Good morning, this is the conference operator. Welcome and thank you for joining the Technip Energies Half Year 2025 Financial Results Conference call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions by pressing star and one on your telephone. Should anyone need assistance during the conference call, they may signal an operator by pressing Star and zero on their telephone. At this time I would like to turn the conference over to Phil Lindsay, Head of Investor Relations. Please go ahead sir.
Thank you. Virginia, hello and welcome to Technip Energies' financial results for the first half of 2025. On the call today, our CEO Arnaud Pieton will discuss our H1 performance and business highlights. This will be followed by our CFO Bruno Vibert, who will provide more details on our financials. Arnaud will then return for the outlook and conclusion before opening for questions. Before we start, I would urge you to take note of the forward-looking statements on slide three. I will now pass the call over to Arnaud.
Thank you, Phil, and welcome everyone to our first half results presentation. I am pleased to begin with the key highlights. We delivered significant growth of 15% in revenue and 13% in EBITDA compared to the prior year. We also generated robust free cash flows that exceeded EUR 300 million. This strong outcome reflects the sustained momentum in our Project Delivery business, complemented by the successful execution of proprietary product installations within our TPS segment, Technology, Products and Services. Our ongoing strategic focus on expanding our process technology and proprietary equipment portfolio will, over time, sustain these enhanced margins and reinforce our market leadership. Our consistent results, despite a complex macroeconomic environment, reflect the quality and dedication of our teams who excel at delivering across our portfolio.
On the commercial front, momentum in the second quarter improved versus the first, most notably due to a major Project Delivery award for the world's largest low-carbon ammonia facility for CF Industries in the U.S. This has contributed to our backlog, which at period end stood at EUR 18 billion, equivalent to 2.6 times our 2024 revenues. This underpins the strength and sustainability of our business. Turning now to our execution, which remains our top priority for 2025 and the years ahead, our Project Delivery portfolio continues to demonstrate strong performance. This includes our two LNG projects in Qatar, where, as per the recent communication by QatarEnergy, the first train for the North Field expansion remains on track to come online by mid-2026. Alongside these achievements, we are diligently advancing a new wave of major projects.
One notable example is a decarbonized power project, Net Zero Teesside, where detailed engineering is progressing well and initial site preparation activities are underway in TPS. We have successfully completed the modification of Neste's existing renewables refinery in Rotterdam, enabling the production of up to half a million tonnes of sustainable aviation fuel per year. At the same time, we continue to make progress with ethylene furnace deliveries across plants in Europe, the Middle East, and India. This is providing a boost to our TPS margins. In summary, this has been a quarter marked by solid execution across our portfolio. Let me now provide an update on technology and innovation and how we are strengthening our portfolio at Technip Energies. We are constantly scanning the horizon for promising ideas on early stage technologies that can be implemented effectively.
We achieve this by leveraging the strength of our people and laboratories and by partnering seamlessly across our innovation ecosystem, which spans startups, mature companies, and leading universities. One of our defining strengths is our ability to test and develop technologies all the way from initial proof of concept in our labs, through pilot programs, and ultimately to full scale commercial implementation in industrial plants. This is exactly the path that we have been on with Shell for carbon capture. It has led to the signing of an exclusive global alliance to deliver post-combustion carbon capture solutions. Our shared ambition is to enable hard-to-abate industries to decarbonize more effectively and with greater certainty. Beyond our collaborative successes, Technip Energies is also advancing its proprietary technology portfolio.
A recent milestone is the successful commercialization of our low-emission cracking furnace technology for the ethylene industry, with our first award currently under execution for Chevron Phillips Chemical in the U.S. In summary, our approach to technology and innovation is enabling development at scale and enhancing overall economics. Technip Energies really is part of the solution. Before passing over to Bruno, I would like to highlight the significant progress we have made in diversifying our order intake both by market segment and geographic reach. From the outset, our strategy has been to extend our leadership into new markets. Today, I am really pleased to say this approach is delivering tangible results, bringing greater balance and resilience in our order book. In the past 18 months, we have witnessed robust growth in decarbonization-related orders, which now represent nearly 40% of our total order intake, equivalent to over EUR 5 billion.
These achievements include landmark contracts in the field of blue molecules and carbon capture, such as the already mentioned Blue Point No. 1 ATR project in the U.S. and Net Zero Teesside in the U.K.. These major awards underscore Technip Energies' industry leadership in these new markets and reinforce our role as a key enabler in the global transition towards affordable, scalable decarbonization. Geographic diversification has also been a hallmark of our recent awards. Approximately 70% of orders over the last 18 months have originated from regions beyond the Middle East, demonstrating our expanding footprint notably in the Americas and the U.K.. Given the strength of our commercial pipeline and our competitive positioning, we anticipate that this balanced order intake profile will continue to be a defining feature of our growth going forward. I will now pass on to Bruno to discuss our financials.
Thanks Arnaud, good morning and good afternoon everyone. Let me walk you through the highlights of our strong financial performance for the first half of 2025. On an adjusted IFRS basis, our revenues increased by 15% year-over-year, reaching EUR 3.6 billion, with growth driven by high activity on LNG projects in Qatar and a new wave of projects that are ramping up. Recurring EBITDA rose by 13% to EUR 319 million with an associated margin of 8.7%. This was slightly down by 20 basis points year-over-year, reflecting a rebalancing in our project portfolio and higher corporate costs due to specific factors which I will come on to address. This was partially offset by TPS margin expansion. EPS grew by 3% year-over-year with strength in EBITDA and financial income somewhat offset by higher non-recurring costs largely relating to planned investment in rejuvenation.
Again, I will address this later. Free cash flow conversion from EBITDA was very strong at approximately 100%, and that drove nearly 35% growth in free cash flow year-over-year. This strength is illustrated in our net cash position adjusted for project associated cash, which has grown to more than EUR 1.6 billion. In summary, we continue to deliver solid and consistent results in the first six months of the year. Turning to our segment reporting, starting with Project Delivery, revenues have increased significantly, rising 24% year-over-year to EUR 2.7 billion, fueled by strong activity on LNG projects in Qatar and the acceleration of a new series of projects such as Grand Marux in Suriname and Ruwais LNG in Abu Dhabi. EBITDA and EBIT metrics also increased materially, both growing in the mid to high teens.
Margins experienced some contraction year-over-year, 50 basis points at the EBITDA line, which is primarily a function of portfolio rebalancing with a higher proportion of early phase projects for which we recognize limited margin contribution based on scheduled activity and milestones. In the second half, we continue to expect a full year performance to be in line with our guidance of around 8%. Finally, the backlog remains at a high level despite an adverse foreign exchange impact, enriched by the major award for Blue Point No. 1 ATR and providing excellent visibility. Moving to Technology, Products & Services, TPS revenues declined by 5% year-over-year due to a decrease in proprietary equipment contributions, partially offset by robust volumes in consultancy services and studies. As stated during the Q1 results call, the macro environment has impacted short-term FID momentum with some recovery anticipated in coming quarters.
Recurring EBITDA and EBIT margins, however, reached new highs in the first half with EBITDA margin increasing some 240 basis points year-over-year to 15.1%. This performance benefited from several factors, most notably the completion and delivery of ethylene furnaces in different geographies and, to a lesser extent, catalyst supply and PMC activities. The strength in TPS margin year to date supports upgraded full-year guidance for the segment, which I will address shortly. Finally, while order intake has broadly kept pace with revenues so far this year, TPS backlog closed the period at EUR 1.8 billion, down 9% year to date with some impact from FX again and the absence of material product awards. We remain optimistic about our TPS business outlook with strong engagement and tangible prospects across the market.
Turning to other key metrics, beginning with the income statement, corporate costs for the first half of 2025 were EUR 33 million, somewhat elevated due to two factors that impact long-term incentive plans. First, the supplemental French social charges and second, our share price, which has increased meaningfully. The aggregate impact of these items was EUR 12 million for the reassessment of LTIs. Even with some normalization expected in H2, it is likely that we will turn to the upper end of our full-year guidance range on corporate costs. Elsewhere in the P&L, net financial income remains very positive at EUR 51 million. That said, due to lower global interest rates, it has provided slightly less of an earnings tailwind in 2025 versus 2024. Based on prevailing rates, we see a continuation of this modestly downward trend in the second half.
Non-recurring expenses are materially higher year-over-year, acting as a headwind to EPS growth. Most of these costs are more about capital allocation in nature, with about EUR 20 million relating to investment in adjacent business models. Riju, our leading host consumer textile-to-textile regeneration company, has made very good progress on site selection, feedstock supply, and product validation. Moving to our balance sheet, our net cash position adjusted for project-related cash has strengthened year to date by around EUR 200 million to more than EUR 1.6 billion, providing us with capital allocation flexibility to seek value accretion opportunities. Now let's dive further into our cash flows. Free cash flow excluding working capital reached EUR 322 million with cash conversion from EBITDA exceeding 100% in H1. This underscores the robustness of our operational execution and the positive impact of net financial income. Working capital has had a negligible impact year to date.
While we do not anticipate any material change to this picture on a full year basis, the cadence of our second half order flow will influence the outcome. Capital expenditure at EUR 34 million was slightly higher year-over-year with main items of spend relating to ongoing expansion of our Dahej facility in India and the continued modernization of our global office network, IT equipment, and systems. In May we distributed EUR 150 million in cash dividend which, as a reminder, was increased by 49% year-over-year, demonstrating our commitment to delivering long term value creation for our shareholders. Lastly, it is worth noting that even after a foreign exchange impact of EUR 170 million, cash and cash equivalents ended the period essentially flat at EUR 4 billion. Before Arnaud discusses the outlook, let me detail our updated 2025 guidance.
Based on the very strong margin performance in the first half of TPS, we raised this segment's margin outlook from approximately 13.5% to a new range of 14% - 14.5%. The first half performance clearly demonstrates that with the right mix, TPS can reach or even exceed the profitability that we earmarked for 2028 and our CMD in November. This is why we are strategically focused on growing organically and inorganically our process technology and proprietary equipment solutions, as over time this will enable us to sustain these enhanced margins on a consistent basis. All other guidance items remain unchanged. I now turn the call back to Arnaud.
Thank you, Bruno. Turning to the outlook and beginning with a look into the dynamic U.S. market, which remains a strong growth opportunity for Technip Energies, our strategy for expanding our U.S. market presence is unchanged. We leverage our differentiation, including modularization capabilities, we maintain strict selectivity when engaging on projects, and we do not take any in-country construction risk. The new administration has brought significant and ongoing changes. Technip Energies' agility and capabilities continue to position us well in this evolving environment. While DOE funding for some U.S. projects has been reduced or canceled, the impact on Technip Energies is immaterial. The Big Beautiful Bill Act maintains tax credits for pragmatic solutions in early stages of deployment, most notably for Technip Energies in carbon capture. This provides a level of certainty that makes CCUS more financially attractive and supports value chain development to turn CO2 into low-carbon products.
It also encourages the development of blue molecule projects. Finally, lifting the LNG permitting moratorium has given greater certainty to our U.S. prospects, which have made good progress year to date on permitting, offtakes, and financing. In summary, we continue to see significant prospects in the U.S. market for both TPS and Project Delivery, and Technip Energies is well positioned in LNG, blue molecule, and CCUS markets. Turning now to the global LNG opportunity for Technip Energies, the LNG market remains buoyant owing to rising power consumption and the role of natural gas in balancing grid intermittency, and we see compelling opportunities for Technip Energies in the near, medium, and long-term horizons. We are strategically positioned in the world's most active LNG regions today. The U.S., the Middle East, and East Africa are leading the way.
Additionally, we are closely monitoring and preparing for emerging opportunities in South America and Asia. Furthermore, our leadership in deep offshore floating gas liquefaction has once again been confirmed. Earlier this month, we announced a large contract for a floating LNG unit in Africa. This initial award covers only the preliminary activities, with further order intake anticipated upon full contract award, and looking ahead, we are confident in our positioning for other important LNG awards in the next six to 18 months, with the U.S. expected to be one of the most active regions. Before I conclude, let's turn our focus on the promising growth markets of blue molecules, carbon capture, and sustainable fuels. The outlook for these markets remains highly positive, with substantial expansion opportunities on the horizon. This is because across industries globally, there is growing demand for delivering energy infrastructure with pragmatic and cost-effective decarbonized solutions.
The market for Blue Molecule exemplifies its momentum. Japan and Korea, for example, will utilize such products to decarbonize existing infrastructure through co-combustion. I've already discussed carbon capture, which is gaining significant traction in sectors where decarbonization is essential yet challenging. In sustainable aviation fuel, or SAF, we see regional mandates accelerating adoption not only across established pathways such as HEFA but also through the emerging routes like alcohol-to-jet and E-fuels. Overall, these markets are evolving positively. The long-term growth trend is real, and it's here to stay. Technip Energies is very well positioned thanks to the breadth of our offering and adaptable execution models, and we see good potential for rewards across these domains in the years ahead. To conclude, we delivered a solid first half performance with strong double-digit growth in revenue and EBITDA.
While our free cash flow conversion exceeded 100%, the pace of project awards gained momentum in the second quarter compared to Q1, and the outlook for the balance of 2025 and beyond remains positive. Across our business segments, our financial health is strong, underpinned by our backlog, our balance sheet, and our cash generation, and Technip Energies is focused on delivering sustainable long-term value for our shareholders. With that, let's open for questions.
Thank you. This is the conference operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press Star and two. Please pick up the receiver when asking questions. Anyone who has a question may press Star and one at this time. The first question is from Sebastian Erskine with Redburn Atlantic. Please go ahead.
Yeah, good afternoon, Arnaud, Bruno, Phil, thanks for taking my questions. I'll start just on TPS. Obviously a very strong quarter for TPS margins despite the softness in revenue. You've upgraded guidance for the full year 2025. Can you help us understand how you see the TPS mix kind of evolving over the medium term? I'm thinking about your 2028 guidance of 14.5% and kind of the read across as we move through the years. On the revenue, obviously if I annualize your 1H TPS revenue, that would imply you coming in at the bottom end of the range. I just get at that and how you see the puts and takes for TPS in the remainder of the year and going forward as well.
Thank you, Bruno.
Okay. Yeah, hi, Sebastian. Yeah, a very strong quarter and first half of the year for TPS. Notably, when you look at the bottom line, as you mentioned, it really, and Q2 was really a bit of a continuation of Q1 and what we said in Q1, which means some of the order intake, some of the top line was impacted by first the tailwind of equipment, furnaces, delivery contracts, which as they reach tail end were contributing less to top line, but with good delivery and performance were, let's say, giving incremental delivery from a bottom line perspective. It's really the tailwind from these basically contracts of ethylene furnaces, notably plus consulting and higher value consulting, which have led to this margin.
As we project towards 2028, of course, this gives us first a confirmation that with the right mix of services and the contribution of differentiated proprietary solutions and equipment associated with technologies, which historically has been notably around ethylene, now of course being diversified, it was carbon capture, sustainable fuel, and other technologies will help to get the 100 basis point accretion that we've targeted at the CMD. This shows us the way. Now, shorter term, of course, as we would expect in the coming quarters to have a bit of a recovery, as I said, that should translate into a more naturalization. That's why we can't maybe sustain from now on these much higher bottom line percentages like 15% EBITDA.
That of course will come with growing order intake and revenues in the coming quarters as some of these new orders materialize and the ramp up, notably for instance on carbon capture project and then the early signs also of recovery which have been down for a couple of years. Very good performance. H1 absolutely confirms the medium term, long term outlook that we've outlined at the CMD. Of course, from this point of H1, we do expect in the coming quarters to see a bit of recovery there.
Thank you very much, Bruno. I'd love, Arnaud, just to get your thoughts on the U.S. side. I mean, you were very constructive on that market ex LNG, but you did highlight those developments, namely the kind of axing of DOE funding and the phasing out of the Section 45V clean hydrogen tax credit. Could you help me kind of square that in terms of why you remain so constructive on that market on kind of blue molecules and CCS within the U.S. despite the changes?
Yeah, I think with everything that has been published, we need to look at what has been released with a little bit of nuance. The DOE's decision will impact each project very differently, from marginal impact to something more severe sometimes if the decisions are upheld, and we actually have a few projects for which some of the decisions could be reversed. It's also worth noting that the situation is really nuanced in a sense and therefore we should not jump to conclusions based purely on headlines. If we take, for example, the Exxon Baytown project, the DOE grant related only to fuel switching scope was challenged and revoked, if I may say.
For the rest, actually the rest of the announcements, including the extension of the validity of the 45E to December 31, 2027—as a reminder, there was a case where it could have been stopped at December 31, 2025. Some of the decisions are actually supporting the FIDs and reinforcing the credibility of FID for those low-carbon projects or low-carbon associated projects in the U.S. All in all, again.
It needs.
To be looked at on a case-by-case basis and in a nuanced manner because and looked at beyond headlines. The 45Q also on carbon oxide sequestration credit really conforms the tax rate values for captured CO2, and that is definitely helpful for the type of products that we are pursuing in the short term. I would say the extension from what could have been 31 December 2025 to now 31 December 2027 for the 45E and the confirmation of the 45Q is enough to actually allow for the main prospects that we have to move ahead. That is why we are, and we continue to be, positive about the outcome and the prospects along those lines in the U.S. for Technip Energies.
Thank you very much, gentlemen. I'll hand it back now. Thank you.
The next question is from Guilherme Levy with Morgan Stanley. Please go ahead.
Hi.
Thank you for taking my questions. I have two related to new FIDs.
If I could.
If you can own the U.S. LNG prospects, just remind us of the timing.
That you are working on.
I believe that you were finalizing the price refresh exercise for both Commonwealth and Lake Charles. Are there any particular risks that we could see from here in terms of further delays of those decisions, or are you quite comfortable with a timeline of the coming months for us to see FID there? On Coral, I was a little bit intrigued by the fact that we have not seen a full FID yet. I just wanted to pick your brain on why you think that is and when you expect a full FID.
Thank you.
Thanks, Herme. Okay, so the two primary LNG prospects in the U.S. I will start with Commonwealth. I mean, we communicated on Commonwealth during Q1, so we completed the price refresh. I insist on that because I know everyone is very, I would say, impatient about FID being reached on Commonwealth LNG and Lake Charles LNG. So are we to some extent. What is more important than a quick FID? It's the quality of the FID. That's why we stayed true to our disciplined approach. It was, and it is important to embark with our customers on those price refresh on projects that are very important by nature, but also in terms of size for any company that would be undertaking this project.
On Commonwealth, we have completed the price refresh and we've communicated all relevant information to the customer and we continue to progress with them towards finalizing an EPC contract. The Commonwealth ambition is the one they've declared publicly, so I won't comment on that. We don't, at Technip Energies, control the FID. What is important, I will repeat, is that we stay very disciplined in our approach. We have been complying with this rule for the past few months despite, I would say, a very pressing demand by the market or some around accelerating. It was important for us to actually conduct that exercise very carefully and properly and in depth. This has been done. Now it's up to the next phases and it's really in the hands of our customers.
We feel confident that everything, that all the building blocks that are needed leading to an FID are, I would say, in place. Same exercise for Lake Charles. The price refresh is still ongoing. Nonetheless, we have not totally completed the exercise. We started it just at the time of the Q1 earnings and I indicated at the time that it would last about four months. We are still in that phase and engaging with the customers with the early findings. They are lucky for every market evolution, some up, some downs, and we are reconciling all that. There again we are feeling confident about the, I would say, the overall budget of the project. FID remained in the hands of our client.
Again, a disciplined approach and I would say a reasonable level of optimism around an FID date or at the minimum around limited notice to proceed within the year. That's for LNG prospects in the U.S. on Coral Norte. You're the one calling it Coral Norte. We have called it a floating LNG prospect in Africa. The work is progressing. There are a few things that are probably missing on the client side, on the Eni side, for them to take a full FID, but it's probably more something that is administrative in terms of what needs to happen in country than anything else. The important thing for us is that the work is progressing as if, I would say, a full FID had been announced. The fact that we are announcing partial or some form of limited notice to proceed is very positive.
What I can share is that from our standpoint, the work is progressing as if full blown, as if a full FID had been taken. This last FID stage is again something that we don't control, that only Eni is controlling.
Perfect.
Thank you.
The next question is from Guillaume Delaby with Bernstein. Please go ahead.
Yes, good afternoon, Arnaud and Bruno. Maybe I would like to come back again on the North America scene. Arnaud, I would like to have your reading about the commercial agreement between the U.S. and EU. According to my calculation, it could mean 55 million tonnes per annum of additional LNG supply. What is your reading? Does it mean that in terms of future LNG projects, there was, I would say, the bullish view until, I would say, last week and the very, very, very, very bullish view which is now. In other terms, I'm going to use a root term. Should we expect some kind of an LNG bubble in 2026, 2027, 2028 in North America? The question I have as well is could you remind us about your own in-house capacities in terms of how many LNG projects you can handle together?
Thank you.
Hey, good afternoon, Guillaume, and thank you for the question. Our reading on the U.S.-EU agreement, you're doing the calcs and you're really good at it, so obviously we are aligned with your analysis. One thing I need to remind everyone and ourselves, including our own people sometimes, is that LNG projects are long-term projects. An agreement, any agreement that is about, you know, commercial, I mean, purchases of LNG for the next three years will not materially impact the future for Technip Energies. There is a high demand for LNG with or without a deal between the U.S. and EU.
The prospects and projects on which we are engaged, Commonwealth and Lake Charles, are prospects which if they were to reach FID in the next 12 months, would be on stream four to five years later after FID, and probably would not fall within the agreement that has been signed between the U.S. or announced between the U.S. and the EU. What it does nonetheless, it just again, it confirms the demand for LNG and the fact that gas will continue to play a very important role in the energy mix going forward. That is what matters to Technip Energies. It comforts our positioning for the medium term. Certainly above all, for sure, there's a great deal of activity in North America and there will continue to be. That's why our execution model is important, because we are not dependent on, are not so dependent on the U.S.
construction resources availability to deliver our projects. They are highly modularized, if not fully modularized. Therefore, we are protecting ourselves against any form of LNG bubble from a resource allocation standpoint in North America. That's part of our very disciplined approach to this market that is or can be considered as a heated one in the current environment and for the two or three years to come. In terms of our capacity to execute, I would say when you look back at the past, I would say 12 - 18 months. Our latest award on LNG is over a year old. We have not been embarking new LNG projects in the past 14 months. We have some projects that are really reaching the tail end, such as Sempra ECA in California, for example.
We have one LNG project that is replicated from BAS1, therefore no engineering needed, and that's the floating LNG. In terms of capacity, I would say it's coming at a very good time, 14 - 16 months depending on when the FID will be reached. Let's say 14 - 18 months after the most recent award for us. It's really a good time for engineering capacities. As a reminder, if Commonwealth was to reach FID, this project is based on our SnapLNG concept, and SnapLNG, which is fully modularized, was pre-engineered as well. There's a lot of the engineering that is already handled, I would say, by design, by the concept itself. We can comfortably sustain Commonwealth and Lectures if they were to reach FID in the months to come.
The next question is from Richard Dawson with Berenberg. Please go ahead. Mr. Dawson, your line is open.
Hi, good afternoon, and thank you for taking my questions.
Just a couple left from me, mostly for
Richard. We blessed you maybe.
Operator.
Mr. Dawson, is your line on mute?
Operator? I think we move to the next question and see if Richard jumps back in the queue, please.
Okay, thank you. The next question is from Victoria McCulloch with RBC. Please go ahead.
Thanks very much for your time today. Firstly, on your Shell global alliance, can you just remind us how this is different from the previous agreement you had? Does this represent a larger opportunity and then ex the U.S. when we look at the LNG opportunities, can you give us a bit of color as to how if at all the opportunity has changed since we last talked at this at length at the capital markets day? Have you seen an acceleration in different geographies, which it sort of appears to be from the map on slide 18, and how your customers are behaving? Has there been a change this year that you've seen as a result of the sort of turbulent macroeconomic environment? Thanks very much.
Thank you, Victoria. Let's start with your question on the Shell global alliance. The Q alliance, we announced it last year actually, and it's now progressing in the sense of the teams forming, resources being allocated, and jointing being formed, et cetera. What we've announced recently is really, first of all, the global nature of the alliance and the confirmation of its exclusive nature for this post-combustion carbon capture prospects, markets, and opportunities. As a reminder, we are leveraging a Shell CANSOLV technology, which we are commercializing jointly and productizing through Technip Energies. The latest announcement is very much signaling the fact that we've taken this alliance, I would say, to a pre-JV situation. We're not at a JV level yet. We will continue to monitor the market, and a JV could be, if we decide that the market is present and it's worth doing it, the next step.
There's quite a promising future for CCS. It's making projects more investable. The reason and the purpose of this alliance is exactly that one, it's to make projects more investable, I mean CCS projects more investable. There will be, and I can't repeat it again, there will be no adoption of the low-carbon solutions if they are not affordable. Bringing Shell and Technip Energies together, it's really to have a CCS solution that is more vendor-adapted. It's to offer more value creation by standardization and replication. It's to have a proactive technical service attached to the carbon capture because carbon capture will be sold to people who are not necessarily refineries operators, et cetera, and they need to be supported. The recent spending reviews, for example in the U.K., and the announcements welcome CCUS. It's very positive.
It confirms the U.K. government's commitment to CCUS with dedicated funds, and Technip Energies and Shell together, we are involved on the most promising prospects in that country alone, for example. It's really taking this further, we go deeper, and again to a pre-JV situation. I'm sorry, I'm losing my voice.
On.
The LNG opportunity outside of the U.S. There are geographies outside of the U.S., East Africa for example, but also as well in the Middle East where prospects are real. Exxon. We're still engaged with Exxon on the Rovuma prospect for Mozambique. As a reminder, it's highly modularized and therefore it falls squarely into our avenue. It is competitive, so it's a fit competition and we continue to be engaged with Exxon. I cannot preempt the outcome of this prospect, but it is one that is very live and very active and early 2024 as well. Just to limit it to two examples, we have a few more. QatarEnergy announced the launch of NFW, the NFW prospect there as well.
Without preempting the outcome, I can only share that as we like it to be, we are engaged in the early definition of the project with the customer and we probably have a unique position as being the incumbent on NFE and NFS. Again, it's going to be and it is a competitive process. What matters to us is that we are the incumbent and we are engaged with the client on the early definition of this contract in the geography. We know really well, obviously. I'm only taking two examples, but there are two, three more that we could discuss that are real for I would say 2026 and beyond.
Thanks very much. If I could ask a follow up to Bruno, can you remind us what the CapEx spend is expected to be for the full year? Thanks very much.
CapEx was slightly up year on year, but actually last year H2 was higher due to rejuvenation regeneration hub, which was mostly built in H1. You should see a bit of a continuity of the trend that we had in H1. We don't, you know, you should not expect an increase.
Thanks very much.
The next question is from Jean-Luc Romain with CIC Market Solutions. Please go ahead.
You have a successful cooperation with Shell Catalyst and Technology and can solve technology. Within the Shell Catalyst portfolio of technologies, are there technologies which could be interesting to Technip?
Hi Jean-Luc. Catalyst is always a, I don't know by half the Shell catalyst catalog, but for sure when we talk about technologies, it starts with catalysts for Shell. The engagement started because it's an amine, so it's a catalyst that is a base to any product development attached to the Shell technology. We are leading the industry in deployment of projects at scale, but it starts always with a catalyst. The catalyst is a precursor and I would say the necessary element to any product development or solution development. There might be, I'm sure there are in Shell catalyst some interesting other products, but they are Shell's property and we have a unique, I would say, reach to now discuss what else we could be doing with some of the Shell catalysts.
The catalysts are also important and we have some designed by Technip Energies, for example on our Hummingbird technology, on the alcohol to jet fuel solution for example. There again, the precursor to the Hummingbird technology is the catalyst and in this case it's a Technip Energies owned catalyst. The catalyst in our world is, I would say, the main brick and the main precursor to any product development at scale and therefore I would say an area of interest for Technip Energies, an area of investment as well. Hummingbird is an investment, Rejoule is also based on catalysts, and the investment into catalyst with IBM in this case. Catalysts are areas where we are investing and we will continue to invest.
Thank you.
The next question is from Bertrand Hodee with Kepler Cheuvreux. Please go ahead.
Yes, hello, Arnaud. Bruno.
First question is for Bruno on the adjusted net cash position as you now disclose it, and with the NCL debt component, the calculation shows that it goes from above EUR 1.4 billion at the end 2024 to above EUR 1.6 billion. An improvement of EUR 200 million. When I do my calculation, that excludes obviously project contingencies that you don't disclose, it was down by around EUR 100 million. It looks to me that project contingency has increased significantly year to date by probably around EUR 250 million, which is a good thing and bodes well for future margin. Maybe Bruno, can you expand a bit on that matter?
Sure. Hi, Bertrand. Maybe I won't go into the full details, otherwise we will both lose everyone on the call. I would say first, of course, you know, it's a lot of different factors and to some extent there is a bit of a proxy way to get it, plus rounding. Are we comfortable about the contingencies that we have on the project? Yes, absolutely. As we say, just the offset of, I think we have less contribution from margin recognition on early stage project means that we are not recognizing the full extent of the margin on those projects. For those very early stage projects, of course, we are kind of depleting a bit of backlog while keeping the contingency. Of course, mechanically this has slightly of an impact. Beyond that, I would say, and this is why as we factor it, this has a positive contribution.
Also, when you have a mix of both net contract liabilities and the accounts receivable, part of accounts receivable may be associated with this net contract liability, sometimes may not for services. Depending on some of the mix between accounts receivable, you may have EUR 0.10, EUR 0.15 or something different from the movement from one period to the next, plus a bit of FX also as the last component. I think maybe for the first time we were slightly off, I guess, a bit of accounts receivable, split some for sure, TC and contingencies and project margin in backlog, plus a bit of FX. I would say that would be the three main bridge components.
Okay, thank you.
The second question is relating.
To.
I would say a new project that has emerged earlier over the last 12 months, which is Argentina LNG, which potentially my understanding is that in the first phase it will be 12 million tonnes through multiple floating LNG facilities. At its last conference call detailed a very aggressive timeline with a potential FID as early as Q1 2026. The question is first, are you engaged in this project and can you share with us how many floaters could that be? Could this involve and.
Where.
Do you stand on the, I would say, front end engineering and design or pre-FEED stage?
Yes, we are somewhat engaged on Argentina LNG and we became more engaged since Shell joined the venture, I may say, with YPF. We are basically at the stage of responding to a tender with a 10 - 12 month FEED work scope that is to be concluded by mid-2026. I have listened to and read some of the transcripts related to Argentina LNG by Eni yesterday. There are many different scenarios and phases from offshore versus onshore for Argentine LNG. We are involved, but we are not involved for floating units that would have an FID by Q1 2026. This is not our time horizon, it is not that one. I am not quite sure what the scenario might be for Q1 2026 FID. Our timeline is a bit farther down the road.
There are scenarios which we can imagine with nearshore LNG and units that are a bit less sophisticated that could actually lead to an FID early into 2026. Maybe this is what Eni have in mind, but that's not the primary focus for Technip Energies. We are competing for a FEED that would last 10 - 12 months.
Okay, okay. That explains probably the difference in terms of timeline expectation. It is. You are not involved in the initial, I would say, 12 million tonnes that will be made of floating LNG units. You're not running for that part of the project.
We are running for some floating, but it looks like, yeah, maybe not for that part. I do have a question mark myself. There's two, two units or two times six to make it to 12. I mean we're talking at very, very significant sizes. As a reminder, Coral, okay, it's not near shore, it's deep sea. Coral is around 4 mtpa. We're talking very significant capacity. Yeah, clearly no, we're not part of the two times six making 12. No, we are on other phases.
Okay, thank you, Arnaud.
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Thank you.
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