Technip Energies eyes stronger energy demand
Technip Energies said on April 25 that strong LNG demand and greater global concern about energy security would promote "faster adoption" of energy transition technologies.
Its analysis came as the company reported an adjusted first quarter profit of €72.5mn ($77.8mn), up from €44.2mn last year.
Technip Energies was founded in late-2019 as an offshoot of integrated energy tech and services provider TechnipFMC. Established to specialise in the energy transition, the spinout focuses on pure play engineering and construction contracts across the LNG, hydrogen, offshore wind and biochemicals sectors.
In Russia, it inherited the EPC contract for Novatek's 21.4 metric tons/year Arctic LNG 2 project. Technip Energies is still working on the three-train infrastructure despite the situation in Ukraine, but has conceded further EU sanctions could change its position. Arctic LNG 2 accounted for 27.5% of Technip Energies' €1.6bn first quarter turnover.
In March, Technip Energies had its investment score downgraded by S&P Global Research in anticipation of Arctic LNG 2 disappearing from its backlog. Arnaud Pieton, CEO of Technip Energies, stressed its commitment to sanctions and protecting the welfare of its Russia-based employees.
"We expect that the balance sheet position of the project and the relevant contract protections will be sufficient to fulfil our various contractual obligations in compliance with applicable sanctions.”
Technip Energies recovered ground during the first quarter with new contract awards, and has updated its organisational structure to reflect the LNG, hydrogen, wind and biochemicals components of its business. In the chemicals sector, Technip Energies received a "significant" EPCC contract award from Petronas for a Malaysian melamine plant, with predicted revenues of €50mn to €250mn.
Technip Energies also completed the procurement of process equipment for Sempra LNG's 3.3mn metric tons/year ECA LNG plant in Mexico. Following the end of the first quarter, it was awarded a big offshore wind contract to conduct FEED for Equinor's 800-MW project off the coast of South Korea.