France's Technip proposes 49% dividend hike after Q4 revenue beat

Technip Energies, a French infrastructure and technology firm, proposed an increase in dividends of 49% on Thursday after it announced that its fourth-quarter revenue was ahead of the market's expectations.

Technip's shareholder meeting on May 6 will recommend that a cash dividend be paid of 0.85 euro per share in 2024, up from 0.57 euro per share last year.

According to an internal consensus, the group, which specializes in engineering and technologies for the energy sector, reported fourth-quarter sales adjusted of 1,88 billion euros ($1,97 billion), whereas analysts had expected, on average, 1.76 billion euro.

According to the company, its backlog adjusted for revenue increased by 24% last year, reaching 19.56 billion Euros. This gives a three-year visibility of revenues.

Technip stated that it saw a high potential for the decarbonisation, and circularity market with a real acceleration when compared to traditional marketplaces.

These are the markets where we have the most growth potential. "They are growing between 20 and 25% per year, which gives us a strong growth potential," Arnaud Pietten, CEO of the group told reporters in a conference call.

In the fourth quarter of 2018, the group secured several large contracts, which increased its order intake. The group was awarded a deal worth 1 billion euros for TotalEnergies Suriname's FPSO project as well as 2 to 3 billions euro for the Net Zero Teesside Power Project in the UK. This is the first carbon-captured gas power plant in the world.

The group has reiterated the 2025 goals it announced in November last year at its capital market day. Reporting and editing by Jamie Freed; $1 = 0.9539 euro

(source: Reuters)