(AOF) – Technip Energies concluded the first session of the week as the headliner of the SBF 120, winning 2.51% to 19.58 euros. The engineering and technology company benefited from the good direction of oil prices.
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Key points
– World leader in liquefied natural gas, hydrogen and ethylene engineering, created in February 2021 by sale of TechnipFMC, and invested in energy transition;
– Turnover of €5.4 billion divided into 2 areas: project delivery for 44% and product, service and technology offers;
– Hybrid business model, with two complementary segments with long and short cycles, based on 4 pillars: LNG, decarbonization, sustainable chemistry and carbon-free energy solutions;
– Open but blocked capital (HAL Invest, holding company of the Van der Vorm family for +10%, BPI France for 10% and TechnipFMC 7%), Joseph Rinaldi chairing the board of directors of 9 members, Arnaud Pieton being managing director;
– Solid balance sheet with €1.7 billion in equity and €4.5 billion in cash.
Challenges
– Medium-term profitable growth strategy
– delivery of projects: revenues of €5.6 to €6 billion, operating margin of 6.5 – 7.5%
– products, services and technologies: revenues of €2 billion, operating margin of 10%;
– Innovation strategy 100% dedicated to energy transition through decarbonization and zero carbon projects -BleH2 by T.EN (hydrogen production solutions), blue ammonia, Inocean wind floats, sustainable fuels for the aviation:
– with a patent portfolio (+ 3000) in strong growth,
– based on incubation, the development of breakthrough technologies and R&D-MIT, CEA, IPI partnerships, etc.;
– Environmental strategy aiming for carbon neutrality of production for 2030;
– net zero by 2050 for indirect emissions from customers and suppliers,
– measurement of emissions avoided by customers;
– Benefits from the joint venture created with NIPGAS and partnerships with Petronas and Svante -carbon capture- and with TotalEnergies -low carbon solutions;
– Good visibility with €3.4 billion in order intake, i.e. an order book of €12.8 billion.
Challenges
– Reduced sensitivity to the economic situation of the gas sector;
– Impact of the Russia-Ukraine war: 1.4 billion orders for 2022, €854 million for 2024 and €1.6 billion for 2025, i.e. 23% of the order book;
– After a 10% increase in revenues, 2023 objectives: revenues of €5.7 to 6.2 billion, excluding Russian activities and operating margin of 6.7 to 7.2%;
– 2022 dividend of €0.52, i.e. an increase of 16% rate of 32%.
Find out more about the “oil and para-petroleum” sector
Biogas to green activities
Obtained through the decomposition of waste, it falls into the category of green energy. It is part of the strategy of many countries, particularly in Europe, to reduce their dependence on hydrocarbon imports. The oil groups have strong ambitions in the field, as revealed by two recent operations. The British BP took over the American Archaea Energy for 4.1 billion dollars. Then, the Anglo-Dutch, Shell, announced the acquisition of the Danish Nature Energy for 2 billion dollars. These transactions show high valuation levels, underlining the strong potential of the sector. TotalEnergies had already taken a stake in the American Clean Energy Fuels Corp in 2018, of which it now holds 19%. It recently joined forces with Veolia to recover biomethane from waste treatment facilities.