Individual Shareholders

Individual Shareholders

Joseph Rinaldi

 

POSITIONED AS A LEADING ENABLER OF THE ENERGY TRANSITION

 

In 2023, Technip Energies continued to take important steps to grow and evolve its activities in core areas such as LNG, ethylene and hydrogen while continuing to develop its offerings in businesses which will become increasingly important platforms for sustainable energy development, such as carbon capture, circularity, green hydrogen, sustainable fuels, and green chemistry.

 

In its core activities, the Company is focused on developing and marketing higher margin technology, product and services offerings, excelling in project execution and developing and integrating decarbonization solutions in our projects and products. The award of the major NFS LNG project in Qatar, which incorporates solutions that will materially reduce the project’s carbon emissions and the confirmation in 2023 of the first planned deployment at industrial scale of eFurnace by T.EN™, a  solution to reduce carbon emissions, in ethylene production, illustrate the path of sustainable growth for such core activities.

 

The ability to develop and scale technology to efficient and affordable levels will be key to the development of the net zero platforms that will drive the energy transition in coming years. The Company excels at this, leveraging its differentiating competencies and technological base, for example, to successfully launch in 2023 its Capture.Now™ platform offering a range of solutions for the carbon capture value chain. The Company also launched two new companies in 2023 offering solutions we believe will be important for future sustainable development - Rely for green hydrogen and power-to-X solutions, and Reju for polyester textile regeneration.

 

PROGRESSING OUR SUSTAINABILITY PLANS

 

Since the Company began its sustainability journey three years ago with the adoption of its ESG framework, the Board and management have been focused on defining best-in-class sustainability values and practices and ensuring these values and practices are integrated in all aspects of the Company’s activities and strategy. In 2023 the Board’s committee structure was revised to create the Sustainability Committee in order to assist the Board to better oversee our sustainability policy and its implementation.

 

During the year, we continued to make substantial progress across a broad range of key sustainability issues, including climate change, water management, local community impact, ethics, employee diversity, inclusiveness, and well-being. This progress has been recognized and reflected in improvement of our ratings by major ESG agencies, including MSCI which has confirmed our leadership among peers with its AAA rating, Sustainalytics which now ranks the Company in the top 10% among our peers and by CDP which has significantly raised the Company’s rating to a level above the industry average.

 

Looking forward, the Board recognizes there is still much to do and we remain committed to achieving the ambitious goals set out in our multiyear sustainability plans. An important development in 2024 will be the Company’s implementation of the EU Corporate Sustainability Reporting Directive. The Board’s Sustainability and Audit Committees have been engaged with management on implementation of this important initiative which will provide additional transparency of the Company’s ESG risks and opportunities.
 

“We continued to make substantial progress across a broad range of key sustainability issues...”

 

CONTINUING STRONG FINANCIAL AND OPERATIONAL PERFORMANCE

 

As the Company’s business and sustainability plans advance, the Board and the management remain focused on delivering strong financial and operational performance. In 2023, the Company achieved best-in-class operating margins of 7.4%, increased revenue in the Technology, Products & Services segment by 38% and had backlog providing over 2.6 years of revenue visibility at year end. The  Company’s sustained multi-year performance has underpinned the substantial shareholder value that has been created since the Company listed. Reflecting this strong financial performance, visibility, a healthy balance sheet and long-term growth prospects, the Board is proposing to shareholders a dividend payment this year of €0.57 per share, representing a 10% increase over last year’s dividend.

 

THE BOARD

 

Marie-Ange Debon and Nello Uccelletti will be retiring from the Board at the AGM this year and I wish to thank both Marie-Ange and Nello for their years of valuable counsel. We are proposing that Maëlle  Gavet and Matthieu Malige, two outstanding business leaders with extensive executive experience in complex global organizations, will join the Board. Maëlle’s experience as a leader of innovative technology companies will significantly contribute to the Board’s deliberations concerning the Company’s digital roadmap. Matthieu will bring extensive financial and strategic experience to Audit Committee and Board discussion and decision-making.

 

OUR PEOPLE AND OUR SHAREHOLDERS

 

The people of Technip Energies are at the heart of the Company’s continuing success and in recognition of this and to more closely align our employees with the success of the Company, the Board approved the launch of the employee shareholder plan in 2023. We were gratified by the overwhelming success of the offering, reflecting our people’s confidence in the Company’s future. Finally, I wish also to acknowledge the importance the Board places on the support we receive from our shareholders, including the feedback we receive. I also wish to reiterate the Board’s ongoing commitment to position Technip Energies for long-term, sustainable growth that benefits our stakeholders.

 

Joseph Rinaldi,
Chair

 

Arnaud Pieton

2023 represents an outstanding year in terms of safety, profitability, and orders, as well as for the delivery of strategic objectives which will be driving future growth. Over the year, we did what we said we would do and clearly demonstrated the strengths of Technip Energies positioning us as an Engineering and Technology company to deliver the net zero trajectory. We have been awarded major projects driving our backlog to €15.7 billion and our Technology, Products & Services (TPS) segment has seen an incredible 38% growth in revenues. I take this opportunity to thank our 15,000 employees for their passion, professionalism, and dedication, delivering today’s projects and developing tomorrow’s solutions.

 

REINFORCING OUR UNIQUE HYBRID BUSINESS MODEL

 

Technip Energies has a unique business model that combines long-cycle high-revenue Project Delivery with short-cycle higher-margin TPS. This hybrid mix of activity provides resilience to external shocks and market cycles and is an ideal blend to drive robust financial performance. Combined with our technology-driven approach, we have the tools and expertise to help industries decarbonize. We have been awarded a record number of new studies, more than half of which are for clients outside hydrocarbons, in sectors such as power, waste, biochemicals, and aviation. In parallel, our teams have been successfully executing projects around the world, always with a strong focus on safety, execution excellence being key to our reputation and to our success.

 

DRIVING MORE AFFORDABLE ENERGY AND LESS CARBON

 

Last year’s energy crisis also illustrated how energy security is influencing the investment agenda. Scaling clean energy technologies and emissions abatement are new demands being placed on producers and industries to drive sustainable development. For this, Technip Energies is the technology and industrial partner of choice.

 

Our suite of technologies, products and solutions is expanding every day to tackle the energy trilemma of security, affordability and sustainability: our major LNG projects in Qatar, North Field East and North Field South, are both equipped with carbon capture to reduce CO2 emissions by more than 25% compared to similar LNG facilities; our low-carbon electrified ethylene furnace, eFurnace by T.EN™, will be installed for the first time at the LyondellBasell and CP Chem site in Texas; we captured over 90 studies from our Capture.Now™ platform; and we launched BlueH2 by T.EN™, our full suite of deeply decarbonized and cost-competitive solutions to produce low-carbon hydrogen.

 

To respond to the scale of the net zero challenge, together, we must rise to the challenge of scale. This is the key condition of making our planet a sustainable place for the next generations.

 

ACTIVELY PREPARING FOR THE FUTURE

 

2023 has also seen the launch of two new companies. Rely, in partnership with John Cockerill, a  leading electrolyzer provider, will accelerate the industrialization of green H2 and power-to-X, thanks to its unique combination of technology, engineering and equipment manufacturing knowhow. Reju, an innovative company which is focusing on creating the response for textile-to-textile recycling based on a technology that we have been developing with IBM and Under Armour.

 

These new ventures benefit from Technip Energies’ strong financial and infrastructure backing, seasoned and diverse teams, and promising and unique patented technologies. This does not mean this will be easy but these ventures are backed by Technip Energies’ recognized EPC strength in  scaling-up from laboratory to demonstration plants and a market that is ready to engage. As I reflect on what we have learned, it becomes clear that what we set out to do, confirms the enormous potential of our mission.

 

Our leading portfolio of technologies and innovation platforms is in constant evolution. The acquisition of Processium heightens our ability to develop proprietary technologies in sustainable chemicals and complements our R&D footprint.

 

“Our suite of technologies, products and solutions is expanding every day to tackle the energy trilemma of security, affordability and sustainability.”

 

PARTNERING TO SUCCEED

 

The key to achieving net zero is collaboration, beyond nations, across industries, among stakeholders, through private and public actions; it is critical to accelerate, all together. It is a cornerstone of our strategy, as demonstrated by new technology partnerships we have established with Casale, Enerkem, Versalis, LanzaJet or LanzaTech. Also, within a holistic approach to HSE, we have led our executive industry HSE forum, with clients, partners and contractors, to develop and implement ways to improve the safety performance of our industry.

 

BEING PART OF THE SOLUTION

 

Our engine is human. As the energy industry undergoes major transformation, we want to be a recognized employer to attract, engage and retain the best talent on the market. “Be part of the solution” is our employee value proposition, developed collectively and aligned with our company purpose and values, it defines the experience our employees enjoy across the globe. We are actively investing in skills development, to offer aspirational career paths throughout the Company in a safe and inclusive workplace. In addition to the launch of T.EN University, this year we welcomed our first graduate intake to our new Energy Transition graduate training program and also celebrated the successful completion of our first data upskilling program.

 

Looking forward, our priorities for 2024 are to strengthen our leadership in low-carbon LNG and net zero solutions, to build proprietary technology demonstration projects in decarbonization and circularity, and to form strategic partnerships crucial to fast-track deployment of clean tech solutions at commercial scale.

 

Thanks to the energy, engagement, and expertise of all our employees, we are increasingly recognized as the go-to Engineering and Technology company for the energy transition. Together, we are enabling the net zero trajectory and winning the medium-term – we are part of the solution!

 

Arnaud Pieton,
Chief Executive Officer