Technip Energies has grown its net profit in the first quarter of this year and will form a new joint venture with Belgium’s John Cockerill in a drive for green contracts.
The French contractor’s net profit increased by 10% to €80 million ($88 million) from January to April against the same period of last year, despite its revenues falling by 13% to €1.4 billion.
Technip Energies’ project delivery business continued to suffer after it lost a contract to build three trains for Novatek’s Arctic LNG 2 project in Russia as a result of international sanctions.
Project delivery provides the highest margin, but profits plunged by 26% to €955 million in the first quarter, with the order backlog falling by 32% to €9.8 billion, Technip Energies said in its latest financial report.
However, the company’s technology, products and services segment flourished in the first quarter, with revenues up by 37% to €452 million and order backlog shooting up by 84%, against the same period of 2022, to exceed €2.2 billion.
Awards in ethylene, carbon capture and renewable fuels during the first quarter have boosted the order backlog for this segment of the business, Technip Energies said.
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“While LNG will remain a critical transition fuel, achieving the world’s net-zero targets requires significant investment to develop and scale clean-energy and decarbonisation solutions,” chief executive Arnaud Pieton said.
“Stimulus packages from global policymakers will serve to break initial cost barriers, and, although full alignment across the ecosystem is taking time, global ambitions demand that affordable solutions and sustainable products for industries and consumers alike must be developed,” he added. “Technip Energies is committed to meeting this challenge.”
While releasing its financial results, Technip Energies announced it will form a new joint venture with Belgium’s John Cockerill to master new tasks.
Named Rely, the venture will become a technology and solutions company for green hydrogen and power-to-X markets.
Power-to-X deals with conversion, storage and reconversion of surplus electricity, typically during periods where fluctuating renewable energy generation exceeds demand.