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Gold/Mining/Energy : Coflexip ADR CXIPY Flexible Drilling Pipe -- Ignore unavailable to you. Want to Upgrade?

To: Mel Spivak who wrote (105)	3/21/2000 11:38:00 PM
From: Mel Spivak	Respond to of 110

Msg from CEO form 3/21 earnings report: Pierre Marie Valentin, Chairman and Chief Executive Officer of the Coflexip Stena Offshore Group, made the following comments: ``While 1999 was a challenging year, we are proud to have achieved one of the highest levels of profitability in our industry with net income at 9% of revenues, thanks to the outstanding performance of our teams throughout the world. ``We believe that we're in the early stages of a rebound. This is seen in the increase in the worldwide volume of tenders pending for subsea products and services. We estimate that the volume of tenders to be awarded during the first half of 2000 will be $1.8 billion, more than double the $800 million awarded in the first half of 1999. ``Moreover, we have begun to rebuild our backlog in the last 2 months with EUR232 million in new orders that include Tambar from BP AMOCO and Njord from NORSK HYDRO, both in Norway, and Blake from BRITISH GAS in the UK. In the Gulf of Mexico a new installation contract for the CSO Apache will include the first reeled installation of steel catenary risers (RSCR) and pipe in pipe at 1,100 meters depth. Lastly, we will be delivering to PETROBRAS flexible lines for the first two well heads on the Roncador field, which will establish, when they are installed by the Sunrise 2000, a new worldwide depth record. ``We continue to hold the view that activity for our segment of the industry may be 10% weaker in 2000 compared with 1999, and our margins could be affected by underutilization of the fleet and the Le Trait plant. ``Our challenge is to win new tenders and continue to build-up the order book for execution in 2001 and onwards. We have therefore added more front- end engineering capabilities through the RJ. Brown acquisition in Houston that will strengthen our Deepwater Field Development Division in pursing deepwater tenders worldwide. Construction of the CSO Deep Blue and active marketing of the vessel is well underway and her exceptional features are already drawing attention from our clients. ``We are thus fully prepared to serve our clients with a renewed technological offer, increased commercial aggressiveness and financial strength.' World leader in the subsea oilfield service industry, Coflexip Stena Offshore provides a wide range of services (project management, engineering design, procurement, subsea pipeline and umbilical laying, construction and maintenance work) and products (design and manufacture of flexible pipes, control umbilicals and remotely operated vehicles).