By Anna Peverieri
(Reuters) – French energy infrastructure company Technip Energies on Thursday lifted its annual revenue guidance and reported a year-on-year revenue growth of 13%, buoyed by project delivery, sustained profitability and substantial growth in net income.
The company now sees 2024 revenue of between 6.5 billion and 6.8 billion euros ($7.39 billion). The group, which specialises in engineering and technology for the energy industry, confirmed its recurring earnings before interest and tax margin of between 7% and 7.5%.
Earlier in the year, it had forecast a revenue growth of between 6.1 billion and 6.6 billion euros.
Asked about the French corporate income tax rise proposed by the French parliament, Chief Financial Officer Bruno Vibert said that few of the company’s projects are in France.
Technip Energies has signed several major contracts this year, including the Rovuma LNG project in Mozambique and the construction of the Lake Charles liquefied natural gas plant in the United States, which should boost its sales in the coming quarters.
“The French surtax will have an impact that won’t be too material,” he said in a call with journalists, adding that the revised guidance already considers the potential impact of the surtax.
Earlier in October, France’s Prime Minister Michel Barnier proposed a hike in corporate tax on the biggest companies in the country.
The French energy infrastructure company posted a stronger-than-expected third-quarter adjusted EBIT at 129.4 million euros, 10% above analysts’ forecast of 117.1 million euros in a consensus compiled by the company.
The group’s adjusted order backlog fell 11% to 15.85 billion euros in the first nine months of the year, while the third-quarter order intake was 1.70 billion euros, compared with 785 million euros expected by analysts on average.
“We secured our position on notable projects that will reinforce and diversify our backlog in 2025 and beyond,” CEO Arnaud Pieton said in the statement.
Technip’s adjusted revenue rose 15% from a year earlier to 1.81 billion euros, above market expectations of 1.65 billion euros.
(Reporting by Anna Peverieri; Editing by Lisa Shumaker)
