Technip Energies Financial Results for the First Nine Months of 2024

TECHNIP ENERGIES 9M 2024 FINANCIAL RESULTS

Strong 9M performance and substantial EPS growth; upgrading full year guidance

Arnaud Pieton, Chief Executive Officer of Technip Energies, commented:

"I am delighted to report a highly robust performance by Technip Energies (T.EN) in the first nine months of 2024, evidenced by year-over-year revenue growth of 13%, sustained profitability, and substantial growth in net income. These results demonstrate the strength of our business model and execution, and the impressive dedication of our teams across the globe. As a result, we are raising full year revenue guidance.”

"Our order intake year-to-date is in line with revenue, and we are very confident that orders will exceed revenue on a full-year basis. Our confidence is bolstered by our recent selection for the delivery of large modules for a major offshore project in the Americas. We have also recently secured an important award for Rely, our joint venture for green hydrogen and Power-to-X, to provide services for one of the world's largest green ammonia plants for AM Green in India, and, we celebrated a technology first with an award for our proprietary low-emission cracking ethylene furnace for CPChem in the US.”

"In addition, we secured our position on notable projects that will reinforce and diversify our backlog in 2025 and beyond. This includes our selection by Lake Charles LNG for a major export terminal in the US, as well a front-end engineering design (FEED) award on Rovuma LNG in Mozambique - both projects underscore our continued leadership in modularized LNG trains.”

"Our strategic focus provides for sustained growth and success in promising new industries including blue molecules and carbon capture. In the third quarter, bp awarded T.EN a FEED for its H2Teesside project, which is expected to be one of the UK's largest blue hydrogen production facilities. This reinforces our position in the UK's first decarbonized industrial cluster, where we have also been selected for the NZT Power carbon-capture project, pending final investment decision. These awards are establishing T.EN's early leadership in growth markets.”

"With the completion of our share buyback program and planned cancellation of treasury shares, T.EN will have returned more than €170 million in cash to shareholders during 2024 through dividends and buybacks - roughly equivalent to 4.5% of our market capitalization - a clear and tangible sign of our commitment to shareholder returns.”

"Finally, we are looking forward to engaging with our investor community at our Capital Markets Day on November 21, 2024 and sharing more about our vision for T.EN's bright future.”

Key financials - adjusted IFRS

Key financials - IFRS

Updating 2024 full company guidance - adjusted IFRS

Technip Energies will update on its strategy and business outlook during a Capital Markets Event in London on November 21, 2024.

Conference call information

Technip Energies will host its 9M 2024 results conference call and webcast on Thursday, October 31, 2024 at 13:00 CET. Dial-in details:

France: +33 1 70 91 87 04

United Kingdom: +44 1 212818004

United States: +1 718 7058796

Conference Code: 880901

The event will be webcast simultaneously and can be accessed at: T.EN 9M 2024 Webcast

Contacts

Investor Relations

Phillip Lindsay

Vice President, Investor Relations

Tel: +44 20 7585 5051

Email: Phillip Lindsay

Media Relations

Jason Hyonne

Manager, Press Relations & Social Media

Tel: +33 1 47 78 22 89

Email: Jason Hyonne

Operational and financial review

Order intake, backlog and backlog scheduling

Adjusted order intake for 9M 2024 amounted to €4,814 million, equivalent to a book-to-bill of 1.0. Adjusted order intake in the third quarter included a services contract award to Rely, T.EN's green hydrogen joint venture, from AM Green for India's largest green ammonia complex, a Front-End Engineering and Design (FEED) contract by ExxonMobil for the Rovuma LNG project in Mozambique, a FEED contract by bp for the low-carbon hydrogen H2Teesside project in the UK, as well as other services contracts and smaller projects. Also in the third quarter, T.EN was selected for a major^* Engineering, Procurement, Fabrication and Construction (EPFC) project by Lake Charles LNG in the US (award pending customer final investment decision) and announced the award of an Engineering and Procurement contract by CPChem for the supply of a proprietary low emission cracking furnace for an existing olefins unit in the US.

H1 2024 commercial highlights are included here: T.EN H1 2024 financial results.

* A "major” award for Technip Energies is a contract award representing above €1 billion of revenue.

Adjusted backlog increased by 1% to €15.9 billion compared to December 31, 2023, equivalent to 2.6x FY 2023 revenue.

The table below provides estimated backlog scheduling as of September 30, 2024.

Company financial performance

Adjusted statement of income

Business highlights

Project Delivery - adjusted IFRS

9M 2024 Adjusted revenue increased by 17% year-over-year to €3,495.5 million due to a growing contribution from Qatar NFS and Qatar NFE, as well as higher activity in offshore, partially offset by reduced activity in downstream projects in completion phases.

9M 2024 Adjusted recurring EBITDA increased by 11% to €291.7 million and 9M 2024 Adjusted recurring EBIT increased by 11% year-over-year to €258.3 million.

9M 2024 Adjusted recurring EBITDA / EBIT margin decreased year-over-year by 50 bps / 40 bps to 8.3% / 7.4%, reflecting a re-balancing of the portfolio and growing contributions from earlier phase projects where less margin is recognized. Project execution remains strong across the portfolio.

Q3 2024 Key operational milestones

(Please refer to Q1 2024 and H1 2024 press releases for first half milestones)

Qatar Energy North Field Expansion (Qatar)

• Mobilization at site has reached its peak and commissioning activities for the desalination plant are ongoing.

• Final performance acceptance test passed.

• Cracking furnace proprietary equipment delivered at site and heavy lifting campaign started.

• Start-up of first tail gas treatment and sour water strippers units.

• 20 million hours achieved without a lost time incident (LTI).

• Gas exported into the trunk line for the first time.

(Please refer to Q1 2024 and H1 2024 press releases for first half highlights)

Technip Energies and KBR selected for a major LNG project by Lake Charles LNG (USA)

• The KTJV joint venture between Technip Energies and KBR has been selected for a major^* Engineering, Procurement, Fabrication and Construction (EPFC) project by Lake Charles LNG. Subject to Lake Charles LNG making a final investment decision to proceed with this project, this project will convert the existing Lake Charles LNG import and regasification terminal, located in Lake Charles, Louisiana, on the United States Gulf Coast, into an LNG export terminal. When the conversion is complete, the liquefaction terminal will be among the largest LNG terminals in the United States. The award covers a new 16.45 Mtpa LNG export facility, including three 5.5 Mtpa modular LNG trains, brownfield modification to LNG storage, along with procurement, transportation, fabrication, installation, commissioning, and startup of the terminal.
• ^* A "major” award for Technip Energies is a contract award representing above €1 billion of revenue. This project is pending customer final investment decision and is not included in 9M 2024 backlog.

• Technip Energies and JGC Corporation have been awarded the Front-End Engineering Design (FEED) contract by ExxonMobil - on behalf of Mozambique Rovuma Venture (MRV), a joint venture of ExxonMobil, Eni, and CNPC - for the Rovuma LNG project at Palma in the Afungi peninsula, Northeast of Mozambique. The Rovuma LNG project will consist of an LNG plant with a total production capacity of 18 Mtpa, comprising 12 fully modularized LNG trains of 1.5 Mtpa each. The plant design will feature electric-driven LNG trains instead of gas turbines, reducing greenhouse gases emissions compared to conventional LNG projects. It will also include prefabricated and standardized modules to be assembled at the project site in Mozambique, offering cost competitiveness and certainty in delivery schedule.

9M 2024 Adjusted revenue increased year-over-year by 3% to €1,475.3 million, resulting from growth in renewable fuels work and decarbonization services, as well as PMC activities, and other studies and services work across energy and energy derivatives markets. Proprietary equipment volumes, notably for ethylene projects, were broadly sustained at a high level.

9M 2024 Adjusted recurring EBITDA increased year-over-year by 5% to 188.2 million and Adjusted recurring EBIT increased year-over-year by 1% to €139.2 million.

9M 2024 Adjusted recurring EBITDA margin increased by 20 bps to 12.8% benefiting from a favorable mix. Conversely, Adjusted recurring EBIT margin decreased year-over-year by 30 bps to 9.4% due to increased depreciation and amortization expense associated with higher capital investment and growth in services, including the impact of IFRS 16, as well as the impact of higher sales and tendering costs, strategic development costs, and higher spend on research & development.

Q3 2024 Key operational milestones

(Please refer to Q1 2024 and H1 2024 press releases for first half milestones)

Reju (Germany)

• Reju, a T.EN company, opens its first textile-to textile Regeneration Hub Zero in Frankfurt.

• Buildings for modularized power distribution center delivered and installed on site.

• Storage tank being erected, piping pre-fabrication and erection progressing.

• FEED activities completed and delivered to client.

(Please refer to Q1 2024 and H1 2024 press releases for first half highlights)

Technip Energies awarded a proprietary equipment contract by Chevron Phillips Chemical for the first complete implementation of the low-CO₂ cracking furnace technology (USA)

• Technip Energies has been awarded an Engineering and Procurement contract by Chevron Phillips Chemical (CPChem) for the supply of a proprietary Low Emission Cracking Furnace in an existing olefins unit at its facility in Sweeny, Texas. This low-emission design is cost-effective and will reduce fuel consumption and CO₂ emissions by approximately 30 %. Technip Energies' patented design of the Low Emission Cracking Furnace focuses on improving fuel efficiency using a novel heat recovery scheme, which includes combustion air preheat and a first-of-its-kind gas-to-gas primary feed effluent exchanger. The project also electrifies a major compressor driver, and because the low emission furnace will be capable of using hydrogen as fuel, the project enables immediate and future reductions to the existing unit's carbon intensity.

• Technip Energies has been awarded the Front-End Engineering Design (FEED) contract by bp for the H2Teesside project in the North East of the United Kingdom. H2Teesside is expected to be one of the UK's largest low-carbon hydrogen production facilities - fully integrated with carbon capture technology. The project is targeting 1.2 GW of low-carbon hydrogen production, which equates to more than 10% of the UK's 2030 hydrogen production target. As part of the FEED study, Technip Energies will deliver a comprehensive design utilizing their in-house expertise and global best practices to design large scale project, integrating hydrogen and carbon capture technologies. In the perspective of a 2025 final investment decision, the next step for Technip Energies, if selected, will be to provide the full Engineering Procurement, Construction and Commissioning (EPCC) package for the project.

• Rely has been awarded an EPsCm contract by AM Green India Pvt Ltd. for its 2 x 1500 tons per day (TPD) Green Ammonia Complex at Kakinada, Andhra Pradesh, India. The project, which reached FID in August 2024, includes 2 x 640MW Pressured Alkaline Electrolysers for the production of green hydrogen, making it one of the world largest green hydrogen facilities to move to execution phase. The development has reached its final investment decision (FID) in August 2024 and will deliver 1Mtpa of RED3 RFNBO compliant Green Ammonia, most of which will be exported to the European market. It will benefit from a round-the-clock carbon free power, thanks to a combination of wind, solar power and pumped hydro storage system. Rely will provide design, detailed engineering, procurement services, construction management and commissioning services ("EPsCm Services”) for the entire facility, consisting in electrolyzers for Green Hydrogen Production, air separation units for nitrogen, two trains of ammonia synthesis, ammonia storage, ammonia loading facility at the port and offsite utilities. The Pressured Alkaline Electrolysers will be provided by John Cockerill Hydrogen.
• ^*Largest Green Ammonia complex with FID approved.

Corporate costs, excluding non-recurring items, were €40.8 million for the first nine months of 2024.

Non-recurring expense amounted to €16.4 million and includes costs incurred relating the set up of new business ventures.

Net financial income of €88.9 million benefited from interest income generated from cash and cash equivalents, partially offset by interest expenses associated with the senior unsecured notes and the mark-to-market valuation impact of investments in traded securities.

Effective tax rate on an adjusted IFRS basis was 30.3% for the first nine months of 2024. This is slightly above the prior 2024 guidance range of 26% - 30%. This is due to the mix effect of reduced earnings from lower tax rate jurisdictions and more earnings in higher tax rate jurisdictions. As a result of this, and the potential impact of the French surtax, FY 2024 tax rate guidance has increased to 29% - 33% (previously 26% - 30%).

Depreciation and amortization expense was €82.6 million, of which €52.7 million is related to IFRS 16.

Adjusted net cash at September 30, 2024 was €2.7 billion, which compares to €2.8 billion at December 31, 2023.

Adjusted free cash flow was €191.6 million for the first nine months of 2024. Adjusted free cash flow, excluding the working capital and provisions variance of €168.7 million, was €360.3 million benefiting from strong operational performance and consistently high conversion from Adjusted recurring EBIT at 101%. Free cash flow is stated after capital expenditures of €55.8 million. Adjusted operating cash flow was €247.4 million.

Share buyback

Completion of the share buyback program. On September 30, 2024, the Company announced the completion of it €100 million share buyback program. Between March 5, 2024 and September 27, 2024 a total number of 4,580,640 shares (representing 2.52% of the share capital of the Company) were bought back.

The shares acquired under the share buyback program will be used to 1) reduce the Company's share capital by cancelling treasury shares and 2) to meet the Company's obligations under equity incentive plans.

Liquidity

Adjusted liquidity of €4.2 billion at September 30, 2024 comprised of €3.5 billion of cash and €750 million of liquidity provided by the Company's undrawn revolving credit facility, offset by €80 million of outstanding commercial paper. The Company's revolving credit facility is available for general use and serves as a backstop for the Company's commercial paper program.

Forward-looking statements

This Press Release contains forward-looking statements that reflect Technip Energies' (the "Company”) intentions, beliefs or current expectations and projections about the Company's future results of operations, anticipated revenues, earnings, cashflows, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. 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 the Company's current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on the Company. While the Company believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that the Company anticipates.

All of the Company's forward-looking statements involve risks and uncertainties, some of which are significant or beyond the Company's control, and assumptions that could cause actual results to differ materially from the Company's historical experience and the Company's 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 the Company's risk factors set forth in the Company's 2023 Annual Financial Report filed on March 8, 2024, and in the Company's 2024 Half-Year Report filed on August 1, 2024, with the Dutch Autoriteit Financiële Markten (AFM) and the French Autorité des Marchés Financiers (AMF) which include a discussion of factors that could affect the Company's future performance and the markets in which the Company operates.

Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company 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 NINE MONTHS 2024