Technip Energies' annual revenue, 2023 guidance hit by Russia exit

TechnipFMC

02/03/2023 06:30

By Dina Kartit and Lina Golovnya
       March 2 (Reuters) - French oil and gas services provider
Technip Energies  TE.PA  announced on Thursday lower annual
revenue and guidance for 2023, citing the impact of its exit
from a major LNG project in Russia.
    While the project withdrawal had no financial impact on the
company in 2022, it cost a loss of order books and revenue, CEO
Arnaud Pieton said in a call with journalists on Wednesday.
        "We had to interrupt the execution of the project during
the year, so we have a partial year," said Pieton, while the
group CFO Bruno Vibert said in the call there was no
depreciation of assets.
    In October, Technip Energies signed a deal to leave the
liquefied natural gas project (LNG) Arctic LNG 2 led by
Moscow-listed gas producer Novatek  NVTK.MM  in the first six
months of 2023.
    By the end of Dec. 2021, the Russian projects accounted for
23% of Technip Energies' order backlog.
    Annual adjusted revenue came in at 6.4 billion euros ($6.82
billion), down 4% from 2021 and below a company-provided
consensus of 6.5 billion on average. Adjusted order intake
amounted to 3,845 million euros, far behind the 9.8 billion
euros seen in 2021. 
   The group's Project Delivery segment had annual adjusted
revenue down 6% year-on-year, to 5 billion euros, but adjusted
revenue for the Technology, Product and Service (TPS) branch was
up 8% from 2021, to 1.4 billion euros.
    In 2023, Technip Energies said it expected adjusted revenue
of 5.7-6.2 billion euros and a recurring core margin of
6.7%–7.2% — both below 2022 guidance of 6.2-6.5 billion euros
and 6.7%-6.9%. 
    It expects adjusted backlog of 5.4 billion euros, after
reporting 12.7 million in 2022, down 22% year-on-year.
    In the medium-term, the French group sees adjusted revenue
in Project Delivery of 5-6 billion euros, and around 2 billion
for TPS. Its total adjusted backlog is expected to drop further
to 4.0 billion euros in 2024, and 3.3 billion in 2025+.
    The group proposed a dividend of 0.52 euros per share, up
16% year-on-year. 
    


($1 = 0.9391 euros)

 (Reporting by Dina Kartit and Lina Golovnya, edited by)
 ((dina.kartit@thomsonreuters.com;
lina.golovnya@thomsonreuters.com))