Half Year 2024 Technip Energies NV Earnings Call Transcript
Key Points
- Technip Energies NV (THNPF) achieved double-digit revenue growth to EUR3.2 billion in H1 2024, driven by strong volumes in project delivery and steady growth in TPS.
- EPS grew by 50% year over year, benefiting from strong margins and higher financial income.
- The company secured significant commercial awards, including two low-carbon LNG plants in the Middle East, contributing to a book-to-bill ratio of 1.3 year to date.
- Operational highlights include the successful performance test of the Midor Refinery expansion and the commissioning of advanced furnaces at Shell Skyline facility, reducing CO2 emissions by approximately 10%.
- Technip Energies NV (THNPF) reported its highest-ever first-half net profit, up 50% year over year to EUR188 million, supported by strong operational performance and financial income.
- TPS EBIT margin guidance is tracking below last year, with increased R&D and higher tendering activities impacting margins.
- Working capital was an outflow of EUR735 million in the first half, largely due to timing and cut-off items, with limited impact from project delivery awards.
- The company faces challenges in scaling the TPS business while growing underlying EBIT margin, despite increased investments in R&D and strategic initiatives.
- The market for engineers is competitive, and Technip Energies NV (THNPF) has increased its headcount by 1,000 people, which may impact operational costs.
- The LNG market outlook suggests a balanced market towards 2030, raising questions about the rationale for approving significant new capacity in the near term.
Hello, and welcome to Technip Energies' financial results for the first half of 2024. On the call today, our CEO, Arnaud Pieton, will provide an overview of our H1 performance and business highlights. This will be followed by our CFO, Bruno Vibert, who will share more details on our financial results. Then, Arnaud will come back to discuss the outlook before opening for questions.
Before we start, I would encourage you to take note that the forward-looking statements on slide 2.
I will now pass the call over to Arnaud.
Thank you, Phil, and welcome, everyone, to our results presentation for the first half of 2024, during which we have secured strategic objectives and leadership in a high given market. We've achieved a strong financial performance with double-digit revenue growth to EUR3.2 billion, reflecting notably strong volumes in project delivery with large projects ramping up and with a
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