Buy Signal on Technip Energies (TE-FR)

We had an Enter Long Strategic signal on October 12, 2021, triggered by our system on Technip Energies N.V, TE-FR, the french Oil & Gas services company.

Our system also triggered an Enter Long Tactical signal on September 3, 2021 that implies a likely bullish acceleration. Technip Energies has a rather solid track record, with a Behavioral score of 6/10, therefore the bullish signal is to be considered as Strategic.

Technip Energies is a € 2.5 Bn market cap Resulting from the spin-off of the TechnipFMC plc group in 2021. Technip Energies NV is an Engineering and Technologies company specializing in the execution of projects and in the supply of technologies, products and services for energy infrastructures that may be located on land or at sea (LNG, downstream treatment of oil and gas, sustainable chemistry, hydrogen, CO2 management and marine infrastructure).

Technip Energies benefits both from the rising oil prices and its positionning in Energy transition with leading positions in Liquefied Natural Gas (LNG), hydrogen and ethylene and with a strong presence in the growing markets of blue and green hydrogen, sustainable chemicals and CO2 management. The company benefits from its strong project delivery model, supported by an extensive offering of Technologies and services.

Technip Energies is expected to deliver a revenue of €6.7 Bn in 2021 (versus € 6 Bn in 2020) coupled with a net profit of €245 millions (€200 millions in 2020). Revenues and EPS are expected to rise by 10% in 2022 and 2023. The company has a solid cash position of € 2.4 Bn, offers a current dividend yield of 1.7%. Dividends are expected to rise steadily.

Short term catalyst : Rising Oil prices.

This signal looks consistent with the current Major Bullish Trend in Energy. The participation of Oil & Gas services stocks in tactical signal is high at 77% but remain weak for the strategic signal (15%).