Technip Energies on Thursday posted its highest-ever adjusted backlog for the first half of the year, driven by the signing of major contracts, and upgraded its recurring core profit margin guidance for 2023.
The adjusted backlog of the French oil and gas tank provider rose 41% to nearly 19 billion euros ($21.08 billion), boosted by a solid adjusted order intake of around 9 billion euros, which compares with an intake of 1.60 billion euros a year ago.
Half-year order intakes included a major LNG contract signed for the North Field South Project by QatarEnergy, as well as a project management consultancy contract with Aramco for the master plan of the new industrial city of Ras Al Khair in Saudi Arabia.
"This (backlog) provides excellent multi-year visibility, equivalent to approximately three times our annual revenues," CEO Arnaud Pieton said in an earnings statement.
Technip Energies forecast full-year 2023 adjusted recurring earnings before interest and tax (EBIT) margin in a range of 7.0% to 7.5%, compared with a previous forecast of 6.7% to 7.2%. It also reiterated its guidance for adjusted revenue and adjusted effective tax rate.
Nevertheless, adjusted half-year revenue fell to 2.83 billion euros from 3.27 billion euros one year ago, attributed to the completion of the company's exit from the Arctic LNG 2 project in Russia.
During a call with journalists, Chief Financial Officer Bruno Vibert said Technip Energies is focused on the future prospects reflected in the 19 billion-euros order book, which promises growth.
"We don't want to restate the past because Arctic was contributing," he said. "Arctic is no longer contributing, new projects that have entered the order book will."
Adjusted recurring EBIT came in at 207.7 million euros, against 204.4 million euros in the first half of 2022.
($1 = 0.9015 euro)
(Reuters - Reporting by Dina Kartit in Gdansk/Editing by Matthew Lewis)