Technip Energies beats Q1 order expectations on decarbonisation projects

By America Hernandez

(Reuters) - Technip Energies posted an 8% rise in first-quarter revenue and beat orders expectations on Thursday buoyed by strong demand for carbon capture and electrified gas plant designs.

Adjusted recurring earnings before interest and tax (EBIT) rose 3% to 110.7 million euros on revenue of 1.52 billion euros, the French infrastructure and technology company said.

Its adjusted order intake of 849.9 million euros topped the 682 million expected by analysts in a company-compiled consensus.

That took its backlog to 15.26 billion euros ($16.35 billion).

"Order intake has been above all in carbon capture and storage, plus consultancy on all this infrastructure," Chief Financial Officer Bruno Vibert told journalists on a call, adding there had also been "strong activity in all things sustainable aviation fuel".

CEO Arnaud Pieton said order intake was "significantly in excess of segment revenue" for its Technology, Products and Services (TPS) division.

Its TPS adjusted revenue was up 5% to 475.3 million euros.

Technip Energies shares were down 2.7% at 21.64 euros as of 1104 GMT in line with sector peers.

The company reiterated its 2024 targets calling an EBIT between 7 and 7.5% on revenue of 6.1-6.6 billion euros.

Its outlook "speaks to solid results with a realistic take on the energy transition", Jefferies equity analyst Jamie Franklin wrote in an investment note.

Last week, Technip Energies won a contract from TotalEnergies and OQ to build a solar-powered liquefied natural gas (LNG) plant with expected revenue of 500 million to 1 billion euros.

Earlier this year, the firm was selected to design a CO2 capture and storage project for Britain's largest waste-to-energy plant and to begin work on ADNOC's Ruwais LNG plant in the UAE.

(Reporting by America Hernandez in Paris and Lina Golovnya in Gdansk; editing by Jason Neely)