(AOF) – Engineering and technology group for the energy industry, Technip Energies has won a major project management consultancy contract with Kuwait Oil Company (KOC). This contract, for a period of five years, represents between 250 and 500 million euros in turnover. It covers basic engineering, project management and related services for KOC’s major projects. This contract represents a renewal of the first five-year framework agreement awarded to Technip Energies by KOC in 2014.
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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 €6.7 billion divided into 2 divisions: engineering for 81% and product, service and technology offers;
– Business model 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 €1.5 billion in equity, net cash of €3.1 billion against €682 million in gross debt at the end of June.
Challenges
– Profitable medium-term growth strategy with an operating margin of around 15% and an increase in R&D investments, 100% dedicated to the energy transition;
– Innovation strategy focused on energy transition through decarbonization and zero carbon projects – BleH2 by T.EN (hydrogen production solutions), blue ammonia, Inocean wind floats, sustainable fuels for aviation: with a fast-growing patent portfolio (+3,000) / based on incubation, the development of breakthrough technologies and R&D-MIT, CEA, IPI partnerships, etc.;
– 3-point environmental strategy – decarbonize, accelerate innovation, improve circularity and biodiversity – and aim for carbon neutrality by 2030;
– Spin-offs from the joint venture created with NIPGAS and partnerships with Petronas and Svante in carbon removal and capture…- and with TotalEnergies – low-carbon solutions;
– Good visibility with €9.8 billion in orders, especially in LNG, despite the order book at €16.4 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;
– 2022 objective: revenues of €5 to 5.5 billion, excluding Russian activities and operating margin of +6.5%.
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.