Technip looks beyond Russia after better than expected results

The logo of French oil engineering group Technip is seen above the company’s headquarters on June 1, 2017 in the financial and business district of La Defense in Courbevoie near Paris, France. REUTERS/Charles Platiau/File Photo

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April 25 (Reuters) – French oil and gas services provider Technip Energies (TE.PA) plans to ramp up business outside Russia this year, it said on Monday, as rising demand for gas liquefied natural gas (LNG) helped it to better than expected profit in the first quarter.

“Despite short-term commodity and commodity price volatility, the attractiveness of LNG, an inherently flexible energy source, has improved and market opportunities are accelerating,” the CEO said. Arnaud Pieton in a press release.

LNG demand is skyrocketing as Western buyers shun Russian fuel following the invasion of Ukraine, which Moscow calls “a special military operation”.

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Technip Energies said it was working to “take appropriate action” regarding ongoing projects in Russia, including its Arctic LNG 2 development project.

Delivery of the project in the first quarter generated 1.3 billion euros ($1.4 billion) in revenue, including 445.4 million euros from Arctic LNG 2.

The company said it expects to be able to fulfill its contract on Arctic LNG 2 without breaching Western sanctions.

Technip Energies announced in March that it was foregoing new business opportunities in Russia and excluding ongoing Russian projects from its outlook. Read more

At the end of March, 3.41 billion euros of the company’s adjusted order book of 15.63 billion euros was related to Russian projects in the pipeline.

The group, which specializes in engineering and technology for the energy industry, posted adjusted recurring earnings before interest and tax (EBIT) of 107.3 million euros, beating analysts’ forecasts. consensus provided by the company of 100.9 million euros.

($1 = 0.9282 euros)

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Reporting by Valentine Baldassari and Diana Mandiá Editing by Tom Hogue and David Goodman

Our standards: The Thomson Reuters Trust Principles.

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