Technip Energies

All details are available on the site but:

1/  From a contractual standpoint, Technip Energies indicated that it benefits from strong protections covering, in particular, extensions of time and standby costs related to temporary operational disruptions. More limited expenses (such as the repatriation of families or personnel) are covered by insurance. 

2/ Around 50% of backlog at year-end 2025 is exposed to the Middle East. This proportion should mechanically decline as the Commonwealth LNG project in the United States enters the backlog. 

3/ Disruptions of supply chain, notably to bring in equipment is currently impacting North Field South LNG project but alternative logistics route are being assessed. 

4/ the 2026 guidance and the 2028 strategic framework remain unchanged at this stage. However, the group noted that in the event of a prolonged conflict, these targets could be revisited. At this stage, there have been no backlog cancellations; in the worst case, this would represent a deferral of activity.

We believe a prolonged conflict could continue to weigh on the valuation of Technip Energies (as well as other equipment suppliers with significant exposure to the region). Nevertheless, we remain positive on the stock over the long term, as stated in our latest publications, supported by strong backlog visibility and the structural growth dynamics of the LNG market.

Short term the disruptions are a negative for Technip. Yet over the long run the fundamentals of the company remain strong. Damages by the war to oil facilities will have to be mended which will eventually lead to increased business for oil services.

This is a fundamental long in our book but we suspect short term pressure could continue, especially with concerns that the war may last longer than expected. We would stay away from the name from the time being  as short term risks outweigh long term opportunity, at least for the time being. 

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