PARIS--(BUSINESS WIRE )--Regulatory News:
Technip Energies (PARIS:TE) (the “Company”), a leading Engineering & Technology company for the energy transition, today announces its unaudited financial results for the first quarter 2022.
Arnaud Pieton, Chief Executive Officer of Technip Energies, commented:
“First quarter revenue growth and solid profitability demonstrate strong execution across the entirety of our portfolio from Project Delivery to Technology, Products and Services. This is consistent with our full year financial framework and we expect our activity outside of Russia to progressively ramp up through 2022.”
“Regarding Russia, we are 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. 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. 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.”
“In the first quarter, we reconfigured the organization structure around four business lines focused on Technip Energies’ markets and supported by a global delivery structure dedicated to delivering projects and solutions. This will better align our operating model and commercial focus with the rapidly changing energy transition market.”
“Our energy transition strategy is supported by our flexible capital allocation. In the quarter, we announced three investments in the markets of hydrogen, floating offshore wind, and biochemicals. These expand and diversify our technology portfolio, while enabling new business model opportunities.”
“The energy landscape has become more complex in recent months with an urgent energy independence agenda, notably in Europe. 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. 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.”
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 Appendix 1.0, 2.0, 3.0.
(1) Q1 2022 Adjusted Revenue and Recurring EBIT included €445.4 million and €22.2 million respectively from projects under execution in Russia.
(2)Q1 2022 and Q1 2021 diluted earnings per share have been calculated using the weighted average number of outstanding shares of 178,618,684 and 182,508,672 respectively.
(1) Q1 2022 and Q1 2021 diluted earnings per share have been calculated using the weighted average number of outstanding shares of 178,618,684 and 182,508,672 respectively.
FY 2022 Financial framework – Adjusted IFRS
(excludes contribution from projects under execution in Russia)
(excludes contribution from projects under execution in Russia)
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 Appendix 1.0, 2.0, 3.0.
Technip Energies will host its Q1 2022 results conference call and webcast on Monday, April 25, 2022 at 13:00 CET. Dial-in details:
The event will be webcast simultaneously and can be accessed at: https://edge.media-server.com/mmc/p/fg4b68nx
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.
Backlog, Order Intake and Backlog Scheduling
Adjusted Order Intake for Q1 2022 of €551.7 million, equivalent to a book-to-bill of 0.3. Orders in the first quarter included a significant EPCC contract by PETRONAS Chemicals Fertilizer Kedah for a new melamine plant with minimized CO2 footprint, a FEED for Equinor’ floating offshore wind Firefly project in South Korea, as well as other studies, services contracts and smaller projects. Book-to-bill on a trailing 12 month basis is 0.6.
Adjusted backlog decreased by 12% year-over-year to €15,632.4 million, equivalent to 2.3x 2021 revenue.
Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 6.0 and 7.0. Adjusted Backlog at March 31, 2022, benefited from a foreign exchange impact of €263.0 million. Adjusted Backlog at March 31, 2022, included €3,411.5 million associated with projects under execution in Russia.
Backlog excluding the proportion related to Russian projects under execution amounted to €12,220.9 million as of March 31, 2022. The table below provides estimated backlog scheduling as of March 31, 2022 for the backlog excluding the proportion relating to projects under execution in Russia.
Adjusted Backlog at March 31, 2022, excluded €3,411.5 million associated with projects under execution in Russia.
Profit (loss) before income tax
Net profit (loss) attributable to non-controlling interests
Net profit (loss) attributable to Technip Energies Group
(In € millions, except % and bps)
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition).
Q1 2022 Adjusted Revenue increased year-over-year by 3% to €1.3 billion. This growth was achieved despite the continuous challenges relating to the pandemic. Revenues benefited from sustained activity on Arctic LNG 2, which contributed €445.4 million of revenue in the quarter. Revenues outside of Russian projects under execution increased year-over-year by 25% due to the ramp-up of recently awarded LNG and downstream projects. This more than offset lower contributions year-over-year from maturing downstream projects in India, Asia Pacific & Africa.
Q1 2022 Adjusted Recurring EBIT increased year-over-year by 19% to €90.0 million, which includes a €22.2 million contribution from Arctic LNG 2. Adjusted Recurring EBIT margin increased by 90 basis points to 7.0% mostly due to solid execution, including a strong contribution from downstream and LNG projects in the latter stages of completion. This was partially offset by earlier stage LNG projects.
Arctic LNG 2 Project (Russian Federation)
ECA LNG Phase I Project (Mexico)
bp Greater Tortue Ahmeyim FPSO (offshore Senegal / Mauritania)
Energean Karish Gas Development (Israel)
Long Son Olefins plant (Vietnam)
Awarded significant* petrochemical contract by PETRONAS (Malaysia)
*Note: A “significant” award for Technip Energies is a contract award representing between €50 million and €250 million of revenue.
Technology, Products & Services (TPS) – Adjusted IFRS
(In € millions, except % and bps)
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition).
Q1 2022 Adjusted Revenue increased year-over-year by 8% to €329.1 million, driven by growth in demand for engineering and Project Management and Consultancy services, and sustained Process Technology activity including licensing and proprietary equipment (notably for ethylene, and Sustainable Chemistry including PBAT, a biodegradable polymer).
Q1 2022 Adjusted Recurring EBIT increased year-over-year by 17% to €30.2 million. Adjusted Recurring EBIT margin increased year-over-year by 70 basis points to 9.2%, benefiting from higher activity levels from Project Management and Consultancy services, as well as advisory services performed by Genesis.
Fast Pyrolysis Bio-oil (FPBO) project for Pyrocell AB (Sweden)
Channelview Carbon Emission Reduction - LyondellBasell’s (USA)
Equinor Firefly Floating Offshore Wind (South Korea)
Future Energies Australia Renewable Diesel Project (Australia)
PETRONAS Kasawari CCS project (Malaysia)
Northern Endurance Partnership offshore (UK)
Participation in record €200 million investment in green hydrogen pioneer Hy2gen AG
Investment in Floating Offshore Wind Company X1 Wind
Asset Purchase Agreement with Iowa Corn Promotion Board (ICPB)
Corporate costs, excluding non-recurring items, were €12.8 million. This included a negative foreign exchange impact of €4.6 million. This compare with Corporate costs of €10.4 million in the prior year period.
Non-recurring expense for the first quarter 2022 amounted to a benefit of €3.5 million mainly related to waved risks after the end of a warranty period on discontinued activities.
Net financial expense was €5.0 million, impacted by the mark-to-market valuation of investments in traded securities and, to a lesser extent, interest expenses associated with the senior unsecured notes, partially offset by interest incomes from cash on deposit.
Effective tax rate on an Adjusted IFRS basis was 28.9% for the first quarter 2022, in line with the financial framework provided for full year 2022.
Depreciation and amortization expense was €25.0 million, of which €16.2 million is related to IFRS16.
Adjusted net cash at March 31, 2022 was €3.3 billion, which compares to Adjusted net cash at December 31, 2021 of €3.1 billion.
Adjusted Operating cash flow of €194.1 million, benefited from strong operational performance and working capital inflows associated with new project advances and milestone payments. With capital expenditure, net, of €8.8 million, free cash flow was €185.3 million for the first quarter of 2022. Free cash flow excluding working capital variance was €99.2 million.
Liquidity and credit rating information
Adjusted liquidity of €4.6 billion at March 31, 2022 comprised of €3.9 billion of cash and €750 million of liquidity provided by the Company’s undrawn revolving credit facility, which is available for general use and serves as a backstop for the Company’s commercial paper program, offset by €30 million of outstanding commercial paper.
Technip Energies was downgraded to ‘BBB-’ investment grade rating, Outlook Stable & A-3 short-term rating affirmed as per S&P Global Research Update on March 11, 2022, based S&P’s assessement of the likely loss of Arctic LNG 2 from backlog.
On January 11, 2022, Technip Energies announced it has agreed to acquire 1.8 million of its own ordinary shares from TechnipFMC plc. The Company’s agreement to purchase these shares is part of TechnipFMC’s announced sell-down of its stake in the Company through a private sale transaction which also included Bpifrance Participations SA and HAL Investments B.V., the Dutch investment subsidiary of HAL Holding N.V., each agreeing to purchase 3.6 million of the Company’s ordinary shares. Settlement for the sale took place on January 14, 2022.
Upon completion of the sale, TechnipFMC’s stake in the Company was reduced to approximately 7%. Prior to the end of the first quarter, TechnipFMC disclosed that its ownership stake in Technip Energies had been reduced to below 3%.
On March 22, 2022, Technip Energies announced the launch of a share buy-back program of up to €29,850,000 to be executed until December 31, 2022. The Company intends to carry out the buy-back program, and hold the shares bought back as treasury stock, for the purpose of meeting the Company’s obligations under equity incentive plans.
This Press Release is intended for informational purposes only for the shareholders of Technip Energies. This Press Release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation. This Press Release is not intended for distribution in jurisdictions that require prior regulatory review and authorization to distribute a Press Release of this nature.
This Press Release contains “forward-looking statements” as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of Technip Energies’ operations or operating results. 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 Technip Energies’ current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on Technip Energies. While Technip Energies believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Technip Energies will be those that Technip Energies anticipates.
All of Technip Energies’ forward-looking statements involve risks and uncertainties (some of which are significant or beyond Technip Energies’ control, such as Russia’s invasion of Ukraine, the associated sanctions and the impact these will have on our and/or our customers' activities conducted in or related to Russia) and assumptions that could cause actual results to differ materially from Technip Energies’ historical experience and Technip Energies’ 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 Technip Energies’ risk factors set forth in Technip Energies’ filings with the U.S. Securities and Exchange Commission, including its 2021 Form 20-F filed on March 25, 2022.
Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Technip Energies 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 1.0: ADJUSTED STATEMENT OF INCOME - FIRST QUARTER 2022
Non-recurring items (transaction & one-off costs)
Profit (loss) before income tax
Net profit (loss) attributable to non-controlling interests
Net profit (loss) attributable to Technip Energies Group
APPENDIX 1.1: STATEMENT OF INCOME – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2022
Selling, general and administrative expense
Impairment, restructuring and other income (expense)
Share of profit (loss) of equity-accounted investees
Profit (loss) before financial expense, net and income tax
Profit (loss) before income tax
Net profit (loss) attributable to non-controlling interests
Net profit (loss) attributable to Technip Energies Group
APPENDIX 1.2: STATEMENT OF INCOME – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2021
Selling, general and administrative expense
Impairment, restructuring and other income (expense)
Share of profit (loss) of equity-accounted investees
Profit (loss) before financial expense, net and income tax
Profit (loss) before income tax
Net profit (loss) attributable to non-controlling interests
Net profit (loss) attributable to Technip Energies Group
APPENDIX 2.0: ADJUSTED STATEMENT OF FINANCIAL POSITION
Property, plant and equipment, net
Long-term debt, less current portion
Accrued pension and other post-retirement benefits, less current portion
APPENDIX 2.1: STATEMENT OF FINANCIAL POSITION – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2022
Property, plant and equipment, net
Long-term debt, less current portion
Accrued pension and other post-retirement benefits, less current portion
APPENDIX 2.2: STATEMENT OF FINANCIAL POSITION – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2021
Property, plant and equipment, net
Accrued pension and other post-retirement benefits, less current portion
APPENDIX 3.0: ADJUSTED STATEMENT OF CASH FLOWS
Cash provided (required) by operating activities
Proceeds from sale of assets
Cash required by investing activities
Net increase (repayment) in long-term, short-term debt and commercial paper
Net (distributions to) / contributions from TechnipFMC
Other (including dividends paid and lease liabilities repayment)
Cash provided (required) by financing activities
Effect of changes in foreign exchange rates on cash and cash equivalents
(Decrease) Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
APPENDIX 3.1: STATEMENT OF CASH FLOWS – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2022
Cash provided (required) by operating activities
Cash required by investing activities
Net increase (repayment) in long-term, short-term debt and commercial paper
Settlements of mandatorily redeemable financial liability
Other (including dividends paid and lease liabilities repayment)
Cash provided (required) by financing activities
Effect of changes in foreign exchange rates on cash and cash equivalents
(Decrease) Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
APPENDIX 3.2: STATEMENT OF CASH FLOWS – RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST QUARTER 2021
Cash provided (required) by operating activities
Proceeds from sale of assets
Cash required by investing activities
Net increase (repayment) in long-term, short-term debt and commercial paper
Settlements of mandatorily redeemable financial liability
Net (distributions to) / contributions from TechnipFMC
Other (including dividends paid and lease liabilities repayment)
Cash provided (required) by financing activities
Effect of changes in foreign exchange rates on cash and cash equivalents
(Decrease) Increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
APPENDIX 4.0: ADJUSTED ALTERNATIVE PERFORMANCE MEASURES - FIRST QUARTER 2022
Adjusted profit before financial expense, net and income tax
APPENDIX 5.0: ADJUSTED RECURRING EBIT AND EBITDA RECONCILIATION - FIRST QUARTER 2022
Profit (loss) before financial expenses, net and income tax
APPENDIX 6.0: BACKLOG – RECONCILIATION BETWEEN IFRS AND ADJUSTED
APPENDIX 7.0: ORDER INTAKE – RECONCILIATION BETWEEN IFRS AND ADJUSTED
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 Order 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:
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 Email: Phillip Lindsay
Media Relations Stella Fumey Director Press Relations & Digital Communications Tel: +33 1 85 67 40 95 Email: Stella Fumey
Investor Relations Phillip Lindsay Vice President, Investor Relations Tel: +44 20 7585 5051 Email: Phillip Lindsay
Media Relations Stella Fumey Director Press Relations & Digital Communications Tel: +33 1 85 67 40 95 Email: Stella Fumey