Finance
France's Technip Energies proposes 49% dividend hike after Q4 revenue beat
Published by Global Banking and Finance Review
Posted on February 27, 2025
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Published by Global Banking and Finance Review
Posted on February 27, 2025
By Anna Peverieri and Alban Kacher
(Reuters) -French infrastructure and technology company Technip Energies proposed a 49% dividend increase on Thursday, as it reported fourth-quarter sales ahead of market expectations.
Technip Energies will recommend a cash dividend of 0.85 euros per share for 2024 at its shareholder meeting on May 6, up from 0.57 euros a year ago.
The company's shares gained 10.3% by 1102 GMT, with J.P.Morgan analysts citing the "strong update" driven by revenue growth at the Projects Delivery (PD) business.
Technip Energies, which specialises in engineering and technology for the energy industry, posted quarterly adjusted sales of 1.88 billion euros ($1.97 billion), while analysts polled by the company were expecting 1.76 billion on average.
The French group's adjusted order backlog grew 24% to 19.56 billion euros in 2024, providing about three years of visibility on revenue, it said.
Technip Energies said it saw high potential in the decarbonisation and circularity markets, with a real acceleration compared to traditional markets.
"These are the fastest-growing markets we've positioned ourselves in. They are growing at 20 to 25% a year, and that gives us strong growth potential," CEO Arnaud Pieton told reporters on a call.
The group signed several major contracts in the final quarter of 2024, boosting its annual order intake.
Those included a 1 billion euro deal for TotalEnergies' Suriname FPSO project and a 2-3 billion euro order for the Net Zero Teesside Power (NZT Power) project in the UK, the world's first gas power plant with carbon capture.
Adjusted recurring EBIT margin in the PD division contracted to 7.3% in 2024 from 7.8% a year earlier, due to increased revenue contribution from early-phase projects with limited margin recognition.
The contraction was expected, finance chief Bruno Vibert said on the press call, pointing to the anticipated recovery through 2028.
The group reiterated its 2025 and medium term targets, announced last November during its Capital Markets Day.
($1 = 0.9539 euros)
(Reporting by Anna Peverieri and Alban Kacher; Editing by Jamie Freed and Milla Nissi)