ENTREP.CONTRACTING : ENTREPOSE Contracting: Results for the 1st Half of 2011

Regulatory News:

ENTREPOSE Contracting (ISIN FR0010204321) (Paris:ENTC), a contractor specialised in the design and construction of complex projects in the oil and gas sectors in particular, and the energy and environmental sectors in general, today announces its consolidated and audited results for its first half to 30^th June 2011, approved by the Board meeting held on 27^th July 2011.

Consolidated quarterly and half-year revenue
In millions of euros		Q2 2011		Q2 2010		? %		H1 2011		H1 2010		? %
PROJECTS		59.0		46.1		+27.9%		116.0		97.3		+19.3%
PIPELINES		95.6		101.4		-5.7%		202.8		197.2		+2.9%
SHALLOW WATER OPERATIONS		16.0		40.5		n/a		-3.2		78.1		n/a
SERVICES		14.7		13.7		+7.3%		28.2		25.3		+11.3%
DRILLING*		6.1		n/a		n/a		10.5		n/a		n/a
TOTAL REVENUE		191.4		201.8		-5.2%		354.4		397.9		-10.9%

* The newly-created DRILLING business line reflects the acquisition of 70% of COFOR, which business has been consolidated since 1^st October 2010

The Group's consolidated revenue for the second quarter of the current financial year totalled ?191.4 million, down -5.2% on the second quarter of 2010.

Consolidated revenue for the first half of the year came to ?354.4 million, down -10.9% on the same period of 2010. On a constant currency and like-for-like basis, the decrease was -11.9%.

Excluding changes in scope (DRILLING segment) and exceptionals due to the situation in Libya (SHALLOW WATER OPERATIONS segment) for which the Group opted for a cautious approach, revenue totalled ?347.1 million, up +8.5% on the first half of 2010 like-for-like.

Up +19.3%, half-year revenue from the PROJECTS segment came to ?116.0 million, and thus accounted for 32.7% of total Group revenue. First-half PROJECTS activity was mainly associated with progress recorded within the framework of the contract for the construction of a sewage pumping station in Doha, Qatar and the ongoing cryogenic tank projects in the Netherlands (GATE LNG) and in Skikda (Algeria). Moreover, in line with the agreed schedule, in the first half of 2011 the Group began work on the construction of an LPG storage plant in Gabes, Tunisia.

Revenue from the PIPELINES segment totalled ?202.8 million, up +2.9% on the first half of 2010, and thus accounted for 57.2% of total Group revenue. First-half activity was essentially driven by the completion of contracts in South Africa and Angola, as well as by the upramping of the "Papua New Guinea" (PNG) contract executed for ExxonMobil.

Revenue from SHALLOW WATER OPERATIONS came to -?3.2 million over the first half of 2011.

This reflects the deliberately cautious approach adopted by ENTREPOSE Contracting due to the ongoing events in Libya and the Group's decision to adjust the contribution of the GECOL contract in Syrte on the basis of paid-for-work situations. This notably resulted in negative revenue of -?19.8 million over the first quarter of 2011. At the same time, negotiations enabled revenue of ?8.4 million to be reintegrated over the second quarter for work already completed.

Moreover, the contract signed in Algeria with ORASCOM Construction Industries concerning the construction of cold water intakes and suction heads for the Terga power station has been completed. Lastly, during the second quarter the Group began work on the SWAC (Sea Water Air Conditioning) contract in French Polynesia.

The SERVICES segment, which provides pipeline services, services for asset integrity management and notably sourcing solutions for technical equipment, pursued its sales momentum and its geographical development, notably in Singapore and Beijing, and recorded revenue of ?28.2 million over the first half of the year, an increase of +11.3% on the same period of 2010, and thus accounted for 8.0% of total Group activity.

Lastly, revenue from the DRILLING segment, the new business line created through the acquisition of 70% of COFOR in October 2010, totalled ?10.5 million over the first half of 2011, with a number of achievements in France in geothermal energy, drilling for water and soil investigations.

The geographical split in activity was as follows: Africa 49%, Oceania 24%, Europe 19%, Asia 7% and the Americas 1%.

Consolidated half-year results
In millions of euros		H1 2011		H1 2010		? %
REVENUE		354.4		397.9		-10.9%
OPERATING PROFIT FROM ORDINARY ACTIVITIES		26.3		34.5		-23.7%
% OF REVENUE		7.4%		8.7%
ATTRIBUTABLE NET PROFIT		22.0		21.2		+3.9%
% OF REVENUE		6.2%		5.3%
CASH POSITION		151.4		272.5		-44.4%

Operating profit from ordinary activities for the first half of 2011 totalled ?26.3 million, down -23.7% compared to the first half of 2010, giving an operating margin of 7.4%, versus 8.7% at 30^th June 2010. This was due to the GECOL contract's contribution as, excluding exceptionals associated with the Libyan situation, operating profit from ordinary activities totalled ?45.0 million, an increase of +30.4% compared to the first half of 2010.

Attributable net profit, with higher financial profit and lower consolidated tax, totalled ?22.0 million, up +3.9%, giving a net margin of 6.2% at 30^th June 2011 compared to 5.3% at 30^th June 2010.

At 30^th June 2011, the Group's cash position stood at ?151.4 million, versus ?232.8 million at 31^st December 2010, and notably reflects the impact of the consumption of advances and down payments received following the progress made on ongoing contracts, the investments and the payment of the dividend.

Recent events

Acquisition of the business and assets of GEOMETRIC DRILLING Ltd.

On 4^th July, ENTREPOSE Contracting announced the acquisition by its COFOR subsidiary of the business and assets of GEOMETRIC DRILLING Ltd., which is based in Stirling (Scotland). This acquisition increases the ENTREPOSE Contracting fleet by 3 modern hydraulic drilling rigs and thus allows it to increase its offer in Europe and in other geographical zones.

New contracts and sales activity

As announced on 6^th June 2011, ENTREPOSE Contracting won, with EDF subsidiary Dunkerque LNG, a contract for the construction of the three cryogenic tanks for the Dunkirk LNG Terminal within the framework of a consortium consisting of ENTREPOSE Contracting (leader) and Bouygues Travaux Publics. This contract concerns the construction of three cryogenic tanks for the storage of liquefied natural gas (LNG), each with a capacity of 190,000 m³ that will be amongst the largest in the world. Work is due to start no later than early 2012, following completion of the ongoing preliminary engineering work. Commissioning of the tanks is expected in 2015.

The Group has also signed six new contracts in recent weeks: a contract in SHALLOW WATER OPERATIONS in Indonesia to construct the landfall of the South Mahakam and Ruby pipelines at Total Indonesia's Senipah terminal (island of Borneo), four contracts in onshore drilling in France and a contract to deliver turnkey projects for TOTAL E&P Congo involving the construction of a 20,000 m³ settling tank at the Djeno terminal in Congo.

These six contracts have a combined value of more than ?50 million.

Subsidiarisation of the Group's PROJECTS activity

The EGM of 1^st June 2011 approved the transfer of ENTREPOSE Contracting's PROJECTS activity to ENTREPOSE Projets S.A.S. This operation, implemented retroactively from 1^st January 2011, aims to rationalise the Group's legal structure, to provide clients and staff with a more coherent image of the PROJECTS activity and to increase this activity's momentum and synergies between the Group's various business lines. The operation has no effect on the Group's consolidated accounts.

Sales evolution

At 1^st July 2011, excluding the work that still remains to be carried out within the framework of the GECOL contract, the Group's order book stood at ?875 million, compared to ?782 million at 1^st April 2011, i.e. an +11.9% increase. Estimated on the basis of a rolling 12-month sales average, it thus represents some 15 months of activity (excluding SERVICES and DRILLING) and incorporates the new contracts just signed such as the one concerning the construction of cryogenic tanks at the Dunkirk LNG Terminal.

Dominique Bouvier, ENTREPOSE Contracting's Chairman and CEO, comments: "All of our activities have continued to grow, apart from Shallow Water Operations which were affected by the situation in Libya, and our net profit has further increased. Furthermore, our positioning on niche activities with substantial added value and on markets with considerable long-term potential has enabled us to win a number of major contracts, such as the one at the Dunkirk LNG Terminal, and to maintain a strong order book that now represents 15 months of activity. Lastly, we further strengthened our expertise at the start of the month, via the acquisition of GEOMETRIC DRILLING Ltd's business and assets.

Regarding the second half of the year, ongoing contracts are progressing in line with expectations and we remain solidly committed to bidding for new calls for tenders. Finally, in accordance with our strategy, we remain on the lookout for any new market opportunities that could further strengthen our distinguishing positioning, both in our traditional oil and gas business lines and on the high-potential renewable energy market."

About ENTREPOSE Contracting (www.entrepose.fr): ENTREPOSE Contracting is a group specialised in the design and construction of complex projects in the oil and gas sectors in particular, and the energy and environmental sectors in general. From creating transport and storage solutions to delivering turnkey projects, the Group is constantly developing its expertise in conceptual engineering, process design and contracting in sensitive environments. ENTREPOSE Contracting places particular emphasis on standards compliance in terms of Quality, Health & Safety and Environmental Management (QHSE accreditations), and possesses unique know-how enabling it to meet the most stringent requirements in terms of the highest performance levels.

Revenue for the 3^rd quarter of 2011 will be published on 21^st October 2011 (after market)

ENTREPOSE Contracting
Clarisse Lebreton, [phone]
or
NewCap.
Axelle Vuillermet / Emmanuel Huynh, [phone]
[e-mail]