07/28/2022 | Press release | Distributed by Public on 07/27/2022 23:44
PARIS--(BUSINESS WIRE)-- Regulatory News:
Technip Energies (Paris:TE) (the "Company"), a leading Engineering & Technology company for the energy transition, today announces its unaudited financial results for the first half 2022.
Arnaud Pieton, Chief Executive Officer of Technip Energies, commented:
"Our teams' resolute focus on project execution as well as effective customer and supply chain engagement, in the face of persistent external challenges, continues to yield strong results. This is best evidenced in the quarter by Coral FLNG achieving first gas in Mozambique, a delivery milestone that was in line with the original, pre-pandemic schedule. First half revenue growth was consistent with our full year financial framework and we expect our activity outside of Russia to demonstrate further growth in the second half. Strong execution of our quality backlog is driving profitability above our original guidance, leading to an increase in our full year margin outlook."
"Regarding Arctic LNG 2 in Russia, in line with the applicable sanctions, we continue to implement an orderly exit from the project. We have suspended the vast majority of the work, and the exit process will likely take several more months due to the contract terms and the inherent size of the project. As previously stated, we do not expect any negative net financial exposure due to our contractual rights and the balance sheet position of the project."
"In the second quarter, we were awarded key carbon capture projects, including the CCS facilities at Hafslund Oslo Celsio, the world's largest full-scale waste-to-energy plant with CO2 capture. These awards demonstrate our leadership and the strength of our core expertise and technology approach in a market with considerable medium-to-long-term growth prospects."
"The momentum in carbon capture also reflects a maturing of our broader energy transition pipeline. This conversion trend is confirmed by recent awards in the renewable fuels and clean hydrogen domains, which have generated more than €500 million of order intake in the first half. We are confident that award momentum will continue and we expect to reach around €1 billion of energy transition orders, excluding LNG, by the end of 2022. Furthermore, many of these awards will add to our backlog in Technology, Products & Services, thereby bolstering the medium-term growth outlook for our highest margin segment."
"Energy market fundamentals, notably for natural gas, LNG, and renewables remain robust, supporting our strategic offering and medium-term order outlook. Despite ongoing recessionary fears, a significant increase in energy infrastructure investment will be required to satisfy demand and meet energy independence goals. The transition to a low carbon energy system is requiring innovation, technology, and technical expertise, opening a new golden age for engineering, and Technip Energies will continue to play a leading role."
Key financials - Adjusted IFRS |
||
(In € millions, except EPS) |
H1 2022 |
H1 2021 |
Revenue(1) |
3,267.0 |
3,243.2 |
Recurring EBIT(1) |
204.4 |
204.5 |
Recurring EBIT Margin % |
6.3% |
6.3% |
Net profit |
131.5 |
100.3 |
Diluted earnings per share(2) |
€0.74 |
€0.55 |
Order Intake |
1,608.5 |
7,863.4 |
Backlog |
13,439.8 |
17,473.4 |
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. (1) H1 2022 Adjusted Revenue and Recurring EBIT included €816.6 million and €27.0 million respectively from Arctic LNG 2. (2) H1 2022 and H1 2021 diluted earnings per share have been calculated using the weighted average number of outstanding shares of 178,514,257 and 181,908,563 respectively. |
Key financials - IFRS |
||
(In € millions, except EPS) |
H1 2022 |
H1 2021 |
Revenue |
3,216.7 |
3,118.1 |
Net profit |
119.3 |
112.4 |
Diluted earnings per share(1) |
€0.67 |
€0.62 |
(1) H1 2022 and H1 2021 diluted earnings per share have been calculated using the weighted average number of outstanding shares of 178,514,257 and 181,908,563 respectively. |
FY 2022 Financial framework - Adjusted IFRS |
|
Revenue |
€5.0 - 5.5 billion (excludes contribution from Arctic LNG 2) |
Recurring EBIT margin |
At least 6.8% (previously: at least 6.5%) (excludes contribution from Arctic LNG 2) |
Effective tax rate |
28 - 32% |
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition). Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 1.0, 2.0, 3.0. |
Conference call information
Technip Energies will host its H1 2022 results conference call and webcast on Thursday, July 28, 2022 at 13:00 CET. Dial-in details:
France: +33 170918704
United Kingdom: +44 121 281 8004
United States: +1 718 7058796
Conference Code: 990801
The event will be webcast simultaneously and can be accessed at: https://edge.media-server.com/mmc/p/av5eu4kx
About Technip Energies |
Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in LNG, hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The Company benefits from its robust project delivery model supported by an extensive technology, products and services offering. |
Operating in 34 countries, our 15,000 people are fully committed to bringing our clients' innovative projects to life, breaking boundaries to accelerate the energy transition for a better tomorrow. |
Technip Energies is listed on Euronext Paris with American depositary receipts ("ADRs") traded over-the-counter in the United States. |
Operational and financial review
Order Intake, Backlog and Backlog Scheduling
Adjusted order intake for H1 2022 of €1,608.5 million, equivalent to a book-to-bill of 0.5. Orders in the second quarter included a large EPC contract by Hafslund Oslo Celsio for a world-first carbon capture and storage project at a waste-to-energy plant in Norway, a contract for carbon capture & storage expansion at ExxonMobil's LaBarge facility in the USA, a pre-FID contract for project design and delivery for Texas LNG in the USA as well as other studies, services contracts and smaller projects. The first quarter included a significant EPCC contract by PETRONAS Chemicals Fertilizer Kedah for a new melamine plant with minimized CO2 footprint, and a FEED for Equinor' floating offshore wind Firefly project in South Korea. Book-to-bill on a trailing 12 month basis is 0.5.
During H1 2022, approximately €2.0 billion relating to Arctic LNG 2 was removed from total company adjusted backlog, which results from sanctioned work that has been suspended, and is in line with our ongoing orderly exit discussions. This was a significant factor in adjusted backlog decreasing by 23% year-over-year to €13,439.8 million.
(In € millions) |
H1 2022 |
H1 2021 |
Adjusted Order Intake |
1,608.5 |
7,863.4 |
Project Delivery |
1,033.9 |
7,196.2 |
Technology, Products & Services |
574.6 |
667.3 |
Adjusted Backlog |
13,439.8 |
17,473.4 |
Project Delivery |
12,275.5 |
16,273.1 |
Technology, Products & Services |
1,164.2 |
1,200.3 |
Reconciliation of IFRS to non-IFRS financial measures are provided in Appendix 6.0 and 7.0. Adjusted Backlog at June 30, 2022, benefited from a foreign exchange impact of €600.0 million. Adjusted Backlog at June 30, 2022 reflects the removal of €1,962.4 million relating to Arctic LNG 2. €846.6 million associated to Arctic LNG 2 remained in backlog at June 30, 2022. |
Adjusted backlog excluding the proportion related to Arctic LNG 2 amounted to €12,593.2 million as of June 30, 2022. The table below provides estimated backlog scheduling as of June 30, 2022.
(In € millions) |
2022 (6 M) |
FY 2023 |
FY 2024+ |
|||
Adjusted Backlog excluding Arctic LNG 2 |
2,818.1 |
3,923.4 |
5,851.7 |
Company Financial Performance
Adjusted Statement of Income |
||||||
(In € millions, except %) |
H1 2022 |
H1 2021 |
% Change |
|||
Adjusted revenue |
3,267.0 |
3,243.2 |
1% |
|||
Adjusted EBITDA |
255.3 |
260.6 |
(2%) |
|||
Adjusted recurring EBIT |
204.4 |
204.5 |
-% |
|||
Non-recurring items |
(1.9) |
(30.6) |
(94%) |
|||
EBIT |
202.5 |
173.9 |
16% |
|||
Financial income (expense), net |
(9.7) |
(12.0) |
(19%) |
|||
Profit (loss) before income tax |
192.8 |
161.9 |
19% |
|||
Income tax (expense)/profit |
(59.2) |
(54.6) |
8% |
|||
Net profit (loss) |
133.6 |
107.3 |
25% |
|||
Net profit (loss) attributable to non-controlling interests |
(2.1) |
(7.0) |
(70%) |
|||
Net profit (loss) attributable to Technip Energies Group |
131.5 |
100.3 |
31% |
Business highlights
Project Delivery - Adjusted IFRS |
|||
(In € millions, except % and bps) |
H1 2022 |
H1 2021 |
% Change |
Revenue |
2,623.9 |
2,622.8 |
-% |
Recurring EBIT |
167.2 |
167.4 |
-% |
Recurring EBIT Margin % |
6.4% |
6.4% |
-% |
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition). |
H1 2022 Adjusted Revenue was stable year-over-year at €2.6 billion. Revenues included significantly lower activity on Arctic LNG 2, which contributed €816.6 million of revenue compared to €1,168.0 million in H1 2021. Revenues excluding Arctic LNG 2 increased year-over-year by 24.2% due to the ramp-up of recently awarded LNG and downstream projects.
H1 2022 Adjusted Recurring EBIT was stable at €167.2 million, despite a significantly lower contribution from Arctic LNG 2 of €27.0 million, compared to €40.9 million in H1 2021. Excluding the contribution from Arctic LNG 2, Adjusted Recurring EBIT was €140.2 million, representing year-over-year growth of 10.8%. H1 2022 Adjusted Recurring EBIT margin was in line with the prior year at 6.4% due to solid execution, including a strong contribution from downstream and LNG projects in the latter stages of completion. This was partially offset by earlier stage LNG projects as well as the dilutive impact of Arctic LNG 2. Adjusted Recurring EBIT margin excluding the contribution from Arctic LNG 2 was 7.8%.
Q2 2022 Key operational milestones
(Please refer to Q1 2022 press release for first quarter milestones)
Qatar Energy North Field Expansion (Qatar)
Eni Coral Sul FLNG (Mozambique)
Energean Karish Gas Development (Israel)
MIDOR Refinery Expansion Project (Egypt)
Bapco Refinery expansion (Bahrain)
Assiut hydrocracking complex (Egypt)
Long Son Olefins plant (Vietnam)
Q2 2022 Key commercial highlights
(Please refer to Q1 2022 press release for first quarter highlights)
Texas LNG (USA)
Hafslund Oslo Celsio carbon capture and storage project (Norway)
* Note: A "large" award for Technip Energies is a contract award representing between €250 million and €500 million of revenue.
Technology, Products & Services (TPS) - Adjusted IFRS |
|||
(In € millions, except % and bps) |
H1 2022 |
H1 2021 |
Change |
Revenue |
643.0 |
620.5 |
4% |
Recurring EBIT |
60.0 |
54.7 |
10% |
Recurring EBIT Margin % |
9.3% |
8.8% |
50 bps |
Financial information is presented under Adjusted IFRS (see Appendix 8.0 for complete definition). |
H1 2022 Adjusted Revenue increased year-over-year by 4% to €643.0 million, driven by growth in demand for Process Technology activity including licensing and proprietary equipment (notably for ethylene, and biochemicals, including EPICEROL®) and sustained engineering services and Project Management and Consultancy activity.
H1 2022 Adjusted Recurring EBIT increased year-over-year by 10% to €60.0 million. H1 2022 Adjusted Recurring EBIT margin increased year-over-year by 50 basis points to 9.3%, benefiting from Process Technology licensing and proprietary equipment activity (notably in Sustainable Chemistry) and higher activity levels for advisory services performed by Genesis. This growth was achieved despite higher selling and tendering activity in growth markets.
Q2 2022 Key operational milestones
(Please refer to Q1 2022 press release for first quarter milestones)
NESTE Renewable Fuels Expansion (Singapore)
Deepak Phenolics - Iso-propyl Alcohol (IPA) plant (India)
Northern Lights CO2 Transport and Storage Project (Norway)
OMV EARTH Revamp (Austria)
LFB Arras (France)
Q2 2022 Key commercial highlights
(Please refer to Q1 2022 press release for first quarter highlights)
OCIKUMHO 100 KTA EPICEROL® plant (Malaysia)
IVERSON efuels green ammonia production project (Norway)
ExxonMobil LaBarge carbon capture & storage facility (USA)
Viridian Lithium - lithium refining and conversion project (France)
Strategic collaboration with Equinor to accelerate floating offshore wind development
Commercial launch of GO.H₂ by T.EN™ - a full suite of flexible solutions for offshore green hydrogen production
Joint development and collaboration agreement with Alterra Energy to jointly develop sustainable plastics projects
Corporate and Other items
Corporate costs, excluding non-recurring items, were €22.9 million for the first half 2022. This included a positive foreign exchange impact of €0.3 million. This compare with corporate costs of €17.6 million in the prior year period.
Non-recurring expense amounted to €1.9 million mainly related to impairment on leased offices and restructuring charges.
Net financial expense was €9.7 million, impacted by the mark-to-market valuation of investments in traded securities and, to a lesser extent, interest expenses associated with the senior unsecured notes, partially offset by interest income from cash on deposit.
Effective tax rate on an Adjusted IFRS basis was 30.7% for the first half 2022, in line with the financial framework provided for full year 2022.
Depreciation and amortization expense was €50.9 million, of which €32.4 million is related to IFRS 16.
Adjusted net cash at June 30, 2022 was €3.2 billion, which compares to Adjusted net cash at December 31, 2021 of €3.1 billion.
Free cash flow of €109.6 million for the first half of 2022. Free cash flow, excluding the working capital variance of €51.4 million, was €161.0 million benefiting from strong operational performance and consistently high conversion from Adjusted Recurring EBIT. Free cash flow is stated after capital expenditures, net, of €17.4 million. Adjusted operating cash flow was €127.0 million.
Liquidity and credit rating information
Adjusted liquidity of €4.6 billion at June 30, 2022 comprised of €3.9 billion of cash and €750 million of liquidity provided by the Company's undrawn revolving credit facility, which is available for general use and serves as a backstop for the Company's commercial paper program, offset by €70.0 million of outstanding commercial paper.
Shareholder update
As of March 31, 2022, TechnipFMC retained 2.2% ownership of Technip Energies' issued and outstanding share capital.
In April 2022, TechnipFMC sold the remaining 4 million Technip Energies shares. TechnipFMC has now fully exited its position in Technip Energies.
Share repurchase
In the six months to June 30, 2022, the Company has repurchased 3,504,715 of its own stock, for a cash cost of €41 million. This includes 1,800,000 shares acquired from TechnipFMC on January 14, 2022, as well as 1,496,892 shares purchased as part of the share buy-back program announced on March 22, 2022. It also includes 207,823 shares as part of the liquidity agreement to enhance the liquidity of Technip Energies' shares.
AGM and Dividend
At the company's maiden AGM on May 5, 2022, all resolutions submitted to the shareholders for approval at the 2022 Annual General Meeting of Shareholders ("AGM") were adopted.
All resolutions on the Agenda received a majority of votes in favor including shareholder approval for the 2021 financial statements and the proposed dividend of €0.45 per outstanding common share for the 2021 financial year. The voting results are available at https://investors.technipenergies.com/news-events/agm.
Payment for the cash dividend took place on May 20, 2022.
Disclaimer
This Press Release is intended for informational purposes only for the shareholders of Technip Energies. This Press Release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation. This Press Release is not intended for distribution in jurisdictions that require prior regulatory review and authorization to distribute a Press Release of this nature.
Forward-looking statements
This Press Release contains "forward-looking statements" as defined in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements usually relate to future events and anticipated revenues, earnings, cash flows or other aspects of Technip Energies' operations or operating results. Forward-looking statements are often identified by the words "believe", "expect", "anticipate", "plan", "intend", "foresee", "should", "would", "could", "may", "estimate", "outlook", and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on Technip Energies' current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on Technip Energies. While Technip Energies believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Technip Energies will be those that Technip Energies anticipates.
All of Technip Energies' forward-looking statements involve risks and uncertainties (some of which are significant or beyond Technip Energies' control, such as Russia's invasion of Ukraine, the associated sanctions and the impact these will have on our and/or our customers' activities conducted in or related to Russia) and assumptions that could cause actual results to differ materially from Technip Energies' historical experience and Technip Energies' present expectations or projections. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements.
For information regarding known material factors that could cause actual results to differ from projected results, please see Technip Energies' risk factors set forth in Technip Energies' filings with the U.S. Securities and Exchange Commission, including its 2021 Form 20-F filed on March 25, 2022.
Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. Technip Energies undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.
APPENDIX
APPENDIX 1.0: ADJUSTED STATEMENT OF INCOME - FIRST HALF 2022 |
||||||||
(In € millions) |
Project |
Technology, Products & |
Corporate/non |
Total |
||||
H1 22 |
H1 21 |
H1 22 |
H1 21 |
H1 22 |
H1 21 |
H1 22 |
H1 21 |
|
Adjusted revenue |
2,623.9 |
2,622.8 |
643.0 |
620.5 |
- |
- |
3,267.0 |
3,243.2 |
Adjusted recurring EBIT |
167.2 |
167.4 |
60.0 |
54.7 |
(22.9) |
(17.6) |
204.4 |
204.5 |
Non-recurring items (transaction & one-off costs) |
(1.4) |
(2.1) |
(0.5) |
(0.7) |
0.1 |
(27.8) |
(1.9) |
(30.6) |
EBIT |
165.8 |
165.3 |
59.4 |
54.0 |
(22.8) |
(45.4) |
202.5 |
173.9 |
Financial income |
9.0 |
7.4 |
||||||
Financial expense |
(18.7) |
(19.4) |
||||||
Profit (loss) before income tax |
192.8 |
161.9 |
||||||
Income tax (expense)/profit |
(59.2) |
(54.6) |
||||||
Net profit (loss) |
133.6 |
107.3 |
||||||
Net profit (loss) attributable to non-controlling interests |
(2.1) |
(7.0) |
||||||
Net profit (loss) attributable to Technip Energies Group |
131.5 |
100.3 |
APPENDIX 1.1: ADJUSTED STATEMENT OF INCOME - SECOND QUARTER 2022 |
||||||||
(In € millions) |
Project |
Technology, Products & Services |
Corporate/non |
Total |
||||
Q2 2022 |
Q2 2021 |
Q2 2022 |
Q2 2021 |
Q2 2022 |
Q2 2021 |
Q2 2022 |
Q2 2021 |
|
Adjusted revenue |
1,334.8 |
1,370.3 |
313.9 |
315.4 |
- |
- |
1,648.7 |
1,685.7 |
Adjusted recurring EBIT |
77.3 |
91.6 |
29.8 |
28.9 |
(10.0) |
(7.2) |
97.0 |
113.3 |
Non-recurring items (transaction & one-off costs) |
(0.3) |
(1.0) |
(0.6) |
(0.7) |
(4.4) |
(2.4) |
(5.3) |
(4.1) |
EBIT |
76.9 |
90.6 |
29.2 |
28.2 |
(14.5) |
(9.6) |
91.7 |
109.2 |
Financial income |
5.1 |
(4.0) |
||||||
Financial expense |
(9.7) |
(14.9) |
||||||
Profit (loss) before income tax |
87.1 |
90.3 |
||||||
Income tax (expense)/profit |
(28.6) |
(30.5) |
||||||
Net profit (loss) |
58.5 |
59.8 |
||||||
Net profit (loss) attributable to non-controlling interests |
0.6 |
(3.7) |
||||||
Net profit (loss) attributable to Technip Energies Group |
59.1 |
56.1 |
APPENDIX 1.2: STATEMENT OF INCOME - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2022 |
|||
(In € millions) |
H1 22 IFRS |
Adjustments |
H1 22 Adjusted |
Revenue |
3,216.7 |
50.3 |
3,267.0 |
Costs and expenses |
|||
Cost of sales |
(2,774.2) |
(105.1) |
(2,879.3) |
Selling, general and administrative expense |
(160.0) |
- |
(160.0) |
Research and development expense |
(22.1) |
- |
(22.1) |
Impairment, restructuring and other income (expense) |
(1.9) |
- |
(1.9) |
Other income (expense), net |
1.0 |
(0.5) |
0.5 |
Operating profit (loss) |
259.5 |
(55.3) |
204.2 |
Share of profit (loss) of equity-accounted investees |
10.1 |
(11.8) |
(1.7) |
Profit (loss) before financial expense, net and income tax |
269.6 |
(67.1) |
202.5 |
Financial income |
8.6 |
0.4 |
9.0 |
Financial expense |
(94.0) |
75.3 |
(18.7) |
Profit (loss) before income tax |
184.2 |
8.6 |
192.8 |
Income tax (expense)/profit |
(62.8) |
3.6 |
(59.2) |
Net profit (loss) |
121.4 |
12.2 |
133.6 |
Net profit (loss) attributable to non-controlling interests |
(2.1) |
- |
(2.1) |
Net profit (loss) attributable to Technip Energies Group |
119.3 |
12.2 |
131.5 |
APPENDIX 1.3: STATEMENT OF INCOME - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2021 |
|||
(In € millions) |
H1 21 IFRS |
Adjustments |
H1 21 Adjusted |
Revenue |
3,118.1 |
125.1 |
3,243.2 |
Costs and expenses |
|||
Cost of sales |
(2,665.4) |
(207.0) |
(2,872.4) |
Selling, general and administrative expense |
(149.2) |
- |
(149.2) |
Research and development expense |
(17.4) |
- |
(17.4) |
Impairment, restructuring and other income (expense) |
(30.6) |
- |
(30.6) |
Other income (expense), net |
4.5 |
(2.7) |
1.8 |
Operating profit (loss) |
260.0 |
(84.6) |
175.4 |
Share of profit (loss) of equity-accounted investees |
3.9 |
(5.4) |
(1.5) |
Profit (loss) before financial expense, net and income tax |
263.9 |
(90.0) |
173.9 |
Financial income |
7.4 |
- |
7.4 |
Financial expense |
(91.2) |
71.8 |
(19.4) |
Profit (loss) before income tax |
180.1 |
(18.2) |
161.9 |
Income tax (expense)/profit |
(60.7) |
6.1 |
(54.6) |
Net profit (loss) |
119.4 |
(12.1) |
107.3 |
Net profit (loss) attributable to non-controlling interests |
(7.0) |
- |
(7.0) |
Net profit (loss) attributable to Technip Energies Group |
112.4 |
(12.1) |
100.3 |
APPENDIX 1.4: STATEMENT OF INCOME - RECONCILIATION BETWEEN IFRS AND ADJUSTED - SECOND QUARTER 2022 |
|||
(In € millions) |
Q2 22 IFRS |
Adjustments |
Q2 22 Adjusted |
Revenue |
1,516.7 |
132.0 |
1,648.7 |
Costs and expenses |
|||
Cost of sales |
(1,308.5) |
(151.5) |
(1,460.0) |
Selling, general and administrative expense |
(86.2) |
- |
(86.2) |
Research and development expense |
(11.0) |
- |
(11.0) |
Impairment, restructuring and other income (expense) |
(5.3) |
- |
(5.3) |
Other income (expense), net |
7.1 |
(1.0) |
6.1 |
Operating profit (loss) |
112.8 |
(20.5) |
92.3 |
Share of profit (loss) of equity-accounted investees |
2.2 |
(2.8) |
(0.6) |
Profit (loss) before financial expense, net and income tax |
115.0 |
(23.3) |
91.7 |
Financial income |
4.9 |
0.2 |
5.1 |
Financial expense |
(40.0) |
30.3 |
(9.7) |
Profit (loss) before income tax |
79.9 |
7.2 |
87.1 |
Income tax (expense)/profit |
(30.0) |
1.4 |
(28.6) |
Net profit (loss) |
49.9 |
8.6 |
58.5 |
Net profit (loss) attributable to non-controlling interests |
0.6 |
- |
0.6 |
Net profit (loss) attributable to Technip Energies Group |
50.5 |
8.6 |
59.1 |
APPENDIX 1.5: STATEMENT OF INCOME - RECONCILIATION BETWEEN IFRS AND ADJUSTED - SECOND QUARTER 2021 |
|||
(In € millions) |
Q2 21 IFRS |
Adjustments |
Q2 21 Adjusted |
Revenue |
1,617.1 |
68.6 |
1,685.7 |
Costs and expenses |
|||
Cost of sales |
(1,386.0) |
(106.2) |
(1,492.2) |
Selling, general and administrative expense |
(73.7) |
- |
(73.7) |
Research and development expense |
(10.1) |
- |
(10.1) |
Impairment, restructuring and other income (expense) |
(4.1) |
- |
(4.1) |
Other income (expense), net |
3.2 |
1.1 |
4.3 |
Operating profit (loss) |
146.4 |
(36.5) |
109.9 |
Share of profit (loss) of equity-accounted investees |
1.3 |
(2.0) |
(0.7) |
Profit (loss) before financial expense, net and income tax |
147.7 |
(38.5) |
109.2 |
Financial income |
(4.0) |
- |
(4.0) |
Financial expense |
(45.6) |
30.7 |
(14.9) |
Profit (loss) before income tax |
98.1 |
(7.8) |
90.3 |
Income tax (expense)/profit |
(34.7) |
4.2 |
(30.5) |
Net profit (loss) |
63.4 |
(3.6) |
59.8 |
Net profit (loss) attributable to non-controlling interests |
(3.7) |
- |
(3.7) |
Net profit (loss) attributable to Technip Energies Group |
59.7 |
(3.6) |
56.1 |
APPENDIX 2.0: ADJUSTED STATEMENT OF FINANCIAL POSITION |
||
(In € millions) |
H1 22 |
FY 21 |
Goodwill |
2,102.3 |
2,074.4 |
Property, plant and equipment, net |
111.5 |
115.2 |
Right-of-use assets |
237.1 |
252.9 |
Equity accounted investees |
31.0 |
27.8 |
Other non-current assets |
333.0 |
322.1 |
Total non-current assets |
2,814.9 |
2,792.4 |
Trade receivables, net |
835.8 |
1,041.1 |
Contract assets |
479.1 |
330.3 |
Other current assets |
791.8 |
655.2 |
Cash and cash equivalents |
3,890.9 |
3,810.1 |
Total current assets |
5,997.6 |
5,836.7 |
Total assets |
8,812.5 |
8,629.1 |
Total equity |
1,509.8 |
1,491.2 |
Long-term debt, less current portion |
594.9 |
594.1 |
Lease liability - non-current |
222.7 |
237.7 |
Accrued pension and other post-retirement benefits, less current portion |
127.6 |
127.7 |
Other non-current liabilities |
108.9 |
102.0 |
Total non-current liabilities |
1,054.1 |
1,061.5 |
Short-term debt |
99.4 |
89.2 |
Lease liability - current |
70.8 |
69.2 |
Accounts payable, trade |
1,986.6 |
1,765.2 |
Contract liabilities |
3,281.2 |
3,345.2 |
Other current liabilities |
810.6 |
807.6 |
Total current liabilities |
6,248.6 |
6,076.4 |
Total liabilities |
7,302.7 |
7,137.9 |
Total equity and liabilities |
8,812.5 |
8,629.1 |
APPENDIX 2.1: STATEMENT OF FINANCIAL POSITION - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2022 |
|||
(In € millions) |
H1 22 IFRS |
Adjustments |
H1 22 Adjusted |
Goodwill |
2,102.3 |
- |
2,102.3 |
Property, plant and equipment, net |
111.0 |
0.5 |
111.5 |
Right-of-use assets |
236.2 |
0.9 |
237.1 |
Equity accounted investees |
85.2 |
(54.2) |
31.0 |
Other non-current assets |
328.1 |
4.9 |
333.0 |
Total non-current assets |
2,862.8 |
(47.9) |
2,814.9 |
Trade receivables, net |
858.4 |
(22.6) |
835.8 |
Contract assets |
468.3 |
10.8 |
479.1 |
Other current assets |
657.6 |
134.2 |
791.8 |
Cash and cash equivalents |
3,668.9 |
222.0 |
3,890.9 |
Total current assets |
5,653.2 |
344.4 |
5,997.6 |
Total assets |
8,516.0 |
296.5 |
8,812.5 |
Total equity |
1,512.7 |
(2.9) |
1,509.8 |
Long-term debt, less current portion |
594.9 |
- |
594.9 |
Lease liability - non-current |
221.6 |
1.1 |
222.7 |
Accrued pension and other post-retirement benefits, less current portion |
127.6 |
- |
127.6 |
Other non-current liabilities |
126.6 |
(17.7) |
108.9 |
Total non-current liabilities |
1,070.7 |
(16.6) |
1,054.1 |
Short-term debt |
99.4 |
- |
99.4 |
Lease liability - current |
70.4 |
0.4 |
70.8 |
Accounts payable, trade |
1,650.4 |
336.2 |
1,986.6 |
Contract liabilities |
3,117.3 |
163.9 |
3,281.2 |
Other current liabilities |
995.1 |
(184.5) |
810.6 |
Total current liabilities |
5,932.6 |
316.0 |
6,248.6 |
Total liabilities |
7,003.3 |
299.4 |
7,302.7 |
Total equity and liabilities |
8,516.0 |
296.5 |
8,812.5 |
APPENDIX 2.2: STATEMENT OF FINANCIAL POSITION - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2021 |
|||
(In € millions) |
H1 21 IFRS |
Adjustments |
H1 21 Adjusted |
Goodwill |
2,057.7 |
- |
2,057.7 |
Property, plant and equipment, net |
107.0 |
0.4 |
107.4 |
Right-of-use assets |
279.8 |
1.1 |
280.9 |
Equity accounted investees |
40.1 |
(12.9) |
27.2 |
Other non-current assets |
308.5 |
(33.1) |
275.4 |
Total non-current assets |
2,793.1 |
(44.5) |
2,748.6 |
Trade receivables, net |
1,311.3 |
(3.7) |
1,307.6 |
Contract assets |
268.1 |
(0.4) |
267.7 |
Other current assets |
453.5 |
116.5 |
570.0 |
Cash and cash equivalents |
3,162.1 |
0.7 |
3,162.8 |
Total current assets |
5,195.0 |
113.1 |
5,308.1 |
Total assets |
7,988.1 |
68.6 |
8,056.7 |
Total equity |
1,367.8 |
(33.9) |
1,333.9 |
Lease liability - non-current |
265.1 |
0.9 |
266.0 |
Accrued pension and other post-retirement benefits, less current portion |
127.6 |
- |
127.6 |
Other non-current liabilities |
137.4 |
(14.8) |
122.6 |
Total non-current liabilities |
1,124.3 |
(13.9) |
1,110.4 |
Short-term debt |
85.5 |
- |
85.5 |
Lease liability - current |
60.8 |
0.2 |
61.0 |
Accounts payable, trade |
1,457.8 |
198.9 |
1,656.7 |
Contract liabilities |
3,107.1 |
60.5 |
3,167.6 |
Other current liabilities |
784.8 |
(143.2) |
641.6 |
Total current liabilities |
5,496.0 |
116.4 |
5,612.4 |
Total liabilities |
6,620.3 |
102.5 |
6,722.8 |
Total equity and liabilities |
7,988.1 |
68.6 |
8,056.7 |
APPENDIX 3.0: ADJUSTED STATEMENT OF CASH FLOWS |
||
(In € millions) |
H1 22 |
H1 21 |
Net profit (loss) |
133.6 |
107.3 |
Other non-cash items |
44.8 |
62.6 |
Change in working capital |
(51.4) |
185.0 |
Cash provided (required) by operating activities |
127.0 |
354.9 |
Capital expenditures |
(17.5) |
(15.4) |
Proceeds from sale of assets |
0.1 |
- |
Other financial assets |
(8.0) |
(3.6) |
Cash required by investing activities |
(25.4) |
(19.0) |
Net increase (repayment) in long-term, short-term debt and commercial paper |
12.0 |
274.2 |
Purchase of treasury shares |
(40.7) |
(20.0) |
Dividends paid to Shareholders |
(79.0) |
- |
Net (distributions to)/contributions from TechnipFMC |
- |
(478.4) |
Other (o/w lease liabilities repayment) |
(48.6) |
(41.0) |
Cash provided (required) by financing activities |
(156.3) |
(265.2) |
Effect of changes in foreign exchange rates on cash and cash equivalents |
135.5 |
27.7 |
(Decrease) Increase in cash and cash equivalents |
80.8 |
98.4 |
Cash and cash equivalents, beginning of period |
3,810.1 |
3,064.4 |
Cash and cash equivalents, end of period |
3,890.9 |
3,162.8 |
APPENDIX 3.1: STATEMENT OF CASH FLOWS - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2022 |
|||
(In € millions) |
H1 22 IFRS |
Adjustments |
H1 22 Adjusted |
Net profit (loss) |
121.4 |
12.2 |
133.6 |
Other non-cash items |
145.7 |
(100.9) |
44.8 |
Change in working capital |
(77.4) |
26.0 |
(51.4) |
Cash provided (required) by operating activities |
189.7 |
(62.7) |
127.0 |
Capital expenditures |
(17.4) |
(0.1) |
(17.5) |
Proceeds from sale of assets |
0.1 |
- |
0.1 |
Other financial assets |
(8.0) |
- |
(8.0) |
Cash required by investing activities |
(25.3) |
(0.1) |
(25.4) |
Net increase (repayment) in long-term, short-term debt and commercial paper |
12.0 |
- |
12.0 |
Purchase of treasury shares |
(40.7) |
- |
(40.7) |
Dividends paid to Shareholders |
(79.0) |
- |
(79.0) |
Settlements of mandatorily redeemable financial liability |
(120.2) |
120.2 |
- |
Other (o/w lease liabilities repayment) |
(48.5) |
(0.1) |
(48.6) |
Cash provided (required) by financing activities |
(276.4) |
120.1 |
(156.3) |
Effect of changes in foreign exchange rates on cash and cash equivalents |
142.3 |
(6.8) |
135.5 |
(Decrease) Increase in cash and cash equivalents |
30.3 |
50.5 |
80.8 |
Cash and cash equivalents, beginning of period |
3,638.6 |
171.5 |
3,810.1 |
Cash and cash equivalents, end of period |
3,668.9 |
222.0 |
3,890.9 |
APPENDIX 3.2: STATEMENT OF CASH FLOWS - RECONCILIATION BETWEEN IFRS AND ADJUSTED - FIRST HALF 2021 |
|||
(In € millions) |
H1 21 IFRS |
Adjustments |
H1 21 Adjusted |
Net profit (loss) |
119.4 |
(12.1) |
107.3 |
Other non-cash items |
140.5 |
(77.9) |
62.6 |
Change in working capital |
88.2 |
96.8 |
185.0 |
Cash provided (required) by operating activities |
348.1 |
6.8 |
354.9 |
Capital expenditures |
(15.3) |
(0.1) |
(15.4) |
Other financial assets |
(3.6) |
- |
(3.6) |
Cash required by investing activities |
(18.9) |
(0.1) |
(19.0) |
Net increase (repayment) in long-term, short-term debt and commercial paper |
274.2 |
- |
274.2 |
Purchase of treasury shares |
(20.0) |
- |
(20.0) |
Settlements of mandatorily redeemable financial liability |
(129.0) |
129.0 |
- |
Net (distributions to)/contributions from TechnipFMC |
(478.4) |
- |
(478.4) |
Other (o/w lease liabilities repayment) |
(40.9) |
(0.1) |
(41.0) |
Cash provided (required) by financing activities |
(394.1) |
128.9 |
(265.2) |
Effect of changes in foreign exchange rates on cash and cash equivalents |
37.3 |
(9.6) |
27.7 |
(Decrease) Increase in cash and cash equivalents |
(27.6) |
126.0 |
98.4 |
Cash and cash equivalents, beginning of period |
3,189.7 |
(125.3) |
3,064.4 |
Cash and cash equivalents, end of period |
3,162.1 |
0.7 |
3,162.8 |
APPENDIX 4.0: ADJUSTED ALTERNATIVE PERFORMANCE MEASURES - FIRST HALF 2022 |
||||
(In € millions) |
H1 22 |
% of revenues |
H1 21 |
% of revenues |
Adjusted revenue |
3,267.0 |
3,243.2 |
||
Cost of sales |
(2,879.3) |
88.1 % |
(2,872.4) |
88.6 % |
Adjusted gross margin |
387.7 |
11.9 % |
370.8 |
11.4 % |
Adjusted recurring EBITDA |
255.3 |
7.8 % |
260.6 |
8.0 % |
Amortization, depreciation and impairment |
(50.9) |
(56.1) |
||
Adjusted recurring EBIT |
204.4 |
6.3 % |
204.5 |
6.3 % |
Non-recurring items |
(1.9) |
(30.6) |
||
Adjusted profit (loss) before financial expense, net and income tax |
202.5 |
6.2 % |
173.9 |
5.4 % |
Financial income and expense |
(9.7) |
(12.0) |
||
Adjusted profit (loss) before tax |
192.8 |
5.9 % |
161.9 |
5.0 % |
Income tax |
(59.2) |
(54.6) |
||
Adjusted net profit (loss) |
133.6 |
4.1 % |
107.3 |
3.3 % |
APPENDIX 4.1: ADJUSTED ALTERNATIVE PERFORMANCE MEASURES - SECOND QUARTER 2022 |
||||
(In € millions, except %) |
Q2 22 |
% of revenues |
Q2 21 |
% of revenues |
Adjusted revenue |
1,648.7 |
1,685.7 |
||
Cost of sales |
(1,460.0) |
88.6 % |
(1,492.2) |
88.5 % |
Adjusted gross margin |
188.7 |
11.4 % |
193.5 |
11.5 % |
Adjusted recurring EBITDA |
123.0 |
7.5 % |
142.7 |
8.5 % |
Amortization, depreciation and impairment |
(26.0) |
(29.4) |
||
Adjusted recurring EBIT |
97.0 |
5.9 % |
113.3 |
6.7 % |
Non-recurring items |
(5.3) |
(4.1) |
||
Adjusted profit (loss) before financial expense, net and income tax |
91.7 |
5.6 % |
109.2 |
6.5 % |
Financial income and expense |
(4.6) |
(18.9) |
||
Adjusted profit (loss) before tax |
87.1 |
5.3 % |
90.3 |
5.4 % |
Income tax |
(28.6) |
(30.5) |
||
Adjusted net profit (loss) |
58.5 |
3.5 % |
59.8 |
3.5 % |
APPENDIX 5.0: ADJUSTED RECURRING EBIT AND EBITDA RECONCILIATION - FIRST HALF 2022 |
||||||||
(In € millions) |
Project |
Technology, Products & |
Corporate/non |
Total |
||||
H1 22 |
H1 21 |
H1 22 |
H1 21 |
H1 22 |
H1 21 |
H1 22 |
H1 21 |
|
Revenue |
2,623.9 |
2,622.8 |
643.0 |
620.5 |
- |
- |
3,267.0 |
3,243.2 |
Profit (loss) before financial expenses, net and income tax |
202.5 |
173.9 |
||||||
Non-recurring items: |
||||||||
Separation costs allocated |
- |
27.8 |
||||||
Other non-recurring income/(expense) |
1.9 |
2.8 |
||||||
Adjusted recurring EBIT |
167.2 |
167.4 |
60.0 |
54.7 |
(22.9) |
(17.6) |
204.4 |
204.5 |
Adjusted recurring EBIT margin % |
6.4% |
6.4% |
9.3% |
8.8% |
-% |
-% |
6.3% |
6.3% |
Adjusted amortization and depreciation |
(50.9) |
(56.1) |
||||||
Adjusted recurring EBITDA |
255.3 |
260.6 |
||||||
Adjusted recurring EBITDA margin % |
7.8% |
8.0% |
APPENDIX 5.1: ADJUSTED RECURRING EBIT AND EBITDA RECONCILIATION - SECOND QUARTER 2022 |
||||||||
(In € millions, except %) |
Project |
Technology, Products & |
Corporate/non |
Total |
||||
Q2 22 |
Q2 2021 |
Q2 22 |
Q2 2021 |
Q2 22 |
Q2 2021 |
Q2 22 |
Q2 2021 |
|
Revenue |
1,334.8 |
1,370.3 |
313.9 |
315.4 |
- |
- |
1,648.7 |
1,685.7 |
Profit (loss) before financial expenses, net and income tax |
91.7 |
109.2 |
||||||
Non-recurring items: |
||||||||
Separation costs allocated |
- |
2.4 |
||||||
Other non-recurring income/(expense) |
5.3 |
1.7 |
||||||
Adjusted recurring EBIT |
77.3 |
91.6 |
29.8 |
28.9 |
(10.0) |
(7.2) |
97.0 |
113.3 |
Adjusted recurring EBIT margin % |
5.8% |
6.7% |
9.5% |
9.2% |
-% |
-% |
5.9% |
6.7% |
Adjusted amortization and depreciation |
(26.0) |
(29.4) |
||||||
Adjusted recurring EBITDA |
123.0 |
142.7 |
||||||
Adjusted recurring EBITDA margin % |
7.5% |
8.5% |
APPENDIX 6.0: BACKLOG - RECONCILIATION BETWEEN IFRS AND ADJUSTED |
|||
(In € millions) |
H1 22 IFRS |
Adjustments |
H1 22 Adjusted |
Project Delivery |
12,152.4 |
123.1 |
12,275.5 |
Technology, Products & Services |
1,164.2 |
- |
1,164.2 |
Total |
13,316.6 |
13,439.8 |
APPENDIX 7.0: ORDER INTAKE - RECONCILIATION BETWEEN IFRS AND ADJUSTED |
|||
(In € millions) |
H1 22 IFRS |
Adjustments |
H1 22 Adjusted |
Project Delivery |
978.3 |
55.6 |
1,033.9 |
Technology, Products & Services |
574.6 |
- |
574.6 |
Total |
1,552.9 |
1,608.5 |
APPENDIX 8.0: Definition of Alternative Performance Measures (APMs)
Certain parts of this Press Release contain the following non-IFRS financial measures: Adjusted Revenue, Adjusted Recurring EBIT, Adjusted Recurring EBITDA, Adjusted net (debt) cash, Adjusted Order Backlog, and Adjusted Order Intake, which are not recognized as measures of financial performance or liquidity under IFRS and which the Company considers to be APMs. APMs should not be considered an alternative to, or more meaningful than, the equivalent measures as determined in accordance with IFRS or as an indicator of the Company's operating performance or liquidity.
Each of the APMs is defined below:
Investor Relations
Phillip Lindsay
Vice President, Investor Relations
Tel: +44 20 7585 5051
Email: Phillip Lindsay
Media Relations
Stella Fumey
Director Press Relations & Digital Communications
Tel: +33 1 85 67 40 95
Email: Stella Fumey
Source: Technip Energies