Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Energy

Thursday, June 26, 2008

Telvent Develops Technological Project for Sinopec, One of the Most Powerful Energy Utilities in China

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Comtex

MADRID, Spain, Jun 26, 2008 (PrimeNewswire via COMTEX) ----Telvent (Nasdaq:TLVT), the IT company for a sustainable and secure world, announced today that it has been awarded the project for supplying technological systems that will control the Sichuan-East China gas pipeline, owned by Sinopec (China Petroleum & Chemical Corporation), the second largest oil and gas operator in China, and the country's largest corporation in turnover volume in 2007. The contract amount totals more than 2.4 million euros.

The project involves Telvent's delivery of a turnkey solution adapted to the control and supervision needs and requirements of Sinopec's gas pipeline. This solution, based upon Telvent's OASyS 6.3 SCADA system for data acquisition and control, will provide Sinopec with accurate data on the entire process of gas transportation, thereby ensuring optimization of China's natural gas resources.

The data acquisition and control solution will be implemented in the main control center and the emergency control center, where the 20 data acquisition stations and the 25 communication stations (PLC: Power Line Communication) will be controlled. In addition, Telvent will handle system design, integration with the existing systems, testing, installation, start-up, training and maintenance.

Factors such as the system's functional and operational advantages, Telvent's ability to provide local support, its proven and extensive experience in this field, and its strong commitment to all of its clients, put Telvent ahead of the companies that tendered for this project. By winning this project, Telvent has succeeded in diversifying its client portfolio in a region that is strategically significant for the Company.

At present, Sinopec has divided the construction of its gas pipeline into three important projects, which will have a direct impact on the evolution of the gas SCADA market. Among these, noteworthy is the Sichuan-East China project, for which Telvent was selected. This makes the Telvent award doubly significant, as the company thereby gains an important point of reference in the SCADA market.

Telvent has executed similar projects worldwide; worth mentioning among them are the oil and gas pipeline SCADA control platform for PetroChina's main control center in Beijing, the SCADA system for supplying gas to the city of Chongqing, the management system for the Guangdong Dapeng LNG gas pipeline, the SCADA system for the Zhong-Wu gas pipeline, and the Yapracik-Ankara natural gas SCADA for BOTAS.

About Telvent

Telvent (Nasdaq:TLVT), the IT company for a sustainable and secure world, specializes in high-value-added products, services and integrated solutions for the Energy, Transportation, Environmental and Public Administration industry segments, as well as Global Services. Its innovative technology and client-proven expertise enable efficient and secure management of the operational and business processes of the world's leading companies. (www.telvent.com)

The Telvent GIT S.A. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3116

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Telvent GIT S.A.

Telvent GIT S.A. Investor Relations: Barbara Zubiria +34 902
   335599 barbara.zubiria@telvent.com The Global Consulting Group Investor Relations: Lucia Domville +1 646 284 9416 ldomville@hfgcg.com
   Abengoa Communication Department: Patricia Malo de Molina +34 954 93 71 11 comunicacion@abengoa.com

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