Engineering giant Technip Energies (Paris:TE) has published its Q3 results, reporting pre-tax profits of €133 million (£116m).
Its performance shows improvement on the £84m achieved during the same period last year.
Meanwhile, revenue for the quarter fell slightly on last year to €1.5bn (£1.31bn), while backlog for the first nine months of 2022 reached €13.2bn (£11.56bn).
The period also saw the group repurchase 2,618,945 ordinary shares under its buyback programme, for just under €30m (£26.26m).
Chief executive Arnaud Pieton said recent global events had “underlined the urgent need for increased investment and accelerated project development” with a particular emphasis on natural gas, LNG, and “low-to-zero carbon” solutions.
“The strength in margins, which are in line with our medium-term trajectory, demonstrates the quality of our underlying portfolio, an improving mix, and world-class project delivery,” he added.
The company also confirmed its plans to formally end its involvement in the Arctic LNG 2 project in Russia, following sanctions enacted after the country’s invasion of Ukraine.
“Our orderly exit from Arctic LNG 2 is progressing and all operational personnel have been demobilized from the project,” noted Mr Pieton.
“We have signed an Exit Framework Agreement with our customer, which we are currently implementing, and anticipate completing this process within the first half of 2023.”
“The improved visibility on Arctic LNG 2 combined with nine months of achieved financials has enabled us to return to full company guidance for 2022.”
With the impact of the project exit now understood, the Paris-listed Technip said it had returned its full-year guidance forecast to €6.2-6.5bn (£5.42bn – £5.68bn), with a recurring EBIT margin of 6.7-6.9%.
Orders secured in Q3 included a large ethylene contract for INEOS’ Project One cracker in Belgium, a significant contract for Neste renewable products refinery expansion in Rotterdam, an EPCC contract for YURI green hydrogen project in Australia, a FEED contract for Papua LNG upstream production facilities, a FEED contract for Gray Whale 3 floating offshore wind project in South Korea as well as other studies, services contracts and smaller projects.
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