Technip Energies looks beyond Russia as LNG spurs growth

French oil and gas provider Technip Energies said on Monday it is expecting to increase its activity outside of Russia through 2022, boosted by strong quarterly results and rising demand for liquefied natural gas (LNG).

The company reported an adjusted revenue growth of 4 percent for the first quarter of 2022, while adjusted net profit stood at €72 million and earnings before interest and tax (EBIT) at €107.3 million with a recurring margin of 6.6 percent for the same period.

“Despite near-term volatility in commodity and raw material prices, the attractiveness of LNG, an inherently flexible energy source, has improved and the market opportunity is accelerating,” Arnaud Pieton, Chief Executive Officer of Technip Energies, said in a statement on Monday.

“In addition, government policy is increasingly promoting faster adoption of energy transition technologies and Technip Energies is playing a leading role in this market evolution,” Pieton said.

Technip Energies announced in March that it would renounce any new business opportunities in Russia following its invasion of Ukraine.

The company CEO said they were working with clients, partners and suppliers within the relevant contractual frameworks to take appropriate measures in connection with the company’s activities in Russia, including in the Arctic LNG 2 project.

“We expect that the balance sheet position of the project and the relevant contract protections will be sufficient to fulfil our various contractual obligations in compliance with applicable sanctions,” Pieton said.

The company said it also utilised flexible capital allocation to support its progress towards energy transition. “In the quarter, we announced three investments in the markets of hydrogen, floating offshore wind, and biochemicals. These expand and diversify our technology portfolio, while enabling new business model opportunities,” Pieton said.