Technip Energies builds up on energy independence targets as it exits Arctic LNG 2

 (Reuters) - Technip Energies said on Thursday it expected further growth of its activity outside of Russia in the second half of the year, as the French oil and gas services provider seeks to exit the liquefied natural gas project Arctic LNG 2.

"Regarding Arctic LNG 2 in Russia, (...) we continue to implement an orderly exit from the project," Chief Executive Officer Arnaud Pieton said in an earnings statement.

The plant, located on the Gydan peninsula, was set to start operations at its first of three lines in 2023.

Pieton pointed that Technip Energies had suspended "the vast majority of the work", while the exit process would likely take several more months due to the contract terms and inherent size of the project.

At a time when the European Union braces for a tighter squeeze in Russian gas supply due to sanctions over the Ukraine war, Chief Financial Officer Bruno Vibert told reporters that clients were eager to move on to new gas projects.

"We are working on relatively short-term LNG projects which should be granted within the next 12-18 months," he added, noting a strong acceleration in order intake in other "energy transition themes".

With a growing footprint in blue and green hydrogen, sustainable chemistry and carbon dioxide management, Technip Energies recorded energy transition-related orders, excluding LNG, above 500 MM euros ($506 MM) for the period, which it sees them reach about 1 billion euros by year-end.

"With the energy independence target which encourages our customers to invest, our portfolio will be enriched by projects around carbon capture, renewable fuels, clean hydrogen and other markets linked to new energies," Vibert added.

"It's not just a European theme."

Technip Energies confirmed it expected full-year adjusted revenues to range from 5.0 to 5.5 B euros, excluding the contribution from Arctic LNG 2, but hiked its adjusted core profit margin to at least 6.8%.

($1 = 0.9881 euros) (Reporting by Juliette Portala, Editing by Marguerita Choy)

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