Technip Energies First Quarter 2024 Financial Results
TECHNIP ENERGIES FIRST QUARTER 2024
FINANCIAL RESULTS
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- Strong
momentum for Technip Energies; on track to deliver full year
guidance
- Adjusted
recurring EBIT of €111m with a margin of 7.3%; Adjusted diluted EPS
of €0.50, +11% Y/Y
- Technip Energies
selected for major projects in LNG and carbon capture, supporting
strong full year orders
- High demand
continues for Technology, Products & Services with €620m order
intake in Q1 2024
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Paris, Thursday, May 02, 2024. Technip Energies
(the “Company”), a leading Engineering &
Technology company for the energy transition, today announces its
unaudited financial results for the first quarter of 2024.
Arnaud Pieton, Chief Executive Officer of Technip
Energies, commented:
“Our solid first quarter provides a
robust platform to deliver our full year
guidance. Our two segments achieved year-over-year
revenue growth and earnings per share increased by 11 percent on
the strength of the business performance.”
“Operationally, both segments are performing
well. In Project Delivery, key LNG projects are ramping
up in the Middle East, and in Technology, Products &
Services - TPS - we made good progress both in the delivery of
ethylene furnaces and in high-value engineering services across our
businesses. Likewise, commercial momentum
in TPS remained strong with order intake significantly in
excess of segment revenue, benefiting from high demand, notably in
carbon capture and project management consultancy. Overall, a solid
start to 2024, and I want to express my gratitude to our teams that
continue to drive our leading performance.”
“We advanced on the delivery of our full year
priorities, including strengthening our leadership in
low-carbon, electrified LNG and net-zero solutions. We
were selected for a major low-carbon LNG development on ADNOC's
Ruwais project in the UAE, and, in April, were awarded a
substantial contract for Marsa LNG in Oman - both are destined to
be amongst the lowest-carbon intensity LNG plants ever built. In
addition, a T.EN-led consortium was selected for a large carbon
capture infrastructure in the UK for bp's Net Zero Teesside,
pending final investment decision. These achievements demonstrate
T.EN’s commitment to energy supply, net-zero ambitions, and
geographic diversification.”
“At the same time, we continue to
innovate and drive decarbonization in our markets,
including ethylene. Together with our partner LanzaTech, we were
recognized by the US Department of Energy with an up to $200
million investment for a commercial facility to produce ethylene
from CO2. And, with the launch of EkWil, a joint venture with SBM
Offshore, we aim to deliver competitive solutions for the nascent
floating offshore wind sector.”
“The path to net-zero is
multi-dimensional; markets are moving at different paces
in different geographies with greater near-term focus on real world
issues, namely energy security and affordability. While natural gas
remains a global market, cleantech industries - including carbon
capture, sustainable fuels and clean hydrogen - are shaping up to
be more regionalized.”
“As a global delivery partner with local
expertise, I am confident that we have the right strategy
with the right people and capabilities to capture value in
this dynamic environment.”
Key financials – adjusted IFRS
(In € millions, except EPS and %) |
Q1 2024 |
Q1 2023 |
Revenue |
1,520.8 |
1,406.5 |
Recurring EBIT |
110.7 |
107.3 |
Recurring EBIT margin % |
7.3% |
7.6% |
Net profit |
90.1 |
80.0 |
Diluted earnings per share(1) |
€0.50 |
€0.45 |
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Order intake |
849.9 |
712.7 |
Backlog |
15,258.8 |
12,047.3 |
Financial information is presented under adjusted IFRS (see
Appendix 8.0 for complete definition). Reconciliation of IFRS to
non-IFRS financial measures are provided in
appendices.(1) Q1 2024 and Q1 2023 diluted earnings per
share have been calculated using the weighted average number of
outstanding shares of 182,050,239 and 179,302,927
respectively. |
Key financials – IFRS
(In € millions, except EPS) |
Q1 2024 |
Q1 2023 |
Revenue |
1,498.1 |
1,399.7 |
Net profit |
90.8 |
81.4 |
Diluted earnings per share(1) |
€0.50 |
€0.45 |
(1) Q1 2024 and Q1 2023 diluted earnings per share have
been calculated using the weighted average number of outstanding
shares of 182,050,239 and 179,302,927 respectively. |
2024 full company guidance – adjusted IFRS
Revenue |
€6.1 – 6.6 billion |
Recurring EBIT margin |
7.0% – 7.5% |
Effective tax rate |
26% – 30% |
Diluted earnings per
share(1) |
Double-digit growth |
Financial information is presented under adjusted IFRS (see
Appendix 8.0 for complete definition). Reconciliation of IFRS to
non-IFRS financial measures are provided in appendices.(1) Diluted
earnings per share growth indication excludes potential enhancement
from share buyback program |
Conference call information
Technip Energies will host its Q1 2024 results
conference call and webcast on Thursday, May 2, 2024 at 13:00 CEST.
Dial-in details:
France: |
+33 1 70 91 87 04 |
United Kingdom: |
+44 1 212818004 |
United States: |
+1 718 7058796 |
Conference Code: |
880901 |
The event will be webcast simultaneously and can
be accessed at: T.EN Q1 2024 Webcast
Contacts
Investor
Relations |
Media
Relations |
Phillip Lindsay |
Jason Hyonne |
Vice President, Investor Relations |
Manager, Press Relations & Social Media |
Tel: +44 20 7585 5051 |
Tel: +33 1 47 78 22 89 |
Email: Phillip Lindsay |
Email: Jason Hyonne |
About Technip Energies
Technip Energies is a leading Engineering & Technology
company for the energy transition, with leadership positions in
LNG, hydrogen and ethylene as well as growing market positions in
blue and green hydrogen, sustainable chemistry and CO2 management.
The Company benefits from its robust Project Delivery model
supported by an extensive Technology, Products and Services
offering.
Operating in 34 countries, our 15,000 people are fully committed
to bringing our clients’ innovative projects to life, breaking
boundaries to accelerate the energy transition for a better
tomorrow.
Technip Energies shares are listed on Euronext Paris. In
addition, Technip Energies has a Level 1 sponsored American
Depositary Receipts (“ADR”) program, with its ADRs trading
over-the-counter.
For further information: www.ten.com.
Operational and financial review
Order intake, backlog and backlog
scheduling
Adjusted order intake for Q1 2024 amounted to
€850 million, equivalent to a book-to-bill of 0.6. Adjusted order
intake included a series of awards in carbon capture, namely a
front-end engineering & design (FEED) for a project to
decarbonize cement production at Heidelberg Materials’ facility in
Canada, a FEED for the Viking CCS project in the UK, a Process
Design Package for a proposed post-combustion carbon capture
project at Uniper’s Grain Power Station in the UK, and an
Engineering, Procurement, and Fabrication (EPF) contract by Carbon
Centric for a Canopy C10 unit in Norway. In addition, T.EN secured
variation orders on existing projects, as well as project
management consultancy work, other services contracts and smaller
projects.
Adjusted backlog increased by 27% year-over-year
to €15.3 billion, equivalent to 2.5x FY 2023 revenue. Adjusted
backlog was positively impacted by foreign exchange of €98.6
million.
(In € millions) |
Q1 2024 |
Q1 2023 |
Adjusted order intake |
849.9 |
712.7 |
Project Delivery |
230.0 |
127.1 |
Technology, Products & Services |
619.8 |
585.6 |
Adjusted backlog |
15,258.8 |
12,047.3 |
Project Delivery |
13,286.2 |
9,832.1 |
Technology, Products & Services |
1,972.5 |
2,215.3 |
Reconciliation of IFRS to non-IFRS financial measures are provided
in appendices.Adjusted backlog at March 31, 2024, has been impacted
positively by foreign exchange of €98.6 million. |
The table below provides estimated backlog
scheduling as of March 31, 2024.
(In € millions) |
2024 (9M) |
FY 2025 |
FY 2026+ |
Adjusted backlog |
4,088.6 |
4,406.3 |
6,763.8 |
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Company financial
performance
Adjusted statement of income
(In € millions, except %) |
Q1 2024 |
Q1 2023 |
% Change |
Adjusted revenue |
1,520.8 |
1,406.5 |
8% |
Adjusted EBITDA |
136.6 |
130.9 |
4% |
Adjusted recurring EBIT |
110.7 |
107.3 |
3% |
Non-recurring items |
(1.6) |
(11.5) |
(86)% |
EBIT |
109.1 |
95.8 |
14% |
Financial income (expense), net |
19.9 |
20.4 |
(2)% |
Profit (loss) before income tax |
129.0 |
116.2 |
11% |
Income tax (expense) profit |
(33.7) |
(33.0) |
2% |
Net profit (loss) |
95.3 |
83.2 |
15% |
Net profit (loss) attributable to Technip Energies Group |
90.1 |
80.0 |
13% |
Net profit (loss) attributable to non-controlling interests |
5.2 |
3.2 |
63% |
Business highlights
Project Delivery – adjusted IFRS
(In € millions, except % and bps) |
Q1 2024 |
Q1 2023 |
% Change |
Revenue |
1,045.5 |
954.8 |
9% |
Recurring EBIT |
78.5 |
77.3 |
2% |
Recurring EBIT margin % |
7.5% |
8.1% |
(60) bps |
Financial information is presented under adjusted IFRS (see
Appendix 8.0 for complete definition). |
Q1 2024 Adjusted revenue
increased by 9% year-over-year to €1,045.5 million resulting from
the continued ramp-up towards peak activity on Qatar NFE, a growing
contribution from Qatar NFS, as well as continued activity in
downstream projects.
Q1 2024 Adjusted recurring EBIT
increased by 2% year-over-year to €78.5 million. Q1 2024
Adjusted recurring EBIT margin decreased slightly
year-over-year by 60 bps to a more normalized level of 7.5%,
reflecting a re-balancing of the portfolio and growing volumes from
early-phase projects.
Q1 2024 Key operational milestones
Qatar Energy North Field Expansion (Qatar)
- All equipment
delivered for the first train; erection activities for the
electrical and mechanical equipment are ongoing and the first
pre-commissioning activities have commenced.
Qatar Energy North Field South (Qatar)
- First underground piping installation was completed for fresh
cooling water.
Sempra Infrastructure’s Energía Costa Azul LNG - ECA
Liquefaction, Phase 1 (Mexico)
- All major
equipment for liquefaction and pretreatment installed and heavy
haul completed.
Midor Refinery Expansion (Egypt)
- Refinery is running with all units
online and full crude processing capacity reached.
HPCL Visakh hydrogen generation unit
(India)
- Official certificate for completion of commissioning
received.
Bapco Refinery expansion (Bahrain)
- Start-up and operation of nitrogen
and main cooling water units.
Q1 2024 Key commercial and strategic
highlights
Technip Energies received Limited Notice To Proceed for
ADNOC’s Ruwais LNG Project (UAE)
- Technip
Energies, leader of a joint venture with JGC and NPCC, received a
Limited Notice To Proceed (LNTP) from ADNOC to commence early
engineering, procurement and construction activities at the Ruwais
low-carbon LNG project, located in Al Ruwais Industrial City, Abu
Dhabi. The project will consist of two natural gas liquefaction
trains with a total LNG production capacity of 9.6 Mtpa. The plant
will use electric-driven motors instead of conventional gas
turbines and will be powered by nuclear energy, making it one of
the lowest-carbon intensity LNG plants in the world.
- This project is
pending customer final investment decision. The LNTP scope is
included within Q1 2024 backlog.
Technip Energies selected for Net Zero Teesside, one of
the world’s first commercial scale gas-fired power and carbon
capture projects (UK)
- Technip
Energies, leader of a consortium with GE Vernova, and construction
partner, Balfour Beatty, received a Letter of Intent (LOI) from bp,
on behalf of NZT Power Limited for the execution phase of the Net
Zero Teesside Power (NZT Power) project. This landmark project is
poised to become one of the world’s first commercial scale
gas-fired power stations with carbon capture, expected to capture
up to 2 million tonnes of CO2 per year. The project is set to
provide flexible, dispatchable low-carbon power equivalent to the
average electricity requirements of around 1.3 million UK
homes.
- This project is
pending customer final investment decision and not included in Q1
2024 backlog.
Technology, Products & Services (TPS) – adjusted
IFRS
(In € millions, except % and bps) |
Q1 2024 |
Q1 2023 |
Change |
Revenue |
475.3 |
451.7 |
5% |
Recurring EBIT |
44.5 |
46.0 |
(3)% |
Recurring EBIT margin % |
9.4% |
10.2% |
(80) bps |
Financial information is presented under adjusted IFRS (see
Appendix 8.0 for complete definition). |
Q1 2024 Adjusted revenue
increased year-over-year by 5% to €475.3 million, resulting from
higher proprietary equipment volumes, notably for ethylene
projects, as well as sustainable fuels activity, and strong and
sustained momentum in study work across decarbonization
markets.
Q1 2024 Adjusted recurring EBIT
decreased year-over-year by 3% to €44.5 million. Q1 2024
Adjusted recurring EBIT margin declined year-over-year by
80 bps to 9.4% due to higher sales and tendering costs, strategic
development costs for start-up and acquired entities, and higher
spend on research & development. This masks an improvement in
gross margin year-over-year due to a more favorable mix.
Q1 2024 Key operational milestones
ExxonMobil – LaBarge CCS
(USA)
- Construction progressing with major
foundations in place and modules, structural steel and piping
erection in full swing.
Shell Skyline Ethylene Furnace Revamp EPF
(Netherlands)
- Successful start-up of the first of eight cracking
furnaces.
Neste Renewable Products Refinery Expansion - Capacity
Growth Project, Rotterdam (Netherlands)
- Construction activities in progress; heavy lift campaign
completed, structural steel, equipment and piping installation
started.
LanzaJet Freedom Pines biofuels plant (USA)
- Inauguration of the plant using Technip Energies’s proprietary
Hummingbird® technology.
Reju - Taclov (Germany)
- Technip Energies on track to deliver the 1 kta demonstration
plant for Polyethylene Terephthalate (PET) depolymerization in Q3
2024.
Q1 2024 Key commercial and strategic
highlights
CCUS project to decarbonize cement production at
Heidelberg Materials’s facility (Canada)
- Technip Energies
awarded a FEED contract by Heidelberg Materials North America for
its Carbon Capture, Utilization, and Storage (CCUS) project in
Edmonton, Canada. This ground-breaking project will be the first
full-scale application of CCUS in the cement sector. The FEED
contract covers the carbon capture technology for the Edmonton CCUS
project. Powered by the Shell CANSOLV® CO2 capture system, the
Technip Energies solution Canopy by T.ENTM, which will be the basis
of the FEED study, offers cutting-edge performance based on
regenerable amine technology.
Process Design Package for proposed post-combustion
carbon capture project at Uniper’s Grain Power Station
(UK)
- Technip Energies
selected by Uniper to provide a Process Design Package (PDP) for
the post-combustion carbon capture project at their Combined Cycle
Gas Turbine (CCGT) power station on the Isle of Grain in Southeast
England, to potentially capture over 2 million tonnes of CO2 per
year. The contract covers the process design for the CO2 capture,
conditioning, liquefaction, and temporary storage facility. The PDP
will also include the design information required to complete the
final engineering of the plant.
EPF for Carbon Centric carbon capture unit project in
Rakkestad (Norway)
- Technip
Energies, through its Norwegian entity KANFA, awarded the EPF
contract by Carbon Centric for a carbon capture unit project in
Rakkestad, Norway. The project will be designed to capture ten
thousand tons per annum of CO2, which represents >90% of CO2
emissions from the Rakkestad waste incineration plant run by
Østfold Energi. The CO2 will be purified and liquified, prepared
for loading to truck transport. The delivery also contains heat
integration and energy optimization, ensuring the delivery of
energy from the plant is maintained with minimum impact.
FEED for Viking CCS (UK)
- Technip Energies
awarded a FEED contract for the Viking CCS project, the
Humber-based CO2 transportation and storage network led by Harbour
Energy, together with partner bp. The Viking CCS initiative is a
project focused on the transportation and storage of the captured
CO2 into the depleted Viking gas fields. The project aims to reduce
UK emissions by 10 million tonnes annually by 2030, increasing to
15 million tons per year by 2035. Technip Energies, supported by
its subsidiary Genesis, will provide FEED services for the CO2
transportation system, including the CO2 handling station, onshore
and offshore pipeline and platform.
Technip Energies and LanzaTech selected by US DOE for
~$200M of IRA funding for replicable, decarbonized ethylene
plant
- Technip Energies
and LanzaTech selected by the U.S. Department of Energy (DOE)
Office of Clean Energy Demonstrations to begin award negotiations
for up to $200 million in Bipartisan Infrastructure Law and
Inflation Reduction Act (IRA) funding as part of the Industrial
Demonstrations Program (IDP). The project aims to develop a
transformational technology to produce sustainable ethylene from
captured CO2.
Partnership agreement to form EkWiL, a floating offshore
wind joint venture
- Technip Energies
and SBM Offshore signed a Memorandum of Understanding (MoU) for the
creation of a joint venture entity, EkWiL. The new company will be
a Floating Offshore Wind (FOW) pure player, capable of proposing a
wide range of solutions to clients. EkWiL will combine the people
expertise, engineering and delivery capabilities, and complementary
technologies of Technip Energies and SBM Offshore, creating
integrated floating solutions and leading delivery offerings for
the Floating Offshore Wind market. This unique positioning will
enhance execution certainty and cost competitiveness to these
innovative projects.
Corporate and other items
Corporate costs, excluding
non-recurring items, were €12.3 million for Q1 2024.
Non-recurring expense amounted
to €1.6 million.
Net financial income of €19.9
million benefited from interest income generated from cash and cash
equivalents, partially offset by interest expenses associated with
the senior unsecured notes and the mark-to-market valuation impact
of investments in traded securities.
Effective tax rate on an
adjusted IFRS basis was 26.1% for Q1 2024, consistent with the
low-end of the 2024 guidance range of 26% - 30%, driven by a
favorable mix of earnings.
Depreciation and amortization
expense was €25.9 million, of which €16.4 million is
related to IFRS 16.
Adjusted net cash at March 31,
2024 was €2.7 billion, which compares to €2.8 billion at December
31, 2023.
Adjusted free cash flow was
€(58.2) million for Q1 2024. Adjusted free cash flow, excluding the
working capital and provisions variance of €177.5 million, was
€119.3 million benefiting from strong operational performance and
consistently high conversion from Adjusted recurring EBIT. Free
cash flow is stated after capital expenditures of €7.9 million.
Adjusted operating cash flow was €(50.3)
million.
Liquidity
Adjusted liquidity of €4.2
billion at March 31, 2024 comprised of €3.5 billion of cash and
€750 million of liquidity provided by the Company’s undrawn
revolving credit facility, offset by €80 million of outstanding
commercial paper. The Company’s revolving credit facility is
available for general use and serves as a backstop for the
Company’s commercial paper program.
Forward-looking statements
This Press Release contains forward-looking
statements that reflect Technip Energies’ (the
“Company”) intentions, beliefs or current
expectations and projections about the Company's future results of
operations, anticipated revenues, earnings, cashflows, financial
condition, liquidity, performance, prospects, anticipated growth,
strategies and opportunities and the markets in which the Company
operates. Forward-looking statements are often identified by the
words “believe”, “expect”, “anticipate”, “plan”, “intend”,
“foresee”, “should”, “would”, “could”, “may”, “estimate”,
“outlook”, and similar expressions, including the negative thereof.
The absence of these words, however, does not mean that the
statements are not forward-looking. These forward-looking
statements are based on the Company’s current expectations, beliefs
and assumptions concerning future developments and business
conditions and their potential effect on the Company. While the
Company believes that these forward-looking statements are
reasonable as and when made, there can be no assurance that future
developments affecting the Company will be those that the Company
anticipates.
All of the Company’s forward-looking statements
involve risks and uncertainties, some of which are significant or
beyond the Company’s control, and assumptions that could cause
actual results to differ materially from the Company’s historical
experience and the Company’s present expectations or projections.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those set forth in the forward-looking
statements.
For information regarding known material factors
that could cause actual results to differ from projected results,
please see the Company’s risk factors set forth in the Company’s
2023 Annual Financial Report filed on March 8, 2024, with the Dutch
Autoriteit Financiële Markten (AFM) and the French Autorité des
Marchés Financiers (AMF) which include a discussion of factors that
could affect the Company's future performance and the markets in
which the Company operates.
Forward-looking statements involve inherent
risks and uncertainties and speak only as of the date they are
made. The Company undertakes no duty to and will not
necessarily update any of the forward-looking statements in light
of new information or future events, except to the extent required
by applicable law.
APPENDIX
APPENDIX 1.0: ADJUSTED STATEMENT OF INCOME - FIRST
QUARTER 2024
(In € millions) |
ProjectDelivery |
Technology, Products & Services |
Corporate/non allocable |
Total |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Adjusted revenue |
1,045.5 |
954.8 |
475.3 |
451.7 |
— |
— |
1,520.8 |
1,406.5 |
Adjusted recurring EBIT |
78.5 |
77.3 |
44.5 |
46.0 |
(12.3) |
(16.0) |
110.7 |
107.3 |
Non-recurring items (transaction & one-off costs) |
(0.1) |
— |
0.5 |
(0.3) |
(2.0) |
(11.2) |
(1.6) |
(11.5) |
EBIT |
78.4 |
77.3 |
45.0 |
45.8 |
(14.3) |
(27.3) |
109.1 |
95.8 |
Financial income |
|
|
|
|
|
|
38.2 |
26.8 |
Financial expense |
|
|
|
|
|
|
(18.3) |
(6.4) |
Profit (loss) before income tax |
|
|
|
|
|
|
129.0 |
116.2 |
Income tax (expense) profit |
|
|
|
|
|
|
(33.7) |
(33.0) |
Net profit (loss) |
|
|
|
|
|
|
95.3 |
83.2 |
Net profit (loss) attributable to Technip Energies Group |
|
|
|
|
|
|
90.1 |
80.0 |
Net profit (loss) attributable to non-controlling interests |
|
|
|
|
|
|
5.2 |
3.2 |
APPENDIX 1.1: STATEMENT OF INCOME - RECONCILIATION
BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2024
(In € millions) |
Q1 24IFRS |
Adjustments |
Q1 24Adjusted |
Revenue |
1,498.1 |
22.7 |
1,520.8 |
Costs and expenses |
|
|
|
Cost of sales |
(1,279.2) |
(17.6) |
(1,296.8) |
Selling, general and administrative expense |
(100.6) |
(0.4) |
(101.0) |
Research and development expense |
(14.4) |
0.3 |
(14.1) |
Impairment, restructuring and other expense |
(1.6) |
— |
(1.6) |
Other operating income (expense), net |
3.1 |
(1.3) |
1.8 |
Operating profit (loss) |
105.2 |
3.8 |
109.0 |
Share of profit (loss) of equity-accounted investees |
5.9 |
(5.8) |
0.1 |
Profit (loss) before financial income (expense), net and
income tax |
111.1 |
(2.0) |
109.1 |
Financial income |
36.5 |
1.7 |
38.2 |
Financial expense |
(18.2) |
(0.1) |
(18.3) |
Profit (loss) before income tax |
129.4 |
(0.4) |
129.0 |
Income tax (expense) profit |
(33.7) |
— |
(33.7) |
Net profit (loss) |
95.7 |
(0.4) |
95.3 |
Net profit (loss) attributable to Technip Energies Group |
90.8 |
(0.7) |
90.1 |
Net profit (loss) attributable to non-controlling interests |
4.9 |
0.3 |
5.2 |
APPENDIX 1.2: STATEMENT OF INCOME - RECONCILIATION
BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2023
(In € millions) |
Q1 23IFRS |
Adjustments |
Q1 23Adjusted |
Revenue |
1,399.7 |
6.8 |
1,406.5 |
Costs and expenses |
|
|
|
Cost of sales |
(1,192.0) |
0.1 |
(1,191.9) |
Selling, general and administrative expense |
(91.0) |
— |
(91.0) |
Research and development expense |
(10.7) |
— |
(10.7) |
Impairment, restructuring and other expense |
(11.5) |
— |
(11.5) |
Other operating income (expense), net |
(5.8) |
— |
(5.8) |
Operating profit (loss) |
88.7 |
6.9 |
95.6 |
Share of profit (loss) of equity-accounted investees |
9.8 |
(9.6) |
0.2 |
Profit (loss) before financial income (expense), net and
income tax |
98.5 |
(2.7) |
95.8 |
Financial income |
25.1 |
1.7 |
26.8 |
Financial expense |
(5.4) |
(1.0) |
(6.4) |
Profit (loss) before income tax |
118.2 |
(2.0) |
116.2 |
Income tax (expense) profit |
(33.6) |
0.6 |
(33.0) |
Net profit (loss) |
84.6 |
(1.4) |
83.2 |
Net profit (loss) attributable to Technip Energies Group |
81.4 |
(1.4) |
80.0 |
Net profit (loss) attributable to non-controlling interests |
3.2 |
— |
3.2 |
APPENDIX 2.0: ADJUSTED STATEMENT OF FINANCIAL
POSITION
(In € millions) |
Q1 24 |
FY 23 |
Goodwill |
2,099.6 |
2,093.3 |
Intangible assets, net |
119.9 |
120.5 |
Property, plant and equipment, net |
120.2 |
116.7 |
Right-of-use assets |
202.1 |
200.8 |
Equity accounted investees |
25.5 |
24.8 |
Other non-current assets |
309.2 |
305.7 |
Total non-current assets |
2,876.5 |
2,861.8 |
Trade receivables, net |
1,195.0 |
1,189.6 |
Contract assets |
447.8 |
399.8 |
Other current assets |
826.2 |
781.8 |
Cash and cash equivalents |
3,490.4 |
3,569.3 |
Total current assets |
5,959.4 |
5,940.5 |
Total assets |
8,835.9 |
8,802.3 |
Total equity |
2,021.1 |
1,956.3 |
Long-term debt, less current portion |
641.8 |
637.3 |
Lease liability – non-current |
169.8 |
160.4 |
Accrued pension and other post-retirement benefits, less current
portion |
115.0 |
115.8 |
Other non-current liabilities |
150.3 |
157.9 |
Total non-current liabilities |
1,076.9 |
1,071.4 |
Short-term debt |
135.2 |
123.9 |
Lease liability – current |
66.2 |
71.9 |
Accounts payable, trade |
1,492.0 |
1,572.8 |
Contract liabilities |
3,195.3 |
3,156.7 |
Other current liabilities |
849.2 |
849.3 |
Total current liabilities |
5,737.9 |
5,774.6 |
Total liabilities |
6,814.8 |
6,846.0 |
Total equity and liabilities |
8,835.9 |
8,802.3 |
APPENDIX 2.1: STATEMENT OF FINANCIAL POSITION -
RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER
2024
(In €
millions) |
Q1 24IFRS |
Adjustments |
Q1 24Adjusted |
Goodwill |
2,099.6 |
— |
2,099.6 |
Intangible assets, net |
122.7 |
(2.8) |
119.9 |
Property, plant and equipment, net |
118.8 |
1.4 |
120.2 |
Right-of-use assets |
201.5 |
0.6 |
202.1 |
Equity accounted investees |
106.9 |
(81.4) |
25.5 |
Other non-current assets |
312.6 |
(3.4) |
309.2 |
Total non-current assets |
2,962.1 |
(85.6) |
2,876.5 |
Trade receivables, net |
1,207.1 |
(12.1) |
1,195.0 |
Contract assets |
444.6 |
3.2 |
447.8 |
Other current assets |
791.6 |
34.6 |
826.2 |
Cash and cash equivalents |
3,285.3 |
205.1 |
3,490.4 |
Total current assets |
5,728.6 |
230.8 |
5,959.4 |
Total assets |
8,690.7 |
145.2 |
8,835.9 |
Total equity |
2,015.7 |
5.4 |
2,021.1 |
Long-term debt, less current portion |
637.3 |
4.5 |
641.8 |
Lease liability – non-current |
169.6 |
0.2 |
169.8 |
Accrued pension and other post-retirement benefits, less current
portion |
113.4 |
1.6 |
115.0 |
Other non-current liabilities |
232.2 |
(81.9) |
150.3 |
Total non-current liabilities |
1,152.5 |
(75.6) |
1,076.9 |
Short-term debt |
135.2 |
— |
135.2 |
Lease liability – current |
65.8 |
0.4 |
66.2 |
Accounts payable, trade |
1,408.1 |
83.9 |
1,492.0 |
Contract liabilities |
3,076.8 |
118.5 |
3,195.3 |
Other current liabilities |
836.6 |
12.6 |
849.2 |
Total current liabilities |
5,522.5 |
215.4 |
5,737.9 |
Total liabilities |
6,675.0 |
139.8 |
6,814.8 |
Total equity and liabilities |
8,690.7 |
145.2 |
8,835.9 |
APPENDIX 2.2: STATEMENT OF FINANCIAL POSITION -
RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER
2023
(In €
millions) |
Q1 23IFRS |
Adjustments |
Q1 23Adjusted |
Goodwill |
2,088.9 |
— |
2,088.9 |
Intangible assets, net |
110.1 |
— |
110.1 |
Property, plant and equipment, net |
99.1 |
0.3 |
99.4 |
Right-of-use assets |
226.8 |
0.4 |
227.2 |
Equity accounted investees |
102.9 |
(73.0) |
29.9 |
Other non-current assets |
225.4 |
3.2 |
228.6 |
Total non-current assets |
2,853.2 |
(69.1) |
2,784.1 |
Trade receivables, net |
1,142.2 |
(24.2) |
1,118.0 |
Contract assets |
449.4 |
(14.3) |
435.1 |
Other current assets |
737.1 |
113.7 |
850.8 |
Cash and cash equivalents |
3,169.9 |
372.2 |
3,542.1 |
Total current assets |
5,498.6 |
447.4 |
5,946.0 |
Total assets |
8,351.8 |
378.3 |
8,730.1 |
Total equity |
1,793.3 |
1.2 |
1,794.5 |
Long-term debt, less current portion |
595.5 |
— |
595.5 |
Lease liability – non-current |
196.4 |
— |
196.4 |
Accrued pension and other post-retirement benefits, less current
portion |
99.6 |
0.8 |
100.4 |
Other non-current liabilities |
123.7 |
(5.1) |
118.6 |
Total non-current liabilities |
1,015.2 |
(4.3) |
1,010.9 |
Short-term debt |
113.1 |
— |
113.1 |
Lease liability – current |
71.2 |
0.4 |
71.6 |
Accounts payable, trade |
1,512.2 |
141.3 |
1,653.5 |
Contract liabilities |
3,064.1 |
257.5 |
3,321.6 |
Other current liabilities |
782.7 |
(17.8) |
764.9 |
Total current liabilities |
5,543.3 |
381.4 |
5,924.7 |
Total liabilities |
6,558.5 |
377.1 |
6,935.6 |
Total equity and liabilities |
8,351.8 |
378.3 |
8,730.1 |
APPENDIX 3.0: ADJUSTED STATEMENT OF CASH
FLOWS
(In € millions) |
Q1 24 |
Q1 23 |
Net profit (loss) |
95.3 |
83.2 |
Change in working capital and provisions |
(177.5) |
(268.1) |
Non-cash items and other |
31.9 |
51.2 |
Cash provided (required) by operating
activities |
(50.3) |
(133.7) |
Acquisition of property, plant, equipment and intangible
assets |
(7.9) |
(8.4) |
Acquisition of financial assets |
(4.4) |
(13.7) |
Acquisition of subsidiary, net of cash acquired |
1.2 |
— |
Proceeds from disposals of subsidiaries, net of cash disposed |
(1.3) |
1.9 |
Cash provided (required) by investing
activities |
(12.4) |
(20.2) |
Capital increase |
(0.7) |
— |
Net increase (repayment) in long-term, short-term debt
and commercial paper |
8.8 |
(11.1) |
Purchase of treasury shares |
(9.0) |
— |
Payments for the principal portion of lease liabilities |
(14.5) |
(20.2) |
Other (of which dividends paid to non-controlling interests) |
(18.7) |
(25.9) |
Cash provided (required) by financing
activities |
(34.1) |
(57.2) |
Effect of changes in foreign exchange rates on cash
and cash equivalents |
18.0 |
(38.0) |
(Decrease) Increase in cash and cash
equivalents |
(78.8) |
(249.1) |
Cash and cash equivalents, beginning of period |
3,569.2 |
3,791.2 |
Cash and cash equivalents, end of period |
3,490.4 |
3,542.1 |
APPENDIX 3.1: STATEMENT OF CASH FLOWS - RECONCILIATION
BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2024
(In € millions) |
Q1 24IFRS |
Adjustments |
Q1 24Adjusted |
Net profit (loss) |
95.7 |
(0.4) |
95.3 |
Change in working capital and provisions |
(159.3) |
(18.2) |
(177.5) |
Non-cash items and other |
23.6 |
8.3 |
31.9 |
Cash provided (required) by operating
activities |
(40.0) |
(10.3) |
(50.3) |
Acquisition of property, plant, equipment and intangible
assets |
(7.5) |
(0.4) |
(7.9) |
Acquisition of financial assets |
(4.4) |
— |
(4.4) |
Acquisition of subsidiary, net of cash acquired |
— |
1.2 |
1.2 |
Proceeds from disposals of subsidiaries, net of cash disposed |
(1.3) |
— |
(1.3) |
Cash provided (required) by investing
activities |
(13.2) |
0.8 |
(12.4) |
Capital increase |
(0.7) |
— |
(0.7) |
Net increase (repayment) in long-term, short-term debt
and commercial paper |
8.5 |
0.3 |
8.8 |
Purchase of treasury shares |
(9.0) |
— |
(9.0) |
Settlements of mandatorily redeemable financial liability |
(16.0) |
16.0 |
— |
Payments for the principal portion of lease liabilities |
(14.4) |
(0.1) |
(14.5) |
Other (of which dividends paid to non-controlling interests) |
(18.7) |
— |
(18.7) |
Cash provided (required) by financing
activities |
(50.3) |
16.2 |
(34.1) |
Effect of changes in foreign exchange rates on cash
and cash equivalents |
17.8 |
0.2 |
18.0 |
(Decrease) Increase in cash and cash
equivalents |
(85.7) |
6.9 |
(78.8) |
Cash and cash equivalents, beginning of period |
3,371.0 |
198.2 |
3,569.2 |
Cash and cash equivalents, end of period |
3,285.3 |
205.1 |
3,490.4 |
APPENDIX 3.2: STATEMENT OF CASH FLOWS - RECONCILIATION
BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2023
(In € millions) |
Q1 23IFRS |
Adjustments |
Q1 23Adjusted |
Net profit (loss) |
84.6 |
(1.4) |
83.2 |
Change in working capital and provisions |
(252.3) |
(15.8) |
(268.1) |
Non-cash items and other |
53.1 |
(1.9) |
51.2 |
Cash provided (required) by operating
activities |
(114.6) |
(19.1) |
(133.7) |
Acquisition of property, plant, equipment and intangible
assets |
(8.4) |
— |
(8.4) |
Acquisition of financial assets |
(13.7) |
— |
(13.7) |
Proceeds from disposals of subsidiaries, net of cash disposed |
1.9 |
— |
1.9 |
Cash provided (required) by investing
activities |
(20.2) |
— |
(20.2) |
Net increase (repayment) in long-term, short-term debt
and commercial paper |
(11.0) |
(0.1) |
(11.1) |
Settlements of mandatorily redeemable financial liability |
(80.9) |
80.9 |
— |
Payments for the principal portion of lease liabilities |
(19.9) |
(0.3) |
(20.2) |
Other (of which dividends paid to non-controlling interests) |
(25.9) |
— |
(25.9) |
Cash provided (required) by financing
activities |
(137.7) |
80.5 |
(57.2) |
Effect of changes in foreign exchange rates on cash
and cash equivalents |
(35.0) |
(3.0) |
(38.0) |
(Decrease) Increase in cash and cash
equivalents |
(307.5) |
58.4 |
(249.1) |
Cash and cash equivalents, beginning of period |
3,477.4 |
313.8 |
3,791.2 |
Cash and cash equivalents, end of period |
3,169.9 |
372.2 |
3,542.1 |
APPENDIX 4.0: ADJUSTED ALTERNATIVE PERFORMANCE MEASURES
- FIRST QUARTER 2024
(In € millions, except %) |
Q1 24 |
% of revenues |
Q1 23 |
% of revenues |
Adjusted revenue |
1,520.8 |
|
1,406.5 |
|
Cost of sales |
(1,296.8) |
85.3% |
(1,191.9) |
84.7% |
Adjusted gross margin |
224.0 |
14.7% |
214.6 |
15.3% |
Adjusted recurring EBITDA |
136.6 |
9.0% |
130.9 |
9.3% |
Amortization, depreciation and impairment |
(25.9) |
|
(23.6) |
|
Adjusted recurring EBIT |
110.7 |
7.3% |
107.3 |
7.6% |
Non-recurring items |
(1.6) |
|
(11.5) |
|
Adjusted profit (loss) before financial income (expense),
net and income tax |
109.1 |
7.2% |
95.8 |
6.8% |
Financial income (expense), net |
19.9 |
|
20.4 |
|
Adjusted profit (loss) before tax |
129.0 |
8.5% |
116.2 |
8.3% |
Income tax (expense) profit |
(33.7) |
|
(33.0) |
|
Adjusted net profit (loss) |
95.3 |
6.3% |
83.2 |
5.9% |
APPENDIX 5.0: ADJUSTED RECURRING EBIT AND EBITDA
RECONCILIATION - FIRST QUARTER 2024
(In € millions) |
ProjectDelivery |
Technology, Products & Services |
Corporate/non allocable |
Total |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Q1 24 |
Q1 23 |
Revenue |
1,045.5 |
954.8 |
475.3 |
451.7 |
— |
— |
1,520.8 |
1,406.5 |
Profit (loss) before financial income (expense), net and income
tax |
|
|
|
|
|
|
109.1 |
95.8 |
Non-recurring items: |
|
|
|
|
|
|
|
|
Other non-recurring income/(expense) |
|
|
|
|
|
|
1.6 |
11.5 |
Adjusted recurring EBIT |
78.5 |
77.3 |
44.5 |
46.0 |
(12.3) |
(16.0) |
110.7 |
107.3 |
Adjusted recurring EBIT margin % |
7.5% |
8.1% |
9.4% |
10.2% |
—% |
—% |
7.3% |
7.6% |
Adjusted amortization and depreciation |
|
|
|
|
|
|
(25.9) |
(23.6) |
Adjusted recurring EBITDA |
|
|
|
|
|
|
136.6 |
130.9 |
Adjusted recurring EBITDA margin % |
|
|
|
|
|
|
9.0% |
9.3% |
APPENDIX 6.0: BACKLOG - RECONCILIATION BETWEEN IFRS AND
ADJUSTED
(In € millions) |
Q1 24IFRS |
Adjustments |
Q1 24Adjusted |
Project Delivery |
13,149.9 |
136.3 |
13,286.2 |
Technology, Products & Services |
1,933.0 |
39.5 |
1,972.5 |
Total |
15,082.9 |
|
15,258.8 |
APPENDIX 7.0: ORDER INTAKE - RECONCILIATION BETWEEN IFRS
AND ADJUSTED
(In € millions) |
Q1 24IFRS |
Adjustments |
Q1 24 Adjusted |
Project Delivery |
153.9 |
76.2 |
230.0 |
Technology, Products & Services |
590.0 |
29.8 |
619.8 |
Total |
743.9 |
|
849.9 |
APPENDIX 8.0: Definition of Alternative Performance
Measures (APMs)
Certain parts of this Press Release contain the
following non-IFRS financial measures: Adjusted Revenue, Adjusted
Recurring EBIT, Adjusted Recurring EBITDA, Adjusted net (debt)
cash, Adjusted Backlog, and Adjusted Order Intake, which are not
recognized as measures of financial performance or liquidity under
IFRS and which the Company considers to be APMs. APMs should not be
considered an alternative to, or more meaningful than, the
equivalent measures as determined in accordance with IFRS or as an
indicator of the Company’s operating performance or liquidity.
Each of the APMs is defined below:
- Adjusted
revenue: represents the revenue recognized under IFRS as
adjusted according to the method described below. For the periods
presented in this Press Release, the Company’s proportionate share
of joint venture revenue from the following projects was included:
the revenue from ENI CORAL FLNG and NFE is included at 50%, the
revenue from BAPCO Sitra Refinery is included at 36%, the revenue
from the in-Russia construction and supervision scope of Arctic LNG
2 is included at 33.3% (until its disposal by Technip Energies in
the second quarter of 2023), the revenue from the joint-venture
Rovuma is included at 33.3%, the revenue from Taclov is included at
52.6% starting the last quarter of the year 2023 and revenue from
TPIT & DAR Engineering Consulting is included at 60% starting
2024. The Company believes that presenting the proportionate share
of its joint venture revenue in construction projects carried out
in joint arrangements enables management and investors to better
evaluate the performance of the Company’s core business
period-over-period by assisting them in more accurately
understanding the activities actually performed by the Company on
these projects.
- Adjusted
recurring EBIT: represents profit before financial
expense, net, and income taxes recorded under IFRS as adjusted to
reflect line-by-line for their respective share incorporated
construction project entities that are not fully owned by the
Company (applying to the method described above under Adjusted
Revenue) and adds or removes, as appropriate, items that are
considered as non-recurring from EBIT (such as restructuring
expenses, costs arising out of significant litigation that have
arisen outside of the ordinary course of business and other
non-recurring expenses). The Company believes that the exclusion of
such expenses or profits from these financial measures enables
investors and management to evaluate the Company’s operations and
consolidated results of operations period-over-period, and to
identify operating trends that could otherwise be masked to both
investors and management by the excluded items.
- Adjusted
recurring EBITDA: corresponds to the adjusted recurring
EBIT as described above before depreciation and amortization
expenses.
- Adjusted
net (debt) cash: reflects cash and cash equivalents, net
of debt (including short-term debt), as adjusted according to the
method described above under adjusted revenue. Management uses this
APM to evaluate the Company’s capital structure and financial
leverage. The Company believes adjusted net (debt) cash, is a
meaningful financial measure that may assist investors in
understanding the Company’s financial condition and recognizing
underlying trends in its capital structure.
- Adjusted
backlog: backlog is calculated as the estimated sales
value of unfilled, confirmed customer orders at the relevant
reporting date. Adjusted backlog takes into account the Company’s
proportionate share of backlog related to equity affiliates (ENI
Coral FLNG, BAPCO Sitra Refinery, the joint-venture Rovuma, two
affiliates of the NFE joint-venture, and TPIT & DAR Engineering
Consulting from 2024). The Company believes that the adjusted
backlog enables management and investors to evaluate the level of
the Company’s core business forthcoming activities by including its
proportionate share in the estimated sales coming from construction
projects in joint arrangements.
- Adjusted
order intake: order intake corresponds to signed contracts
which have come into force during the reporting period. Adjusted
order intake adds the proportionate share of orders signed related
to equity affiliates (ENI Coral FLNG, BAPCO Sitra Refinery, the
joint-venture Rovuma, two affiliates of the NFE joint-venture, and
TPIT & DAR Engineering Consulting from 2024). This financial
measure is closely connected with the adjusted backlog in the
evaluation of the level of the Company’s forthcoming activities by
presenting its proportionate share of contracts which came into
force during the period and that will be performed by the
Company.
•Contacts
Investor Relations
Phillip Lindsay
Vice President, Investor Relations
Tel: +44 20 7585 5051
Email: Phillip Lindsay
Media Relations
Jason Hyonne
Manager, Press Relations & Social Media
Tel: +33 1 47 78 22 89
Email: Jason Hyonne
- Technip Energies First Quarter 2024 Financial Results
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