PROCESSING ENERGY 2016 FACTS AND FIGURES
OVERVIEW
2016: BEING QUICK AND RESPONSIVE The continuously changing hydrocarbons market demands from us constant and increasingly faster responses. In 2016 we accelerated our efforts to adapt to the evolving market, going beyond established paradigms. We consider it of the utmost importance to keep open our communication channels with stakeholders. This updated Facts and Figures yearbook is one of the ways we do this.
LETTER FROM THE CHAIRMAN Dear Stakeholders, As 2016 is behind us, I’d like to share some thoughts on the goals we attained and the promising future ahead. Our Group has been growing steadily, both in terms of workforce and international presence. We have ensured our investors a strong dividend payout, greatly improved compared with the preceding year. In a progressive industrial vision, we have spared no efforts to build what Maire Tecnimont is today: a multinational player with solid Italian roots, able to promote worldwide an entire “Made in Italy” value chain. We act as an international bridge to turn cutting-edge know-how into local industrial development. This is due to our distinctive skills and well-rooted expertise that date back to the very beginning of the hydrocarbon processing industry. From its inception, our entrepreneurial plan has been based on the strategic precept that the key to growth lies in integrating the world-leading expertise of Italian plant engineering companies, to relaunch them as one unique industrial player. From the beginning, we’ve constantly focused
on development and innovation, drawing on thousands of highly skilled colleagues who are committed day-by-day to serve the ever-changing and dynamic market. We are above all a “people business”, so I am proud to tell you that in 2016 we successfully launched the first round of our Employees Share Ownership Plan, to foster each professional’s commitment towards overcoming the growing challenges. As we share targets, we distribute results. That said, much remains to be done, but there is still plenty of room to leverage synergies and integrate expertise and know-how. As our client industries shift towards innovative trends to ensure sustainable global growth, we are convinced that we have the right set of skills to contribute creatively to the changes, since we are accustomed to managing complexity and overcoming challenges. At Maire Tecnimont we strive not only to succeed, but also to create value. With this mindset, we continue to work hard in 2017, which marks the tenth anniversary of our listing on the Stock Exchange.
Fabrizio Di Amato Maire Tecnimont Chairman
CHAPTER XXX | XXXXXXXXXXXXXXXX
2016 HIGHLIGHTS
LETTER FROM THE CEO Dear Stakeholders, These are extraordinary times. Our industry is fundamentally reconsidering its paradigm throughout the value chain. Our clients are transforming themselves to cope with a “lower for longer” oil price and to prepare for a “new normality”, which is expected to envisage a sustainable future very different from the past. Such a discontinuous and volatile environment is dramatically destabilizing for many and extraordinarily motivating for a few. With encouraging results at hand, we believe that Maire Tecnimont has the opportunity to be one of the players most responsive to change. That is what we have been preparing for in the last three years. 2016 was the year of the proof: new products launched, new geographies opened, 1,300 new hires, a new IT infrastructure implemented, a record backlog in execution, a huge ramp-up in production volumes, proven financial discipline and sizeable dividends. After having leveraged our resilience, entrepreneurship now is the name of the game. Our unique, asset-light, flexible business model is the key to adapting quickly to an ever-changing market and to serve knowledgeable clients who will pay a premium only to contractors able to enhance their
profitability through increased productivity and “fit-for-purpose” investments. Our vision is to become the technology-driven contractor of choice for developing, executing, and revamping complex plants worldwide for the oil & gas, petrochemicals and fertilizer industries, at the same time focusing incrementally on sustainable energy and green chemistry. To achieve this target our decisive lever is our people, who are the heart of our mind-intensive company. Our professionals are the most strategic and sustainable asset of our technological footprint - thousands of minds forming our innovative industrial base. To stay ahead of market discontinuity, the skill and, most importantly, the entrepreneurial spirit of Maire Tecnimont’s people will make all the difference. In 2016, we launched our cultural beliefs with eight mottos to drive day-to-day life in every company office and in every site, together with our clients and partners. With this entrepreneurial outlook, we are more than ready to take the challenge to new heights.
Pierroberto Folgiero Group Chief Executive Officer
Open and discover the main facts regarding Maire Tecnimont Group activities throughout the year at the different latitudes on the world map.
July
June
BRATISLAVA
RUSSIAN FEDERATION
July
Slovnaft LDPE plant achieves the start-up (Slovak Republic).
BAKU
The Group at St. Petersburg International Economic Forum (SPIEF). New agreements and partnerships signed.
BRAUNSCHWEIG
TPI, the Group’s company specialized in designing High Pressure LDPE plants, well known as Tecnimont Salzgitter (Germany), celebrates its 15th anniversary. A new starting point toward its future as a technology frontrunner.
May
June
February
AZERBAIJAN
The Group strengthens its collaboration with SOCAR thanks to the award of an EPC contract for the realization of a PE plant in Sumgayit.
August
ROTTERDAM
TOMSK
13th Stamicarbon Urea Symposium, the leading global event dedicated to urea technology organized by the Dutch sister company of the Group.
LDPE Tomskneftechim (Sibur) plant completes the commissioning and achieves start-up (Russian Federation).
March
May
TEHRAN
SLUISKIL
“First Stone” Ceremony of the YARA Sluiskil Urea-8 Plant. A new construction site opens in fertilizers, using Group’s technologies for the top-class producer YARA.
June
SAN FRANCISCO
The Group signs a joint collaboration agreement with Siluria Technologies (USA).
Maire Tecnimont Group at the Caspian Oil & Gas Exhibition in Azerbaijan, the largest energy sector event in the whole Caspian area.
November
Maire Tecnimont Group exhibitor at the 21st Iran Oil Show.
NEW DELHI
The Group is exhibitor at PETROTECH, one of the largest oil & gas events in Southern Asia.
July
DAHEJ June
November
VERA CRUZ
MALAYSIA
Etileno XXI PE plant starts-up (Mexico).
The Group reinforces its presence in the country thanks to a new contract by PETRONAS for a HDPE unit in Pengerang Integrated Complex (PIC), one year after the PP contract awarded for the same project.
November November
MEXICO
EPC contract awarded for the construction of one of the largest new wind farms in the country.
ROME
The President of the Italian Republic, Sergio Mattarella, decorates Fabrizio Di Amato with the “Ordine al Merito del Lavoro”.
September
July
KINGDOM OF SAUDI ARABIA Clean Fuel Project awarded by Petro Rabigh for the execution on an EPC basis of a new Naphtha Hydrotreater unit and a new Sulphur Recovery unit.
MILAN
The Group completes the first cycle of the Employees Share Ownership Plan. More than 96% of the involved employees decided to participate.
December
ROME Awards and Agreements Execution Milestones Corporate Events Exhibitions
KT moves to new headquarters, a technologically advanced space into a contemporary architecture location.
Commissioning Phase 1 of PP plant for OPAL in Gujarat (India).
December
KINGDOM OF SAUDI ARABIA Mechanical completion achieved at the Sadara HP-LDPE plant.
November
ABU DHABI
The Group exhibits at ADIPEC, one of the world’s largest oil and gas technology events.
October
OMAN
Ground breaking ceremony of the ORPIC’s Liwa Plastic Industries Complex (LPIC) project - EPC2 Polymers Package - at Sohar.
CHAPTER XXX | XXXXXXXXXXXXXXXX
01. OUR CORE GROUP OVERVIEW BUSINESS ACTIVITIES
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01 | OUR CORE
GROUP OVERVIEW
AT A GLANCE
WE FOCUS ON OUR DISTINCTIVE COMPETENCES AND TECHNOLOGIES IN THE PETROCHEMICALS, OIL & GAS AND FERTILIZER INDUSTRIES. WE COVER THE ENTIRE VALUE CHAIN FROM END TO END, AND OFFER A VARIABLE MIX OF SERVICES WITH HIGH FLEXIBILITY.
Maire Tecnimont is a multinational and multicultural Group, comprising approximately 8,000 professionals in 45 companies in over 30 countries. Listed on the Milan Stock Exchange since 2007 and rooted in well-recognized Italian engineering brands, the Group is among the top-ranking worldwide players in our markets. We are a leading provider of Engineering & Construction, Technology & Licensing, and Energy Business Development & Ventures worldwide, contributing to the transformation of natural resources into innovative products used in a myriad of everyday applications. Our technology roots go back to the pioneers of the hydrocarbon chemical engineering industry. We provide customers with proprietary and third-party technologies for the design and manufacture of a wide range of processing plants. We offer a broad scope of services on an individual or combined basis, comprising licensing, engineering, procurement of materials and equipment and construction supervision, including our project management expertise. We have many important references for the delivery of full EPC turnkey complex projects, featuring a flexible and consistent model that maximizes local content in every part of the world. Our execution strategy is based on a world-class health and safety performance, significantly better than the industry benchmark. Maire Tecnimont also has expertise in the design and engineering of power generation plants and major public works. We are equipped to deliver large-scale renewable energy plants generating power from wind, solar, and biomass resources. We also leverage a distinctive technology-driven model in project development, enabling us to embrace early involvement in clients’ investment initiatives.
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15
Industry
Oil & Gas
Business Model
Petrochemicals
Engineering & Construction
Fertilizers
Technology & Licensing
Power
Energy Business Development & Ventures
Oil & Gas, Fertilizers, Polyolefins, large-scale contracting Refining, Hydrogen & Syngas, Production and Sulphur Recovery Infrastructure and civil engineering, renewable energies
*
Fertilizers Technology
Sister Companies
*Resulting from the merge of the Group’s Companies Tecnimont Civil Construction and Met NewEn
~ 5,000 Employees
+
TOTALING
~ 8,000
30
Countries
~ 3,000
Additional professionals of Electrical & Instrumentation division
Organisation
€ 2.4
€ 6.5
2016 Revenues
2016 Backlog
Billion
Financials 16
45
Operating companies
Billion
OUR VISION IS TO BE A WORLD-CLASS TECHNOLOGY-DRIVEN, ENGINEERING, PROCUREMENT AND CONSTRUCTION CONTRACTOR. WE WANT TO MAKE COMPETENCE, ENTREPRENEURSHIP AND ADAPTIVENESS OUR KEY SUCCESS FACTORS.
1 2 3 4 5
Enhance and develop technology driven business
Strenghten EPC in the core business
Develop engineering services revenues
Expand geographic footprint
Align organisation and pursue group synergies
01 | OUR CORE
Well rooted technology orientation: market leader (#1) for installed capacity
GLOBAL & TECHNOLOGICAL LEADERSHIP
30%
40%
Market share in polyolefin plants
Market share in LDPE plants
SINCE 1970
One of the main strategic drivers of Maire Tecnimont Group is its technology orientation. We continuously foster our pioneering vision with the development of innovative and sustainable new technologies as well as with the improvement of current ones. This is our DNA, well rooted to the very beginning of the petrochemical industry. Tecnimont’s know-how dates back to Giulio Natta, the inventor of polypropylene and Italian Nobel Prize winner in chemistry in 1963. This legacy has given Tecnimont access to the most modern polyolefin technologies and today we boast the leading share of the global market in terms of installed capacity for polyolefins plants.
Polypropylene Plants
54%
34%
Market share (#1 worldwide) in licensing urea synthesis technology
Market share (#2 worldwide) in licensing urea granulation technology
SINCE 1924
172
Ammonia and Urea Plants
Fertilizers
In the fertilizers business, through its licensing company Stamicarbon, the Group leads the global urea synthesis and granulation technology market, leveraging over 65 years of experience. Moreover, we are expanding our technology portfolio and the services we offer with a full life-cycle approach, providing solutions to upgrade the plants’ technology, improve their production capacity or reduce their environmental impact.
117
Polyethylene Plants
Petrochemicals
In addition, our process engineering contractor KT-Kinetics Technology gives Maire Tecnimont Group access to several oil refining industry and petrochemical processes, including sulphur and hydrogen production, and provides proprietary technologies for gas sweetening and tail gas treatment as well as customized engineering solutions in compliance with the most stringent environmental regulations.
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Well recognized leadership in licensing Hydrogen Technology and in licensing Sulphur Recovery and Tail Gas Treatment Technology
World class track record in Large Gas Treatment Plants and Refinery Process Units
SINCE 1971
Finally, our newly established partnership with Siluria Technologies will enable us to leverage our expertise in EPC contracting and our broad network of companies to commercialize this breakthrough process to convert methane rich gas into olefins.
230
Hydrogen and Sulphur Recovery Unit Projects
Oil & Gas
1,100+
Patents 18
Individual patents
19
Strong commitment to technology development
01 | OUR CORE
RESPONSIVENESS TO MARKET DISCONTINUITIES The next future of the Group will be positively characterized by the execution of the record backlog thanks to our distinctive focus on downstream. It is giving very good visibility on the business dynamics for the next 2/3 years in an industry which, conversely, is experiencing a phase of discontinuity. We are focused on deliver results with maximum operational and financial discipline.
VINXIA ENGINEERING (Prague) For fertilizers revamping business (Eastern Europe/Russia)
MET GAS PROCESSING TECHNOLOGIES
MET DEVELOPMENT Incorporated to pursue early involvement in new investment initiatives
• Siluria agreement (San Francisco, USA) • Pursuing H2S cracking, technologies adjacent to urea, new Clean Coal tech
We will continue to foster our expansion in geographies different from the historical ones such as Oman, Malaysia and Indonesia; we will strengthen ourselves in South America, while United States downstream developments remain on our business scope. Leveraging our distinctive technology driven business, we pursue a project development approach through an early involvement in clients’ investment initiatives, in order to contribute not only technical expertise but also financing schemes. Commercially we are leveraging our position of excellence in petchem and fertilizers sector to assist our clients in brownfield revamping initiatives, in particular in Eastern Europe and Russian market thanks to the newly established VINXIA Engineering company in Prague. We will continue to invest on technology and on our best-in-class services engineering. We will develop Siluria potential in the olefins business contributing to its industrialization process, while we will explore the adjacencies of our urea/fertilizers technological leadership.
• • • • • •
Iran Oman Malaysia Indonesia West Africa Americas
Reinforcing competences to tackle increasing scale and complexity of plants
Simultaneously we will continue to enhance our execution capabilities in larger and more complex “integrated projects” in order to accommodate better and better increasing market demand for multidisciplinary efforts.
• Wind • Solar, Biomass large scale plants • Bio-chemicals
Our vision on renewable energies remains positive regarding very large plants in new geographies; we continue to work in order to gradually get ready to a new paradigm of growth in the direction of green chemistry and bio chemicals.
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21
01 | OUR CORE
BUSINESS ACTIVITIES
ENGINEERING & CONSTRUCTION MAIRE TECNIMONT ENGINEERING & CONSTRUCTION FOR THE HYDROCARBON PROCESSING INDUSTRIES IS DRIVEN BY ITS LONG ROOTS IN HIGHLY COMPLICATED DOWNSTREAM PLANTS.
A well-rooted legacy in engineering design, along with a sound track record in managing large integrated complex projects in oil & gas, petrochemicals and fertilizers, has allowed Maire Tecnimont, through its main subsidiary Tecnimont, to maintain a leading position as an international contractor. Thanks to a flexible business model the Group offers advanced skills in licensing, engineering services, EP (Engineering & Procurement), and EPC (Engineering, Procurement and Construction). A strong technology orientation provides access to the best available state-of-the art processes, guaranteeing us a recognized world leadership as a contractor. Through our network of international engineering centres, we provide clients with services and know-how ranging from conceptual studies, through technology selection, to process engineering and detailed design. Through our subsidiary KT–Kinetics Technology, the process engineering contractor of Maire Tecnimont, we offer expertise in EPC contracting for Refinery Units along with known-how and proprietary technology in sulphur recovery units, hydrogen and syngas, providing comprehensive process technology packages and offering clients end-to-end, tailor-made solutions. The Group has also developed high-level skills and competence in power generation from fossil fuel and renewable sources, infrastructure and civil engineering. Furthermore, the Group subsidiary Tecnimont Private Limited in India provides world class Electrical and Instrumentation construction services. Thanks to our global procurement platform we are able to cover all client requirements, leveraging on a network of high-quality equipment vendors and construction subcontractors. The services we provide benefit from business synergies and cross-fertilization across the Group, profiting from all our companies’ skills and specializations.
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23
01 | OUR CORE
TECHNOLOGY & LICENSING MAIRE TECNIMONT GROUP HAS A CLEAR PIONEERING VISION AND ITS TECHNOLOGY ORIENTATION IS ONE OF THE KEY DRIVERS OF ITS STRATEGY.
N° ACTIVE PATENTS / PATENT APPLICATIONS as of 31.12.2016
1,045 TECHNOLOGY
Urea technologies LICENSOR
Stamicarbon
99
TECHNOLOGY
Syngas and base chemical production LICENSOR
MTIC/KT
7
IN OTHER TECHNOLOGIES
Maire Tecnimont Group has a clear pioneering vision and its technology orientation is one of the key drivers of its strategy. Tecnimont, the main contractor of the Group, has a history going back to Giulio Natta, the Italian Nobel Prize winner in chemistry and inventor of polypropylene. This legacy has given Tecnimont access to all first-class polyolefins technologies from different licensors as well as many other petrochemical processes. Tecnimont often develops process design packages and other high-value engineering activities for the licensors for whom it is the preferred contractor. In 2016 the Company broadened its technological base through the cooperation agreement with Siluria, based in San Francisco (see the box). KT, the process engineering contractor of the Group in oil and gas, is a recognized leader in the licensing and supply of hydrogen and sulphur recovery units (SRUs) and ancillary facilities. Over last 40 years, KT has continuously updated its steam reforming design based on top and side-fired concept, completed more than 100 projects, and enlarged its reforming technology. KT’s proprietary RAR (Reduction, Absorption, Recycle) technology, widely recognized as a Best Available Technique, is capable of achieving the maximum sulphur recovery demanded by the market. KT is also developing a novel process to convert hydrogen sulphide into hydrogen and liquid sulphur by partial oxidation. This environmentally friendly technology could lead to the goal of zero emissions to the atmosphere. In the fertilizer business the Group, through its licensing company, Stamicarbon, is the leader in the development and licensing of urea technology, with over 65 years of experience and more than 240 grassroots and 90 revamping projects completed. Since inventing the CO2 stripping technology in the 1960s, Stamicarbon has dedicated itself to continually improving and innovating its technologies and designs. These developments, based on a full life-cycle approach, have led to reduced investment costs and more reliable, efficient and environmentally friendly plant operations.
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GAS TO PROPYLENE TECHNOLOGY The Maire Tecnimont technology portfolio consist of more than 100 patent families and about 1,100 individual patents and patent applications in many countries. We continue to patent all our innovations through the Maire Tecnimont Innovation Centre, the technology and intellectual property hub of the Group. In addition, the innovation pipeline (IPL) process has been rolled out across the Group, resulting in over 200 new innovation projects and more than 54 new patents in different fields. Most of these projects benefit from cross-fertilization within the Group and combine our diverse skills and synergies. Maire Tecnimont’s research activities fall mainly into the following categories: development of new raw materials for petrochemicals production; improvement of current technologies; and development of innovative and sustainable new technologies. Maire Tecnimont cooperates with the Polytechnic University of Milan in the gas treatment area, principally in the removal of CO2 and acid components from natural gas. This will broaden the range of proprietary technologies in the Group’s core businesses. In addition, Tecnimont, along with Tecnimont Private Limited, Mumbai, is developing “Design To Cost” projects to reduce the cost of engineering and materials selection through the introduction of innovative design tools, work instructions and methodologies. Other projects, funded by the EU, include the development of a catalytic dehydrogenation process to produce propylene from propane in a membrane reactor, using palladium alloy membrane technology. Through KT/Processi Innovativi, Maire Tecnimont is also involved in two solar energy projects with the Italian research centre ENEA. One is for the production of synthesis gas from natural gas and bioethanol at medium temperature using a membrane reactor. The other is for the desalination of water using solar energy and molten-salt as the heat carrier. KT is also working on the use of ionic liquids for biofuel production from algae. Finally, the Group subsidiary, Processi Innovativi, develops processes for “Green Chemistry”.
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In 2016 the Maire Tecnimont Group, through its operating company Met Gas Processing Technologies, broadened its technological portfolio becoming a shareholder of Siluria Technologies. Siluria Technologies, is a US Company, based in San Francisco, who developed the innovative Oxidative Coupling of Methane (OCM) technology platform to directly convert (single step, no methanol generation), methane rich gas into Olefins. In parallel to the above investment, Met Gas and Siluria entered into a Joint Collaboration Agreement to combine their respective technologies and expertise to commercialize a unique disruptive process to convert methane rich gas into Propylene: the so called “Gas To Propylene” Technology. Our Gas To Propylene Technology makes possible the production of Propylene via the innovative OCM process at a far higher energy efficiency (lower temperature, less fossil fuel, fewer greenhouse gases), using gas the more abundant, widely available hydrocarbon resource, as the main feedstock. Furthermore, our Gas To Propylene Technology can also be designed to jointly produce together with Propylene other olefins such as Ethylene and Butene-1 for enhancing the value of polymer downstream productions.
01 | OUR CORE
ENERGY BUSINESS DEVELOPMENT & VENTURES THE NEW ENERGY BUSINESS DEVELOPMENT & VENTURES DIVISION IS TASKED WITH DEVELOPING AND PROMOTING NEW VENTURES CONNECTED WITH THE GROUP’S CORE BUSINESS IN ORDER TO STRENGTHEN ITS POSITION IN EMERGING NEW MARKETS AND BUSINESS MODELS.
THE PROJECT DEVELOPMENT & VENTURING GROUP (PD&V)
NEW BUSINESS DEVELOPMENT: O&M AND TRAINING
• Advanced project development, technical and financial skills to coordinate the whole process and the various financial, institutional, industrial and technical actors involved on end-to-end basis;
• Customized services to optimize Operation and Maintenance of client’s assets, from advisory services to full outsourcing, including dedicated Training; • Capability to transfer Group’s long-standing chemical processing industry expertise into a complete operating experience;
• Steering the strategic development, from concept to execution of large-scale projects to evaluate potential involvement in the project venture;
• Tailor-made services to the client requirement, fitting client’s strategy transferring expertise and moving their plants toward their ultimate performance.
• New business approach amongst others focused on single plant owners’ opportunities in fertilizers and methanol business.
TECHNOLOGY DRIVEN
EXECUTION DRIVEN
Contracting & Engineering
Contractor
Execution
Shareholder
Financing
Operation & Capitalization
Sector Value Chain
Developer
Ideation & Definition Feasibility & Validation
Licensing
Process Design
Engineering
Procurement
Training and Consultancy Services
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27
Construction
Operation Maintenance
02. WE ARE PEOPLE AT THE CENTER GOVERNANCE AND ORGANISATION
02 | WE ARE
PEOPLE AT THE CENTER
EMPLOYEES SHARE OWNERSHIP PLAN THE GROUP SUCCESSES AND RESULTS ARE BASED ON THE CONTRIBUTION OF OUR HUMAN CAPITAL.
The Group has launched several engagement initiatives aimed to make our people feel and act like an entrepreneur. Thanks to the everyday decisions and efforts of our people, we have reached our targets and we will be able to face our future challenges.
Our employees
4,956 out of which
Males
Females
4,035 (81.4%)
921 (18.6%)
Additional professionals
~ 3,000
of Electrical & Instrumentation division
31
Maire Tecnimont also successfully launched in 2016 the First Cycle of its Employees Share Ownership Plan, to incentivize its employees to become even more committed to the success of the Group as its shareholders. More than 96% of them chose to accept and share the challenge, deciding to participate into the Plan. Thanks to the achievement of the target objective of the First Cycle of the Plan, during the 2017 all the beneficiaries will receive an allotment of shares for free. This instrument is the best way to confirm to our people that they are the beating heart of the Group and that we want to share with them the results of their commitment, energy and passion.
Employees by category
Employees by professional area
Engineering
SMART WORKING Maire Tecnimont has decided to implement the “Smart Working” project, in collaboration with the Digital Innovation Observatories of the Politecnico di Milano. The Group will introduce the “smart working”, the new organizational model that allows us to combine individual and business needs and to increase the empowerment of our Human Capital. Smart working aims to improve employees’ work-life balance by promoting the flexibility and customization of the way, time and place of their working. To involve employees in this project, the Company has launched the “BE ADAPTIVE!” Think Tank, a contest seeking the better ways to introduce the new organizational model in our Milan offices. An evaluation commission will select the five best ideas, which will be entitled to be rewarded.
Managers
Middle Managers
White Collars
Blue Collars
533
1,744
2,580
99
(11%)
(35%)
(52%)
Females
Females
Females
39
275
602
5
(15.8%)
Operations
(23.3%)
(5.1%)
2,520 143 1,001 681
Including also project services
509 MAIRE4YOU
Employees by age Under 30
From 31 to 50
Over 50
704
3,315
937
(14%)
Employees by geographic area
Rest of Technical Areas
Staff
(2%)
Females
(7.3%)
Commercial
(67%)
(19%)
Employees by citizenship Italy
Rest of Europe
India
Rest of the World
2,204
252
1,979
521
Italy
Rest of Europe
India
Rest of World
Including Rest of Asia, Africa and Americas
44%
5%
44%
7%
(44.5%)
(5.1%)
(39.9%)
(10.5%)
Employees by type of contract Permanent Contracts
Short Term Contracts
University Degree
4,542
414
of which Engineering Degree
3,247
2,534
(92%)
(8%)
Full time employees
Part time employees
4,893
63
(99%)
(66%)
(78%)
Training initiatives
Employees by working hours
32
Employees by education
(1%)
Training hours
Attendances*
49,631
7,466
*Including all the participations in different initiatives, as Project Management courses, Induction Program for Young Graduates, technical, QHSE, linguistic, ICT training, as well as initiatives related to soft skills (Communication and Personal Development).
33
In 2016, the Group developed a Flexible Benefits Plan, “MAIRE4YOU”, to respond even more effectively to the needs of its employees, going beyond traditional approaches which focus mainly on purely monetary compensation. The Plan involves most of the employees of our Italian offices and gives beneficiaries access to a fund of flexible benefits, comprising a range of goods and services able to satisfy their personal and family needs, while optimizing the spending power of the package thanks to the tax and social security benefits allowed under Italian law. This is part of a new engagement and incentive policy that will be in force for three years (2016 – 2018) and will be adopted in other locations of the Group.
02 | WE ARE
GOVERNANCE AND ORGANISATION
MAIRE TECNIMONT SPA IS THE PARENT COMPANY OF THE MAIRE TECNIMONT GROUP, WHOSE STOCK HAS BEEN TRADED ON MILAN’S MERCATO TELEMATICO AZIONARIO DI BORSA ITALIANA SPA SINCE 2007.
The Company adheres to the Corporate Governance Code for Listed Companies of Borsa Italiana SpA. Maire Tecnimont is organised according to the traditional administration and control model, including the Shareholders’ Meeting, the Board of Directors and the Board of Statutory Auditors. The Board of Directors has established two internal committees having advisory and proactive functions, the Remuneration Committee and the Control and Risk Committee, pursuant to the provisions set out in the Governance Code. The Board of Directors has also established a Related-Party Committee which is assigned the tasks and duties envisaged by CONSOB Related Parties Regulation. The Board strengthened its independence by the appointment of five independent directors out of nine, including four female independent directors. One independent director was also appointed by the minority interests. Fabrizio Di Amato is the Chairman of the Board and Pierroberto Folgiero is the Chief Executive Officer. For further information on the Corporate Governance of Maire Tecnimont SpA, please visit our website through the QR code below.
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02 | WE ARE
Control and Risk Committee Board of Statutory Auditors It monitors the compliance with the law and the Company’s By-laws, the principles of good administration and the suitability of the organisational, administrative and accounting structure.
The Shareholders’ Meeting
Board of Directors
It is the corporate body in which Shareholders’ determinations are formed and expressed. It adopts resolutions on issues such as approval of financial statements, appointment of the Board of Directors, Board of Statutory Auditors, Independent Auditors and amendments to the Company’s By-laws.
It determines and pursues the strategic objectives of the Company and the Group.
BOARD OF DIRECTORS* BOARD OF STATUTORY AUDITORS*
It assists the Board of Directors in assessing the suitability of the internal control and risk management system.
Remuneration Committee
1
It formulates proposals regarding the remuneration of the Directors, including those holding special offices, and the apical executives of the Group.
2
3
6
4
7
5
8
9
Related-party Committee 10
Independent Auditors They have a mandate to verify the company reporting and accounting records and to form an opinion on the financial statements.
It carries out those tasks reserved to it by CONSOB Related Parties Regulation and the related procedure adopted by the Company.
Supervisory Body
Management bodies Control bodies
It carries out activities in compliance with the D. Lgs. 231/2001 and it overviews the implementation and update of the Model 231.
Management and Control bodies Supervisory bodies
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Board of Directors
11
Board of Statutory Auditors
1
FABRIZIO DI AMATO Chairman, Executive
2
PIERROBERTO FOLGIERO Chief Executive Officer, Executive
3
LUIGI ALFIERI Director, Non Executive
7
4
STEFANO FIORINI Director, Non Executive
MAURIZIA SQUINZI Director, Independent
8
5
PATRIZIA RIVA Director, Independent
ANDREA PELLEGRINI Director, Independent Remuneration Committee, Chairman
9
VITTORIA GIUSTINIANI Director, Independent
6
37
GABRIELLA CHERSICLA Director, Independent Control and Risk Committee, Chairman Related-Party Committee, Chairman
10
FRANCESCO FALLACARA Chairman
11
GIORGIO LOLI Standing Statutory Auditor
12
ANTONIA DI BELLA Standing Statutory Auditor
*As of 27 April 2016
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02 | WE ARE
GROUP MANAGEMENT TEAM
1
2
3
7
4
8
9
11
15
1
FABRIZIO DI AMATO Chairman
2
PIERROBERTO FOLGIERO Group Chief Executive Officer
3
ALESSANDRO BERNINI Group Chief Financial Officer
4
FRANCO GHIRINGHELLI Human Resources, Organization and ICT Senior Vice President
5
GIOVANNI SALE Corporate Strategy Vice President, Americas Region Vice President, Tecnimont Commercial & Business Development Vice President
6
5
6
10
12
13
16
GIANNI BARDAZZI Group Special Initiatives and Regions Coordination Senior Vice President, Russia and Caspian Region Vice President
8
FABIO FAGIOLI Group General Counsel
9
ENRICO ROLANDELLI Tecnimont Engineering & Projects Vice President
10
11
PEJMAN DJAVDAN Technology President, Stamicarbon Managing Director 38
FRANCO BROGGI Tecnimont Construction & Subcontracts Construction Vice President MARIO RUZZA Tecnimont Private Limited Chairman and Managing Director
12
PAOLO MONDO Group Procurement Vice President
13
ANDREA VENA KT Commercial Vice President
14
OSCAR SPALMACH KT Projects Execution Vice President
15
CARMINE BIELLO Managing Director Renewables
16
SALVATORE ESPOSITO Managing Director Infrastructure and Civil Engineering
17
GAETANO IAQUANIELLO KT Innovation Strategy Vice President
19
20
14
17
7
18
21
23
26
24
22
25
27
28
18
MASSIMO SICARI Middle East Region Vice President
22
STEPHEN ZWART Stamicarbon Licensing, Sales & Service Vice President
26
CARLO NICOLAIS Head of Public Affairs and Communication
19
DAVIDE PELIZZOLA Sub-Saharan Africa Region Vice President
23
GIUSEPPE GUADAGNO Iran Group Initiatives Vice President
27
SIMONA DOLCE Group Corporate Secretary Head of Department
PONZIANO PRANDI North Africa Region Vice President
24
FABIO FRITELLI Group Finance Vice President
28
25
MILIND V. BARIDE Group Project Control & Contract Management Vice President
DAMIANO D’ALESSANDRO Group HSE, Project Quality and Risk Management Head of Department
20
21
INHO JEE South East Asia and Australian Region Vice President
39
CHAPTER XXX | XXXXXXXXXXXXXXXX
03. WE SHARE, WE CARE PRIORITIZING HEALTH AND SAFETY BUSINESS ETHICS MANAGING RISKS OUR SUPPLY CHAIN SUSTAINABILITY APPROACH AND STAKEHOLDER ENGAGEMENT
03 | WE SHARE, WE CARE
PRIORITIZING HEALTH AND SAFETY
MAIRE TECNIMONT GROUP DEVOTES SPECIAL ATTENTION TO SAFEGUARDING THE HEALTH AND SAFETY OF ITS EMPLOYEES AND TO IMPROVING THE ENVIRONMENTAL PERFORMANCE OF ITS BUSINESS.
The attention dedicated by our Group to safeguard the health and safety of its employees and to improve the environmental performance of its activities represents a key reference both in project management and in continual improvement of business reliability. Promoting safe and healthy working conditions in offices and during construction activities is a commitment to which we always devote special resources. We believe this is essential to create value for our stakeholders and to ensure a longterm health of our business. Our target is a zero-accident HSE record: therefore, our training plans combined with a comprehensive preventive and protective approach contribute to a safety performance which confirms to be significantly better than international standards.
HSE MANAGEMENT SYSTEM Maire Tecnimont Group has a long-established commitment to Health, Safety and the Environment. The Group, through its main subsidiaries, has structured its organization in accordance with the requirements of the integrated management systems and has been certified according to OHSAS 18001 standard (Reference for Health and Safety Management Systems Work) and the ISO 14001 standard (reference for environmental management systems). This result ensures the compliance with the applicable legislation, the satisfaction of the contractual requirements of our customers, and support the organization’s development in terms of continuous improvement. In addition to the above management system standards, for its main subsidiaries, the Group has obtained the certification according to SA 8000 standard (Reference for social accountability management systems).
43
03 | WE SHARE, WE CARE
Man-hours worked without LTI Group safety indicators*
LLDPE/HDPE, OPAL Dajeh, India
20,592,055
Sadara HP LDPE Al-Jubail 2, KSA
14,675,606
PP UNIT, OPAL Dajeh, India
11,720,603
OT ADCO Al Dabb’iya, UAE
8,702,817
PP - HDPE UNITS, SOCAR Sumgait, Azerbaijan
3,962,703
IGD ADGAS Das Island, UAE
3,923,785
OT Tempa Rossa Corleto Perticara, Italy
3,609,338
Each operating company is committed to establish, document, implement and maintain a proper HSE policy that incorporates HSE values and principles laid down at Group level. Each HSE policy is established to promote increasing efficiency in controlling and managing HSE issues during the engineering, procurement, construction and commissioning stages of our projects.
INDICATOR
2012
2013
2014
2015
2016
Total number of Man-hours worked (x 1000)*
115,531
58,167
45,042
19,952
29,183
Lost Time Injury Frequency (LTIF)
0.017
0.017
0.022
0.100
0.103
Total Recordable Injury Rate (TRIR)
0.242
0.086
0.289
0.301
0.994
Total HSE Training Hours (x 1000)*
2,100
1,371
563
301
697
Total HSE Training Hours / Total Manhours Worked (%)
1.82
2.36
1.25
1.51
2.39
1.380 1.190
Corporate Top Management regularly reviews performances, completeness and adequacy of the HSE Management System in order to confirm or update the HSE policy and to review HSE management procedures as well as improvement plans. 0.242
1.140
1.050
0.289
0.301
0.170
0.160
0.994
0.086
SITE PERFORMANCE During 2016 a total of over 29 million man-hours were worked in Maire Tecnimont Group construction sites world-wide.
Total Recordable Injury Rate**
The Group adopts the main performance indicators defined by OSHA (the US Occupational Safety and Health Administration), together with detailed company safety statistics, to monitor the trends in its site safety performance. Values and trends shown by these indicators are regularly compared with internationally recognized benchmarks, such as those provided annually by the International Association of Oil & Gas Producers (IOGP) for EPC contractors.
0.240
0.100
Among the most important IOGP indicators are LTIF (number of lost-time injuries/man-hours worked per 1,000,000 exposure hours) and TRIR (number of recordable workplace injuries/man-hours worked per 1,000,000 exposure hours). The five-year data shown here after illustrate that the Group’s safety performance has been consistently and significantly better than the applicable IOGP benchmark, confirming the permanent and efficient efforts provided at Group level.
0.220
0.017
Lost Time Injury Frequency**
0.017
0.103
0.022
Oil & Gas producers
Maire Tecnimont Group
*Contractors and subcontractors worked hours **Safety Performance Indicators referring only to construction sites
44
BUSINESS ETHICS
WITH GLOBAL COMPACT NETWORK ITALY The Maire Tecnimont Group has consistently developed and updated the appropriate corporate governance tools (the Code of Ethics and the Organisation, Management and Control Model according to the Italian Legislative Decree 231/2001 “Model”). The latest update process of the Model involved many Functions in a multidisciplinary working table and it shall be considered in the wake of the path of the Maire Tecnimont Group with increasingly greater attention to “risk culture” fine tuning organisational and operational tools to correctly identify and properly measure, monitor and manage risks. The Code of Ethics, issued by the parent company, reflects senior management’s desire for organisational compliance with values and rules that support an ethical climate. The Code of Ethics has been adopted in its entirety by all the Group’s subsidiaries, both in Italy and abroad. However, the Model sets out the corporate activities of each Italian company which have adopted it that are potentially susceptible to the crimes defined by the Italian Legislative Decree 231/2001, in addition it regulates those activities to ensure compliance with the law. Group’s ethical culture is also defined by its corporate standards and procedures, the delineation of different roles and responsibilities, the separation of tasks, and targeted audits. These tools underpin the daily application of the principles defined by the Code of Ethics and the Model. The Group’s Internal Audit and Supervisory Bodies are the reference points for, respectively, the interpretation of the Code of Ethics and the Model. Please visit the Maire Tecnimont website for further information through the QR code below.
47
As a founding member of the Global Compact Network Italy, the national network of the UN Global Compact initiative, Maire Tecnimont Group takes part in the Network’s working groups to raise awareness on day-to-day business policies that uphold the ten principles underlying the GC initiative. Regarding Principle 10 Anti-corruption, members of the Group’s Internal Audit and Compliance Departments attend the working group where several leading companies describe their experiences, share their best practices, and discuss new solutions to fight against corruption in business.
03 | WE SHARE, WE CARE
MANAGING RISKS THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM IS A PRIMARY AND ESSENTIAL COMPONENT OF CORPORATE GOVERNANCE AND AN ESSENTIAL CONDITION FOR SUSTAINABLE GROWTH.
It is the set of rules, procedures and organizational structures aimed at ensuring the proper management of the Company through suitable identification, measurement, management and monitoring of the main risks and opportunities. Our promotion of a risk culture sets as a central objective the awareness of everyone to develop individual responsibility and rules of conduct. The risk management process is based on guidelines and references defined at Group level in compliance with our strategic objectives and is defined according to the following drivers: • A risk management process designed and implemented at project level and at the corporate level (Enterprise Risk Management); • A risk identification and analysis before contract acquisition through a “macro risk rating” value assigned for each commercial initiative; • A dedicated control strategy to reduce the gross risk to net risk through specific actions; • A complete range of reporting tools at project and portfolio level; • A lessons-learned management database, to capitalize on our experience during project execution. As a part of the internal control system, the Group risk exposure is reported to the Control and Risk Committee through a dedicated analysis of the aggregate results of risk exposure in the commercial phase (pre-tendering, tendering and tendered) and the operational phase (project execution), coupled with the countervailing measures set in place by the Corporate Enterprise Risk Management.
49
CHAPTER XXX | XXXXXXXXXXXXXXXX
03 | WE SHARE, WE CARE
OUR SUPPLY CHAIN ENSURING THE RESPECT OF TIMING AND BUDGET CONSTRAINTS, ENGAGING THE RIGHT PARTNER FOR EVERY PROJECT PHASE, IS THE CHALLENGE THAT EVERY DAY OUR GROUP PROCUREMENT TEAM IS FOCUSED ON.
2.5+ billion 2016 Group Order Booking
Our 300 professionals are spread around the Company international footprint making sure that during all the phases of the procurement cycle risks, quality, economics and timing are in line with the Customer expectation. Sustainability, process compliance and work ethics are the drivers for our duties and pushes all the activities towards the most suitable partner. We can now achieve the highest level of performance in delivering our projects because we continue investing in our people and in the relationships with our suppliers and we can count on more than 15,000 counterparts spread in more than 45 countries. We select our preferred partners through a robust qualification process during which we evaluate all the technical skills, the references, the financial strength and the willingness to share our common goals. A constant focus is reserved also to the local content of the overall supply base. We consider it of pivotal importance to allow us to differentiate our results during the execution phase from the rest of the market. For further information please visit our website through the QR code below.
30+
Running Projects
45+
Country supply footprint 51
CHAPTER XXX | XXXXXXXXXXXXXXXX
SUSTAINABILITY APPROACH AND STAKEHOLDER ENGAGEMENT
03 | WE SHARE, WE CARE
OUR WAY OF DOING BUSINESS IS DEEPLY CONNECTED WITH THE CORPORATE VALUES EMBEDDED IN OUR DNA.
The actions we implement for our stakeholders are the visible expression of those values, and talking about sustainability implies talking about our values. But not only social values: it also means talking about the physical value that we create and share. Sustainability is part of Group’s business strategy. We are committed to making sustainability drivers a reality in our everyday work. TRANSPARENCY IN GOVERNANCE We work to keep a fair and constant communication with the public and to guarantee a proper governance and management system to safeguard value for all our stakeholders. PROJECT PERFORMANCE AND ACCOUNTABILITY We are committed to providing a risk management system to reduce volatility and ensure for stakeholders the safety and reliability of all our activities. LOCAL CONTENT DYNAMIZATION This has become our main way of operating in both established and developing markets, ensuring not only a durable and profitable presence worldwide but also business and personal development opportunities at a local level in the markets in which we operate. ACTING RESPONSIBLY For us, acting responsibly means working to develop people skills, contributing to responsible citizenship, and minimizing our environmental footprint. This is the framework on which the entire system rests. Our Group is aware of the importance of generating trust in its stakeholders, for the long-term solidity of our business and shared value creation and protection. By using dedicated channels, we aim to maintain a constant dialogue with employees, clients, the financial community, suppliers, civil society and other institutions. These channels enable us to gather their expectations and opinions and address them properly.
53
03 | WE SHARE, WE CARE
LOCAL COMMUNITIES
PARTICIPATING IN UNITED NATIONS GLOBAL COMPACT
GROUP COMMITMENT FOR SOCIAL DEVELOPMENT IN INDIA
EXECUTION PHASE AND LOCAL COMMUNITIES: OMAN
Maire Tecnimont Group keeps investing on creating new education and training opportunities to disadvantaged children and women in India.
Site preparation activities for large industrial complex usually imply the movement and disposal of huge quantities of soil. At the construction site of Liwa Plastic Industries Complex Project EPC2 package for ORPIC, at Sohar, this activity, strictly connected with a successful and on time project progress, turned into an opportunity for local environment to the benefit of the communities.
Partnering with the local NGO Meljol on 60 schools of Mumbai and Navi Mumbai, the first program allows about 9,000 children from 6 to 18 years to access specific trainings according to Aflatoun & Aflateen method and social & financial sessions. Aflatoun & Aflateen method encourages children and young people to manage their resources better and start social and financial micro-enterprises. A second support program has been developed by our Group in partnership with the local NGO CORP to promote the active participation of women in the economic life of their communities thanks to vocational courses (tailoring, beautician, teachers training, computer literacy and income generation programmes). The project involves about 600 women in 13 disadvantaged neighbourhoods of Greater Mumbai and combines professional skill training with education on women’s rights and empowerment.
54
Our Group decided to give its contribution to stop the heavy seashore erosion which was threating houses’ and roads’ safety in Carawan Village, by the reclamation of a piece of beach, around 2 Km in length. Thanks to the cooperation with local authorities, Sohar Municipality, Ministry of Environment and Sohar Environmental Unit, the soil deriving from Liwa Plastic EPC2 site was successfully reused to repair the Carawan Seashore so offering local communities the opportunity to take a portion of their territory back.
55
For the fourth year Maire Tecnimont Group renewed its support to the ten principles behind the largest voluntary corporate responsibility initiative in the world, being one of more than 12,000 UN Global Compact signatories in 170 countries. Our commitment for protecting human rights, respecting labour and the environment, and fighting against corruption is part of our duty as a responsible corporate citizen and our responsibility as a participant of the Compact. To make this commitment even more real, our Group participates as a founding member of Global Compact Network Italy.
Revenues
FINANCIAL HIGHLIGHTS EBITDA
Backlog 2,435.4
6,893.0
6,516.5
1,669.6
Net Income 85.3
160.0
2016 Backlog by Area
130.8 43.8
NFP
39%
29%
13%
16%
3%
Middle East
Europe
Africa
Asia
Others
2016 Backlog by Type*
Net Worth 184.7
125.6 126.2
42.8
1%
11%
88%
E
EP
EPC
* Excluding the Infrastructure & Civil Engineering Business Unit
56
57
SHAREHOLDER NOTEBOOK Maire Tecnimont’s market capitalization increased by 2.8% in 2016 (from Euro 766,874,025 at the end of 2015 to Euro 788,260,950 as the end of 2016). Our stock performance was significantly influenced by various factors during year:
Share capital of Maire Tecnimont S.p.A. At 31 December 2016
• A general weakness in the equity markets in the first two months of 2016, due to economic and political uncertainty;
Share Capital
Euro 19,689,550
Number of Ordinary Shares
no. 305,527,500
Market Float, Number of Shares
no. 106,875,000
Market Float as a % of Share Capital
34.98%
Ordinary share stock price on the Milan Stock Exchange, in €
01.01 - 30.12.2016
Maximum (18 March 2016)
2.72
Minimum (9 February 2016)
1.855
Average
2.3323
End of Period (30 December 2016)
2.58
Market capitalization (at 31 December 2016)
788,260,950
Market capitalization (at 31 March 2017)
1,069,346,250
• Maire Tecnimont’s 2015 positive results announced in March 2016 and upgrading of analysts’ recommendations and target prices that positively influenced the stock in the second part of the First Quarter; • A negative sentiment for the Oil Services sector in the central part of the year, notwithstanding the Oil price increases; • A renewal interest in the Oil Services sector in the second part of the year, after the summer break, that had a strong positive impact on the Stock. 129.5551
The number of ordinary shares of the Issuer at 31.12.2016 was 305,527,500 and did not change in the year. The daily average trading volume in 2016 was 787,786 shares with an average unit price of Euro 2.3323.
102.7888
89.8041
Maire Tecnimont share price performance vs BEUOILS and vs ITMC in 2016 Normalized as of 03.01.2016
58
Maire Tecnimont
FTSE MIB Index
BEUOILS Index
EDITED BY Maire Tecnimont Public Affairs & Communication Department COORDINATION: Valentina Grieco, Communication and Sustainability SUPERVISION: Carlo Nicolais, Head of Public Affairs and Communication GRAPHIC DESIGN Visualmade, Milano PHOTOS Maire Tecnimont Group Image Bank, Stefano Scarpiello, Rita Antonioli PRINTING Gamedit April 2017
INFOGRAPHICS
THE GROUP MOTTOS 1. RIDE THE TURNAROUND!
2. TAKE THE CHALLENGE!
The challenge of our Group: impeccably deliver our portfolio through operational and financial discipline.
Managing uncertainties is the core of our job… As a sailor faces the sea every day.
MASTER THE CHANGE, BE ACTIVELY PART OF IT!
LET THE PASSION FOR RESULTS DRIVE YOUR ACTIONS!
3. EVERY SINGLE DECISION COUNTS!
4. STEP UP AND MAKE THINGS HAPPEN!
Our work-success is the result of a thousand single choices made in the right sequence. There is no time for procrastination.
Talk and listen directly to your colleagues. Sending an e-mail could not be a solution. Let’s keep our doors open.
YOUR CONTRIBUTION MAKES A DIFFERENCE!
BEAT THE BUREAUCRATIC APPROACH!
5. BE ADAPTIVE!
6. WE ARE RESILIENT!
Fast changes in the market create discontinuities while opening also opportunities to the most responsive players.
Recovering quickly from drastic changes is part of our noble and precious DNA. We live in a tough environment, but adversity made us stronger.
AGILITY IS THE KEY!
LET’S CAPITALIZE ON LESSONS LEARNT!
7. NOT JUST THE COMPANY, THIS IS YOUR COMPANY!
8. OUR TOMORROW IS NOW!
Building together the success of our Group creates shared value to everyone.
These are extraordinary times. If we stay focused on our corridor of growth we will be ready to build the next decade of Maire Tecnimont.
BE ENTREPRENEUR IN A NETWORK OF ENTREPRENEURS!
THE FLOOR IS OURS!
COMPETENCE, ENTREPRENEURSHIP AND ADAPTIVENESS ARE THE KEY WORDS TO BE SUCCESSFUL IN OUR INDUSTRY IN THE NEW ERA WE ARE ENTERING. THESE MOTTOS HAVE BEEN SPREAD THROUGHOUT OUR WORLDWIDE PREMISES TO COMMUNICATE TO ALL OUR STAKEHOLDERS THE BEAUTY OF THE CHALLENGE WE HAVE IN FRONT TO GET READY TO THE NEW DECADE.
PETROCHEMICALS SINCE
1970
62 POLYETHYLENE PLANTS
117 POLYPROPYLENE PLANTS
30%
MARKET SHARE IN POLYOLEFIN PLANTS (#1 WORLDWIDE FOR CAPACITY INSTALLED IN THE LAST SIX YEARS), INCLUDING A 40% SHARE IN LDPE
The Group, through its subsidiary Tecnimont, has access to all first-class polyolefins technologies and has the size and capability to manage and execute several projects simultaneously using different technologies while ensuring confidentiality and preserving Licensors’ know-how. Tecnimont is included in the shortlist of preferred engineering contractors for many patented technologies, and can develop the Licensor’s process design package - the know-how documentation delivered by the technology provider to the Contractor - for and on behalf of the Licensor itself.
14 10 9
4
3
1
8 13
11 12
2
18
17 16
5
15
Tecnimont is able to perform a wide range of functions in the international market for polyolefins plants. These include acting as general contractor for entire petrochemical complexes, providing the complete chain of services, starting from feasibility studies and technology selection, through basic and detailed engineering, supply of equipment and materials, to supervision of erection, construction and commissioning, on an EPC LSTK basis.
2
3
4
ABS + RUBBER PLANT - Bandar Asaluye, Iran Client: JSC for JAM PETROCHEMICAL Contract type: Engineering Services FIRE WATER PIPING UPGRADE - Al Jubail, Kingdom of Saudi Arabia Client: Al Waha Petrochemicals Co Contract type: EPC PP, U&O PLANT - Sumgayit, Azerbaijan Client: SOCAR Polymer Contract type: EPC HDPE PLANT - Sumgayit, Azerbaijan Client: SOCAR Polymer Contract type: EPC
7
MAIN COMPLETED PROJECTS
ONGOING PROJECTS
1
6
5
6
7
LLDPE-HDPE-PP PLANTS - Sohar, Oman Client: LIWA Plastic Industries Complex ORPIC Contract type: EPC
8
POLYOLEFINS UNITS (RAPID) - Pengerang, Malaysia Client: PRPC Polymers Sdn Bhd (PETRONAS) Contract type: EPCC (JV HQC)
9
HDPE PLANT (PETRONAS’ PENGERANG INTEGRATED COMPLEX (PIC)) - Pengerang, Malaysia Client: PRPC Polymers Sdn Bhd (PETRONAS) Contract type: EPCC (JV HQC)
10
11
LDPE PLANT - Sadara, Kingdom of Saudi Arabia Client: Sadara Chemical Company Contract type: EPC LDPE PLANT - Bratislava, Slovak Republic Client: Slovnaft Petrochemicals s.r.o. (MOL Group) Contract type: EPC PDH PLANT - Police, Poland Client: Polska S.a Contract type: FEED + CE POLYOLEFINS COMPLEX - Rabigh, Kingdom of Saudi Arabia Client: Petro Rabigh (JV Aramco - Sumitomo) Contract type: EPC (Consortium Sumitomo Chemical Eng.Co)
12
13
14
15
LDPE PLANT - Veracruz, Mexico Client: Etileno XXI Services BV Contract type: EP PDH - PP PLANT - Al Jubail, Kingdom of Saudi Arabia Client: Al Waha (JV Sahara, LyondellBasell) Contract type: EPC (Consortium Daelim) PDH PLANT - Tobolsk, Western Siberia Client: Tobolsk Polymer LLC (JSC Sibur Holding) Contract type: EPC LLDPE-HDPE-PP PLANTS - Dahej, Gujarat, India Client: OPAL (JV ONGC, GSPC, GAIL) Contract type: EPC
16
17
17
POLYOLEFINS COMPLEX - Ruwais, United Arab Emirates Client: BOROUGE 2 (JV ADNOC - Borealis) Contract type: EPC POLYOLEFINS COMPLEX - Ruwais, United Arab Emirates Client: BOROUGE 3 (JV ADNOC - Borealis) Contract type: EPC (JV Samsung) PE - NAO PLANTS - Mesaieed, Qatar Client: Qatar Chemical Company II Contract type: EPC (Consortium Daewoo)
< 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
MAIN AVAILABLE TECHNOLOGIES PRODUCT
LICENSOR – TECHNOLOGY
COUNTRY
PP (POLYPROPYLENE)
BASELL POLIOLEFINE – Spheripol, Spherizone BOREALIS – Borstar PP CHEVRON PHILLIPS GRACE (former DOW CHEMICAL) – Unipol PP INEOS – Innovene PP MITSUI CHEMICAL – Hypol II JAPAN POLYPROPYLENE CORPORATION – JPP Horizone Process LUMMUS TECHNOLOGY – Novolen
ITALY AUSTRIA USA USA USA JAPAN JAPAN USA
LLDPE / HDPE (LINEAR LOW DENSITY / HIGH DENSITY
BASELL POLIOLEFINE – Spherilene BOREALIS – Borstar PE INEOS – Innovene G UNIVATION – Unipol PE SUMITOMO
ITALY AUSTRIA UK USA JAPAN
LDPE (LOW DENSITY POLYETHYLENE)
BASELL POLYOLEFINE – Lupotech T, Lupotech A EXXONMOBIL (EXCEPT HP DESIGN) SUMITOMO
GERMANY USA JAPAN
HDPE (HIGH DENSITY POLYETHYLENE)
BASELL POLYOLEFINE – Hostalen CHEVRON PHILLIPS INEOS – Innovene S MITSUI CHEMICAL – Cx
GERMANY USA UK JAPAN
POLYSTYRENE (EPS, HIPS, GPPS)
VERSALIS (former POLIMERI EUROPA)
ITALY
ABS
VERSALIS (former POLIMERI EUROPA)
ITALY
PBR
MICHELIN
FRANCE
IIR (BUTYL RUBBER)
SIBUR
RUSSIA
ESBR, SBS, SB, LCBR, HCBR, EPDM RUBBERS
VERSALIS (former POLIMERI EUROPA)
ITALY
SSBR
GOODYEAR JAPAN SYNTHETIC RUBBER (JSR) VERSALIS (former POLIMERI EUROPA)
USA JAPAN ITALY
STEAM CRACKING (FOR ETHYLENE, PROPYLENE, ETC)
KBR LINDE LUMMUS TECHNOLOGY TECHNIP TECHNIP / STONE & WEBSTER
USA GERMANY USA FRANCE FRANCE / USA
PDH (PROPANE/ISOBUTANE DEHYDROGENATION)
LUMMUS TECHNOLOGY – Catofin UHDE – Star UOP – Oleflex YARSINTEZ
USA GERMANY USA RUSSIA
EO/EG (ETHYLENE OXIDE & ETHYLENE GLYCOL)
SCIENTIFIC DESIGN / SABTEC SHELL GLOBAL SOLUTIONS PETRON SCIENTECH INC.
USA / KSA HOLLAND USA
ACN (ACRYLONITRILE)
INEOS NITRILES (former BP, former SOHIO)
USA
PTA (PURIFIED TEREPHTHALIC ACID)
GRUPO PETROTEMEX (GPT) – Integrex iPTA MITSUBISHI CHEMICALS
MEXICO JAPAN
BUTADIENE
LUMMUS TECHNOLOGY / BASF (Extraction) LUMMUS TECHNOLOGY (Dehydrogenation) – Catadiene NIPPON ZEON (Extraction)
USA USA JAPAN
DICYCLOPENTADIENE
AXENS
FRANCE
BUTENE–1 FROM ETHYLENE DIMERIZATION
AXENS – Alpha Butol
FRANCE
HEXENE–1 FROM ETHYLENE TRIMERIZATION
AXENS – Alpha Hexol
FRANCE
POLYETHYLENE)
ACETONE CYANOHYDRIN & MMA (METHYL METHACRYLATE) REPSOL
SPAIN
CUMENE/PHENOL/ACETONE
UOP
USA
LAB (LINEAR ALKYLBENZENES)
UOP
USA
LAO (LINEAR ALPHA OLEFINS)
AXENS CHEVRON PHILLIPS
FRANCE USA
NYLON 6, NYLON 6.6
STAMICARBON (former NOY)
ITALY
PET (POLYETHYLENE TEREPHTHALATE )
GRUPO PETROTEMEX (GPT) – Integrex iPET STAMICARBON (former NOY)
MEXICO ITALY
1. VERSALIS (Ex POLIMERI EUROPA) 2. ZAT 3. AQUAFIL
ITALY POLAND ITALY
CPL (CAPROLACTAM):
1. AMMOXIMATION 2. From CYCLO HEXANE 3. BECKMANN REARR. + CPL PURIFICATION
OIL & GAS 130,000 BOPD 73,000 BOPD
CRUDE REFINERY CAPACITY, CORU MOSCOW REFINERY UPGRADING PROJECT
OIL TREATMENT CAPACITY, ADCO AL DABB’IYA PHASE III PROJECT
370 KM
GATHERING AND EXPORT PIPELINE NETWORK, ADCO AL DABB’IYA PHASE III PROJECT
2,150 MMSCFD GAS TREATMENT CAPACITY, GASCO HABSHAN 5 * SEE FERTILIZERS VALUE CHAIN AT PAGE ** SEE POWER VALUE CHAIN AT PAGE
The Group, through its subsidiaries Tecnimont and KT–Kinetics Technology, has grown with considerable expertise and numerous references in the oil and gas sector, including refining and LNG terminals. We have consolidated our position in oil and gas, both upstream and downstream, with contracts for mega-gas processing complexes, oil field development mega-project and refinery in many the process units. The Group has matured first-class reputation in the Gulf region by its successful completion of EPC contracts in the Kingdom of Saudi Arabia, Kuwait, Qatar and the UAE. The Group has also won major contracts in Russian Federation, CIS, Europe (Poland) and India. Moreover, through KT, the Group operates internationally as a provider of proprietary technologies in Sulphur recovery and hydrogen production and as supplier of critical equipment. Significant EPC/ EPCm refinery projects are under execution in GAZPROMNEFT Moscow Refinery (New complete Hydroskimming Refinery), in Total Antwerp refinery (ROG) and LOTOS Gdansk Refinery (DCU Complex, Naphta hydrotreater, vacuum distillation, HPU).
22
1
2
3
4
8
20
19
12
17
10 11 15
9
7
14 4
6
13
1
16
MAIN COMPLETED PROJECTS
5
REFINERY OFF GAS (ROG) PROJECT - Antwerp, Belgium Client: Total Olefins Antwerp Contract type: EPC
6
CLEAN FUEL PROJECT - Rabigh, Kingdom of Saudi Arabia Client: Petro Rabigh Contract type: EPC
COMBINED OIL REFINING UNIT (CORU) MOSCOW REFINERY - Russian Federation Client: JSC Gazprom Neft Moscow Refinery Contract type: EPCm
7
NEW HYDROGEN PRODUCTION UNIT CADEREYTA REFINERY - Cadereyta (Monterrey), Mexico Client: Pemex Refinación Contract type: EPC
IGD EXPANSION PROJECT (IGD-E1), GAS TREATMENT AND MARINE WORKS - Das Island, United Arab Emirates Client: ADGAS (Adnoc Group) Contract type: EPC (Consortium Archirodon)
8
DELAYED COKER COMPLEX PROJECT AND HYDROWAX VACUUM DISTILLATION - Gdansk, Poland Client: LOTOS Asfalt SP. ZO.O Contract type: EPC
18
21
ONGOING PROJECTS OIL GATHERING, TREATMENT, EXPORT AL DABB’IYA PHASE III - Abu Dhabi, United Arab Emirates Client: ADCO Contract type: EPC
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MODULARIZED HPU, HDT, DEWAXING OF DIESEL FUEL PROJECT - Omsk, Russia Client: JSC Gazprom Neft Contract type: EP – LS
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SULPHUR RECOVERY UNIT - Mostorod, Egypt Client: Egyptian Refinery Company Contract type: EP SULPHUR RECOVERY UNIT, SOUR WATER STRIPPER, AMINE RECOVERY - Milazzo, Italy Client: RAM (Raffineria di Milazzo) Contract type: EPC – LS HYDROGEN PLANT - Al Daura, Iraq Client: Midland Refineries Company Contract type: EPC – LS OIL AND GAS TREATMENT “TEMPA ROSSA“ - Corleto Perticara, Italy Client: Total E&P Italia SpA (Total Group) Contract type: EPSCC
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INTEGRATED GAS DEVELOPMENT, HABSHAN 5 - Abu Dhabi, United Arab Emirates Client: GASCO Contract type: EPC (JV JGC) AROMATICS COMPLEX - Shuaiba, Kuwait Client: Kuwait Paraxylene Production Company (KPPC) Contract type: EPC (Consortium SKEC) WAFA GAS PLANTS PROJECT - Mellitah and Ghadames Basin, Libya Client: AGIP GAS BV Contract type: EPC (JV JGC) LNG TERMINAL CHENTOUJIA - Guangdong, China Client: Guangdong LNG JEO Contract type: EPC (JV Saipem)
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SULPHUR RECOVERY UNIT - Burgas, Bulgaria Client: OOO Lukoil Neftochim Burgas AD Contract type: EPC
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MODULARIZED HYDROGEN PRODUCTION PLANT - Perm, Russian Federation Client: Lukoil Permnefteorgsintez Contract type: EPC
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MILD HYDROCRACKING UNIT - Busalla, Italy Client: IPLOM Contract type: EPC
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HYDROGEN GENERATION PLANT - Rijeka, Croatia Client: Ina Industrija Nafte Contract type: EPC
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CLAUS MODULAR PACKAGE UNIT - Khabarovsk, Russian Federation Client: Khabarovsk Oil Refinery Contract type: EP – LS
SULPHUR RECOVERY UNIT & TAIL GAS TREATMENT 22 - Nynashamn, Sweden Client: Nynash Refinery AB Contract type: EPC – LSTK
< 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
INTEGRATING GROUP COMPETENCES FOR REFINING The Group intends to leverage the existing capabilities in Oil & Gas of two contractors Tecnimont and KT–Kinetics Technology in order to synergistically target Refining as specific business focus. This commercial proposition is based on the current drivers in the industry which on the one hand push towards an increase of the conversion rate of the oil barrel processing, thanks to the best available technologies, and on the other hand request “clean fuel programs” in line with stringent environmental regulations not only in matured but also in emerging countries. Moreover, in the oil and gas market a worldwide trend is arising consisting in the combination of refining and petrochemical units into large integrated complexes, improving efficiency of the output. The companies’ skills are not limited to process engineering, but concern all the disciplines involved in project management, from feasibility to the turnkey phase, guaranteeing the project a design-to-cost engineering and a construction-driven approach. Two examples of projects ongoing are: Lotos Delayed Coker - in which the improvement of output efficiency and the mitigation of environmental impacts are combined with partnerships with strategic Polish suppliers and local subcontractors - and Combined Oil Refinery Unit (CORU) Project by JSC Gazprom Neft, inside the existing Moscow Refinery, which represents a capital milestone in downstream refining.
FERTILIZERS SINCE
54%
1924
MARKET SHARE (#1 WORLDWIDE) IN LICENSING UREA SYNTHESIS PLANTS
98 AMMONIA PLANTS
74 UREA
PLANTS
34%
MARKET SHARE (#2 WORLDWIDE) IN LICENSING UREA GRANULATION TECHNOLOGY
The Group provides a wide and integrated range of services, from feasibility studies to basic engineering, from selecting licensors to developing lump-sum turnkey projects. Thanks to the acquisition of Stamicarbon in 2009, the Group is a benchmark player in the development of ammonia-urea E&C projects, ensuring the best technologies available on the market, granting licensing, executing procurement and construction of new urea plants and revamps of existing ones.
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Over 250 urea plants around the world have used or are currently using our technology.
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Thanks to the expertise acquired in ammonia synthesis plants based on steam reforming of Natural Gas, the Group is also capable and willing to offer large scale methanol plants based on the most reliable and advanced technologies available worldwide.
ONGOING PROJECTS
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FERTILIZERS COMPLEX - Aswan, Egypt Client: KIMA Contract type: EPCC AMMONIA DEBOTTLENECKING - Annaba, Arzew, Algeria Client: Fertial Contract type: E IOWA FERTILIZER COMPANY - Wever, Iowa, USA Client: Orascom Construction Industries Contract type: EP YARA SLUISKIL - Sluiskil, The Netherlands Client: Yara International ASA Contract type: EPC
MAIN COMPLETED PROJECTS
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AMMONIA PLANT - Kingisepp, Russian Federation Client: EuroChem Mineral and Chemical Company Contract Type: EPC AMMONIA/UREA PLANT - Nevinnomyssk, Russian Federation Client: EuroChem Mineral and Chemical Company Contract type: E
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FERTILIZER COMPLEX PROJECT - Al-Jubail, Kingdom of Saudi Arabia Client: SAFCO Contract type: EPC
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UREA DEBOTTLENECKING & GRANULATION PLANT - Shuaiba, Kuwait Client: P.I.C. Contract type: EPC
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AMMONIA PLANT NANGAL - Punjab, India Client: National Fertilizers Ltd. Contract type: EPC
UREA LICENSING BUSINESS
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LAUNCH MELT™ Pool Condenser Design - Assaluye, Iran Client: Lavan Chemical Company Contract type: Licensing, PDP and BEP LAUNCH MELT™ Pool Reactor Design - Kermanshah, Iran Client: Kermanshah Petrochemical Company Contract type: Licensing, PDP and BEP
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EVOLVE CAPACITY™ Revamp - Geismar, USA Client: PCS Nitrogen Geismar Contract type: Licensing, PDP and Equipment Supply - Perm, Russian Federation Client: Uralchem OJSC – Mineral Fertilizers OJSC (PMF) Contract type: Licensing, PDP and BEP - Henan Xianxiang, China Client: Henan XLX Fertilizer Contract type: Licensing, PDP
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EVOLVE EMISSION™ Revamp - Al Jubail, Kingdom of Saudi Arabia Client: Al-Bayroni (Sabic affiliate) Contract type: Licensing, PDP
< 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
ENHANCING TECHNOLOGY PORTFOLIO: NITRIC ACID PLANT DESIGN THE CHALLENGE To design a nitric acid plant with maximum energy recovery and lowest investment costs for single-train capacities up to 1,600 mtpd (100% HNO3). GROUP’S SOLUTION The Group, through its operating company Stamicarbon, has been licensing a range of nitrate technologies since the 1930s and has designed over 40 nitric acid plants. By applying many decades of experience and retaining the reliability and operability from industrially proven elements, we are able to offer our customers a best-in-class, dual-pressure nitric acid technology for single-train capacities up to 1,600 mtpd (100% HNO3). Our solution is designed for maximum energy recovery with lower investment costs that meets the highest safety and environmental emission standards. We are eager to incorporate customer requests into our bespoke plant designs in order to meet specific design requirements. WHAT WE OFFER • Renowned reputation globally • Outstanding technologies and services • Tailor-made plant designs that meet customer specific needs • Full life cycle support
POWER #7
WORLD TOP 10 POWER MARKET ENGINEERING COMPANIES 2016*
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COUNTRIES
21,000
MW INSTALLED
280
PROJECTS SINCE
1962 *ENR Global Sourcebook 2016 Directory
The Group can count on considerable expertise and experience in the engineering and design of advanced electricity generation projects in Italy and abroad. Our skills embrace simple and combined-cycle gas turbines, cogeneration, coal-fired plants, and biomass plants; electricity generating units forming part of Maire Tecnimont’s oil & gas, petrochemicals and fertilizer projects; electricity distribution networks for civil and industrial use; and district heating systems. The Group also provides clients with project management consultancy services and due diligence services, along with feasibility studies and front-end engineering design. Our high-level engineering services match the use of resources to the specific needs of Clients and to their projects.
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We deliver reliable facilities based on the most advanced technologies with the minimum environmental impact, thus ensuring that energy costs remain low throughout the supply chain and minimizing the impact on final consumers and project stakeholders.
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ONGOING PROJECTS
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PULVERISED COAL POWER PLANT 2X376 MW - Punta Catalina, Dominican Republic Client: CDEEE Contract type: EP (Consortium Odebrecht and Estrella) OIL AND GAS TREATMENT “TEMPA ROSSA” 38 MW - Corleto Perticara, Italy* Client: Total E&P Italia S.p.A. (Total Group) Contract type: EPSCC FERTIZER COMPLEX 27 MW - Aswan, Egypt* Client: KIMA Contract type: EPC
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IOWA AMMONIA COMPLEX 20 MW - Wever, Iowa, USA* Client: ORASCOM E&C Contract type: EP AMMONIA COMPLEX 18 MW - Kingisepp, Russian Federation* Client: Kingisepp Russia Contract type: EPC
MAIN COMPLETED PROJECTS
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COMBINED CYCLE 850 MW - Turbigo, Italy Client: Edipower Contract type: EPC (Consortium Techint, Siemens)
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COMBINED CYCLE 840 MW - Piacenza, Italy Client: Edipower Contract type: EPC (Consortium Techint, Siemens)
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COAL POWER PLANT 720 MW - Cearà, Brazil Client: MPX Pecem Geraçao de Energia S.A. (MPX and EDP) Contract type: EPC Third Line “Pecem 2” 365 MW (Consortium Efacec) COAL POWER PLANT 370 MW - Coronel, Chile Client: Colbun Electricity Company Contract type: EPC (Consortium SES)
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BOCAMINA COAL POWER PLANT 370 MW - Coronel, Chile Client: ENDESA Chile Contract type: EPC (Consortium SES)
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COMBINED CYCLE 97 MW - Valona, Albania Client: Albanian Electro-Energy Government Authority (KESH) Contract type: EPC
COAL POWER PLANT 360 MW - Maranhao, Brazil Client: Diferencial Energia Empreendimentos e Participaçoes Ltda (MPX) Contract type: EPC (Consortium Efacec) WAFA GAS PLANTS PROJECT DESERT & COASTAL 120 MW - Mellitah and Ghadames Basin, Libya** Client: AGIP GAS BV Contract type: EPC (JV JGC)
*Utility plant **Power utilities projects < 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
FOCUS ON PUNTA CATALINA COAL FIRED POWER PROJECT
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The Punta Catalina Coal Fired Power Project is located in the south of the Santo Domingo island, in Punta Catalina, Peravia province, approximately 60 km from Santo Domingo. The Project involves the construction of a pulverize bituminous coal generation thermal plant with a capacity of 752 MW, consisting of 2 units of 376 MW each. It will include the installation of a coal receiving jetty for ships with a capacity of 80,000 tons and all supporting facilities for transport and storage of coal; discharge systems, and cooling water treatment and an electrical sub-station, and flue gas emissions and effluences treatment. The latest generation equipment will be manufactured by best-in-class companies and installed to the highest international standards to ensure the supply of electricity for over 30 years. The plant is designed taking into consideration the importance of efficiency and compliance with the highest international environmental standards required by financial institutions like the World Bank and IFC. The design will ensure both the protection and the preservation of the existing ecosystems, guaranteeing the proper management and environmental performances.