Technip Energies: A Financial Powerhouse with a Green Twist!

Ladies and gentlemen, buckle up! We're diving into the world of Technip Energies, a company that's not just riding the wave of the energy transition but is actually creating the surfboard! This engineering and technology powerhouse has just refinanced its syndicated revolving credit facility, and the results are nothing short of spectacular. Let's break it down!



First things first, Technip Energies has secured a whopping USD3.2 billion-equivalent in new syndicated revolving credit facilities. That's right, folks! This is a massive upgrade from their initial launch amount of USD2.0 billion-equivalent. The facility includes a 365-day USD revolving credit facility, a 1-year CNH term loan facility, and a 3-year USD term loan facility. This is a game-changer, providing Technip Energies with the liquidity it needs to refinance maturing debt and support general corporate purposes.

But here's where it gets even more exciting: this facility is structured as sustainability-linked loans (SLLs). That means Technip Energies is not just about the money; it's about making a difference. The SLLs include three key performance indicators (KPIs) to improve sustainability performance. This is a big deal because it aligns with Technip Energies' broader sustainability goals and corporate social responsibility initiatives. The progress towards each target will be evaluated annually and verified by an independent assurance provider. This is transparency at its finest, folks!

Now, let's talk about the strategic advantages. With this new facility, Technip Energies gains substantial liquidity, which is crucial for its future growth and investment opportunities. The additional liquidity of USD600 million will support ongoing operations, investments in strategic growth initiatives, and its commitment to shareholder returns. This financial strength enables the company to pursue new investment opportunities and strategic initiatives without immediate financial constraints.

But wait, there's more! The new facility includes participation from 38 financial institutions, with five new lenders joining the transaction. This broad base of support from the banking community provides Technip Energies with a robust financial foundation and access to a diverse range of funding sources. The involvement of new lenders also indicates confidence in the company's financial health and future prospects, which can attract further investment and partnerships.



Now, let's talk about the numbers. Technip Energies reported a strong 9M performance with a 13% year-over-year revenue growth. The company upgraded its 2024 revenue guidance to €6.5 - 6.8 billion from €6.1 - 6.6 billion. The recurring EBIT margin remained stable at 7.2%, and diluted EPS grew by 35% year-over-year. This is a company on the move, folks!

But the real kicker is the order intake. Technip Energies secured more than €10 billion of order intake for the second consecutive year, with a backlog of approximately €20 billion. This provides excellent, multi-year visibility and underpins the company's earnings trajectory. The company is well-positioned for notable prospects that enable diversification by geography and in new markets.

So, what does all this mean for you, the investor? It means that Technip Energies is a company to watch. With its strong financial position, commitment to sustainability, and strategic focus on growth, Technip Energies is poised to thrive in any energy scenario. The company's leadership in the energy transition sector, combined with its financial flexibility, will enable it to invest in innovative projects and technologies, driving long-term growth and value creation.

In conclusion, Technip Energies' refinancing of its syndicated revolving credit facility is a major win for the company and its shareholders. The additional liquidity, sustainability focus, and strategic advantages position Technip Energies to capitalize on emerging opportunities in the energy transition sector. So, do yourself a favor and keep an eye on this company. It's a no-brainer, folks!