Technip Energies sees boost from growing LNG demand

TechnipFMC

29/02/2024 12:12

PARIS, Feb 29 (Reuters) - 
    French infrastructure and technology company Technip
Energies  TE.PA  posted resilient earnings despite a retreat
from Russia, buoyed by a rise in new project orders that it
expects will continue into 2024 as global demand for new
liquefied natural gas (LNG) capacity rises.
    "2023 was an exceptional year both in terms of profitability
and our order book... which will allow us to sustain our current
and future growth," said CEO Arnaud Pieton on a call with
journalists.
    Annual adjusted revenue came in at 6 billion euros ($6.5
billion), down from 6.4 billion euros a year ago. Recurring EBIT
dipped to 445 million euros from 451 million euros but the
margin improved to 7.4%.  
    Order intake amounted to 10.1 billion euros, up from 3.8
billion euros in 2022 and surpassing the 9.8 billion euros seen
in 2021.
"Significantly lower revenue" from Russian LNG projects — the
company last year exited the Arctic LNG 2 project, while its
Yamal LNG contract was completed in 2022 — were offset by income
from QatarEnergy's North Field South and North Field East LNG
projects, as well as downstream projects, company results
showed.
    The company is targeting 2024 revenue between 6.1 and 6.6
billion euros, and adjusted core (recurring EBIT) margin of
7-7.5%, betting that an increase in global demand for LNG will
result in additional project orders.
"The LNG wave isn't finished — you've probably heard
announcements by QatarEnergy to add capacity through 2030, and
this trend exists in other geographies ... We intend to win on
LNG in 2024 and the mid-term," said Pieton.
    The CEO added that Technip is currently building projects
that will add 50 million tons of LNG per annum (mtpa), and has
been selected for a project pipeline of 10 mtpa more expected to
come to a final investment decision (FID) this year.
Pieton said he expects the global market to add between 140 mtpa
and 160 mtpa of LNG capacity on projects reaching FID between
2024 and 2026, mostly outside the U.S. given that country's
pause on new LNG export approvals.
    The company also proposed a 10% annual dividend increase and
launched a 100 million euro share buyback program.
     
     
    ($1 = 0.9230 euros)

 (Reporting by America Hernandez in Paris, Diana Mandia Alvarez
in Gdansk)
 ((mailto:america.hernandez@thomsonreuters.com))