Technip Energies Full Year 2024 Financial Results

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TECHNIP ENERGIES FY 2024 FINANCIAL RESULTS

Delivering outstanding performance

Paris, Thursday, February 27, 2025. Technip Energies (the "Company”), a global technology & engineering powerhouse leading in energy and decarbonization infrastructure, today announces its unaudited financial results for full year 2024.

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

"Technip Energies - T.EN - delivered an outstanding 2024 performance, setting new highs for both revenue and earnings. This success is a testament to the ingenuity and commitment of our teams in their pursuit of excellence. T.EN is a company in motion, and these results provide a springboard for the next chapter of our growth story. We reaffirm our 2025 guidance.”

"2024 was also a year of great commercial success with more than €10 billion of order intake across our markets including LNG and decarbonized power generation. Orders materially exceeded revenues for both business segments. As a result, backlog increased to a level approaching €20 billion, providing excellent, multi-year visibility and underpinning our earnings trajectory.”

"Of particular note, in December, we were awarded a major contract for Net Zero Teesside Power in the UK, the world's first gas-fired power station with carbon capture and storage. This award reinforces our carbon capture leadership, delivers on our innovation strategy with Canopy by T.EN^TM, and, recognizes our capability to execute at scale.”

"Based on the strength of these results and confidence in our business outlook, we propose increasing our annual dividend by 49%.”

"At our Capital Markets Day in November, we set forth an ambitious growth plan for T.EN. In addition to the strength of our core business, we are diversifying and broadening our portfolio of solutions and customers, establishing our leadership in new domains. As such, T.EN is set to thrive in any energy scenario. Moreover, our balance sheet strength, and highly cash generative business model support growing shareholder returns and allow us to selectively deploy capital to drive further value creation.”

"We intend to build on the strong business momentum established in 2023 and 2024. Our complementary growth engines - Project Delivery and Technology, Products & Services - are poised to further capitalize on our robust outlook over the next 24 months, with sizable prospects in LNG and decarbonization, including blue molecule infrastructures, notably in North America.”

"Through continuous innovation, smart engineering and excellence in execution, T.EN is set to win the affordability battle, bridging prosperity and sustainability for a world designed to last.”

Key financials - adjusted IFRS

Key financials - IFRS

2025 full company guidance - adjusted IFRS

Conference call information

Technip Energies will host its FY 2024 results conference call and webcast on Thursday, February 27, 2025 at 13:00 CET. Dial-in details:

France:                         +33 1 70 91 87 04

United Kingdom:         +44 121 281 8004

United States:                 +1 718 7058796

Conference Code:         880901

The event will be webcast simultaneously and can be accessed at: T.EN FY 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 FY 2024 amounted to €10,011 million, equivalent to a book-to-bill of 1.5.

Adjusted order intake in the fourth quarter of 2024 included a major^* contract for the Net Zero Teesside Power project, which aims to be the world's first gas-fired power station with carbon capture and storage, a major^* contract with TotalEnergies for the topsides of GranMorgu Floating Production, Storage and Offloading vessel (FPSO) in Suriname, as well as other studies, services contracts and smaller projects.

For reference, commercial highlights for the first nine months of 2024 are included here: T.EN 9M 2024 financial results.

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

Adjusted backlog increased by 24% to €19.6 billion compared to December 31, 2023, equivalent to 2.9x FY 2024 revenue.

The table below provides estimated backlog scheduling as of December 31, 2024.

Company financial performance

Adjusted statement of income

Business highlights

Project Delivery - adjusted IFRS

FY 2024 Adjusted revenue increased by 19% year-over-year to €4,857.5 million driven by an increasing contribution from Qatar NFS and Qatar NFE, as well as higher activity in offshore projects.

FY 2024 Adjusted recurring EBITDA increased by 12% year-over-year to €403.0 million and FY 2024 Adjusted recurring EBIT increased by 12% year-over-year to €356.1 million.

FY 2024 Adjusted recurring EBITDA / EBIT margin decreased year-over-year by 50 bps / 50 bps to 8.3% / 7.3%. Following a period of strong order intake during 2023 and 2024, the margins reflect a re-balancing of our portfolio of projects with increased revenue contribution from early-phase projects with limited margin recognition.

Q4 2024 Key operational milestones

(Please refer to Q1 2024, H1 2024 and 9M 2024 press releases for first nine months milestones)

QatarEnergy North Field Expansion (Qatar)

• The piping erection activities are nearly complete for the first train and the main utilities are being commissioned.

QatarEnergy North Field South (Qatar)

• Main foundations for major equipment in the utilities areas have been completed.

Marsa LNG (Oman)

• Construction activities safely started.

bp Tortue gas FPSO (Senegal / Mauritania)

• Ready for start-up milestone achieved.

Midor refinery (Egypt)

• Provisional acceptance certificate received.

Assiut Hydrocracking Complex (Egypt)

• Piping prefabrication substantially complete and over 82% overall project progress.

bp Net Zero Teesside Power Project (UK)

• Geotechnical ground investigations begin; start of purchasing campaign.

Q4 2024 Key commercial and strategic highlights

(Please refer to Q1 2024 and H1 2024 and 9M 2024 press releases for first nine months highlights)

Technip Energies and GE Vernova awarded a major* contract for the Net Zero Teesside Power project (UK)

• Technip Energies, leader of a consortium with GE Vernova and construction partner Balfour Beatty - with the support of technology partner Shell Catalysts & Technologies - received Notice to Proceed by NZT Power Limited to execute a major* contract for the Net Zero Teesside Power (NZT Power) project in the United Kingdom. NZT Power has reached financial close and has issued a Full Notice to Proceed to the Technip Energies-led consortium to start the full Engineering, Procurement and Construction (EPC) package for the Onshore Power, Capture and Compression contract. Financial close follows the UK government's recent announcement of a £21.7 billion pledge for projects to capture and store carbon emissions from energy, industry and hydrogen production. This landmark project aims to be the world's first gas-fired power station with carbon capture and storage. Up to 2 million tonnes of CO2 per year will be captured at the plant and transported and permanently stored by the Northern Endurance Partnership. The plant could produce up to 742 megawatts of flexible, low-carbon power, equivalent to the average annual electricity requirements of more than 1 million UK homes, further supporting the UK's transition to a cleaner energy future.
  • ^* A "major” award for Technip Energies is a contract award representing above €1 billion of revenue.

Technip Energies awarded a major^* contract by TotalEnergies for the topsides of the GrandMorgu FPSO unit (Suriname)

• Technip Energies, in partnership with SBM Offshore, has been awarded a major^* contract by TotalEnergies for the GranMorgu Floating Production, Storage and Offloading vessel (FPSO) in Suriname. Under this contract, the joint-venture between SBM Offshore and Technip Energies will construct and install a Floating Production, Storage and Offloading vessel (FPSO), leveraging Technip Energies' expertise in engineering and modularization for the topsides and SBM Offshore's Fast4Ward^® hull. Thanks to the joint expertise of the two companies, the project will be designed to minimize greenhouse gas emissions. It will include an all-electric drive FPSO configuration, with zero routine flaring and full reinjection of associated gas into the reservoirs. There will be an optimized power usage with Waste Heat Recovery Units and optimized water cooling for improved efficiency. A permanent methane detection and monitoring system will be installed relying on a network of sensors.
  • ^* A "major” award for Technip Energies is a contract award representing above €1 billion of revenue.

Technology, Products & Services (TPS) - adjusted IFRS

FY 2024 Adjusted revenue increased year-over-year by 3% to €1,997.3 million, driven by renewable fuels services, Project Management Consultancy, and a higher volume of smaller projects and studies.

FY 2024 Adjusted recurring EBITDA increased year-over-year by 6% to €257.5 million and Adjusted recurring EBIT increased year-over-year by 3% to €192.0 million.

FY 2024 Adjusted recurring EBITDA margin increased by 30 bps to 12.9% benefiting from mix and performance improvement within services. Adjusted recurring EBIT margin remained stable at 9.6% due to increased depreciation and amortization expense associated with higher capital investment, including the impact of IFRS 16.

Q4 2024 Key operational milestones

(Please refer to Q1 2024, H1 2024 and 9M 2024 press releases for first nine months milestones)

INEOS Project One (Belgium)

• Successful load-out from yard in Thailand, which celebrated 10.5 million work-hours without a loss time incident (LTI).

Neste Renewable Products Refinery Expansion - Capacity Growth Project, Rotterdam (Netherlands)

• 11,500 tons structural steel erection achieved 75% progress, and main process equipment installation completed.

AM Green Kakinada Project (India) - Rely

• Started mobilization of site construction team on an Engineering, Procurement services and Construction management (EPsCm) basis.

Numarligarh refinery expansion (India)

• Erection of the second finning reactor.

bp Net Zero Teesside Power Project - TPS scope (UK)

• Initiation of CO₂ absorber manufacturing with inquiries and start of structural components.

Reliance NMD and DMD Cracker (India)

• Debottlenecking projects started on EPsCm basis with targeted capacity increase to 758 KTA of ethylene.

Q4 2024 Key commercial and strategic highlights

(Please refer to Q1 2024 and H1 2024 and 9M 2024 press releases for first nine months highlights)

Technip Energies and Shell Catalysts & Technologies move towards an exclusive global alliance for carbon capture

• Technip Energies and Shell Catalysts & Technologies have agreed to strengthen their relationship and will be moving towards global exclusivity for the delivery of amine-based post-combustion carbon capture based on Shell's cutting-edge CANSOLV^* CO₂ Capture System. The two energy-transition leaders have been working together as an alliance since 2012. That alliance has continuously evolved to meet dynamic market needs and make carbon capture accessible for industry. Building on this successful collaboration and a deep commitment to the energy transition, the strengthened alliance combines the capabilities of Shell Catalysts & Technologies' leading technology licensing expertise with Technip Energies' integration and project delivery excellence to address the growing demand for scalable post-combustion carbon capture solutions in relevant industrial sectors.
  • ^*CANSOLV is a Shell trademark

Technip Energies and LanzaTech Awarded Funding from the U.S. Department of Energy for Commercializing Breakthrough CO₂ to Ethylene Technology

• Technip Energies and LanzaTech Global, Inc. ("LanzaTech”) announced that the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) has committed up to $200 million in federal funding and authorized the initiation of Phase 1 of their Sustainable Ethylene from CO₂ Utilization with Renewable Energy Project (Project SECURE). Project SECURE, led by Technip Energies in partnership with LanzaTech, aims to provide an integrated commercial process which takes captured carbon dioxide from ethylene production and recycles it with low carbon intensity hydrogen to create sustainable ethanol and ethylene. This joint technology solution is intended to first be deployed in the U.S. Gulf Coast region for integration directly into an existing commercial ethylene cracker and has significant replication potential for ethylene crackers worldwide. Globally, there are approximately 370 ethylene steam crackers, over 40 percent of which use Technip Energies' technology, including eight in the US.

Technip Energies, Alterra and Neste collaborate to offer standardized solution to build chemical recycling plants

• Technip Energies, Alterra and Neste have signed a collaboration agreement to advance the circularity of plastics by providing the industry a standardized technology solution for chemical recycling, also referred to as "advanced recycling”. The partners aim to globally offer a standardized modular solution, based on Alterra's proprietary liquefaction technology, to parties interested in building capacity for chemical recycling. This solution will come in the form of readily designed and engineered liquefaction plant modules, which will allow for lower pre-investment costs, accelerated implementation time, high predictability on project economics and reduced overall capital costs. Contributing to more effective execution of chemical recycling capacity projects, the solution helps the industry to reduce dependency on virgin fossil resources and accelerate the circularity of polymers and chemicals. Alterra's technology is a thermochemical liquefaction process, which converts hard-to-recycle plastics into a liquid hydrocarbon product. This liquid intermediate product can then be further refined into high-quality raw materials for new plastics and chemicals. As of today, Neste alone has processed more than 6,000 tons of plastic-derived feeds, including ISCC PLUS certified oil from Alterra's industrial-scale site in Akron, Ohio.

Technip Energies and Enerkem formalize collaboration to advance waste-to-sustainable fuels and circular chemicals technology

• Technip Energies and Enerkem Inc. announce the official signing of their Collaboration Agreement, solidifying their commitment to accelerate the deployment of Enerkem's technology converting non-recyclable waste and residues into sustainable fuels and circular chemical products. Enerkem's groundbreaking gasification technology caters to hard-to-abate sectors such as aviation and marine fuels, providing sustainable fuel and chemical pathways. Under the terms of the agreement, Technip Energies and Enerkem will provide everything from strategic plant design and modularized project delivery services to clients. As Enerkem's strategic partner, Technip Energies will contribute its expertise in engineering (incl. modularization), technology integration (hydrogen, carbon capture, etc.) and project delivery to support joint development of such projects. The collaboration will focus on strategic efforts to further optimize design elements and industrialize the approach to offer a cost-effective solution.

Corporate and other items

Corporate costs, excluding non-recurring items, were €52.4 million for full year 2024.

Non-recurring expense amounted to €30.0 million and includes costs incurred relating to adjacent business models.

Net financial income of €120.2 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 30.2% for the full year 2024, consistent with the updated guidance range of 29%-33% provided at Q3 2024.

Depreciation and amortization expense was €112.2 million, of which €71.5 million is related to IFRS 16.

Gross cash at December 31, 2024 was €4.1 billion, which compares to €3.6 billion at December 31, 2023. Gross debt was €0.7 billion at December 31, 2024.

Adjusted free cash flow was €748.3 million for the full year 2024. Adjusted free cash flow, excluding the working capital and provisions variance of €229.8 million, was €518.5 million benefiting from strong operational performance and consistently high conversion from Adjusted recurring EBITDA of 85% (conversion from Adjusted recurring EBIT was 105%). Free cash flow is stated after capital expenditures of €85.6 million. Adjusted operating cash flow was €833.9 million.

Liquidity

Adjusted liquidity of €4.7 billion at December 31, 2024 comprised of €4.1 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.

Capital allocation and shareholder returns

The strength of the Company's balance sheet, with more than €1.4 billion net cash (adjusted for project-associated cash), coupled with sustainable free cash flow generation, underpins T.EN's commitment to a disciplined and effective capital allocation that prioritizes shareholder returns and accretive investments while maintaining its investment grade balance sheet.

The Company's priorities are:

• Dividends: to payout a minimum range of 25% - 35% of free cash flow, excluding working capital, with growth aligned to its earnings trajectory; and
• Value accretive investments: to allocate free cash to enhance differentiation and capture more value through TPS-focused M&A and investment in adjacent business models, as illustrated by Reju - a Technip Energies company focused on progressive textile-to-textile regeneration.

Subject to investment opportunities and market conditions, supplemental shareholder returns will be considered, including share buybacks.

In line with the Company's dividend policy, the Board of Directors will propose at the Annual Shareholder Meeting on May 6, 2025 the distribution of a cash dividend of €0.85 per share for the 2024 financial year. If payment of the cash dividend is approved by the shareholders, the ex-dividend date will be May 20, 2025, the record date for the dividend will be May 21, 2025, and the dividend will be paid on May 22, 2025.

Sustainability roadmap and scorecard

Sustainability is deeply embedded in T.EN's business strategy, with aspirations to achieve net zero emissions for Scope 1 and 2 by 2030, and Scope 3 by 2050. The company has achieved a 41% reduction in Scope 1