S.A. announced that it expects recurring earnings for the fourth quarter
of 2001 to be below previous guidance. A small loss for the quarter is expected due to delays in settling project variation orders and claims on the
Girassol and Gulfstream projects. In addition, the Company will be writing off certain intangible assets relating to the Comex name, of $8 million, in the fourth quarter of 2001.
The Company anticipates that earnings for the full year of 2002 will be between $0.35 and $0.70 per share with the first quarter earnings
at a loss of $0.10 to $0.15 per share. There are currently a number of variables that will influence these results, including outstanding variation orders, which will be explained in detail on the year end financial results conference call
on January 30, details of which are below.