LNG News Editor:
Technip Energies, the leading energy and LNG project company with contracts at leading global ventures including in Arctic Russia, offshore Africa and in Mexico, reported a jump in first-quarter revenues and profits.
First-quarter adjusted revenues increased to €1.62 billion compared with €1.55Bln in the same three months of 2021.
Quarterly net profits increased to €72 million versus €44.2M in the prior-year quarter.
Russian contract
The Technip Energies backlog amounted to €15.63Bln compared with €17.80Bln a year ago.
Technip Energies revenues had benefited from sustained activity on the Arctic LNG 2 project run by Russian company Novatek on the Gydan Peninsula, which contributed €445.4M of revenue in the quarter.
“Revenues outside of Russian projects under execution increased year-over-year by 25 percent due to the ramp-up of recently awarded LNG and downstream projects,” added the company.
“First-quarter revenue growth and solid profitability demonstrate strong execution across the entirety of our portfolio from project delivery to technology, products and services,” said Arnaud Pieton, Chief Executive of Technip Energies.
“This is consistent with our full-year financial framework and we expect our activity outside of Russia to progressively ramp up through 2022,” stated the CEO.
Pieton explained that regarding Russia, Technip Energies was committed to complying with all applicable laws and regulations, which includes current and future sanctions.
“Our priorities are to protect our people, and the interests of our company and shareholders,” stated the CEO. “In anticipation of the escalation of the European Union sanctions, we have been working with clients, partners and suppliers within the relevant contractual frameworks to take appropriate measures in connection with our activities in Russia, including Arctic LNG 2,” he added.
“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,” Pieton declared.
The CEO added that in the first quarter the company reconfigured the organizational structure around four business lines focused on the various markets.
He noted that the energy landscape has become more complex in recent months with an urgent energy independence agenda, notably in Europe.
Livelier LNG market
“Despite near-term volatility in commodity and raw material prices, the attractiveness of LNG, an inherently flexible energy source, has improved and the market opportunity is accelerating,” said Pieton.
“In addition, government policy is increasingly promoting faster adoption of energy transition technologies and Technip Energies is playing a leading role in this market evolution,” he added.
In a list of project updates, Technip said it installed all Gravity-Based Structure-One modules for Arctic LNG 2.
In the US Sempra Infrastructure-led Costa Azul Mexican LNG export project on the Pacific Coast, the company said that all process equipment had been ordered and a 60 percent model review had been completed.
Progress was also reported at the Greater Tortue Ahmeyim floating offloading and storage (FPSO) and floating LNG projects offshore Senegal and Mauritanian waters in West Africa.
The project being developed by UK major BP and US-based Kosmos Energy had had now seen the completed of the installation of all 16 mooring piles.
For the Energean Karish Gas Development offshore Israel, the FPSO had entered dry-dock in March 2022 to be cleaned and prepared for sail-away and entry into Israeli waters.
Also in the first quarter, Technip Energies, whose shares are listed on Euronext Paris and whose American Depositary Receipts (ADRs) are traded over-the-counter, announced three investments in the markets outside of the LNG sector in hydrogen, floating offshore wind and biochemicals.
“These expand and diversify our technology portfolio, while enabling new business model opportunities,” he added.
