(Boursier.com) — Technip Energies rose by 2.2% to 20.50 euros at midday this Monday in the wake of the rise in oil to $83.50 per Brent, which benefits from OPEC’s latest decisions to renew its production cuts, while the broker JP Morgan overweights the file with a price target of 27 euros. Oddo BHF, for its part, spoke of “solid” 2023 results but a “slightly soft” return to shareholders… The broker nevertheless reiterated its ‘outperform’ recommendation, as well as its target of 27 euros despite three good years stock market outperformance. The broker highlights Technip Energies given its positioning in the LNG business (future acceleration in terms of contract awards), its positioning in transition energies (biofuel, CCS, etc.), a very solid which can enable it to carry out external growth operations in the energy transition businesses and a return to shareholders, rare in the sector at this stage of the cycle…
Over 2023, the engineering group recorded an adjusted recurring Ebit down 1% to 445.1 million euros (430.9 ME consensus) for an adjusted turnover of 6.01 billion euros , down 6%. The margin thus stood at 7.4%, compared to 7% in 2022. The net result reached 294.1 ME compared to 320.2 ME a year previously and 309.8 ME consensus. Adjusted net cash flow reached €212.5 million.
Cash dividend of 0.57 euros
Adjusted order intake for the 2023 financial year amounts to 10.070 billion euros, representing an order book renewal ratio of 1.7. Adjusted order intake for the fourth quarter alone reached €562 million and includes a contract where Technip Energies will provide proprietary technology and engineering and procurement services for Dow’s net-zero integrated ethylene cracker in Canada as well as other studies, service contracts and smaller projects. The adjusted order book increased by 23% over the financial year to reach 15.7 billion euros, which is equivalent to 2.6 times the turnover for the 2023 financial year.
Quoting…
In accordance with the company’s dividend policy, the Board of Directors will propose at the Annual Meeting of Shareholders on May 7, 2024 the distribution of a cash dividend of 0.57 euros per share for the 2023 financial year. the dividend payment is approved by the shareholders, the ex-dividend date will be May 21, the record date for the dividend will be May 22, and the dividend will be paid on May 23.
For the new financial year, management expects a recurring EBIT margin of between 7 and 7.5% for revenues ranging from 6.1 to 6.6 billion euros. Diluted earnings per share are expected to grow by double digits…