Technip Energies has announced a 23% decrease in revenues in 2022 compared to the previous year. This decline is attributable to the exit from the huge liquefied natural gas project it was conducting with Novatek in Siberia. However, the company recorded an improvement in its net profit, which rose by 23% to 300.7 million euros in 2022, confirming its potential in the liquefied natural gas (LNG) markets, which it considers to be promising in the short term, both in Europe and in Asia.
No financial impact from the exit of the Arctic LNG2 project, but impact on the order book
The exit from the Arctic LNG2 project had no impact on Technip Energies’ finances, but it did weigh on its backlog, which stood at €3.8 billion to be executed in 2022, when the project was halted. The company’s managing director, Arnaud Piéton, said Technip Energies was building a gas liquefaction infrastructure for Novatek, a project that was suspended following Russia’s invasion of Ukraine and international sanctions against the country.
Growth markets: LNG in Europe and Asia
Technip Energies is betting on the energy transition markets of the future, recording for the first time last year a billion euro order intake in areas such as carbon capture, decarbonized hydrogen and sustainable chemistry. These include a contract for carbon capture and storage at ExxonMobil’s LaBarge plant in the U.S. and a contract for an industrial-scale carbon capture and storage unit at a waste incineration plant in Norway. It also plans to expand its research labs, notably around a “pilot” project on the circularity of plastics.
Despite the difficulties encountered by Technip Energies in 2022, its backlog at the end of 2022 amounted to €12.8 billion, i.e. twice its revenues, which allows it to look to the future with optimism. The group believes that European LNG imports should remain one of its main immediate growth drivers, given the strong demand in Europe to compensate for the drying up of Russian pipelines. Technip Energies presents itself as a “world leader in the design and construction of LNG production plants”.
