securities' Market Value		1 659.5		1 927.4
Certificates of Deposits		371.0		336.4
Fixed Term Deposits		1 188.0		1 489.6
Others		100.5		101.4
Total Marketable Securities		1 659.5		1 927.4

The market value of cash equivalents is equal to their historical cost.

Note 11 – Shareholders’ Equity

(a) Changes in the Parent Company’s Common Stock

As of June 30, 2009, Technip common stock consisted of 109,324,136 outstanding authorized shares with a par value of €0.7625. The changes since January 1st, 2008 can be analyzed as follows:

		Number of Shares		Common Stock
		Outstanding		(In millions of Euro)
Common Stock as of January 1, 2008		107 353 774		81.9
Capital Increase due to Stock Option Exercised (1)		517 530		0.4
Capital Increase reserved to Employees		1 446 260		1.1
Common Stock as of December 31, 2008		109 317 564		83.4
Capital Increase due to Stock Option Exercised (1)		6 572		-
Capital Increase reserved to Employees		-		-
Common Stock as of June 30, 2009		109 324 136		83.4

(1) This increase corresponds to the exercise of stock options granted to employees.

(b) Technip Shareholders as of June 30, 2009

Technip Shareholders are as follows:

		June 30, 2009		December 31, 2008
Tradewinds NWQ		5.7%		5.7%
Causeway		5.4%		5.4%
ING Group NV		4.9%		5.0%
Salariés du Groupe		2.4%		2.9%
Institut Français du Pétrole		2.8%		2.8%
Auto-détention		2.8%		2.8%
Public		76.0%		75.4%
Total		100.0%		100.0%

(c) Treasury Shares

The total value of treasury shares, shown as a deduction from equity, amounted to €M 143.8 as of June 30, 2009, representing 3,065,910 shares. The changes can be analyzed as follows:

		Number of Shares		Treasury Shares
				(in €M)
Treasury Shares as of January 1, 2008		3 066 658		(144.3)
Cancellation of Treasury Shares		-		-
Increase		27 669		(0.8)
Decrease due to Stock Options Exercised		-		-
Decrease due to Attribution to Employees		(28 183)		1.3
Treasury Shares as of December 31, 2008		3 066 144		(143.8)
Cancellation of Treasury Shares		-		-
Increase		-		-
Decrease due to Stock Options Exercised		-		-
Decrease due to Attribution to Employees		(234)		-
Treasury Shares as of June 30, 2009		3 065 910		(143.8)

(d) Dividends Paid

Dividends paid on 2009 amounts to 127.5 M€ (1.20 euro per action), compared to 125.1 M€ (1.20 euro per action) on first semester 2008.

(e) Executive Stock Option Plans and Share Purchase Plans

On June 15, 2009 the Board of Directors authorized a plan of 1,093,175 stock options. This plan is subjected to the same condition of performance than 2008 plan.

The total stock options charge amounted to €M 4.2 at the end of June 2009 against €M 2.7 at the end of June 2008.

(f) Free Shares Allocation Plans

On February 18, 2009 the Board of Directors has decided to attribute a supplementary tranche of 191,542 shares of the 2008 free share plan authorized by the Combined Shareholder’s Meeting held on May 6, 2008. This supplementary tranche is subjected to the same performance conditions than the previous tranches.

On June 15, 2009 the Board of Directors has decided an allocation plan of 981,175 free shares following the authorization of the Combined Shareholder’s Meeting held on April 30, 2009. This plan is subjected to the same performance conditions than the previous plans.

The charge related to free shares amounted to €M 9.3 at the end of June 2009 compared to €M 3.3 at the end of June 2008.

Note 12 – Financial Debts

Financial debts can be analyzed as follows:

In millions of Euro		June 30, 2009		December 31, 2008
Bond Loan (1)		650.0		650.0
Bank Borrowings and Credit Lines		44.0		84.2
Others		88.3		-
Total Non-Current Financial Debts		782.3		734.2
Bank Overdrafts		31.8		6.2
Accrued Interest Payable		4.5		19.7
Total Current Financial Debts		36.3		25.9
Total Financial Debts		818.6		760.1

(1) On May 26, 2004, Technip SA issued a corporate bond for an initial amount of €M 650. The redemption date was set on May 26, 2011. The coupon payable on May 26 of each year amounts to 4.625% per year of the bond nominal value.

Financial debts due within less than one year amounted to €M 36.3.

Note 13 – Provisions

Changes in provisions over the first half of 2009 can be analyzed as follows:

In millions of Euro		As of January 1, 2009		Increase		Used Provision Reversals		Unused Provision Reversals		Foreign Exchange Adjustments		Others		As of June 30, 2009
Employee Benefits		91.4		11.0		(9.1)		-		0.4		(0.5)		93.2
Tax		0.3		0.1		-		-		-		-		0.4
Litigation		3.0		-		(3.0)		-		-		-		-
Reinsurance (1)		7.8		5.2		-		-		(0.2)		-		12.8
Other Provisions (Non-Current)		1.7		0.5		(0.1)		(0.1)		0.1		-		2.1
Total Non-Current Provisions		104.2		16.8		(12.2)		(0.1)		0.3		(0.5)		108.5
Employee Benefits		7.4		0.2		(0.9)		-		-		(0.1)		6.6
Contingencies related to Contracts		83.0		64.5		(7.6)		(26.4)		7.9		7.3		128.7
Restructuring		1.7		-		-		-		0.1		1.2		3.0
Tax		11.3		1.2		(1.3)		(0.1)		1.6		-		12.7
Litigation		5.8		0.2		(0.2)		-		0.1		-		5.9
Reinsurance (1)		10.5		0.4		(4.6)		(2.2)		(0.2)		0.1		4.0
Other Provisions (Current)		62.3		30.1		(3.7)		(15.5)		1.9		(0.7)		74.4
Total Current Provisions		182.0		96.6		(18.3)		(44.2)		11.4		7.8		235.3
Total Provisions		286.2		113.4		(30.5)		(44.3)		11.7		7.3		343.8

(1) Reinsurance provisions have been recorded at the level of the Group’s insurance captive (Engineering RE AG) as per IFRS 4.

As mentioned in the Group accounting principles, the criteria of asset / liability classification as "Current” in the balance sheet relies either on the term of contracts’ operating cycle, or on the maturity of the liability less than one year. Therefore, current provisions on contingencies related to contracts may have maturities greater than one year because of the contracts’ operating cycle.

Note 14 – Related Party Disclosures

Technip signed an agreement of research cooperation on offshore deep waters with IFP (Institut Français du Pétrole). Related royalties amounted to €M 1.7 for the first half of 2009. These royalties are calculated under ordinary conditions of competition.

During first half of 2009 Technip paid € 191,360 to Mr Daniel Valot for his consulting contract.

There was no modification concerning related parties as described in 2008 Reference Document.

Note 15 – Off-Balance Sheet Commitments and Contingencies

The off-balance sheet commitments are presented below. Off-balance sheet commitments related to financial debts are disclosed in note 12- Financial Debts. There is no material off-balance sheet commitment that is not described below.

In millions of Euro		As of June 30, 2009
		Amounts of Commitments per Period						Total
		2009		2010-2013		2014 and beyond
Operating Leases		55.1		312.5		422.1		789.7
Foreign Exchange Rate Financial Instruments		860.6		876.9		-		1737.5
Total Contractual Commitments		915.7		1 189.4		422.1		2 527.2
In millions of Euro		As of June 30, 2009
		Amounts of Commitments per Period						Total
		2009		2010-2013		2014 and beyond
Parent Company Guarantees		15 819.3		11 794.8		156.0		27 770.1
Other Commitments Given		1 407.3		1 542.2		77.4		3 026.9
Total Commitments Given		17 226.6		13 337.0		233.4		30 797.0
In millions of Euro		As of June 30, 2009
		Amounts of Commitments per Period						Total
		2009		2010-2013		2014 and beyond
Commitments Received		338.6		574.8		2.0		915.4
Total Commitments Received		338.6		574.8		2.0		915.4

(a) Capital Leases and Operating Leases

The Group rents various equipment, vessels and buildings, mainly under lease contracts that will end during the next ten years. It is likely that the Group will have to renew or to replace them.

The rental expense recorded for the first half of 2009 amounted to €M 47.6 (compared to €M 38.1 for the first half 2008), including €M 26.5 for rental of buildings and €M 15.7 for rental expense on vessels.

In April 2009, Technip has terminated the former lease contract of Adria Tower and signed a new one for the same tower for 12 years.

As of June 30, 2009 the Group’s commitments related to operating leases break down as follows:

In millions of Euro				As of June 30, 2009
2009				55.1
2010				86.2
2011				84.4
2012				72.4
2013				69.5
2014 and beyond				422.1
Total Current Net Value of Operating Leases				789.7

There is no significant lease contract.

(b) Bank and Commercial Guarantees

Commitments given and received are summarized hereafter:

In millions of Euro			June 30, 2009		December 31, 2008
Parent Company Guarantees			27 770.1		28 190.2
Other Commitments Given			3 026.9		3 169.9
Total Commitments Given			30 797.0		31 360.1
Total Commitments Received			915.4		1 004.4

Parent company guarantees given by the parent company or its subsidiaries to clients cover the due and proper performance of the specified construction contracts for which the average expiration period until the release of the commitment guarantees is about 5 years. These amounts are not reduced according to the projects’ percentage of completion.

The following table illustrates the breakdown of these €M 18,578.5 of parent company guarantees issued by Technip within joint venture contracts, according to the Group’s percentage of ownership in these joint ventures, as of June 30, 2009.

In millions of Euro		June 30, 2009
		Allocation as per % of Technip's Ownership in Joint Ventures
		Less or equal to 25%		Greater than 25% and less or equal to 40%		Greater than 40%		Total
Parent Company Guarantees Given within Joint Ventures		2 552.3		11 685.0		4 341.2		18 578.5

Regarding joint ventures, the amounts disclosed in the parent company guarantees also include the contract part allocated to the Group’s partners in joint venture and are not reduced neither according to the projects’ percentage of completion nor from the amount of parent company received from Technip partners within these joint ventures, whereas Technip issues parent company guarantees in their favor.

The parent company guarantees issued by Technip for contracts out of joint-venture frameworks amount to €M 9,191.6 as of June 30, 2009.

Other commitments given mainly relate to guarantees or counter-guarantees given by banks and insurance companies to various customers in connection with ongoing contracts, in order to secure due and proper performance of the contracts or following the payment of retention guarantees and advance billings.

Commitments received mainly relate to similar guarantees obtained from suppliers or subcontractors in connection with ongoing contracts.

Note 16 – Litigations and Contingent Liabilities

Between January 1 and June 30, 2009, the situation of litigation and contingent liabilities described in 2008 report changed as follows:

ITP Litigation: On March 18, 2009, the Paris Court of Appeal ruled in favour of Technip by overruling the decision rendered on May 16, 2006 by the Paris Commercial Court. On June 9, 2009, ITP lodged an appeal with the Cour de Cassation against the decision of the Paris Court of Appeal.

Technip’s claim against ITP to nullify its French patent relating to the "pipe-in-pipe” technology was rejected by a decision of the Paris Court of First Instance rendered on January 28, 2009. Technip has lodged an appeal against this decision on February 4, 2009 with the Paris Court of Appeal.

TSKJ pending investigation (Technip is a 25% shareholder of the joint venture TSKJ): the situation of this litigation remains unchanged compared to the one described in 2008 Annual Report (pages 161-162 of the Reference Document published as of March 25, 2009, section 32a).

Note 17 – Market Related Exposure and Financial Instruments

Technip uses financial instruments to manage its exposure to currency risks incurred in the normal course of its business. The Group does not use financial instruments for trading or speculative purposes. The exchange hedging contracts are divided up between several bank counter parties who are selected after due analysis.

The primary hedging instruments used to manage Technip exposure to currency risks are as follows:

In millions of Euro		June 30, 2009						December 31, 2008
		Maturity				Nominal value		Nominal Value
		2010 and beyond		2009
Buy Foreign Currency, Sell National Currency		235.6		100.3		335.9		475.4
Sell Foreign Currency, Buy National Currency		502.4		456.3		958.7		1 151.0
Buy / Sell Foreign Currencies		138.9		304.0		442.9		433.7
Total Hedging Instruments		876.9		860.6		1 737.5		2 060.1

The fair value of financial instruments is booked in equity with counterpart either in assets or in liabilities.

Note 18 – Subsequent Events

There is no material subsequent event.

IV- STATUTORY AUDITORS’ REVIEW REPORT ON FIRST HALF-YEAR FINANCIAL INFORMATION FOR 2009

STATUTORY AUDITORS’ REVIEW REPORT ON FIRST HALF-YEAR FINANCIAL INFORMATION FOR 2009

PricewaterhouseCoopers Audit 63 rue de Villiers 92208 NEUILLY SUR SEINE cedex France

ERNST & YOUNG et Autres 41 rue Ybry 92576 Neuilly-sur-Seine Cedex France

STATUTORY AUDITORS’ REVIEW REPORT ON THE 2009

HALF-YEAR FINANCIAL INFORMATION

(Period from January 1^st, 2009 to June 30^th, 2009)

This is a free translation into English of the Statutory Auditors’ review report issued in French and is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.

To the Shareholders,

TECHNIP
Tour Technip
6-8 allée de l'Arche
92973 Paris La Défense

In compliance with the assignment entrusted to us by your Annual General Meeting, and in accordance with the requirements of articles L. 451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier) , we hereby report to you on:

• the review of the accompanying condensed half-year consolidated financial statements of Technip, for the six months ended June 30^th, 2009;
• the verification of the information contained in the half-year management report.

These condensed half-year consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.

I. Conclusion on the financial statements

We conducted our review in accordance with professional standards applicable in France. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 - the standard of IFRSs as adopted by the European Union applicable to interim financial information.

Without qualifying our conclusion, we draw your attention to Note 16 "Litigations and Contingent Liabilities” which recalls the risk concerning an on-going procedure in connection with a project in Nigeria carried by a joint-venture held in 25 % by Technip.

II. Specific verification

We have also verified the information given in the half-year management report on the condensed half-year consolidated financial statements subject to our review. We have no matters to report as to its fair presentation and consistency with the condensed half-year consolidated financial statements.

Neuilly-sur-Seine, July 23^rd, 2009
The Statutory Auditors

PricewaterhouseCoopers		Audit ERNST & YOUNG et Autres
Louis Pierre Schneider		Nour-Eddine Zanouda

Technip
A French corporation (société anonyme) with capital of € 82 033 633,41
Registered Office : 6-8 allée de l’Arche, Faubourg de l’Arche – Zac Danton,
92400 COURBEVOIE
Nanterre Trade Registry 589 803 261. - APE: 741J.