| | |
| | |
Classification of Liabilities as Current or Non-Current \u2013 Amendments to IAS 1 | The IASB has issued an exposure draft proposing the deferral of the amendments until at least January 1, 2024 | The amendment clarifies: \u25a0what is meant by a right to defer settlement, \u25a0that a right to defer must exist at the end of the reporting period, \u25a0that classification is unaffected by the likelihood that an entity will exercise its deferral right, \u25a0that only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a liability not impact its classification. |
Non-current Liabilities with Covenants - Amendments to IAS 1 | | The amendments to IAS 1 improved the information an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants. The amendments also responded to stakeholders\u2019 concerns about the classification of such a liability as current or non-current. |
Definition of Accounting Estimates \u2013 Amendments to IAS 8 | | The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. The effects on an accounting estimate of a change in an input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior periods\u2019 errors. The previous definition of a change in accounting estimates may result from new information or developments. Therefore, such changes are not corrections of errors. |
Disclosure of Accounting Policies \u2013 Amendments to IAS 1 and IFRS Practice Statement 2 | | The amendments aim to help entities provide more useful accounting policy disclosures by replacing the requirement to disclose their \u201csignificant\u201d accounting policies with their \u201cmaterial\u201d accounting policies, and by adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. |
IFRS 17 Insurance contracts | | In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts. |
Sale or contribution of assets between an Investor and its Associate or Joint Venture \u2013 Amendments to IFRS 10 and IAS 28 | Effective application date is indefinitely postponed | The amendments address the conflict between IFRS 10 Consolidated financial statements and IAS 28 Investments in Associates and Joint Ventures in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint venture involves a business as defined in IFRS 3. Any gain or loss resulting from the sale or contribution of assets that does not constitute a business, however, is recognized only to the extent of unrelated investors\u2019 interests in the associate or joint venture. |
Lease liability in a Sale and Leaseback - Amendments to IFRS 16 | | The amendment to IFRS 16 specifies the requirements that a seller- lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. |
ESG roadmap is also reflected in its increased R&D efforts.
As of December\u00a031, 2022, R&D expenses related to energy
transition amounted to \u20ac41.1 million on the total \u20ac49.5
million 2022 expense.
\u25aaImpairment test and valuation of assets
The Group is currently engaged in activities and markets for
which the demand provides a high multiyear visibility and are
not subject to regulations that would jeopardize its activities
in the short or medium term.
The business plan underpinning the impairment test
performed by the Group as of December\u00a031, 2022 is in line
with market demand and does not include any disruptive
elements that would be required to be reflected in future
cash flows. Finally, the prospective financial information
reflects the future opportunities in the energy transition
markets.
\u25aaShare-based compensation and remuneration policy
applied to Executive Officer, Executive Committee
members, Senior Managers, and other key employees
The Compensation Committee of the Board of Directors has
granted to the Executive Officer, Executive Committee
members, Senior Managers, and other key employees (e.g.,
technical experts, high potentials) a Long-Term Incentive
plan in the form of Performance Stock Units (PSUs) and
Restricted Stock Units (RSUs). The PSUs vesting is subject to
the satisfactory achievement of performance conditions. As
of 2022, the performance conditions comprise the total
shareholder return (\u201cTSR\u201d), EPS and a set of three weighted
ESG indicators directly derived from our ESG Roadmap to
support Technip Energies vision in accelerating energy
transition for a \u201cbetter tomorrow\u201d and to strengthen the
alignment with sustainable long-term value creation. One of
these indicators is a climate-friendly objective: 30% decrease
in scope 1 and 2 greenhouse gas emissions between 2019 and
2025.
In addition, the Compensation Committee reviewed the
Executive Director\u2019s remuneration and notably reinforced the
weighting of the ESG component in the Short-Term Incentive
program with ESG KPIs derived from the Company\u2019s ESG
roadmap. These changes have been introduced in 2022 and
are described in section 6.6.1. Executive Director
remuneration. As compared to December\u00a031, 2021, the ESG
business performance indicators weighting increased from
15% to 25% to emphasize ESG performance and to signal the
Company\u2019s commitment to embed sustainable, socially
responsible and ethical business practices.
\u25aaGreen financing
The terms and conditions of the Group financing agreements
do not include climate-friendly covenants or objectives,
except for the Revolving Facility for which the applicable
margin is adjusted based on the successful completion by
the Group of the 3 ESG key performance indicators defined
in the facility agreement: reduction of carbon footprint,
supporting of ESG ratings and improvement of gender
diversity. On May 24, 2022, the Revolving Credit Facility
margin was adjusted accordingly following the successful
achievement of all three KPI\u2019s for the year 2021. As of today,
the Revolving Credit Facility remains undrawn, the financial
cost associated with the facility is therefore immaterial. For
further information, refer to Note 22. Debt (long and short-
term).
Conflict in Ukraine
The Conflict in Ukraine and sanctions imposed against Russia
and Belarus pose significant challenges to business activities
and introduce a degree of uncertainty on the expected
development of such activities. The Group considered its
direct and indirect risk exposure resulting from the conflict
in the preparation of its consolidated financial statements
and its assessment is discussed below.
\u25aaImpairment of non-financial assets
The Group considered the conflict as an impairment trigger
and conducted a dedicated ad hoc goodwill impairment test.
This test was based on the Group CGU\u2019s carrying values as of
March 31, 2022. The prospective financial information used
excluded net cash-flows related to Arctic LNG 2 project as
well as new business opportunities in Russia.
Risk-adjusted post tax discount rate for both CGUs used for
this impairment test was 12.0% for Project Delivery and 10.5%
for Technology, Products & Services. This compares to 11.5%
and 9.5% as of December\u00a031, 2021, for Project Delivery and
Technology, Products & Services, respectively.
This dedicated test did not lead to an impairment. The
excess of value in use over carrying values was approximately
\u20ac700.0 million and \u20ac625.0 million for Project Delivery and
Technology, Products & Services, respectively. The Group also
performed a sensitivity analysis on discount and long-term
growth rates. A 1.0% increase of the discount rate and a 1.0%
decrease of the long-term growth rate would result in excess
of value in use over carrying values of approximately \u20ac568.0
million for Project Delivery and \u20ac443.0 million for Technology,
Products & Services.
The conclusions of this dedicated impairment test remained
unchanged after allocating corporate assets.
The carrying value of goodwill allocated by CGU for this
specific test was \u20ac1,551.5 million for Project Delivery and
\u20ac534.6 million for Technology, Products & Services. This
compares to \u20ac1,542.8 million and \u20ac531.6 million as of
December\u00a031, 2021, for Project Delivery and for Technology,
Products & Services, respectively.
This test did not replace the one performed on an annual
basis, the conclusions of which are discussed in Note 14.
Goodwill and intangible assets, net.
In addition, the Group does not hold significant non-financial
assets located in Russia or Ukraine that would directly or
indirectly be impacted by the conflict.
\u25aaRevenue from Contracts with Customers
The Group evaluated the potential implications of the
Ukraine conflict on revenue recognition for the financial year
ended December\u00a031, 2022 and concluded that current
developments did not affect its ability to recognize revenue
nor the measurement of variable considerations over the
year.
The analysis performed confirms that the criteria to
recognize revenue are met. To date, the Group considers that
any outstanding consideration due is collectible on the Arctic
LNG 2 project.
Although the Group\u2019s revenue will be affected by the inability
to pursue its operations in Russia due to the sanctions
associated to the Ukraine conflict, suspension and
termination of the Arctic LNG 2 contract will not give rise to
variable considerations arising out of contractual penalties,
liquidated damages, or price concessions that could be
granted to the Arctic LNG 2 customer.
There are no refund liabilities, termination penalties or other
contractual liability that would not already have materialized
in the balance sheet positions of the Arctic LNG 2 contract.
The Group did not identify significant additional costs to be
incurred to satisfy its performance obligation under the
Arctic LNG 2 contract that would be included in the cost-to-
cost input method for measuring progress and revenue
recognition.
Discussions with the client have resulted in the signing of an
Exit Framework Agreement in the third quarter of 2022. This
process is expected to be completed within the first half of
2023. Technip Energies recognized revenue where it was
authorized to do so, in compliance with applicable sanctions
adopted by the European Union, the United States, and other
countries. The Group does not expect any negative net
financial exposure due to its contractual rights and the
balance sheet position of the Arctic LNG 2 project.
\u25aaExpected credit loss
In assessing impairment of financial instruments, the Group
considered the potential effects of the conflict in Ukraine on
the measurement of its weighted average expected credit
loss rate. The analysis of the increase in the credit risk on
financial instruments has been performed on a collective
basis. Counterparties which are Russian or have links with
Russia have been identified. The Group concluded that there
is no impact on the rate used to measure the expected credit
loss at Group level. As of December\u00a031, 2022, balance sheet
positions of the Arctic LNG 2 project reflect the Group\u2019s
assessment of its exposure and level of collectability.
Excluding Arctic LNG 2, the Group\u2019s positions with Russian
external third parties are not material, and the collection of
receivables is considered highly probable.
Finally, these elements are reinforced by the way most of the
Group's long-term contracts are financed, notably through
advanced payments presented as contract liabilities on the
statement of financial position, and by the nature and
financial strength of the Group's major clients.
\u25aaLiquidity and currency risk
Further to the conflict in Ukraine and the consecutive sets of
sanctions and counter sanctions which have been enacted
by, amongst others, the European Union, the United States
authorities and the Central Bank of Russia, the Group is
monitoring financial risks to which it may be exposed such as
credit risk, liquidity risk and currency risk. The Group no
longer has any foreign exchange instruments related to
Rubles in its books, nor any debit situation with its treasury
center. The cash position held by Russian subsidiaries is not
material at Group level, and no loan is in place to Russian
entities or other Russian parties. The Group does not hold
significant balances of cash in Rubles or located in Russia
(detail by currency provided in Note 19. Cash and cash
equivalents).
\u25aaCyber impacts
As part of Technip Energies\u2019 ongoing cybersecurity strategy,
the Group undertakes regular reviews of external threats and
evaluates them against its existing systems and processes.
Following the beginning of the conflict in Ukraine, the Group
increased its threat monitoring capabilities through a
combination of additional technologies and services to
mitigate any additional threats that are identified. These can
be from several threats including nation states and political
hacktivists. Technip Energies has also increased its
employees\u2019 awareness of these threats through a
combination of additional awareness campaigns and
supplemental training.
On April 1, 2022, the Group renewed its cyber insurance
policy with Lloyd\u2019s syndicates Brit and Kiln who, in the cover
provided under this policy have expressly excluded:
\u2022Any loss or damage or liability in or from any
occurrence in Russia or their respective territorial
waters,
\u2022Any loss or damage or liability incurred by persons or
entities located in Russia or their respective territorial
waters.
Following key assessments described above, we have not
identified any significant risk that could result in a material
adjustment to the carrying amount of assets and liabilities
within the next financial year.
Macroeconomic conditions
Current macroeconomic conditions (inflationary pressures,
increases in interest rates and raw material and energy costs,
shortages, exchange rate volatility) may increase economic
uncertainties and have effects on Technip Energies
consolidated financial statements. The estimates described
below have been reviewed to take in consideration this
specific macroeconomic environment:
\u25aaMeasurement of the present value of the post-
employment benefit obligations
Actuarial assumptions have been revalued (wage and
discount rate increase) to reflect long term economic
forecast. Assumptions used to assess post-retirement
valuation as of December\u00a031, 2022, include as compared to
December\u00a031, 2021, an increase of:
\u25a0The expected long-term inflation assumption set by the
European Central Bank;
\u25a0The spread above assumed the long-term inflation to
derive the expected yearly salary increase.
Moreover, to consider increased volatility observed on key
assumptions such as discount rate and inflation rate,
sensitivities shown include +/- 50 bps ranges as compared to
+/- 25bps last year.
\u25aaImpairment test of goodwill
During the year ended December\u00a031, 2022, global
macroeconomic conditions have significantly deteriorated.
The increase in interest rates and inflation were considered
in the discount rates and in the prospective financial
information used in the determination of the value in use.
Regarding discount rates, the increase in weighted average cost of capital, period over period, reflected the rise in risk-free
rates. The variation, per operating segment compared to last year is the following:
| | |
| | |
| | |
Technology, Products & Services | | |
Besides, the long-term growth rates used to estimate cash
flow projections beyond the period covered by the budgets
were unchanged from last year, remaining at 1.9% for both
operating segments. Macroeconomic conditions, in particular
wage increases, or higher commodity prices were also
reflected in the future cash flows used to determine the
value in use of the CGUs. The consideration of the above-
mentioned did not lead to the recognition of an impairment,
as described in Note 14. Goodwill and intangible assets, net.
\u25aaEstimates on long-term and onerous contracts
Estimates on long-term and onerous contracts have been
reviewed to evaluate the expected economic benefits and
the performance obligations. As of December\u00a031, 2022, the
Group considered increased prices and rising inflation in its
assessment of onerous contracts. The current
macroeconomic conditions did not lead the Group to
consider long-term contracts in force as onerous; thus, no
additional provisions were accounted for as a direct
consequence of the market situation.
",
"dimensions": {
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"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
1.6.Summary of significant accounting
policies
a.Consolidation principles
In accordance with IFRS 10 \u201cconsolidated financial
statements\u201d (\u201cIFRS 10\u201d), the Group\u2019s consolidated financial
statements include the financial statements of Technip
Energies N.V. and subsidiaries controlled by Technip Energies
(including structured entities).
Technip Energies controls an entity where the Group has all
the following:
\u25a0The power over the company subject to the investment;
\u25a0An exposure or rights to the company\u2019s variable returns;
and
\u25a0The ability to use its power over the entity to affect these
returns.
The power to direct the activities of the entity usually exists
when holding more than 50% of voting rights in the entity
and these rights are substantive.
As per IFRS 11 \u201cJoint Arrangements\u201d (\u201cIFRS 11\u201d), joint
arrangements could be classified as joint ventures or joint
operations. Joint operations should be recognized to the
extent of Technip Energies\u2019 assets and its liabilities, including
its share of any assets held jointly or liabilities incurred
jointly.
The equity method is used for joint ventures and for
investments over which Technip Energies exercises a
significant influence on operational and financial policies.
Unless otherwise indicated, such influence is deemed to exist
for investments in companies in which the Group\u2019s
ownership is between 20% and 50%.
Companies in which the Group\u2019s ownership is less than 20%
or which do not represent material investments are recorded
under \u201cOther non-current financial assets\u201d.
The list of Technip Energies\u2019 related undertakings as of
December\u00a031, 2022 is provided in Note 31. Companies
included in the scope of the consolidated financial
statements.
The main affiliates of Technip Energies close their accounts
as of December\u00a031 and all consolidated companies apply
Group\u2019s accounting policies as set in the Group Accounting
Manual.
All intercompany balances and transactions, as well as
internal income and expenses, are fully eliminated.
Subsidiaries are consolidated as of the date of acquisition,
being the date on which Technip Energies obtains control,
and continue to be consolidated until the date control
ceases.
b.Recognition of revenue from customer
contracts
Technip Energies accounts for revenue in accordance with
IFRS 15 \u201cRevenues from Contracts with
Customers\u201d (\u201cIFRS\u00a015\u201d). Revenue is measured based on the
consideration specified in a contract with a customer. Most
of our revenue is from long-term contracts associated with
designing and manufacturing products and systems and
providing services to customers involved in exploration and
production of crude oil and natural gas. The Technip Energies
Group recognizes revenue when or as it transfers control
over a good or service to a customer.
Contract modifications \u2013 Contracts are often modified to
account for changes in contract specifications and
requirements. The Group considers contract modifications to
exist when the modification either creates new, or changes
the existing, enforceable rights and obligations. Most of the
Group\u2019s contract modifications are for goods or services that
are not distinct from the existing contract due to the
significant integration service provided in the context of the
contract and are accounted for as if they were part of that
existing contract. The effect of a contract modification on
the transaction price and our measure of progress for the
performance obligation to which it relates is recognized as an
adjustment to revenue (either as an increase in or a
reduction of revenue) on a cumulative catch-up basis.
Variable consideration \u2013 Due to the nature of the work
required to be performed on many existing performance
obligations, the estimation of total revenue and cost at
completion is complex, subject to many variables and
requires significant judgment. It is common for long-term
contracts to contain variable considerations that can either
increase or decrease the transaction price. Variability in the
transaction price arises primarily due to liquidated damages.
The Technip Energies Group considers its experience with
similar transactions and expectations regarding the contract
in estimating the amount of variable consideration to which
it will be entitled and determining whether the estimated
variable consideration should be constrained. We include
estimated amounts in the transaction price to the extent it is
probable that a significant reversal of cumulative revenue
recognized will not occur when the uncertainty associated
with the variable consideration is resolved. The estimates of
variable consideration are based largely on an assessment of
anticipated performance and all information (historical,
current and forecasted) that is reasonably available to
Technip Energies.
Payment terms \u2013 Progress billings are generally issued upon
completion of certain phases of the work as stipulated in the
contract. Payment terms may either be fixed, lump-sum or
driven by time and materials (i.e., daily or hourly rates, plus
materials). Because typically the customer retains a small
portion of the contract price until completion of the
contract, contracts generally result in revenue recognized in
excess of billings which we present as contract assets on the
statement of financial position. Amounts billed and due from
customers are classified as receivables on the statement of
financial position. The portion of the payments retained by
the customer until final contract settlement is not
considered a significant financing component because the
intent is to protect the customer. For some contracts, the
Technip Energies Group may be entitled to receive an
advance payment. The Technip Energies Group recognizes a
liability for these advance payments in excess of revenue
recognized and presents them as contract liabilities on the
statement of financial position. The advance payment
typically is not considered a significant financing component
because it is used to meet working capital demands that can
be higher in the early stages of a contract and to protect us
from the other party failing to adequately complete some or
all of its obligations under the contract.
Warranty \u2013 Certain contracts include an assurance-type
warranty clause, typically between 18 and 36 months, to
guarantee that the products comply with agreed
specifications. A service-type warranty may also be provided
to the customer; in such a case, management allocates a
portion of the transaction price to the warranty as a separate
performance obligation based on the estimated stand-alone
selling price of the service-type warranty.
Allocation of transaction price to performance obligations \u2013
A contract\u2019s transaction price is allocated to each distinct
performance obligation and recognized as revenue, when, or
as, the performance obligation is satisfied. To determine the
proper revenue recognition method, the Group evaluates
whether two or more contracts should be combined and
accounted for as one single contract and whether the
combined or single contract should be accounted for as
more than one performance obligation. This evaluation
requires significant judgment; some of the Group\u2019s contracts
have a single performance obligation as the promise to
transfer the individual goods or services is not separately
identifiable from other promises in the contracts and,
therefore, not distinct. For contracts with multiple
performance obligations, Technip Energies allocates the
contract\u2019s transaction price to each performance obligation
using its best estimate of the standalone selling price of
each distinct good or service in the contract.
Cost-to-cost method \u2013 For long-term contracts, because of
control transferring over time, revenue is recognized based
on the extent of progress towards completion of the
performance obligation. The cost-to-cost measure of
progress for contracts is generally used because it best
depicts the transfer of control to the customer which occurs
as costs on the contracts are incurred. Under the cost-to-
cost measure of progress, the extent of progress towards
completion is measured based on the ratio of costs incurred
to date to the total estimated costs at completion of the
performance obligation. Revenues, including estimated fees
or profits, are recorded proportionally as costs are incurred.
Any expected losses on contracts in progress are charged to
earnings, in total, in the period the losses are identified.
Right to invoice practical expedient \u2013 The right-to-invoice
practical expedient can be applied to a performance
obligation satisfied over time if we have a right to invoice the
customer for an amount that corresponds directly to the
value transferred to the customer for performance
completed to date. When this practical expedient is used,
variable consideration is not estimated at the inception of
the contract to determine the transaction price or for
disclosure purposes. Certain contracts have payment terms
dictated by daily or hourly rates while other contracts may
have mixed pricing terms that include a fixed fee portion. For
contracts in which the customer is charged a fixed rate
based on the time or materials used during the project that
correspond to the value transferred to the customer, the
Technip Energies Group recognizes revenue in the amount it
has the right to invoice.
Significant financing component \u2013 certain contracts could
include a period between the transfer of the promised goods
or services to the customer and the payment received from
the customer. If this period exceeds one year, the time value
is assessed and the transaction price could be adjusted if the
identified financing component is considered significant.
c.Foreign currency transactions
The items of each of the Group's subsidiaries included in
these consolidated financial statements are measured using
the currency of the main economic environment in which the
entity operates, which mainly affects revenue and expenses
(\u2018functional currency\u2019). The consolidated financial statements
are presented in euros, which is Technip Energies N.V.\u2019s
functional currency.
Foreign currency transactions are translated into the
functional currency at the exchange rate applicable on the
transaction date.
At the closing date, monetary assets and liabilities stated in
foreign currencies are translated into the functional currency
at the exchange rate prevailing on that date. Resulting
exchange gains or losses are directly recorded in the
statement of income (for further details, refer to Note 6.
Other operating income (expense), net, except exchange
gains or losses on cash accounts eligible for future cash flow
hedging and for hedging on net foreign currency investments.
Translation of financial statements of subsidiaries in foreign
currency \u2013 The statements of income of foreign subsidiaries
are translated into euro at the average exchange rate
prevailing during the year. The statements of financial
position are translated at the exchange rate at the closing
date. Differences arising in the translation of financial
statements of foreign subsidiaries are recorded in other
comprehensive income (loss) as foreign currency translation
reserve. Items that are recognized directly in equity
are\u00a0translated using historical rates. The functional currency
of the foreign subsidiaries is most commonly the
local\u00a0currency.
d.Business combinations
Business combinations are accounted for using the
acquisition method of accounting. Under the acquisition
method, assets acquired and liabilities assumed are recorded
at their respective fair values as of the acquisition date.
Determining the fair value of assets and liabilities involves
significant judgment regarding methods and assumptions
used to calculate estimated fair values. The purchase price is
allocated to the assets acquired, including identifiable
intangible assets, and liabilities based on their estimated fair
values. Any excess of the purchase price over the estimated
fair value of the net assets acquired is recorded as goodwill.
Identifiable assets are depreciated over their estimated
useful lives.
Acquisition-related costs are expensed as incurred and
included in the statement of income line item \u201cSelling,
general and administrative expenses\u201d.
Adjustments recorded for a business combination on the
provisional values of assets, liabilities and contingent
liabilities are recognized as a retrospective change in goodwill
when occurring within a 12-month period after the
acquisition date and resulting from facts or circumstances
that existed as of the acquisition date. After this
measurement period ends, any change in valuation of assets,
liabilities and contingent liabilities is accounted for in the
statement of income, with no impact on goodwill.
e.Separation costs
Separation costs are expensed as incurred and include fees
and expenses associated with the separation transaction
(\u201cthe Spin-off\u201d). The costs include legal and tax advice
expenses, consulting services and other separation activities
related costs. Separation costs are included in the
consolidated statement of income line \u201cImpairment,
restructuring and other expenses\u201d. There were no
separation-related costs incurred in the financial year 2022.
f.Segment information
Information by operating segment
IFRS 8 \u2013 Operating Segments requires to determine operating
segments based on information which is provided internally
to the Chief Operating Decision Maker (\u201cCODM\u201d).
In the periods presented here, the Chief Executive Officer
reviewed and evaluated the Technip Energies Group
operating performance to make decisions about resource to
be allocated and has been identified as the CODM. Utilizing
the internal reporting information provided to the CODM, the
Technip Energies Group has changed, in 2021, the structure
of its internal organization and defined two segments
designated as Project Delivery and Technology, Products &
Services.
The corresponding definitions are disclosed as follows:
\u25a0Project Delivery: the Project Delivery segment provides
comprehensive engineering, procurement and construction
delivery capabilities globally. The Company\u2019s key
capabilities leverage its operational and technical
excellence as a global provider of engineering,
procurement and construction (\u201cEPC\u201d) services for
onshore oil and gas; liquid natural gas (\u201cLNG\u201d) and gas to
liquids (\u201cGTL\u201d), oil refining, ethylene, petrochemicals,
chemicals, fertilizers, offshore oil and gas (shallow-water,
deep-water) with floating solutions (floating production
units (\u201cFPUs\u201d), Floating production storage and offloading
(\u201cFPSO\u201d), floating liquefied natural gas (\u201cFLNG\u201d) and
floating storage and regasification unit (\u201cFSRU\u201d). EPC
contracts are undertaken under various contractual
schemes and include fixed lump-sum, reimbursable and
hybrid contracting models based on selectivity and risk
assessment work carried out by Technip Energies\u2019 teams
during the early engagement phases.
\u25a0Technology, Products & Services: the activities within the
Company\u2019s Technology, Products & Services businesses
are more versatile, combining proprietary technologies
with associated licensing fees and equipment such as LNG
Loading Arms and associated knowledge-based services
into a global business for ethylene, refining,
petrochemicals, inorganic and specialty chemicals as well
as gas monetization. From technology definition, early
engagement through scope definition, advanced
technologies and project lifecycle support, Technip
Energies works closely with customers to provide the
optimal approach to maximize their return on investment.
Consulting and services may be provided under the
Company\u2019s specialist consulting brand, Genesis, or
through the Group\u2019s project management consulting or
engineering services businesses.
\u25a0Corporate / non allocable: corresponds to the unallocated
items in the two segments above.
Disaggregation of revenue
The Technip Energies Group disaggregates its revenue by the
following geographic regions:
\u25a0Europe & Russia;
\u25a0Africa & Middle East;
\u25a0Asia Pacific; and
\u25a0Americas.
The geographical breakdown is based on the contract
delivery within the specific country. Geographical areas are
defined considering risks associated to activities performed
in a given area, economic framework or monetary risks.
g.Earnings per share
As per IAS 33 \u201cEarnings per Share\u201d (\u201cIAS 33\u201d), Earnings Per
Share (\u201cEPS\u201d) are based on the average number of
outstanding shares over the year, after deducting treasury
shares.
Diluted earnings per share amounts are calculated by dividing
the net profit of the year, restated if need be for the after-
tax financial cost of dilutive financial instruments, by the
sum of the weighted average number of outstanding shares,
the weighted average number of share subscription options
not yet exercised, the weighted average number of
performance shares granted calculated using the share
purchase method, and, if applicable, the effects of any other
dilutive instrument.
In accordance with the share purchase method, only dilutive
instruments are used in calculating EPS. Dilutive instruments
are those for which the option exercise price plus the future
share-based compensation expense not yet recognized
is\u00a0lower than the average share price during the EPS
calculation\u00a0period.
h.Goodwill
Goodwill is measured at the acquisition date as the total of
the fair value of consideration transferred, plus the
proportionate amount of any non-controlling interest, plus
the fair value of any previously held equity interest in the
acquiree, if any, less the net recognized amount (generally at
fair value) of the identifiable assets acquired and liabilities
assumed.
Goodwill is allocated to cash-generating units that are
expected to benefit from the business combination in which
the goodwill arose and in all cases is at the operating
segment level, which represents the lowest level at which
goodwill is monitored for internal management purposes.
Goodwill is not amortized but it is tested for impairment
annually, or more frequently if events or changes in
circumstances indicate that it might be impaired and is
carried at cost less accumulated impairment losses. Gains
and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
i.Property, plant and equipment
In compliance with IAS 16 \u201cProperty, plant and
equipment\u201d (\u201cIAS 16\u201d), an asset is recognized only if the cost
can be measured reliably and if future economic benefits are
expected from its use.
Property, plant and equipment could be initially recognized at
cost or at their fair value in case of business combinations.
As per IAS 16, the Technip Energies Group uses different
depreciation periods for each of the significant components
of a single property, plant and equipment asset where the
useful life of the component differs from that of the main
asset. Below are the useful lives most commonly applied by
the Technip Energies Group on a straight-line basis:
\u25a0Buildings: 10 to 60 years;
\u25a0IT Equipment: 3 to 5 years;
\u25a0Machinery and Equipment: 3 to 20 years;
\u25a0Office Fixtures: 5 to 10 years.
If the residual value of an asset is material and can be
measured, it is taken into account in calculating its
depreciable amount.
On a regular basis, the Technip Energies Group reviews the
useful lives of its assets. That review is based on the
effective use of the assets.
Depreciation costs are recorded in the statement of income
as a function of the fixed assets\u2019 use, split between the
following line items: cost of sales, research and development
expense, selling, general and administrative expenses.
In accordance with IAS 36 \u2013 Impairment of Assets, the
carrying value of property, plant and equipment is reviewed
for impairment whenever internal or external events indicate
that there may be impairment, in which case, an impairment
test is performed.
j.Leases
Technip Energies mainly leases real estate assets such as
offices buildings and residential housing.
The standard requires that payments shall be discounted
using the interest rate implicit in the lease, if that rate can
be readily determined. In practice, given the structure of the
Group\u2019s financing all of which is held by Technip Energies
N.V. or T.EN Eurocash SNC, the discount rate used to
determine the right-of-use asset and the lease liability for
each leased asset is calculated based on the incremental
borrowing rate of the Group at inception of the lease.
Technip Energies calculated the rate applicable to each lease
contract on the basis of the lease duration.
Technip Energies Group determines if an arrangement is a
lease at inception by assessing whether an identified asset
exists and if the Group has the right to control the use of the
identified asset. Leases are included in right-of-use assets,
lease liabilities (non-current and current on the statement of
financial position). Right-of-use assets represent the right to
use an underlying asset for the lease term and lease
liabilities represent Technip Energies obligation to make
lease payments arising from the lease. Right-of-use assets
and lease liabilities are recognized at the commencement
date based on the present value of the remaining lease
payments over the lease term. The right-of-use assets also
include any lease prepayments made and exclude lease
incentives the Group received from the lessor. Depreciation
of right-of-use assets is recognized on a straight-line basis
over the lease term.
The lease term generally used to calculate the liability is the
term of the initially negotiated lease, not taking into account
any early termination options, except in special
circumstances. When leases contain extension options, the
term used for the calculation of the liability may include
these periods, mainly when the anticipated period of use of
the fixed assets, whether under a new or existing lease, is
greater than the initial contractual lease term.
The Group has variable lease payments, including
adjustments to lease payments based on an index or rate
(such as the Consumer Price Index) and fair value
adjustments to lease payments. Variable lease payments that
depend on an index or a rate (such as the Consumer Price
Index or a market interest rate) are included when measuring
initial lease liability of the lease arrangements using the
payments\u2019 base rate or index. The Group remeasures the
lease liability when there is a change in future lease
payments resulting from a change in such index or rate.
Short-term leases with an initial term of 12 months or less
that do not include a purchase option and leases of low-
value assets (referring mainly to IT equipment e.g. laptops
and mobile phones) are not recorded on the statement of
financial position.
Technip Energies Group adopted the practical expedient
to\u00a0not separate lease and non-lease components for all
asset\u00a0classes.
The Group currently subleases certain of its leased real
estate to third parties. The subleases are classified as
operating or finance leases by the sublessor depending on
the duration of the sublease contract and the end date of
the main lease contract.
k.Intangible assets
Internally generated research and development
costs
Research costs are expensed when incurred. In compliance
with IAS 38 \u201cIntangible assets\u201d (\u201cIAS 38\u201d), development costs
are capitalized if all of the following criteria are met:
\u25a0The projects are clearly identified;
\u25a0The Technip Energies Group is able to reliably measure
expenditures incurred for each project during its
development;
\u25a0The Technip Energies Group is able to demonstrate the
technical or industrial feasibility of the project;
\u25a0The Technip Energies Group has the financial and
technical resources available to complete the project;
\u25a0The Technip Energies Group can demonstrate its intention
to complete, to use or to commercialize products
resulting from the project; and
\u25a0The Technip Energies Group is able to demonstrate the
existence of a market for the output of the intangible
asset, or, if it is used internally, the usefulness of the
intangible asset.
All research and development costs not meeting the IAS 38
criteria are expensed as incurred in the consolidated
Statement of income. The Technip Energies Group capitalized
costs on certain IT projects developed internally.
Other intangible assets
Intangible assets other than goodwill (including those
acquired in a business combination) are amortized on a
straight-line basis over their expected useful lives, as
follows:
\u25a0Backlog: as per the timeframe of the outstanding orders
(usually less than 3 years);
\u25a0Licenses, Patents and Trademarks: less than 20 years;
\u25a0Software (including software rights, proprietary IT tools,
such as the E-procurement platform, or the Technip
Energies Group\u2019s management applications): 3 to 7 years.
In accordance with IAS 36, the carrying value of intangible
assets is reviewed for impairment whenever internal or
external events indicate that there may be an impairment,
in\u00a0which case, an impairment test is performed.
l.Impairment of non-financial assets
Non-financial assets, property, plant and equipment, and
identifiable intangible assets being amortized are reviewed
for impairment whenever events or changes in circumstances
indicate the carrying amount of the asset or cash-generating
unit (\u201cCGU\u201d) may not be recoverable. If any indication exists,
or when annual impairment testing for an asset is required,
the Technip Energies Group estimates the asset\u2019s
recoverable amount. The asset\u2019s recoverable amount is the
higher of an asset\u2019s or CGU\u2019s fair value less costs of disposal
and the value in use. The recoverable amount is determined
for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of
an\u00a0asset or CGU exceeds its recoverable amount, the asset
is\u00a0considered impaired and is written down to its
recoverable\u00a0amount.
In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset,
including growth rates in revenues, costs, estimates of future
expected changes in operating margins, tax rates and cash
expenditures. Future revenues are also adjusted to match
changes in the Technip Energies Group\u2019s business strategy.
Factors that could trigger a lower value in use estimate
include sustained price declines of a CGU\u2019s products and
services, cost increases, regulatory or political environment
changes, changes in customer demand, and other changes in
market conditions, which may affect certain market
participant assumptions used in the discounted future cash
flow model.
In determining the fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used.
Goodwill is tested for impairment annually at September 30
and whenever changes in circumstances indicate that its
carrying amount may not be recoverable. Impairment is
determined for goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the goodwill
relates. When the recoverable amount of the CGU is less
than its carrying amount, an impairment loss is recognized.
Impairment losses relating to goodwill cannot be reversed in
future periods.
m.Fair value measurement
In compliance with IFRS 13 \u201cFair value measurement\u201d, the
Technip Energies Group measures certain financial
instruments (including derivatives) at fair value at each
balance sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when
pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant\u2019s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.
The Technip Energies Group uses valuation techniques that
are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the consolidated financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to
the fair value measurement as a whole:
\u25a0Level 1: Observable inputs that reflect quoted prices
(unadjusted) for identical assets or liabilities in active
markets;
\u25a0Level 2: Inputs other than quoted prices included in Level
1 that are observable for the asset or liability either
directly or indirectly;
\u25a0Level 3: Unobservable inputs (e.g., a reporting entity\u2019s own
data).
For assets and liabilities that are recognized in the
consolidated financial statements at fair value on a recurring
basis, the Technip Energies Group determines whether
transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input
that is significant to the fair value measurement as a whole)
at the end of each reporting period.
n.Financial assets
Financial assets are categorized at initial recognition, as
subsequently measured at either amortized cost, at fair value
through other comprehensive income (\u201cFVOCI\u201d), or at fair
value through profit or loss (\u201cFVTPL\u201d).
For debt instruments this classification depends on the
financial asset\u2019s contractual cash flow characteristics as well
as business model according to which the Technip Energies
Group is managing them. Financial assets are initially
measured at their fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant
financing component are measured at the transaction price
determined under IFRS\u00a015.
A financial asset is classified and measured at amortized
cost or fair value through other comprehensive income
(\u201cOCI\u201d) if and only if it gives rise to cash flows that are \u2018solely
payments of principal and interest (\u201cSPPI\u201d), i.e., the asset
meets the SPPI test criteria, which are assessed at an
instrument level.
The business model applied by the Technip Energies Group
determines whether the cash flows from the instruments will
be realized through collecting contractual cash flows, selling
the financial assets, or both.
Transactions on financial assets that require delivery of
assets within a time frame legally or contractually (regular
way trades) are recognized on the trade date, being the date
when the Technip Energies Group commits to acquire or sell
the asset.
For purposes of subsequent measurement, financial assets
are classified into three categories:
\u25a0Financial assets at amortized cost;
\u25a0Financial assets at fair value through OCI, either with
recycling or no recycling of cumulative gains and losses;
\u25a0Financial assets at fair value through profit or loss.
Financial assets at amortized cost
A financial asset is measured at amortized cost if both of the
following conditions are met:
\u25a0The financial asset is held within a business model with
the objective to hold financial assets in order to collect
contractual cash flows; and
\u25a0The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
Financial assets at amortized cost are subsequently
measured using the effective interest rate and are also
subject to impairment. Gains and losses are recognized in the
Statement of income, within the Other income, expenses
(net) line when the asset is derecognized.
The Technip Energies Group\u2019s financial assets at amortized
cost include trade receivables, loans issued to third or
related parties and debt notes receivable presented under
other non-current assets or other current assets, as
applicable.
Financial assets at fair value through OCI
Financial assets are classified and measured at fair value
through other comprehensive income if they are held in a
business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include:
\u25a0Financial assets held for trading (i.e., those which are
acquired for the purpose of selling or repurchasing in the
near term);
\u25a0Financial assets designated upon initial recognition at fair
value through profit or loss (in order to eliminate, or
significantly reduce, an accounting mismatch); or
\u25a0Financial assets required to be measured at fair value (i.e.
assets with cash flows that are not solely payments of
principal and interest, irrespective of the business model).
Derivatives, including separated embedded derivatives, are
also classified as held for trading except for those designated
as effective hedging instruments. Financial assets at fair
value through profit or loss are carried in the statement of
financial position at fair value with net changes in fair value
recognized in the statement of income.
This category includes derivative instruments, listed and non-
quoted equity investments which the Technip Energies Group
had not irrevocably elected to classify at fair value through
OCI, as well as certain liquid, frequently traded debt
instruments such as treasury bills.
Dividends on listed equity investments are also recognized in
the statement of income when the right of payment has
been established.
Impairment of financial assets
An allowance for Expected Credit Losses (ECL) is recognized
for all debt instruments not held at fair value through profit
or loss. As opposed to the incurred loss approach, ECL is
based on the difference between the carrying amount (as per
the contractual cash flows of the instruments) and all the
cash flows that the Technip Energies Group expects to
receive, discounted at the original effective interest rate. The
expected cash flows will include consideration of collaterals
or other credit enhancements that are integral to the
contractual terms.
In case of instruments for which there has not been a
significant increase in credit risk since initial recognition, ECL
is applied for default events that are possible within the next
twelve months (a 12-month ECL). In case there has been a
significant increase in credit risk since initial recognition, an
ECL is applied over the remaining life of the exposure
(lifetime ECL).
For trade receivables and contract assets, the Technip
Energies Group applies a simplified approach permitted by
IFRS 9. Therefore, the Technip Energies Group recognizes
lifetime ECL at initial recognition and at each reporting date.
The Technip Energies Group has considered historical credit
loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment to determine
lifetime expected losses.
For debt instruments recognized at amortized cost, as
permitted by IFRS 9, the Technip Energies Group applies the
low credit risk simplification. Accordingly, the Technip
Energies Group evaluates whether the debt instrument is
considered to have low credit risk at the reporting date, using
available, reasonable and supportable information. The
Technip Energies Group considers its internal credit rating of
the debt instrument, and also considers that there has been
a significant increase in credit risk when contractual
payments are more than 90 days past due. For debt
instruments that continue to have low credit risk after the
evaluation, the Technip Energies Group assumes that there is
no significant increase in the credit risk of the instrument.
ECL on such instruments is measured on a 12-month basis.
However, when there has been a significant increase in credit
risk since origination, the allowance will be based on the
lifetime ECL. The Technip Energies Group uses the ratings
from credit rating agencies both to determine whether the
debt instrument has significantly increased in credit risk and
to estimate ECLs.
The Technip Energies Group considers a financial asset in
default when contractual payments are 90 days past due.
Also, in cases when internal or external information indicates
that it is unlikely to receive the outstanding contractual cash
flows before considering any credit enhancements,
the\u00a0Technip Energies Group considers a financial asset to be
in default. A financial asset is written off when there
is\u00a0no\u00a0reasonable expectation of recovering the contractual
cash\u00a0flows.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognized when:
\u25a0The rights to receive cash flows from the asset have
expired; or
\u25a0The Technip Energies Group has transferred its rights to
receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without
material delay to a third party under a \u2018pass-through\u2019
arrangement and either (a) the Technip Energies Group
has transferred substantially all the risks and rewards of
the asset, or (b) the Technip Energies Group has neither
transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the
asset.
When the Technip Energies Group has transferred its rights
to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what
extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred control
of the asset, the Technip Energies Group continues to
recognize the transferred asset to the extent of its
continuing involvement. In that case, the Technip Energies
Group also recognizes an associated liability. The transferred
asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Technip
Energies Group has retained.
Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Technip Energies Group
could be required to repay.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the
net amount is reported in the consolidated statement of
financial position if there is a currently enforceable legal right
to offset the recognized amounts and there is an intention to
settle on a net basis, or to realize the assets and settle the
liabilities simultaneously.
o.Derivative financial instruments and hedging
Initial recognition and subsequent measurement
The Technip Energies Group uses derivative financial
instruments, such as forward contracts, swaps and options
to hedge its risks, in particular foreign exchange risks. Such
derivative financial instruments are initially recognized at fair
value on the date on which a derivative contract is entered
into and are subsequently remeasured at fair value.
Derivatives are carried as financial assets when the fair value
is positive and as financial liabilities when the fair value
is\u00a0negative.
Currently, every derivative financial instrument held by the
Technip Energies Group is aimed at hedging future cash
inflows or outflows against exchange rate fluctuations during
the period of contract performance. Derivative instruments
and in particular forward exchange transactions are aimed at
hedging future cash inflows or outflows against exchange
rate fluctuations in relation to awarded commercial
contracts.
To hedge its exposure to exchange rate fluctuations during
the bid-period of construction contracts, the Technip
Energies Group occasionally enters into insurance contracts
under which foreign currencies are exchanged at a specified
rate and at a specified future date only if the new contract is
awarded. The premium that the Technip Energies Group pays
to enter into such an insurance contract is charged to the
statement of income when paid. If the commercial bid is not
successful, the insurance contract is automatically
terminated without any additional cash settlements or
penalties.
In some cases, the Technip Energies Group may enter into
foreign currency options for some proposals during the bid
period. These options cannot be eligible for hedging.
For the purpose of hedge accounting, instruments qualifying
as hedges are classified as:
\u25a0Fair value hedges when hedging the exposure to changes
in the fair value of a recognized asset or liability or an
unrecognized firm commitment;
\u25a0Cash flow hedges when hedging the exposure to variability
in cash flows that is either attributable to a particular risk
associated with a recognized asset or liability or a highly
probable forecasted transaction or the foreign currency
risk in an unrecognized firm commitment;
\u25a0Hedges of a net investment in a foreign operation (the
Technip Energies Group currently has no financial
instruments designated for such a hedging relationship).
Foreign currency treasury accounts designated for a contract
and used to finance its future expenses in foreign currencies
may qualify as a foreign currency cash flow hedge. Cash as a
hedging instrument is determined as cash less accounts
payable (including debts contracted on projects) plus
accounts receivable (including loans contracted on projects)
on reimbursable, services and completed contracts at closing
date.
An economic hedging may occasionally be obtained by
offsetting cash inflows and outflows on a single contract
(\u201cnatural hedging\u201d).
When implementing hedging transactions, each applicable
member of the Technip Energies Group enters into forward
exchange contracts with banks or with the member of the
Technip Energies Group that performs centralized treasury
management for the Technip Energies Group. However, only
instruments that involve a third party outside of Technip
Energies are designated as hedging instruments.
At the inception of a hedge relationship, the Technip Energies
Group formally designates and documents the hedge
relationship to which it wishes to apply hedge accounting
and the risk management objective and strategy for
undertaking the hedge.
The documentation includes identification of the hedging
instrument, the hedged item or transaction, the nature of the
risk being hedged and how Technip Energies Group will
assess the effectiveness of changes in the hedging
instrument\u2019s fair value in offsetting the exposure to changes
in the hedged item\u2019s fair value or cash flows attributable to
the hedged risk. Such hedges are expected to be highly
effective in achieving offsetting changes in fair value or cash
flows and are assessed on an ongoing basis to determine
that they actually have been highly effective throughout the
financial reporting periods for which they were designated.
Hedges that meet all the qualifying criteria for hedge
accounting are accounted for as described below. The fair
value of derivative financial instruments is estimated on the
basis of valuations provided by bank counterparties or
financial models commonly used in financial markets, using
market data as of the statement of financial position date.
A derivative instrument qualifies for hedge accounting (fair
value hedge or cash flow hedge) when there is a formal
designation and documentation of the hedging relationship,
and of the effectiveness of the hedge throughout the life of
the contract. A fair value hedge aims at reducing risks
incurred by changes in the market value of some assets,
liabilities or firm commitments. A cash flow hedge aims at
reducing risks incurred by variations in the value of future
cash flows that may impact net profit (loss).
In order for a currency derivative to be eligible for hedge
accounting treatment, the following conditions have to be
met:
\u25a0Its hedging role must be clearly defined and documented
at the date of inception; and
\u25a0Its effectiveness should be proved at the date of inception
and/or as long as it remains effective. If the effectiveness
test results in a score between 80% and 125%, changes in
fair value or in cash flows of the covered element must be
almost entirely offset by the changes in fair value or in
cash flows of the derivative instrument.
All derivative instruments are recorded and disclosed in the
statement of financial position at fair value:
\u25a0Derivative instruments considered as hedging are
classified as non-current and current assets and liabilities,
as they follow the operating cycle; and
\u25a0Derivative instruments not considered as hedging are also
classified as non-current and current assets and liabilities.
Changes in fair value are recognized as follows:
\u25a0Regarding cash flow hedges, the portion of the gain or loss
corresponding to the effectiveness of the hedging
instrument is recorded directly in other comprehensive
income, and the ineffective portion of the gain or loss on
the hedging instrument is recorded in the statement of
income. The exchange gain or loss on derivative cash flow
hedging instruments, which is deferred in equity, is
reclassified in the net profit (loss) of the year(s) in which
the specified hedged transaction affects the statement of
income;
\u25a0The changes in fair value of derivative financial
instruments that qualify as fair value hedges are recorded
in the other income, expenses (net) of the statement of
income. The ineffective portion of the gain or loss is
immediately recorded in the statement of income.
The\u00a0carrying amount of a hedged item is adjusted by the
gain or loss on this hedged item which may be allocated
to the hedged risk and is recorded in the statement of
income;\u00a0and
\u25a0The changes in fair value of derivative financial
instruments that do not qualify as hedging in accounting
standards are directly recorded in the statement
of\u00a0income.
p.Advances paid to suppliers
Advance payments made to suppliers under long-term
contracts are shown under the \u201cAdvances paid to suppliers\u201d
line item, on the consolidated statement of financial position.
q.Trade receivables
Trade receivables are amounts due from customers for goods
sold or services performed in the ordinary course of
business. Trade receivables are recognized initially at the
amount of consideration that is unconditional unless they
contain significant financing components, when they are
recognized at fair value. The Technip Energies Group holds
trade receivables with the objective of collecting the
contractual cash flows and therefore measures them
subsequently at amortized cost using the effective interest
method.
Impairment of trade receivables
Technip Energies Group applies IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables and
contract assets. The Technip Energies Group\u2019s trade
receivables and contracts assets constitute a homogeneous
portfolio, therefore, to measure the expected credit losses,
trade receivables and contract assets have been grouped
based on a selection of the members of the Technip Energies
Group that cover a representative part of the Technip
Energies Group\u2019s trade receivables and contract assets at
each period end. Contract assets relate to unbilled work in
progress and have substantially the same risk characteristics
as the trade receivables for the same types of contracts. The
Technip Energies Group has therefore concluded that the
expected loss rates for trade receivables are a reasonable
approximation of the loss rates for contract assets.
r.Cash and cash equivalents
Cash and cash equivalents consist of cash in bank and in
hand, as well as short-term investments that are considered
to be readily convertible into a known amount of cash and
where the risk of a change in their value is deemed to be
negligible based on the criteria set out in IAS 7. Securities are
measured at their market value at year-end. Any change in
fair value is recorded in the statement of income.
s.Share-based compensation
The Technip Energies Group employees participated in
TechnipFMC\u2019s share-based plans accounted for in
accordance with IFRS 2 \u201cShare-based payments\u201d (\u201cIFRS 2\u201d).
Share-based compensation expense has been allocated to
the Technip Energies Group based on the awards and terms
previously granted to the Technip Energies Group\u2019s
employees as well as an allocation of TechnipFMC\u2019s
management expenses attributable to the Technip Energies
Group for the year ended December\u00a031, 2020.
Within the Company there are three types of share-based
payment plans that qualify as equity-settled:
\u25a0Restricted Share Unit (RSU);
\u25a0Performance Share Unit (PSU);
\u25a0Stock Options.
The measurement of share-based compensation expense on
restricted share awards is based on the market price at the
grant date and the number of shares awarded. The fair value
of performance shares is estimated using a combination of
the closing stock price on the grant date and the Monte Carlo
simulation model.
TechnipFMC used the Black-Scholes options pricing model to
measure the fair value of share options granted on or after
January 1, 2017, excluding from such valuation the service
and non-market performance conditions (which are
considered in the expected number of awards that will
ultimately vest) but including market conditions (Note 8.
Share-based compensation).
The share-based compensation expense for each award is
recognized during the vesting period (i.e. the period in which
the service and, where applicable, the performance
conditions are fulfilled). The cumulative expense recognized
for share-based employee compensation at each reporting
date reflects the already expired portion of the vesting period
and the Technip Energies Group\u2019s best estimate of the
number of awards that will ultimately vest. The expense or
credit in the statement of income for a period represents the
movement in cumulative expense recognized as at the
beginning and end of that period.
t.Provisions
Provisions are recognized if and only if the following criteria
are simultaneously met:
\u25a0The Technip Energies Group has an ongoing obligation
(legal or constructive) as a result of a past event;
\u25a0The settlement of the obligation will likely require an
outflow of resources embodying economic benefits
without expected counterpart; and
\u25a0The amount of the obligation can be reliably estimated:
provisions are measured according to the risk assessment
or the exposed charge, based upon best-known elements.
Contingencies related to contracts
These provisions relate to claims and litigation on contracts.
Restructuring
Once a restructuring plan has been decided and the
interested parties have been informed, the plan is scheduled
and valued. Restructuring provisions are recognized in
accordance with IAS 37 \u2013 Provisions, Contingent Liabilities
and Contingent Assets and presented within Impairment,
Restructuring and Other Expenses (Income) in the
consolidated statement of income.
u.Pensions and other long-term benefits
The Technip Energies Group sponsors various end-of-service
and retirement employee benefit plans. Payments under such
employee benefit plans are made either at the date of the
employee\u2019s termination of service with the Technip Energies
Group or at a subsequent date or dates in accordance with
the laws and practices of each country in which a participant
resides. Depending on the employing entity the main defined
benefit plans can be:
\u25a0End of service benefits, to be paid at the termination of
service;
\u25a0Retirement benefits;
\u25a0Jubilee benefits;
\u25a0Post-retirement medical benefits (health care and life
insurance).
The Technip Energies Group assesses its obligations in
respect of employee pension plans and other long-term
benefits such as \u201cjubilee benefits\u201d, post-retirement medical
benefits, special termination benefits and cash incentive
plans. The plan assets are recorded at fair value based on
recognized and uniform actuarial methods performed by an
independent actuary.
The obligations of providing benefits under defined benefit
plans are determined by independent actuaries using the
projected unit credit actuarial valuation method as per IAS 19
\u201cEmployee Benefits\u201d (\u201cIAS 19\u201d).
The actuarial assumptions used to determine the obligations
may vary depending on the country. The actuarial estimation
is based on usual parameters such as future wage,
salary\u00a0increase rate, life expectancy, staff turnover and
inflation rate.
The defined benefit liability equals the present value of the
defined benefit obligation after deducting the plan assets.
Present value of the defined benefit obligation is determined
using present value of future cash disbursements based on
interest rates of corporate bonds, in the currency used for
benefit payment, and whose term is equal to the average
expected life of the defined benefit plan.
According to amended IAS 19, the actuarial gains and losses
resulting from adjustments related to experience and
changes in actuarial assumptions are recorded in other
comprehensive income (see Note 24. Pensions and other
long-term employee benefits plans).
v.Deferred income tax
Deferred tax assets and liabilities are recognized in
accordance with IAS 12 \u201cIncome Taxes\u201d (\u201cIAS 12\u201d) and are
based on all temporary book-tax basis differences as of the
closing date measured at the tax rates that are expected to
apply to the period when the asset is realized or the liability
is settled, based on tax rates (and tax laws) that have
been\u00a0enacted or substantively enacted by the end of the
reporting\u00a0period.
Deferred tax assets and liabilities are reviewed at each
closing date to take into account the effect of any changes in
tax laws and in the prospects of recovery.
Deferred income tax assets are recognized for all deductible
temporary differences, unused tax credit carry-forwards and
unused tax loss carry-forwards, to the extent that it is
probable that taxable profit will be available against which
the temporary differences can be utilized.
Deferred income tax liabilities are recognized for all taxable
temporary differences, except in certain specific
circumstances, in accordance with the provisions of IAS 12.
Tax assets and liabilities are not discounted.
w.Financial liabilities
Financial liabilities are classified, at initial recognition, as:
\u25a0financial liabilities at fair value through profit or loss
(i.e.\u00a0instruments held for trading including derivatives not
designated as hedging instruments and also instruments
designated upon initial recognition at fair value through
profit or loss);
\u25a0financial debt;
\u25a0trade and other payables; or
\u25a0derivatives designated as hedging instruments in an
effective hedge.
Financial liabilities are recognized initially at fair value and, in
the case of loans and borrowings and payables, net of
directly attributable transaction costs.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as held for trading if they
are incurred for the purpose of repurchasing in the near
term.
Gains or losses on liabilities held for trading are recognized in
the consolidated statement of income.
The Technip Energies Group has not elected to designate any
financial liability as at fair value through profit or loss.
Financial debts (current and non-current)
Current and non-current financial debts include borrowings
and commercial paper programs. After initial recognition,
borrowings are measured at amortized cost using the
effective interest rate method. Transaction costs are
included in the cost of debt on the liability side of the
statement of financial position, as an adjustment to the
nominal amount of the debt. The difference between
the\u00a0initial debt and redemption at maturity is amortized at
the effective interest rate.
Derecognition
A financial liability is derecognized when the obligation under
the liability is discharged or canceled or expires. When an
existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability.
The\u00a0difference in the respective carrying amounts is
recognized in the consolidated statement of income.
x.Current / non-current distinction
The distinction between current assets and liabilities, and
non-current assets and liabilities is based on the operating
cycle of contracts. If related to contracts, assets and
liabilities are classified as \u201ccurrent\u201d; if not related to
contracts, assets and liabilities are classified as \u201ccurrent\u201d if
their maturity is less than 12 months or \u201cnon-current\u201d if their
maturity exceeds 12 months.
",
"dimensions": {
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"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI0_55241ac3-7cd4-4d7c-8bf7-6e48d43908a8": {
"value": "
a.Consolidation principles
In accordance with IFRS 10 \u201cconsolidated financial
statements\u201d (\u201cIFRS 10\u201d), the Group\u2019s consolidated financial
statements include the financial statements of Technip
Energies N.V. and subsidiaries controlled by Technip Energies
(including structured entities).
Technip Energies controls an entity where the Group has all
the following:
\u25a0The power over the company subject to the investment;
\u25a0An exposure or rights to the company\u2019s variable returns;
and
\u25a0The ability to use its power over the entity to affect these
returns.
The power to direct the activities of the entity usually exists
when holding more than 50% of voting rights in the entity
and these rights are substantive.
As per IFRS 11 \u201cJoint Arrangements\u201d (\u201cIFRS 11\u201d), joint
arrangements could be classified as joint ventures or joint
operations. Joint operations should be recognized to the
extent of Technip Energies\u2019 assets and its liabilities, including
its share of any assets held jointly or liabilities incurred
jointly.
The equity method is used for joint ventures and for
investments over which Technip Energies exercises a
significant influence on operational and financial policies.
Unless otherwise indicated, such influence is deemed to exist
for investments in companies in which the Group\u2019s
ownership is between 20% and 50%.
Companies in which the Group\u2019s ownership is less than 20%
or which do not represent material investments are recorded
under \u201cOther non-current financial assets\u201d.
The list of Technip Energies\u2019 related undertakings as of
December\u00a031, 2022 is provided in Note 31. Companies
included in the scope of the consolidated financial
statements.
The main affiliates of Technip Energies close their accounts
as of December\u00a031 and all consolidated companies apply
Group\u2019s accounting policies as set in the Group Accounting
Manual.
All intercompany balances and transactions, as well as
internal income and expenses, are fully eliminated.
Subsidiaries are consolidated as of the date of acquisition,
being the date on which Technip Energies obtains control,
and continue to be consolidated until the date control
ceases.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI1_0842d6de-c1de-42fb-bb5e-00c63760948f": {
"value": "
b.Recognition of revenue from customer
contracts
Technip Energies accounts for revenue in accordance with
IFRS 15 \u201cRevenues from Contracts with
Customers\u201d (\u201cIFRS\u00a015\u201d). Revenue is measured based on the
consideration specified in a contract with a customer. Most
of our revenue is from long-term contracts associated with
designing and manufacturing products and systems and
providing services to customers involved in exploration and
production of crude oil and natural gas. The Technip Energies
Group recognizes revenue when or as it transfers control
over a good or service to a customer.
Contract modifications \u2013 Contracts are often modified to
account for changes in contract specifications and
requirements. The Group considers contract modifications to
exist when the modification either creates new, or changes
the existing, enforceable rights and obligations. Most of the
Group\u2019s contract modifications are for goods or services that
are not distinct from the existing contract due to the
significant integration service provided in the context of the
contract and are accounted for as if they were part of that
existing contract. The effect of a contract modification on
the transaction price and our measure of progress for the
performance obligation to which it relates is recognized as an
adjustment to revenue (either as an increase in or a
reduction of revenue) on a cumulative catch-up basis.
Variable consideration \u2013 Due to the nature of the work
required to be performed on many existing performance
obligations, the estimation of total revenue and cost at
completion is complex, subject to many variables and
requires significant judgment. It is common for long-term
contracts to contain variable considerations that can either
increase or decrease the transaction price. Variability in the
transaction price arises primarily due to liquidated damages.
The Technip Energies Group considers its experience with
similar transactions and expectations regarding the contract
in estimating the amount of variable consideration to which
it will be entitled and determining whether the estimated
variable consideration should be constrained. We include
estimated amounts in the transaction price to the extent it is
probable that a significant reversal of cumulative revenue
recognized will not occur when the uncertainty associated
with the variable consideration is resolved. The estimates of
variable consideration are based largely on an assessment of
anticipated performance and all information (historical,
current and forecasted) that is reasonably available to
Technip Energies.
Payment terms \u2013 Progress billings are generally issued upon
completion of certain phases of the work as stipulated in the
contract. Payment terms may either be fixed, lump-sum or
driven by time and materials (i.e., daily or hourly rates, plus
materials). Because typically the customer retains a small
portion of the contract price until completion of the
contract, contracts generally result in revenue recognized in
excess of billings which we present as contract assets on the
statement of financial position. Amounts billed and due from
customers are classified as receivables on the statement of
financial position. The portion of the payments retained by
the customer until final contract settlement is not
considered a significant financing component because the
intent is to protect the customer. For some contracts, the
Technip Energies Group may be entitled to receive an
advance payment. The Technip Energies Group recognizes a
liability for these advance payments in excess of revenue
recognized and presents them as contract liabilities on the
statement of financial position. The advance payment
typically is not considered a significant financing component
because it is used to meet working capital demands that can
be higher in the early stages of a contract and to protect us
from the other party failing to adequately complete some or
all of its obligations under the contract.
Warranty \u2013 Certain contracts include an assurance-type
warranty clause, typically between 18 and 36 months, to
guarantee that the products comply with agreed
specifications. A service-type warranty may also be provided
to the customer; in such a case, management allocates a
portion of the transaction price to the warranty as a separate
performance obligation based on the estimated stand-alone
selling price of the service-type warranty.
Allocation of transaction price to performance obligations \u2013
A contract\u2019s transaction price is allocated to each distinct
performance obligation and recognized as revenue, when, or
as, the performance obligation is satisfied. To determine the
proper revenue recognition method, the Group evaluates
whether two or more contracts should be combined and
accounted for as one single contract and whether the
combined or single contract should be accounted for as
more than one performance obligation. This evaluation
requires significant judgment; some of the Group\u2019s contracts
have a single performance obligation as the promise to
transfer the individual goods or services is not separately
identifiable from other promises in the contracts and,
therefore, not distinct. For contracts with multiple
performance obligations, Technip Energies allocates the
contract\u2019s transaction price to each performance obligation
using its best estimate of the standalone selling price of
each distinct good or service in the contract.
Cost-to-cost method \u2013 For long-term contracts, because of
control transferring over time, revenue is recognized based
on the extent of progress towards completion of the
performance obligation. The cost-to-cost measure of
progress for contracts is generally used because it best
depicts the transfer of control to the customer which occurs
as costs on the contracts are incurred. Under the cost-to-
cost measure of progress, the extent of progress towards
completion is measured based on the ratio of costs incurred
to date to the total estimated costs at completion of the
performance obligation. Revenues, including estimated fees
or profits, are recorded proportionally as costs are incurred.
Any expected losses on contracts in progress are charged to
earnings, in total, in the period the losses are identified.
Right to invoice practical expedient \u2013 The right-to-invoice
practical expedient can be applied to a performance
obligation satisfied over time if we have a right to invoice the
customer for an amount that corresponds directly to the
value transferred to the customer for performance
completed to date. When this practical expedient is used,
variable consideration is not estimated at the inception of
the contract to determine the transaction price or for
disclosure purposes. Certain contracts have payment terms
dictated by daily or hourly rates while other contracts may
have mixed pricing terms that include a fixed fee portion. For
contracts in which the customer is charged a fixed rate
based on the time or materials used during the project that
correspond to the value transferred to the customer, the
Technip Energies Group recognizes revenue in the amount it
has the right to invoice.
Significant financing component \u2013 certain contracts could
include a period between the transfer of the promised goods
or services to the customer and the payment received from
the customer. If this period exceeds one year, the time value
is assessed and the transaction price could be adjusted if the
identified financing component is considered significant.
Note 4.Revenue
4.1.Principal revenue generating activities
As one of the largest E&T groups by revenue, Technip
Energies Group offers what it characterizes as a full range of
design and project development services to its customers
spanning the downstream value chain, from early
engagement technical consulting through final acceptance
testing.
The Group\u2019s offering to its clients consists of Project
Delivery, and Technology, Products & Services. Technip
Energies Group business focuses on the study, engineering,
procurement, construction, and project management of the
entire range of onshore and offshore facilities related to gas
monetization, refining, and chemical processing from biofuels
and hydrocarbons.
The majority of the Technip Energies Group revenue is from
long-term contracts associated with designing and
manufacturing products and systems and providing services
to customers involved in the energy sector.
Many of these contracts provide a combination of
engineering, procurement, construction, project management
and installation services, which may last several years.
Management has determined that contracts of this nature
have generally one performance obligation. In these
contracts, the final product is highly customized to the
specifications of the field and the customer\u2019s requirements.
Therefore, the customer obtains control of the asset over
time, and thus revenue is recognized over time.
These customized products do not have an alternative use
for Technip Energies Group. The Group has an enforceable
right to payment plus reasonable profit for performance
completed to date.
4.2.Disaggregation of revenue
The Technip Energies Group disaggregates revenue from external customers as follows:
| | | | | | |
| | |
| | Technology, Products & Services | | | Technology, Products & Services | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The increase in our contract assets from December\u00a031, 2021,
to December\u00a031, 2022, was primarily due to the timing of
milestones.
The increase in contract liabilities was primarily due to
additional cash received, excluding amounts recognized as
revenue during the period.
To determine revenue recognized in the period from contract
liabilities, the Group allocates revenue to the individual
contract liability balance outstanding at the beginning of the
period until the revenue exceeds that balance. Revenue
recognized for the years ended December\u00a031, 2022 and 2021
that were included in the contract liabilities balance at
December\u00a031, 2021 and 2020 was \u20ac2,524.2 million and
\u20ac2,016.8 million, respectively.
Revenue recognized for the years ended December\u00a031, 2022
and 2021 from the Technip Energies Group's performance
obligations satisfied in previous periods had a favorable
impact of \u20ac133.2 million and \u20ac434.0 million respectively. This
primarily relates to changes in the estimate of the stage of
completion.
4.4.Transaction price allocated to the remaining unsatisfied performance obligations
Remaining unsatisfied performance obligations (\u201cbacklog\u201d)
represent the transaction price for products and services for
which we have an enforceable right but work has not been
performed. Transaction price of the backlog includes the
base transaction price, variable consideration, and changes in
transaction price. The backlog table does not include
contracts for which we recognize revenue at the amount to
which we have the right to invoice for services performed.
The transaction price of backlog related to unfilled,
confirmed customer orders is estimated at each reporting
date. As of December\u00a031, 2022 and 2021, the aggregate
amount of the transaction price allocated to backlog was
\u20ac12,494.2 million and \u20ac15,916.9 million, respectively.
Remaining unsatisfied performance obligations as of
December\u00a031, 2022 takes into consideration the revision of
the backlog associated with Arctic LNG 2 project.
The following table details the backlog as of December\u00a031, 2022:
| | | |
| | | |
Total remaining unsatisfied performance obligations | | | |
The following table details the backlog as of December\u00a031, 2021:
| | | |
| | | |
Total remaining unsatisfied performance obligations | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI1_b74aa320-c515-40fe-85d7-1993020e4682": {
"value": "
b.Recognition of revenue from customer
contracts
Technip Energies accounts for revenue in accordance with
IFRS 15 \u201cRevenues from Contracts with
Customers\u201d (\u201cIFRS\u00a015\u201d). Revenue is measured based on the
consideration specified in a contract with a customer. Most
of our revenue is from long-term contracts associated with
designing and manufacturing products and systems and
providing services to customers involved in exploration and
production of crude oil and natural gas. The Technip Energies
Group recognizes revenue when or as it transfers control
over a good or service to a customer.
Contract modifications \u2013 Contracts are often modified to
account for changes in contract specifications and
requirements. The Group considers contract modifications to
exist when the modification either creates new, or changes
the existing, enforceable rights and obligations. Most of the
Group\u2019s contract modifications are for goods or services that
are not distinct from the existing contract due to the
significant integration service provided in the context of the
contract and are accounted for as if they were part of that
existing contract. The effect of a contract modification on
the transaction price and our measure of progress for the
performance obligation to which it relates is recognized as an
adjustment to revenue (either as an increase in or a
reduction of revenue) on a cumulative catch-up basis.
Variable consideration \u2013 Due to the nature of the work
required to be performed on many existing performance
obligations, the estimation of total revenue and cost at
completion is complex, subject to many variables and
requires significant judgment. It is common for long-term
contracts to contain variable considerations that can either
increase or decrease the transaction price. Variability in the
transaction price arises primarily due to liquidated damages.
The Technip Energies Group considers its experience with
similar transactions and expectations regarding the contract
in estimating the amount of variable consideration to which
it will be entitled and determining whether the estimated
variable consideration should be constrained. We include
estimated amounts in the transaction price to the extent it is
probable that a significant reversal of cumulative revenue
recognized will not occur when the uncertainty associated
with the variable consideration is resolved. The estimates of
variable consideration are based largely on an assessment of
anticipated performance and all information (historical,
current and forecasted) that is reasonably available to
Technip Energies.
Payment terms \u2013 Progress billings are generally issued upon
completion of certain phases of the work as stipulated in the
contract. Payment terms may either be fixed, lump-sum or
driven by time and materials (i.e., daily or hourly rates, plus
materials). Because typically the customer retains a small
portion of the contract price until completion of the
contract, contracts generally result in revenue recognized in
excess of billings which we present as contract assets on the
statement of financial position. Amounts billed and due from
customers are classified as receivables on the statement of
financial position. The portion of the payments retained by
the customer until final contract settlement is not
considered a significant financing component because the
intent is to protect the customer. For some contracts, the
Technip Energies Group may be entitled to receive an
advance payment. The Technip Energies Group recognizes a
liability for these advance payments in excess of revenue
recognized and presents them as contract liabilities on the
statement of financial position. The advance payment
typically is not considered a significant financing component
because it is used to meet working capital demands that can
be higher in the early stages of a contract and to protect us
from the other party failing to adequately complete some or
all of its obligations under the contract.
Warranty \u2013 Certain contracts include an assurance-type
warranty clause, typically between 18 and 36 months, to
guarantee that the products comply with agreed
specifications. A service-type warranty may also be provided
to the customer; in such a case, management allocates a
portion of the transaction price to the warranty as a separate
performance obligation based on the estimated stand-alone
selling price of the service-type warranty.
Allocation of transaction price to performance obligations \u2013
A contract\u2019s transaction price is allocated to each distinct
performance obligation and recognized as revenue, when, or
as, the performance obligation is satisfied. To determine the
proper revenue recognition method, the Group evaluates
whether two or more contracts should be combined and
accounted for as one single contract and whether the
combined or single contract should be accounted for as
more than one performance obligation. This evaluation
requires significant judgment; some of the Group\u2019s contracts
have a single performance obligation as the promise to
transfer the individual goods or services is not separately
identifiable from other promises in the contracts and,
therefore, not distinct. For contracts with multiple
performance obligations, Technip Energies allocates the
contract\u2019s transaction price to each performance obligation
using its best estimate of the standalone selling price of
each distinct good or service in the contract.
Cost-to-cost method \u2013 For long-term contracts, because of
control transferring over time, revenue is recognized based
on the extent of progress towards completion of the
performance obligation. The cost-to-cost measure of
progress for contracts is generally used because it best
depicts the transfer of control to the customer which occurs
as costs on the contracts are incurred. Under the cost-to-
cost measure of progress, the extent of progress towards
completion is measured based on the ratio of costs incurred
to date to the total estimated costs at completion of the
performance obligation. Revenues, including estimated fees
or profits, are recorded proportionally as costs are incurred.
Any expected losses on contracts in progress are charged to
earnings, in total, in the period the losses are identified.
Right to invoice practical expedient \u2013 The right-to-invoice
practical expedient can be applied to a performance
obligation satisfied over time if we have a right to invoice the
customer for an amount that corresponds directly to the
value transferred to the customer for performance
completed to date. When this practical expedient is used,
variable consideration is not estimated at the inception of
the contract to determine the transaction price or for
disclosure purposes. Certain contracts have payment terms
dictated by daily or hourly rates while other contracts may
have mixed pricing terms that include a fixed fee portion. For
contracts in which the customer is charged a fixed rate
based on the time or materials used during the project that
correspond to the value transferred to the customer, the
Technip Energies Group recognizes revenue in the amount it
has the right to invoice.
Significant financing component \u2013 certain contracts could
include a period between the transfer of the promised goods
or services to the customer and the payment received from
the customer. If this period exceeds one year, the time value
is assessed and the transaction price could be adjusted if the
identified financing component is considered significant.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI2_987c244d-6e94-432c-a60e-d3629885abee": {
"value": "
c.Foreign currency transactions
The items of each of the Group's subsidiaries included in
these consolidated financial statements are measured using
the currency of the main economic environment in which the
entity operates, which mainly affects revenue and expenses
(\u2018functional currency\u2019). The consolidated financial statements
are presented in euros, which is Technip Energies N.V.\u2019s
functional currency.
Foreign currency transactions are translated into the
functional currency at the exchange rate applicable on the
transaction date.
At the closing date, monetary assets and liabilities stated in
foreign currencies are translated into the functional currency
at the exchange rate prevailing on that date. Resulting
exchange gains or losses are directly recorded in the
statement of income (for further details, refer to Note 6.
Other operating income (expense), net, except exchange
gains or losses on cash accounts eligible for future cash flow
hedging and for hedging on net foreign currency investments.
Translation of financial statements of subsidiaries in foreign
currency \u2013 The statements of income of foreign subsidiaries
are translated into euro at the average exchange rate
prevailing during the year. The statements of financial
position are translated at the exchange rate at the closing
date. Differences arising in the translation of financial
statements of foreign subsidiaries are recorded in other
comprehensive income (loss) as foreign currency translation
reserve. Items that are recognized directly in equity
are\u00a0translated using historical rates. The functional currency
of the foreign subsidiaries is most commonly the
local\u00a0currency.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI2_ee4ea2bb-b0cb-4441-b2a2-41bea818878b": {
"value": "
c.Foreign currency transactions
The items of each of the Group's subsidiaries included in
these consolidated financial statements are measured using
the currency of the main economic environment in which the
entity operates, which mainly affects revenue and expenses
(\u2018functional currency\u2019). The consolidated financial statements
are presented in euros, which is Technip Energies N.V.\u2019s
functional currency.
Foreign currency transactions are translated into the
functional currency at the exchange rate applicable on the
transaction date.
At the closing date, monetary assets and liabilities stated in
foreign currencies are translated into the functional currency
at the exchange rate prevailing on that date. Resulting
exchange gains or losses are directly recorded in the
statement of income (for further details, refer to Note 6.
Other operating income (expense), net, except exchange
gains or losses on cash accounts eligible for future cash flow
hedging and for hedging on net foreign currency investments.
Translation of financial statements of subsidiaries in foreign
currency \u2013 The statements of income of foreign subsidiaries
are translated into euro at the average exchange rate
prevailing during the year. The statements of financial
position are translated at the exchange rate at the closing
date. Differences arising in the translation of financial
statements of foreign subsidiaries are recorded in other
comprehensive income (loss) as foreign currency translation
reserve. Items that are recognized directly in equity
are\u00a0translated using historical rates. The functional currency
of the foreign subsidiaries is most commonly the
local\u00a0currency.
28.2.Foreign currency exchange rate risk
Technip Energies conducts operations around the world in
several different currencies. Many of the Technip Energies
Group\u2019s significant foreign subsidiaries have designated the
local currency as their functional currency. Earnings are
therefore subject to change due to fluctuations in foreign
currency exchange rates when the earnings in foreign
currencies are translated into Euro. The Technip Energies
Group does not hedge this translation impact on earnings. A
10% increase or decrease in the average exchange rates of all
foreign currencies as of December\u00a031, 2022, would have
changed the Technip Energies Group\u2019s revenue and profit
(loss) before income taxes attributable to the Technip
Energies Group by approximately \u20ac319.4\u00a0million and
\u20ac32.6\u00a0million, respectively. A 10% increase or decrease in the
average exchange rates of all foreign currencies as of
December\u00a031, 2021 would have changed the Technip Energies
Group\u2019s revenue and profit (loss) before income taxes
attributable to the Technip Energies Group by approximately
\u20ac221.1 million and \u20ac33.6 million, respectively.
When transactions are denominated in currencies other than
the respective functional currencies of the applicable
subsidiaries of the Technip Energies Group, the Group
manages these exposures through derivative instruments.
The Group primarily uses foreign currency forward contracts
to hedge the foreign currency fluctuations associated with
firmly committed and forecasted foreign currency
denominated payments and receipts. The derivative
instruments associated with these anticipated transactions
are usually designated and qualify as cash flow hedges, and
as such the gains and losses associated with these
instruments are recorded in other comprehensive income
until such time that the underlying transactions are
recognized. Unless these cash flow contracts are deemed to
be ineffective or are not designated as cash flow hedges at
inception, changes in the derivative fair value will not have an
immediate impact on results of operations since the gains
and losses associated with these instruments are recorded in
other comprehensive income. When the anticipated
transactions occur, these changes in value of derivative
instrument positions will be offset against changes in the
value of the underlying transaction. When an anticipated
transaction in a currency other than the functional currency
of an entity is recognized as an asset or liability on the
statement of financial position, we also hedge the foreign
currency fluctuation of these assets and liabilities with
derivative instruments after netting the Technip Energies
Group\u2019s exposures worldwide. These derivative instruments
do not qualify as cash flow hedges.
Occasionally, the Technip Energies Group enters into
contracts or other arrangements containing terms and
conditions that qualify as embedded derivative instruments
and are subject to fluctuations in foreign exchange rates. In
those situations, the Technip Energies Group enters into
derivative foreign exchange contracts that hedge the price or
cost fluctuations due to movements in the foreign exchange
rates. These derivative instruments are not designated as
cash flow hedges.
For foreign currency forward contracts hedging anticipated
transactions that are accounted for as cash flow hedges, a
10% increase in the value of the Euro would have resulted in
an additional loss of \u20ac68.3\u00a0million and \u20ac65.0 million in the
net fair value of cash flow hedges reflected in the
consolidated statement of financial position as of
December\u00a031, 2022 and 2021 respectively.
For certain committed and anticipated future cash flows and
recognized assets and liabilities that are denominated in a
foreign currency the Technip Energies Group may choose to
manage risk against changes in the exchange rates, when
compared against the functional currency, through the
economic netting of exposures instead of derivative
instruments. Cash outflows or liabilities in a foreign currency
are matched against cash inflows or assets in the same
currency such that movements in exchange rates will result
in offsetting gains or losses. Due to the inherent
unpredictability of the timing of cash flows, gains and losses
in the current period may be economically offset by gains
and losses in a future period. All gains and losses are
recorded in the consolidated statement of income in the
period in which they are incurred. Gains and losses from the
remeasurement of assets and liabilities are recognized in
other income (expense), net.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3ODI2NjAx_cc4c3a04-c1ed-411b-a955-290af8e952e3": {
"value": "
The items of each of the Group's subsidiaries included in
these consolidated financial statements are measured using
the currency of the main economic environment in which the
entity operates, which mainly affects revenue and expenses
(\u2018functional currency\u2019). The consolidated financial statements
are presented in euros, which is Technip Energies N.V.\u2019s
functional currency.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI3_093fed05-c9e5-42c4-a87b-c8eba01896ef": {
"value": "
d.Business combinations
Business combinations are accounted for using the
acquisition method of accounting. Under the acquisition
method, assets acquired and liabilities assumed are recorded
at their respective fair values as of the acquisition date.
Determining the fair value of assets and liabilities involves
significant judgment regarding methods and assumptions
used to calculate estimated fair values. The purchase price is
allocated to the assets acquired, including identifiable
intangible assets, and liabilities based on their estimated fair
values. Any excess of the purchase price over the estimated
fair value of the net assets acquired is recorded as goodwill.
Identifiable assets are depreciated over their estimated
useful lives.
Acquisition-related costs are expensed as incurred and
included in the statement of income line item \u201cSelling,
general and administrative expenses\u201d.
Adjustments recorded for a business combination on the
provisional values of assets, liabilities and contingent
liabilities are recognized as a retrospective change in goodwill
when occurring within a 12-month period after the
acquisition date and resulting from facts or circumstances
that existed as of the acquisition date. After this
measurement period ends, any change in valuation of assets,
liabilities and contingent liabilities is accounted for in the
statement of income, with no impact on goodwill.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI3_755c60c9-75ff-4f43-a4f1-48600468da79": {
"value": "
d.Business combinations
Business combinations are accounted for using the
acquisition method of accounting. Under the acquisition
method, assets acquired and liabilities assumed are recorded
at their respective fair values as of the acquisition date.
Determining the fair value of assets and liabilities involves
significant judgment regarding methods and assumptions
used to calculate estimated fair values. The purchase price is
allocated to the assets acquired, including identifiable
intangible assets, and liabilities based on their estimated fair
values. Any excess of the purchase price over the estimated
fair value of the net assets acquired is recorded as goodwill.
Identifiable assets are depreciated over their estimated
useful lives.
Acquisition-related costs are expensed as incurred and
included in the statement of income line item \u201cSelling,
general and administrative expenses\u201d.
Adjustments recorded for a business combination on the
provisional values of assets, liabilities and contingent
liabilities are recognized as a retrospective change in goodwill
when occurring within a 12-month period after the
acquisition date and resulting from facts or circumstances
that existed as of the acquisition date. After this
measurement period ends, any change in valuation of assets,
liabilities and contingent liabilities is accounted for in the
statement of income, with no impact on goodwill.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI3_f6f89b01-5ba4-4c3a-8542-f6fa8b30b745": {
"value": "
d.Business combinations
Business combinations are accounted for using the
acquisition method of accounting. Under the acquisition
method, assets acquired and liabilities assumed are recorded
at their respective fair values as of the acquisition date.
Determining the fair value of assets and liabilities involves
significant judgment regarding methods and assumptions
used to calculate estimated fair values. The purchase price is
allocated to the assets acquired, including identifiable
intangible assets, and liabilities based on their estimated fair
values. Any excess of the purchase price over the estimated
fair value of the net assets acquired is recorded as goodwill.
Identifiable assets are depreciated over their estimated
useful lives.
Acquisition-related costs are expensed as incurred and
included in the statement of income line item \u201cSelling,
general and administrative expenses\u201d.
Adjustments recorded for a business combination on the
provisional values of assets, liabilities and contingent
liabilities are recognized as a retrospective change in goodwill
when occurring within a 12-month period after the
acquisition date and resulting from facts or circumstances
that existed as of the acquisition date. After this
measurement period ends, any change in valuation of assets,
liabilities and contingent liabilities is accounted for in the
statement of income, with no impact on goodwill.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3ODI2NjAw_a75d569c-ff2f-4295-af2a-546f2ecaf4b0": {
"value": "
e.Separation costs
Separation costs are expensed as incurred and include fees
and expenses associated with the separation transaction
(\u201cthe Spin-off\u201d). The costs include legal and tax advice
expenses, consulting services and other separation activities
related costs. Separation costs are included in the
consolidated statement of income line \u201cImpairment,
restructuring and other expenses\u201d. There were no
separation-related costs incurred in the financial year 2022.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI5_2e5b4c99-f631-495c-8795-097b5b1b5466": {
"value": "
f.Segment information
Information by operating segment
IFRS 8 \u2013 Operating Segments requires to determine operating
segments based on information which is provided internally
to the Chief Operating Decision Maker (\u201cCODM\u201d).
In the periods presented here, the Chief Executive Officer
reviewed and evaluated the Technip Energies Group
operating performance to make decisions about resource to
be allocated and has been identified as the CODM. Utilizing
the internal reporting information provided to the CODM, the
Technip Energies Group has changed, in 2021, the structure
of its internal organization and defined two segments
designated as Project Delivery and Technology, Products &
Services.
The corresponding definitions are disclosed as follows:
\u25a0Project Delivery: the Project Delivery segment provides
comprehensive engineering, procurement and construction
delivery capabilities globally. The Company\u2019s key
capabilities leverage its operational and technical
excellence as a global provider of engineering,
procurement and construction (\u201cEPC\u201d) services for
onshore oil and gas; liquid natural gas (\u201cLNG\u201d) and gas to
liquids (\u201cGTL\u201d), oil refining, ethylene, petrochemicals,
chemicals, fertilizers, offshore oil and gas (shallow-water,
deep-water) with floating solutions (floating production
units (\u201cFPUs\u201d), Floating production storage and offloading
(\u201cFPSO\u201d), floating liquefied natural gas (\u201cFLNG\u201d) and
floating storage and regasification unit (\u201cFSRU\u201d). EPC
contracts are undertaken under various contractual
schemes and include fixed lump-sum, reimbursable and
hybrid contracting models based on selectivity and risk
assessment work carried out by Technip Energies\u2019 teams
during the early engagement phases.
\u25a0Technology, Products & Services: the activities within the
Company\u2019s Technology, Products & Services businesses
are more versatile, combining proprietary technologies
with associated licensing fees and equipment such as LNG
Loading Arms and associated knowledge-based services
into a global business for ethylene, refining,
petrochemicals, inorganic and specialty chemicals as well
as gas monetization. From technology definition, early
engagement through scope definition, advanced
technologies and project lifecycle support, Technip
Energies works closely with customers to provide the
optimal approach to maximize their return on investment.
Consulting and services may be provided under the
Company\u2019s specialist consulting brand, Genesis, or
through the Group\u2019s project management consulting or
engineering services businesses.
\u25a0Corporate / non allocable: corresponds to the unallocated
items in the two segments above.
Disaggregation of revenue
The Technip Energies Group disaggregates its revenue by the
following geographic regions:
\u25a0Europe & Russia;
\u25a0Africa & Middle East;
\u25a0Asia Pacific; and
\u25a0Americas.
The geographical breakdown is based on the contract
delivery within the specific country. Geographical areas are
defined considering risks associated to activities performed
in a given area, economic framework or monetary risks.
Note 3.Segment information
In the periods presented here, the Chief Executive Officer reviewed and evaluated the Technip Energies Group operating
performance to make decisions about resources to be allocated and has been identified as the CODM. Utilizing the internal
reporting information provided to the CODM, the Technip Energies Group has changed, in 2021, the structure of its internal
organization and defined two segments designated as Project Delivery and Technology, Products & Services. The assessment of
the operating segment\u2019s performance is based on the Group\u2019s EBIT. Statement of income information by segment is shown
below:
| | | | |
| |
| | Technology, Products & Services | | |
| | | | |
EBIT (Profit (loss) before financial expense, net and income tax) | | | | |
| | | | |
| |
| | Technology, Products & Services | | |
| | | | |
EBIT (Profit (loss) before financial expense, net and income tax) | | | | |
During the year ended December\u00a031, 2022, revenue from Arctic LNG 2 and North Field East (NFE) projects exceeded 10% of
Technip Energies\u2019 consolidated revenue. During the year ended December\u00a031, 2021 revenue from Arctic LNG 2 project exceeded
10% of Technip Energies\u2019 consolidated revenue.
Statement of financial position information by segment is shown below:
| | | | |
| |
| | Technology, Products & Services | | |
| | | | |
| | | | |
| |
| | Technology, Products & Services | | |
| | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTI5_b3687ebb-51a9-4823-93db-d45cba8574f7": {
"value": "
f.Segment information
Information by operating segment
IFRS 8 \u2013 Operating Segments requires to determine operating
segments based on information which is provided internally
to the Chief Operating Decision Maker (\u201cCODM\u201d).
In the periods presented here, the Chief Executive Officer
reviewed and evaluated the Technip Energies Group
operating performance to make decisions about resource to
be allocated and has been identified as the CODM. Utilizing
the internal reporting information provided to the CODM, the
Technip Energies Group has changed, in 2021, the structure
of its internal organization and defined two segments
designated as Project Delivery and Technology, Products &
Services.
The corresponding definitions are disclosed as follows:
\u25a0Project Delivery: the Project Delivery segment provides
comprehensive engineering, procurement and construction
delivery capabilities globally. The Company\u2019s key
capabilities leverage its operational and technical
excellence as a global provider of engineering,
procurement and construction (\u201cEPC\u201d) services for
onshore oil and gas; liquid natural gas (\u201cLNG\u201d) and gas to
liquids (\u201cGTL\u201d), oil refining, ethylene, petrochemicals,
chemicals, fertilizers, offshore oil and gas (shallow-water,
deep-water) with floating solutions (floating production
units (\u201cFPUs\u201d), Floating production storage and offloading
(\u201cFPSO\u201d), floating liquefied natural gas (\u201cFLNG\u201d) and
floating storage and regasification unit (\u201cFSRU\u201d). EPC
contracts are undertaken under various contractual
schemes and include fixed lump-sum, reimbursable and
hybrid contracting models based on selectivity and risk
assessment work carried out by Technip Energies\u2019 teams
during the early engagement phases.
\u25a0Technology, Products & Services: the activities within the
Company\u2019s Technology, Products & Services businesses
are more versatile, combining proprietary technologies
with associated licensing fees and equipment such as LNG
Loading Arms and associated knowledge-based services
into a global business for ethylene, refining,
petrochemicals, inorganic and specialty chemicals as well
as gas monetization. From technology definition, early
engagement through scope definition, advanced
technologies and project lifecycle support, Technip
Energies works closely with customers to provide the
optimal approach to maximize their return on investment.
Consulting and services may be provided under the
Company\u2019s specialist consulting brand, Genesis, or
through the Group\u2019s project management consulting or
engineering services businesses.
\u25a0Corporate / non allocable: corresponds to the unallocated
items in the two segments above.
Disaggregation of revenue
The Technip Energies Group disaggregates its revenue by the
following geographic regions:
\u25a0Europe & Russia;
\u25a0Africa & Middle East;
\u25a0Asia Pacific; and
\u25a0Americas.
The geographical breakdown is based on the contract
delivery within the specific country. Geographical areas are
defined considering risks associated to activities performed
in a given area, economic framework or monetary risks.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMw_3355f2e9-42a6-4930-a5d7-2dbb7cff402c": {
"value": "
g.Earnings per share
As per IAS 33 \u201cEarnings per Share\u201d (\u201cIAS 33\u201d), Earnings Per
Share (\u201cEPS\u201d) are based on the average number of
outstanding shares over the year, after deducting treasury
shares.
Diluted earnings per share amounts are calculated by dividing
the net profit of the year, restated if need be for the after-
tax financial cost of dilutive financial instruments, by the
sum of the weighted average number of outstanding shares,
the weighted average number of share subscription options
not yet exercised, the weighted average number of
performance shares granted calculated using the share
purchase method, and, if applicable, the effects of any other
dilutive instrument.
In accordance with the share purchase method, only dilutive
instruments are used in calculating EPS. Dilutive instruments
are those for which the option exercise price plus the future
share-based compensation expense not yet recognized
is\u00a0lower than the average share price during the EPS
calculation\u00a0period.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMw_b95d9d1b-f98c-4b94-afd1-e8d305aedb86": {
"value": "
g.Earnings per share
As per IAS 33 \u201cEarnings per Share\u201d (\u201cIAS 33\u201d), Earnings Per
Share (\u201cEPS\u201d) are based on the average number of
outstanding shares over the year, after deducting treasury
shares.
Diluted earnings per share amounts are calculated by dividing
the net profit of the year, restated if need be for the after-
tax financial cost of dilutive financial instruments, by the
sum of the weighted average number of outstanding shares,
the weighted average number of share subscription options
not yet exercised, the weighted average number of
performance shares granted calculated using the share
purchase method, and, if applicable, the effects of any other
dilutive instrument.
In accordance with the share purchase method, only dilutive
instruments are used in calculating EPS. Dilutive instruments
are those for which the option exercise price plus the future
share-based compensation expense not yet recognized
is\u00a0lower than the average share price during the EPS
calculation\u00a0period.
Note 7.Earnings per share
Diluted earnings per share are determined in accordance with accounting principles described in Note 1. Accounting principles.
Reconciliation between earnings per share before dilution and diluted earnings per share is as follows:
| | |
(In millions of \u20ac, except per share data) | | |
Net profit (loss) attributable to Technip Energies | | |
Weighted average number of ordinary shares outstanding | | |
Effect of dilutive instruments | | |
WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING | | |
| | |
Earnings (loss) per share attributable to Technip Energies | |
Basic earnings (loss) per share attributable to Technip Energies | | |
Diluted earnings (loss) per share attributable to Technip Energies | | |
Diluted earnings (loss) per share is determined by dividing
net profit (loss) attributable to Technip Energies by the
combination of the weighted average number of ordinary
shares outstanding during the period and the dilutive effect
of performance shares. Stock options which are \u201cout of the
money\u201d are not dilutive.
In 2022, the average annual share price amounted to \u20ac12.61
and the closing price to \u20ac14.67.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMx_2c9141c4-d33a-4d0b-bee4-1bbb79adc29f": {
"value": "
h.Goodwill
Goodwill is measured at the acquisition date as the total of
the fair value of consideration transferred, plus the
proportionate amount of any non-controlling interest, plus
the fair value of any previously held equity interest in the
acquiree, if any, less the net recognized amount (generally at
fair value) of the identifiable assets acquired and liabilities
assumed.
Goodwill is allocated to cash-generating units that are
expected to benefit from the business combination in which
the goodwill arose and in all cases is at the operating
segment level, which represents the lowest level at which
goodwill is monitored for internal management purposes.
Goodwill is not amortized but it is tested for impairment
annually, or more frequently if events or changes in
circumstances indicate that it might be impaired and is
carried at cost less accumulated impairment losses. Gains
and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMx_8f8089d8-ac97-4591-b2fc-2c690d06d829": {
"value": "
h.Goodwill
Goodwill is measured at the acquisition date as the total of
the fair value of consideration transferred, plus the
proportionate amount of any non-controlling interest, plus
the fair value of any previously held equity interest in the
acquiree, if any, less the net recognized amount (generally at
fair value) of the identifiable assets acquired and liabilities
assumed.
Goodwill is allocated to cash-generating units that are
expected to benefit from the business combination in which
the goodwill arose and in all cases is at the operating
segment level, which represents the lowest level at which
goodwill is monitored for internal management purposes.
Goodwill is not amortized but it is tested for impairment
annually, or more frequently if events or changes in
circumstances indicate that it might be impaired and is
carried at cost less accumulated impairment losses. Gains
and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Note 14.Goodwill and intangible assets, net
The goodwill and intangible assets\u2019 costs and accumulated amortization are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
| | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
| | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
Goodwill includes \u20ac1,453.6 million that was allocated to the
TechnipFMC Onshore/Offshore operating segment on the
merger date. It was the direct result of the merger between
FMC Technologies and Technip in January 2017. Because
goodwill attributed to the carve-out entity using the parent\u2019s
basis is acquisition-specific, it may include synergistic
goodwill that the parent entity previously assigned to its
other CGU or GCGU that were expected to benefit from the
synergies of the business combination. Accordingly, because
the Onshore/Offshore operating segment has been carved-
out and included in the combined financial statements of the
Technip Energies Group, management determined that was
most appropriate to include the associated Onshore/Offshore
operating segment\u2019s goodwill with the Technip Energies
Group.
14.1.Goodwill and intangible assets, net
The changes in goodwill and intangible assets are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
14.2.Goodwill
Goodwill reallocation per operating segment
Following the Spin-off from TechnipFMC, in February 2021,
the Group performed a reallocation of its goodwill to the
Group\u2019s cash-generating unit (\u201cCGU\u201d).
For impairment testing purposes, goodwill is tested at the
level it is monitored for internal management purposes,
which corresponds to the Technip Energies operating
segments, Project Delivery or Technologies, Products &
Services (for further information on Technip Energies\u2019
operating segments, refer to Note 3. Segment information).
The changes in segment reporting and the reallocation of
goodwill did not give rise to any goodwill impairment. The
goodwill allocated based on those CGUs\u2019 enterprise value is
split as shown below:
| | |
| | |
| | |
Technology, Products & Services | | |
| | |
Goodwill impairment testing
As of December\u00a031, 2022, the Group performed its goodwill
impairment test following the methodology discussed in Note
1.\u00a0Accounting principles.
The carrying amounts of the CGUs were compared to their
value in use. Cash flow projections used in the determination
of value in use were made using management prospective
financial information on the next 4 years. The valuation of
CGUs for the purpose of goodwill impairment test was
determined primarily by using the income approach by
estimating the value in use.
The income approach estimates the value in use by
discounting each CGU\u2019s estimated future cash flows using a
weighted average cost of capital that reflects current market
conditions and the risk profile of the CGU. To estimate future
cash flows, Technip Energies used economic and market
assumptions that reflect global economic growth, technology
efficiency, policy measures, cost increases, consideration of
investments (capital expenditures) and cost of development.
The following table presents the key assumptions used by
management in determining the recoverable amount of the
Group CGUs as of December\u00a031, 2022, and\u00a02021:
| | |
| | |
Year of cash flows before terminal value | | |
Risk-adjusted post-tax discount rate | | |
| | |
As discussed above, when evaluating the 2022 and 2021
quantitative impairment test results, management
considered many factors in determining whether an
impairment of goodwill for CGUs was reasonably likely to
occur in future periods, including future market conditions
and the economic environment. Circumstances such as
market declines, unfavorable economic conditions, loss of a
major customer or other factors could increase the risk of
impairment of goodwill for these CGUs in future periods.
During the years ended December\u00a031, 2022 and 2021 the
Technip Energies Group did not record any goodwill
impairment expense. Sensitivities applied to weighted
average cost of capital (+0.5%) and to long-term growth rates
(-0.5%) further support this conclusion.
The excess of fair value over carrying amount for Technip
Energies was approximately 212% of the respective carrying
amounts for 2022, and 140% for 2021. The Group excess of
fair values over carrying amount, after allocation of corporate
assets, was respectively 100% for 2022 and 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMx_c6f4b9e7-2250-42b7-821b-549e45a4bc5f": {
"value": "
h.Goodwill
Goodwill is measured at the acquisition date as the total of
the fair value of consideration transferred, plus the
proportionate amount of any non-controlling interest, plus
the fair value of any previously held equity interest in the
acquiree, if any, less the net recognized amount (generally at
fair value) of the identifiable assets acquired and liabilities
assumed.
Goodwill is allocated to cash-generating units that are
expected to benefit from the business combination in which
the goodwill arose and in all cases is at the operating
segment level, which represents the lowest level at which
goodwill is monitored for internal management purposes.
Goodwill is not amortized but it is tested for impairment
annually, or more frequently if events or changes in
circumstances indicate that it might be impaired and is
carried at cost less accumulated impairment losses. Gains
and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
k.Intangible assets
Internally generated research and development
costs
Research costs are expensed when incurred. In compliance
with IAS 38 \u201cIntangible assets\u201d (\u201cIAS 38\u201d), development costs
are capitalized if all of the following criteria are met:
\u25a0The projects are clearly identified;
\u25a0The Technip Energies Group is able to reliably measure
expenditures incurred for each project during its
development;
\u25a0The Technip Energies Group is able to demonstrate the
technical or industrial feasibility of the project;
\u25a0The Technip Energies Group has the financial and
technical resources available to complete the project;
\u25a0The Technip Energies Group can demonstrate its intention
to complete, to use or to commercialize products
resulting from the project; and
\u25a0The Technip Energies Group is able to demonstrate the
existence of a market for the output of the intangible
asset, or, if it is used internally, the usefulness of the
intangible asset.
All research and development costs not meeting the IAS 38
criteria are expensed as incurred in the consolidated
Statement of income. The Technip Energies Group capitalized
costs on certain IT projects developed internally.
Note 14.Goodwill and intangible assets, net
The goodwill and intangible assets\u2019 costs and accumulated amortization are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
| | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
| | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
Goodwill includes \u20ac1,453.6 million that was allocated to the
TechnipFMC Onshore/Offshore operating segment on the
merger date. It was the direct result of the merger between
FMC Technologies and Technip in January 2017. Because
goodwill attributed to the carve-out entity using the parent\u2019s
basis is acquisition-specific, it may include synergistic
goodwill that the parent entity previously assigned to its
other CGU or GCGU that were expected to benefit from the
synergies of the business combination. Accordingly, because
the Onshore/Offshore operating segment has been carved-
out and included in the combined financial statements of the
Technip Energies Group, management determined that was
most appropriate to include the associated Onshore/Offshore
operating segment\u2019s goodwill with the Technip Energies
Group.
14.1.Goodwill and intangible assets, net
The changes in goodwill and intangible assets are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
14.2.Goodwill
Goodwill reallocation per operating segment
Following the Spin-off from TechnipFMC, in February 2021,
the Group performed a reallocation of its goodwill to the
Group\u2019s cash-generating unit (\u201cCGU\u201d).
For impairment testing purposes, goodwill is tested at the
level it is monitored for internal management purposes,
which corresponds to the Technip Energies operating
segments, Project Delivery or Technologies, Products &
Services (for further information on Technip Energies\u2019
operating segments, refer to Note 3. Segment information).
The changes in segment reporting and the reallocation of
goodwill did not give rise to any goodwill impairment. The
goodwill allocated based on those CGUs\u2019 enterprise value is
split as shown below:
| | |
| | |
| | |
Technology, Products & Services | | |
| | |
Goodwill impairment testing
As of December\u00a031, 2022, the Group performed its goodwill
impairment test following the methodology discussed in Note
1.\u00a0Accounting principles.
The carrying amounts of the CGUs were compared to their
value in use. Cash flow projections used in the determination
of value in use were made using management prospective
financial information on the next 4 years. The valuation of
CGUs for the purpose of goodwill impairment test was
determined primarily by using the income approach by
estimating the value in use.
The income approach estimates the value in use by
discounting each CGU\u2019s estimated future cash flows using a
weighted average cost of capital that reflects current market
conditions and the risk profile of the CGU. To estimate future
cash flows, Technip Energies used economic and market
assumptions that reflect global economic growth, technology
efficiency, policy measures, cost increases, consideration of
investments (capital expenditures) and cost of development.
The following table presents the key assumptions used by
management in determining the recoverable amount of the
Group CGUs as of December\u00a031, 2022, and\u00a02021:
| | |
| | |
Year of cash flows before terminal value | | |
Risk-adjusted post-tax discount rate | | |
| | |
As discussed above, when evaluating the 2022 and 2021
quantitative impairment test results, management
considered many factors in determining whether an
impairment of goodwill for CGUs was reasonably likely to
occur in future periods, including future market conditions
and the economic environment. Circumstances such as
market declines, unfavorable economic conditions, loss of a
major customer or other factors could increase the risk of
impairment of goodwill for these CGUs in future periods.
During the years ended December\u00a031, 2022 and 2021 the
Technip Energies Group did not record any goodwill
impairment expense. Sensitivities applied to weighted
average cost of capital (+0.5%) and to long-term growth rates
(-0.5%) further support this conclusion.
The excess of fair value over carrying amount for Technip
Energies was approximately 212% of the respective carrying
amounts for 2022, and 140% for 2021. The Group excess of
fair values over carrying amount, after allocation of corporate
assets, was respectively 100% for 2022 and 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMz_5ccd8ceb-9926-4535-a870-31293d45bfda": {
"value": "
i.Property, plant and equipment
In compliance with IAS 16 \u201cProperty, plant and
equipment\u201d (\u201cIAS 16\u201d), an asset is recognized only if the cost
can be measured reliably and if future economic benefits are
expected from its use.
Property, plant and equipment could be initially recognized at
cost or at their fair value in case of business combinations.
As per IAS 16, the Technip Energies Group uses different
depreciation periods for each of the significant components
of a single property, plant and equipment asset where the
useful life of the component differs from that of the main
asset. Below are the useful lives most commonly applied by
the Technip Energies Group on a straight-line basis:
\u25a0Buildings: 10 to 60 years;
\u25a0IT Equipment: 3 to 5 years;
\u25a0Machinery and Equipment: 3 to 20 years;
\u25a0Office Fixtures: 5 to 10 years.
If the residual value of an asset is material and can be
measured, it is taken into account in calculating its
depreciable amount.
On a regular basis, the Technip Energies Group reviews the
useful lives of its assets. That review is based on the
effective use of the assets.
Depreciation costs are recorded in the statement of income
as a function of the fixed assets\u2019 use, split between the
following line items: cost of sales, research and development
expense, selling, general and administrative expenses.
In accordance with IAS 36 \u2013 Impairment of Assets, the
carrying value of property, plant and equipment is reviewed
for impairment whenever internal or external events indicate
that there may be impairment, in which case, an impairment
test is performed.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMz_aa0de8cd-45f0-40ef-883a-006b565862ba": {
"value": "
i.Property, plant and equipment
In compliance with IAS 16 \u201cProperty, plant and
equipment\u201d (\u201cIAS 16\u201d), an asset is recognized only if the cost
can be measured reliably and if future economic benefits are
expected from its use.
Property, plant and equipment could be initially recognized at
cost or at their fair value in case of business combinations.
As per IAS 16, the Technip Energies Group uses different
depreciation periods for each of the significant components
of a single property, plant and equipment asset where the
useful life of the component differs from that of the main
asset. Below are the useful lives most commonly applied by
the Technip Energies Group on a straight-line basis:
\u25a0Buildings: 10 to 60 years;
\u25a0IT Equipment: 3 to 5 years;
\u25a0Machinery and Equipment: 3 to 20 years;
\u25a0Office Fixtures: 5 to 10 years.
If the residual value of an asset is material and can be
measured, it is taken into account in calculating its
depreciable amount.
On a regular basis, the Technip Energies Group reviews the
useful lives of its assets. That review is based on the
effective use of the assets.
Depreciation costs are recorded in the statement of income
as a function of the fixed assets\u2019 use, split between the
following line items: cost of sales, research and development
expense, selling, general and administrative expenses.
In accordance with IAS 36 \u2013 Impairment of Assets, the
carrying value of property, plant and equipment is reviewed
for impairment whenever internal or external events indicate
that there may be impairment, in which case, an impairment
test is performed.
k.Intangible assets
Internally generated research and development
costs
Research costs are expensed when incurred. In compliance
with IAS 38 \u201cIntangible assets\u201d (\u201cIAS 38\u201d), development costs
are capitalized if all of the following criteria are met:
\u25a0The projects are clearly identified;
\u25a0The Technip Energies Group is able to reliably measure
expenditures incurred for each project during its
development;
\u25a0The Technip Energies Group is able to demonstrate the
technical or industrial feasibility of the project;
\u25a0The Technip Energies Group has the financial and
technical resources available to complete the project;
\u25a0The Technip Energies Group can demonstrate its intention
to complete, to use or to commercialize products
resulting from the project; and
\u25a0The Technip Energies Group is able to demonstrate the
existence of a market for the output of the intangible
asset, or, if it is used internally, the usefulness of the
intangible asset.
All research and development costs not meeting the IAS 38
criteria are expensed as incurred in the consolidated
Statement of income. The Technip Energies Group capitalized
costs on certain IT projects developed internally.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTMz_e509a94d-d2d1-4bbe-bf84-dfdcb51e0337": {
"value": "
i.Property, plant and equipment
In compliance with IAS 16 \u201cProperty, plant and
equipment\u201d (\u201cIAS 16\u201d), an asset is recognized only if the cost
can be measured reliably and if future economic benefits are
expected from its use.
Property, plant and equipment could be initially recognized at
cost or at their fair value in case of business combinations.
As per IAS 16, the Technip Energies Group uses different
depreciation periods for each of the significant components
of a single property, plant and equipment asset where the
useful life of the component differs from that of the main
asset. Below are the useful lives most commonly applied by
the Technip Energies Group on a straight-line basis:
\u25a0Buildings: 10 to 60 years;
\u25a0IT Equipment: 3 to 5 years;
\u25a0Machinery and Equipment: 3 to 20 years;
\u25a0Office Fixtures: 5 to 10 years.
If the residual value of an asset is material and can be
measured, it is taken into account in calculating its
depreciable amount.
On a regular basis, the Technip Energies Group reviews the
useful lives of its assets. That review is based on the
effective use of the assets.
Depreciation costs are recorded in the statement of income
as a function of the fixed assets\u2019 use, split between the
following line items: cost of sales, research and development
expense, selling, general and administrative expenses.
In accordance with IAS 36 \u2013 Impairment of Assets, the
carrying value of property, plant and equipment is reviewed
for impairment whenever internal or external events indicate
that there may be impairment, in which case, an impairment
test is performed.
Note 15.Property, plant and equipment
Location of property, plant and equipment, net by country is the following:
| | |
| | |
| | |
| | |
| | |
| | |
| | |
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | | |
| | | | | | |
| | | | | | |
Net book value as of December 31, 2020 | | | | | | |
| | | | | | |
Disposals through divestitures | | | | | | |
Disposals \u2013 write-off | | | | | | |
Depreciation expense for the year | | | | | | |
Net foreign exchange differences | | | | | | |
| | | | | | |
Net book value as of December 31, 2021 | | | | | | |
| | | | | | |
Disposals through divestitures | | | | | | |
Disposals \u2013 write-off | | | | | | |
Depreciation expense for the year | | | | | | |
| | | | | | |
Net foreign exchange differences | | | | | | |
| | | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | | |
(1) As of December 31, 2022, \u201cOther\u201d is mainly composed of building arrangements on the Group's headquarters. |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3ODI2NTk5_f1754d03-ed67-48c0-a9f6-f56fcdeca045": {
"value": "
i.Property, plant and equipment
In compliance with IAS 16 \u201cProperty, plant and
equipment\u201d (\u201cIAS 16\u201d), an asset is recognized only if the cost
can be measured reliably and if future economic benefits are
expected from its use.
Property, plant and equipment could be initially recognized at
cost or at their fair value in case of business combinations.
As per IAS 16, the Technip Energies Group uses different
depreciation periods for each of the significant components
of a single property, plant and equipment asset where the
useful life of the component differs from that of the main
asset. Below are the useful lives most commonly applied by
the Technip Energies Group on a straight-line basis:
\u25a0Buildings: 10 to 60 years;
\u25a0IT Equipment: 3 to 5 years;
\u25a0Machinery and Equipment: 3 to 20 years;
\u25a0Office Fixtures: 5 to 10 years.
If the residual value of an asset is material and can be
measured, it is taken into account in calculating its
depreciable amount.
On a regular basis, the Technip Energies Group reviews the
useful lives of its assets. That review is based on the
effective use of the assets.
Depreciation costs are recorded in the statement of income
as a function of the fixed assets\u2019 use, split between the
following line items: cost of sales, research and development
expense, selling, general and administrative expenses.
In accordance with IAS 36 \u2013 Impairment of Assets, the
carrying value of property, plant and equipment is reviewed
for impairment whenever internal or external events indicate
that there may be impairment, in which case, an impairment
test is performed.
j.Leases
Technip Energies mainly leases real estate assets such as
offices buildings and residential housing.
The standard requires that payments shall be discounted
using the interest rate implicit in the lease, if that rate can
be readily determined. In practice, given the structure of the
Group\u2019s financing all of which is held by Technip Energies
N.V. or T.EN Eurocash SNC, the discount rate used to
determine the right-of-use asset and the lease liability for
each leased asset is calculated based on the incremental
borrowing rate of the Group at inception of the lease.
Technip Energies calculated the rate applicable to each lease
contract on the basis of the lease duration.
Technip Energies Group determines if an arrangement is a
lease at inception by assessing whether an identified asset
exists and if the Group has the right to control the use of the
identified asset. Leases are included in right-of-use assets,
lease liabilities (non-current and current on the statement of
financial position). Right-of-use assets represent the right to
use an underlying asset for the lease term and lease
liabilities represent Technip Energies obligation to make
lease payments arising from the lease. Right-of-use assets
and lease liabilities are recognized at the commencement
date based on the present value of the remaining lease
payments over the lease term. The right-of-use assets also
include any lease prepayments made and exclude lease
incentives the Group received from the lessor. Depreciation
of right-of-use assets is recognized on a straight-line basis
over the lease term.
The lease term generally used to calculate the liability is the
term of the initially negotiated lease, not taking into account
any early termination options, except in special
circumstances. When leases contain extension options, the
term used for the calculation of the liability may include
these periods, mainly when the anticipated period of use of
the fixed assets, whether under a new or existing lease, is
greater than the initial contractual lease term.
The Group has variable lease payments, including
adjustments to lease payments based on an index or rate
(such as the Consumer Price Index) and fair value
adjustments to lease payments. Variable lease payments that
depend on an index or a rate (such as the Consumer Price
Index or a market interest rate) are included when measuring
initial lease liability of the lease arrangements using the
payments\u2019 base rate or index. The Group remeasures the
lease liability when there is a change in future lease
payments resulting from a change in such index or rate.
Short-term leases with an initial term of 12 months or less
that do not include a purchase option and leases of low-
value assets (referring mainly to IT equipment e.g. laptops
and mobile phones) are not recorded on the statement of
financial position.
Technip Energies Group adopted the practical expedient
to\u00a0not separate lease and non-lease components for all
asset\u00a0classes.
The Group currently subleases certain of its leased real
estate to third parties. The subleases are classified as
operating or finance leases by the sublessor depending on
the duration of the sublease contract and the end date of
the main lease contract.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM0_c048904e-c14c-4a89-ace1-2ff41982c7e6": {
"value": "
j.Leases
Technip Energies mainly leases real estate assets such as
offices buildings and residential housing.
The standard requires that payments shall be discounted
using the interest rate implicit in the lease, if that rate can
be readily determined. In practice, given the structure of the
Group\u2019s financing all of which is held by Technip Energies
N.V. or T.EN Eurocash SNC, the discount rate used to
determine the right-of-use asset and the lease liability for
each leased asset is calculated based on the incremental
borrowing rate of the Group at inception of the lease.
Technip Energies calculated the rate applicable to each lease
contract on the basis of the lease duration.
Technip Energies Group determines if an arrangement is a
lease at inception by assessing whether an identified asset
exists and if the Group has the right to control the use of the
identified asset. Leases are included in right-of-use assets,
lease liabilities (non-current and current on the statement of
financial position). Right-of-use assets represent the right to
use an underlying asset for the lease term and lease
liabilities represent Technip Energies obligation to make
lease payments arising from the lease. Right-of-use assets
and lease liabilities are recognized at the commencement
date based on the present value of the remaining lease
payments over the lease term. The right-of-use assets also
include any lease prepayments made and exclude lease
incentives the Group received from the lessor. Depreciation
of right-of-use assets is recognized on a straight-line basis
over the lease term.
The lease term generally used to calculate the liability is the
term of the initially negotiated lease, not taking into account
any early termination options, except in special
circumstances. When leases contain extension options, the
term used for the calculation of the liability may include
these periods, mainly when the anticipated period of use of
the fixed assets, whether under a new or existing lease, is
greater than the initial contractual lease term.
The Group has variable lease payments, including
adjustments to lease payments based on an index or rate
(such as the Consumer Price Index) and fair value
adjustments to lease payments. Variable lease payments that
depend on an index or a rate (such as the Consumer Price
Index or a market interest rate) are included when measuring
initial lease liability of the lease arrangements using the
payments\u2019 base rate or index. The Group remeasures the
lease liability when there is a change in future lease
payments resulting from a change in such index or rate.
Short-term leases with an initial term of 12 months or less
that do not include a purchase option and leases of low-
value assets (referring mainly to IT equipment e.g. laptops
and mobile phones) are not recorded on the statement of
financial position.
Technip Energies Group adopted the practical expedient
to\u00a0not separate lease and non-lease components for all
asset\u00a0classes.
The Group currently subleases certain of its leased real
estate to third parties. The subleases are classified as
operating or finance leases by the sublessor depending on
the duration of the sublease contract and the end date of
the main lease contract.
Note 16.Leases
The following table is a summary of amounts recognized in the consolidated statements of income for the years ended
December\u00a031, 2022 and 2021:
| | |
| | |
Depreciation of right-of-use assets | | |
Interest expense on lease liabilities | | |
| | |
| | |
The following table shows the right-of-use roll forward per category:
| | | | |
| | Office furniture and IT equipment | | |
Net book value as of December 31, 2020 | | | | |
| | | | |
Disposals through divestitures | | | | |
| | | | |
Depreciation expense for the year | | | | |
| | | | |
Net foreign exchange differences | | | | |
| | | | |
Net book value as of December 31, 2021 | | | | |
| | | | |
| | | | |
Depreciation expense for the year | | | | |
| | | | |
Net foreign exchange differences | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | |
As of December 2021, net book value of right-of-use assets
was \u20ac251.9 million which compares to \u20ac221.7 million as of
December\u00a031, 2022.
The variation is mainly explained by the change of
headquarters with the termination of the Adria tower lease
and the new Origine headquarters (right-of-use asset net
variation of \u20ac129.9 million), and partially offset by the
depreciation of the period of on-going contracts.
As of December\u00a031, 2022 the principal type of assets
composing the net book value is the real estate for \u20ac197.4
million which is mainly consisting of the group headquarters
lease. Increase of the office furniture and IT equipment is
mainly related to new IT contracts with a net book value of
\u20ac23.4 million as of December\u00a031, 2022.
The table below shows the lease liability recorded as of December\u00a031, 2022 and 2021 :
| | |
| | |
Non-current lease liabilities | | |
Current lease liabilities | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM0_e21af127-c050-41d2-b23c-1de60e90b60a": {
"value": "
j.Leases
Technip Energies mainly leases real estate assets such as
offices buildings and residential housing.
The standard requires that payments shall be discounted
using the interest rate implicit in the lease, if that rate can
be readily determined. In practice, given the structure of the
Group\u2019s financing all of which is held by Technip Energies
N.V. or T.EN Eurocash SNC, the discount rate used to
determine the right-of-use asset and the lease liability for
each leased asset is calculated based on the incremental
borrowing rate of the Group at inception of the lease.
Technip Energies calculated the rate applicable to each lease
contract on the basis of the lease duration.
Technip Energies Group determines if an arrangement is a
lease at inception by assessing whether an identified asset
exists and if the Group has the right to control the use of the
identified asset. Leases are included in right-of-use assets,
lease liabilities (non-current and current on the statement of
financial position). Right-of-use assets represent the right to
use an underlying asset for the lease term and lease
liabilities represent Technip Energies obligation to make
lease payments arising from the lease. Right-of-use assets
and lease liabilities are recognized at the commencement
date based on the present value of the remaining lease
payments over the lease term. The right-of-use assets also
include any lease prepayments made and exclude lease
incentives the Group received from the lessor. Depreciation
of right-of-use assets is recognized on a straight-line basis
over the lease term.
The lease term generally used to calculate the liability is the
term of the initially negotiated lease, not taking into account
any early termination options, except in special
circumstances. When leases contain extension options, the
term used for the calculation of the liability may include
these periods, mainly when the anticipated period of use of
the fixed assets, whether under a new or existing lease, is
greater than the initial contractual lease term.
The Group has variable lease payments, including
adjustments to lease payments based on an index or rate
(such as the Consumer Price Index) and fair value
adjustments to lease payments. Variable lease payments that
depend on an index or a rate (such as the Consumer Price
Index or a market interest rate) are included when measuring
initial lease liability of the lease arrangements using the
payments\u2019 base rate or index. The Group remeasures the
lease liability when there is a change in future lease
payments resulting from a change in such index or rate.
Short-term leases with an initial term of 12 months or less
that do not include a purchase option and leases of low-
value assets (referring mainly to IT equipment e.g. laptops
and mobile phones) are not recorded on the statement of
financial position.
Technip Energies Group adopted the practical expedient
to\u00a0not separate lease and non-lease components for all
asset\u00a0classes.
The Group currently subleases certain of its leased real
estate to third parties. The subleases are classified as
operating or finance leases by the sublessor depending on
the duration of the sublease contract and the end date of
the main lease contract.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM1_c1dfdce3-473a-4aa4-89b7-0da27f9c8968": {
"value": "
k.Intangible assets
Internally generated research and development
costs
Research costs are expensed when incurred. In compliance
with IAS 38 \u201cIntangible assets\u201d (\u201cIAS 38\u201d), development costs
are capitalized if all of the following criteria are met:
\u25a0The projects are clearly identified;
\u25a0The Technip Energies Group is able to reliably measure
expenditures incurred for each project during its
development;
\u25a0The Technip Energies Group is able to demonstrate the
technical or industrial feasibility of the project;
\u25a0The Technip Energies Group has the financial and
technical resources available to complete the project;
\u25a0The Technip Energies Group can demonstrate its intention
to complete, to use or to commercialize products
resulting from the project; and
\u25a0The Technip Energies Group is able to demonstrate the
existence of a market for the output of the intangible
asset, or, if it is used internally, the usefulness of the
intangible asset.
All research and development costs not meeting the IAS 38
criteria are expensed as incurred in the consolidated
Statement of income. The Technip Energies Group capitalized
costs on certain IT projects developed internally.
Other intangible assets
Intangible assets other than goodwill (including those
acquired in a business combination) are amortized on a
straight-line basis over their expected useful lives, as
follows:
\u25a0Backlog: as per the timeframe of the outstanding orders
(usually less than 3 years);
\u25a0Licenses, Patents and Trademarks: less than 20 years;
\u25a0Software (including software rights, proprietary IT tools,
such as the E-procurement platform, or the Technip
Energies Group\u2019s management applications): 3 to 7 years.
In accordance with IAS 36, the carrying value of intangible
assets is reviewed for impairment whenever internal or
external events indicate that there may be an impairment,
in\u00a0which case, an impairment test is performed.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM1_f12d9a22-49d4-497f-8efa-8ef3b8a7caac": {
"value": "
k.Intangible assets
Internally generated research and development
costs
Research costs are expensed when incurred. In compliance
with IAS 38 \u201cIntangible assets\u201d (\u201cIAS 38\u201d), development costs
are capitalized if all of the following criteria are met:
\u25a0The projects are clearly identified;
\u25a0The Technip Energies Group is able to reliably measure
expenditures incurred for each project during its
development;
\u25a0The Technip Energies Group is able to demonstrate the
technical or industrial feasibility of the project;
\u25a0The Technip Energies Group has the financial and
technical resources available to complete the project;
\u25a0The Technip Energies Group can demonstrate its intention
to complete, to use or to commercialize products
resulting from the project; and
\u25a0The Technip Energies Group is able to demonstrate the
existence of a market for the output of the intangible
asset, or, if it is used internally, the usefulness of the
intangible asset.
All research and development costs not meeting the IAS 38
criteria are expensed as incurred in the consolidated
Statement of income. The Technip Energies Group capitalized
costs on certain IT projects developed internally.
Other intangible assets
Intangible assets other than goodwill (including those
acquired in a business combination) are amortized on a
straight-line basis over their expected useful lives, as
follows:
\u25a0Backlog: as per the timeframe of the outstanding orders
(usually less than 3 years);
\u25a0Licenses, Patents and Trademarks: less than 20 years;
\u25a0Software (including software rights, proprietary IT tools,
such as the E-procurement platform, or the Technip
Energies Group\u2019s management applications): 3 to 7 years.
In accordance with IAS 36, the carrying value of intangible
assets is reviewed for impairment whenever internal or
external events indicate that there may be an impairment,
in\u00a0which case, an impairment test is performed.
Note 14.Goodwill and intangible assets, net
The goodwill and intangible assets\u2019 costs and accumulated amortization are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
| | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
| | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
Goodwill includes \u20ac1,453.6 million that was allocated to the
TechnipFMC Onshore/Offshore operating segment on the
merger date. It was the direct result of the merger between
FMC Technologies and Technip in January 2017. Because
goodwill attributed to the carve-out entity using the parent\u2019s
basis is acquisition-specific, it may include synergistic
goodwill that the parent entity previously assigned to its
other CGU or GCGU that were expected to benefit from the
synergies of the business combination. Accordingly, because
the Onshore/Offshore operating segment has been carved-
out and included in the combined financial statements of the
Technip Energies Group, management determined that was
most appropriate to include the associated Onshore/Offshore
operating segment\u2019s goodwill with the Technip Energies
Group.
14.1.Goodwill and intangible assets, net
The changes in goodwill and intangible assets are presented in the following table:
| | | | | |
| | Licenses, patents and trademarks | | | |
Net book value as of December 31, 2020 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
Net book value as of December 31, 2021 | | | | | |
Additions \u2013 acquisitions \u2013 internal developments | | | | | |
Depreciation expense for the year | | | | | |
Net foreign exchange differences | | | | | |
| | | | | |
NET BOOK VALUE AS OF DECEMBER 31, 2022 | | | | | |
14.2.Goodwill
Goodwill reallocation per operating segment
Following the Spin-off from TechnipFMC, in February 2021,
the Group performed a reallocation of its goodwill to the
Group\u2019s cash-generating unit (\u201cCGU\u201d).
For impairment testing purposes, goodwill is tested at the
level it is monitored for internal management purposes,
which corresponds to the Technip Energies operating
segments, Project Delivery or Technologies, Products &
Services (for further information on Technip Energies\u2019
operating segments, refer to Note 3. Segment information).
The changes in segment reporting and the reallocation of
goodwill did not give rise to any goodwill impairment. The
goodwill allocated based on those CGUs\u2019 enterprise value is
split as shown below:
| | |
| | |
| | |
Technology, Products & Services | | |
| | |
Goodwill impairment testing
As of December\u00a031, 2022, the Group performed its goodwill
impairment test following the methodology discussed in Note
1.\u00a0Accounting principles.
The carrying amounts of the CGUs were compared to their
value in use. Cash flow projections used in the determination
of value in use were made using management prospective
financial information on the next 4 years. The valuation of
CGUs for the purpose of goodwill impairment test was
determined primarily by using the income approach by
estimating the value in use.
The income approach estimates the value in use by
discounting each CGU\u2019s estimated future cash flows using a
weighted average cost of capital that reflects current market
conditions and the risk profile of the CGU. To estimate future
cash flows, Technip Energies used economic and market
assumptions that reflect global economic growth, technology
efficiency, policy measures, cost increases, consideration of
investments (capital expenditures) and cost of development.
The following table presents the key assumptions used by
management in determining the recoverable amount of the
Group CGUs as of December\u00a031, 2022, and\u00a02021:
| | |
| | |
Year of cash flows before terminal value | | |
Risk-adjusted post-tax discount rate | | |
| | |
As discussed above, when evaluating the 2022 and 2021
quantitative impairment test results, management
considered many factors in determining whether an
impairment of goodwill for CGUs was reasonably likely to
occur in future periods, including future market conditions
and the economic environment. Circumstances such as
market declines, unfavorable economic conditions, loss of a
major customer or other factors could increase the risk of
impairment of goodwill for these CGUs in future periods.
During the years ended December\u00a031, 2022 and 2021 the
Technip Energies Group did not record any goodwill
impairment expense. Sensitivities applied to weighted
average cost of capital (+0.5%) and to long-term growth rates
(-0.5%) further support this conclusion.
The excess of fair value over carrying amount for Technip
Energies was approximately 212% of the respective carrying
amounts for 2022, and 140% for 2021. The Group excess of
fair values over carrying amount, after allocation of corporate
assets, was respectively 100% for 2022 and 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM3_0e6aecab-04e2-4b2f-9e6c-8b3545870a3e": {
"value": "
l.Impairment of non-financial assets
Non-financial assets, property, plant and equipment, and
identifiable intangible assets being amortized are reviewed
for impairment whenever events or changes in circumstances
indicate the carrying amount of the asset or cash-generating
unit (\u201cCGU\u201d) may not be recoverable. If any indication exists,
or when annual impairment testing for an asset is required,
the Technip Energies Group estimates the asset\u2019s
recoverable amount. The asset\u2019s recoverable amount is the
higher of an asset\u2019s or CGU\u2019s fair value less costs of disposal
and the value in use. The recoverable amount is determined
for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of
an\u00a0asset or CGU exceeds its recoverable amount, the asset
is\u00a0considered impaired and is written down to its
recoverable\u00a0amount.
In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset,
including growth rates in revenues, costs, estimates of future
expected changes in operating margins, tax rates and cash
expenditures. Future revenues are also adjusted to match
changes in the Technip Energies Group\u2019s business strategy.
Factors that could trigger a lower value in use estimate
include sustained price declines of a CGU\u2019s products and
services, cost increases, regulatory or political environment
changes, changes in customer demand, and other changes in
market conditions, which may affect certain market
participant assumptions used in the discounted future cash
flow model.
In determining the fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used.
Goodwill is tested for impairment annually at September 30
and whenever changes in circumstances indicate that its
carrying amount may not be recoverable. Impairment is
determined for goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the goodwill
relates. When the recoverable amount of the CGU is less
than its carrying amount, an impairment loss is recognized.
Impairment losses relating to goodwill cannot be reversed in
future periods.
Impairment of financial assets
An allowance for Expected Credit Losses (ECL) is recognized
for all debt instruments not held at fair value through profit
or loss. As opposed to the incurred loss approach, ECL is
based on the difference between the carrying amount (as per
the contractual cash flows of the instruments) and all the
cash flows that the Technip Energies Group expects to
receive, discounted at the original effective interest rate. The
expected cash flows will include consideration of collaterals
or other credit enhancements that are integral to the
contractual terms.
In case of instruments for which there has not been a
significant increase in credit risk since initial recognition, ECL
is applied for default events that are possible within the next
twelve months (a 12-month ECL). In case there has been a
significant increase in credit risk since initial recognition, an
ECL is applied over the remaining life of the exposure
(lifetime ECL).
For trade receivables and contract assets, the Technip
Energies Group applies a simplified approach permitted by
IFRS 9. Therefore, the Technip Energies Group recognizes
lifetime ECL at initial recognition and at each reporting date.
The Technip Energies Group has considered historical credit
loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment to determine
lifetime expected losses.
For debt instruments recognized at amortized cost, as
permitted by IFRS 9, the Technip Energies Group applies the
low credit risk simplification. Accordingly, the Technip
Energies Group evaluates whether the debt instrument is
considered to have low credit risk at the reporting date, using
available, reasonable and supportable information. The
Technip Energies Group considers its internal credit rating of
the debt instrument, and also considers that there has been
a significant increase in credit risk when contractual
payments are more than 90 days past due. For debt
instruments that continue to have low credit risk after the
evaluation, the Technip Energies Group assumes that there is
no significant increase in the credit risk of the instrument.
ECL on such instruments is measured on a 12-month basis.
However, when there has been a significant increase in credit
risk since origination, the allowance will be based on the
lifetime ECL. The Technip Energies Group uses the ratings
from credit rating agencies both to determine whether the
debt instrument has significantly increased in credit risk and
to estimate ECLs.
The Technip Energies Group considers a financial asset in
default when contractual payments are 90 days past due.
Also, in cases when internal or external information indicates
that it is unlikely to receive the outstanding contractual cash
flows before considering any credit enhancements,
the\u00a0Technip Energies Group considers a financial asset to be
in default. A financial asset is written off when there
is\u00a0no\u00a0reasonable expectation of recovering the contractual
cash\u00a0flows.
p.Advances paid to suppliers
Advance payments made to suppliers under long-term
contracts are shown under the \u201cAdvances paid to suppliers\u201d
line item, on the consolidated statement of financial position.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM3_550d2cfc-8639-4c38-ac87-894ccaee867f": {
"value": "
l.Impairment of non-financial assets
Non-financial assets, property, plant and equipment, and
identifiable intangible assets being amortized are reviewed
for impairment whenever events or changes in circumstances
indicate the carrying amount of the asset or cash-generating
unit (\u201cCGU\u201d) may not be recoverable. If any indication exists,
or when annual impairment testing for an asset is required,
the Technip Energies Group estimates the asset\u2019s
recoverable amount. The asset\u2019s recoverable amount is the
higher of an asset\u2019s or CGU\u2019s fair value less costs of disposal
and the value in use. The recoverable amount is determined
for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of
an\u00a0asset or CGU exceeds its recoverable amount, the asset
is\u00a0considered impaired and is written down to its
recoverable\u00a0amount.
In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset,
including growth rates in revenues, costs, estimates of future
expected changes in operating margins, tax rates and cash
expenditures. Future revenues are also adjusted to match
changes in the Technip Energies Group\u2019s business strategy.
Factors that could trigger a lower value in use estimate
include sustained price declines of a CGU\u2019s products and
services, cost increases, regulatory or political environment
changes, changes in customer demand, and other changes in
market conditions, which may affect certain market
participant assumptions used in the discounted future cash
flow model.
In determining the fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used.
Goodwill is tested for impairment annually at September 30
and whenever changes in circumstances indicate that its
carrying amount may not be recoverable. Impairment is
determined for goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the goodwill
relates. When the recoverable amount of the CGU is less
than its carrying amount, an impairment loss is recognized.
Impairment losses relating to goodwill cannot be reversed in
future periods.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM3_cbaaf837-6470-4ec3-b188-0b22106eeb52": {
"value": "
l.Impairment of non-financial assets
Non-financial assets, property, plant and equipment, and
identifiable intangible assets being amortized are reviewed
for impairment whenever events or changes in circumstances
indicate the carrying amount of the asset or cash-generating
unit (\u201cCGU\u201d) may not be recoverable. If any indication exists,
or when annual impairment testing for an asset is required,
the Technip Energies Group estimates the asset\u2019s
recoverable amount. The asset\u2019s recoverable amount is the
higher of an asset\u2019s or CGU\u2019s fair value less costs of disposal
and the value in use. The recoverable amount is determined
for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other
assets or groups of assets. When the carrying amount of
an\u00a0asset or CGU exceeds its recoverable amount, the asset
is\u00a0considered impaired and is written down to its
recoverable\u00a0amount.
In assessing the value in use, the estimated future cash
flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset,
including growth rates in revenues, costs, estimates of future
expected changes in operating margins, tax rates and cash
expenditures. Future revenues are also adjusted to match
changes in the Technip Energies Group\u2019s business strategy.
Factors that could trigger a lower value in use estimate
include sustained price declines of a CGU\u2019s products and
services, cost increases, regulatory or political environment
changes, changes in customer demand, and other changes in
market conditions, which may affect certain market
participant assumptions used in the discounted future cash
flow model.
In determining the fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used.
Goodwill is tested for impairment annually at September 30
and whenever changes in circumstances indicate that its
carrying amount may not be recoverable. Impairment is
determined for goodwill by assessing the recoverable amount
of each CGU (or group of CGUs) to which the goodwill
relates. When the recoverable amount of the CGU is less
than its carrying amount, an impairment loss is recognized.
Impairment losses relating to goodwill cannot be reversed in
future periods.
As of December\u00a031, 2022, three buildings leased and used by
the Group for its offices have been impaired for an aggregate
of \u20ac12.7 million. The impairment test conducted on Goodwill
is discussed in detail in Note 1. Accounting principles and
presented in Note 14. Goodwill and intangible assets, net and
concluded to the absence of impairment.
Goodwill impairment testing
As of December\u00a031, 2022, the Group performed its goodwill
impairment test following the methodology discussed in Note
1.\u00a0Accounting principles.
The carrying amounts of the CGUs were compared to their
value in use. Cash flow projections used in the determination
of value in use were made using management prospective
financial information on the next 4 years. The valuation of
CGUs for the purpose of goodwill impairment test was
determined primarily by using the income approach by
estimating the value in use.
The income approach estimates the value in use by
discounting each CGU\u2019s estimated future cash flows using a
weighted average cost of capital that reflects current market
conditions and the risk profile of the CGU. To estimate future
cash flows, Technip Energies used economic and market
assumptions that reflect global economic growth, technology
efficiency, policy measures, cost increases, consideration of
investments (capital expenditures) and cost of development.
The following table presents the key assumptions used by
management in determining the recoverable amount of the
Group CGUs as of December\u00a031, 2022, and\u00a02021:
| | |
| | |
Year of cash flows before terminal value | | |
Risk-adjusted post-tax discount rate | | |
| | |
As discussed above, when evaluating the 2022 and 2021
quantitative impairment test results, management
considered many factors in determining whether an
impairment of goodwill for CGUs was reasonably likely to
occur in future periods, including future market conditions
and the economic environment. Circumstances such as
market declines, unfavorable economic conditions, loss of a
major customer or other factors could increase the risk of
impairment of goodwill for these CGUs in future periods.
During the years ended December\u00a031, 2022 and 2021 the
Technip Energies Group did not record any goodwill
impairment expense. Sensitivities applied to weighted
average cost of capital (+0.5%) and to long-term growth rates
(-0.5%) further support this conclusion.
The excess of fair value over carrying amount for Technip
Energies was approximately 212% of the respective carrying
amounts for 2022, and 140% for 2021. The Group excess of
fair values over carrying amount, after allocation of corporate
assets, was respectively 100% for 2022 and 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM4_2d10251d-c06f-431b-91c7-733ed6c93812": {
"value": "
m.Fair value measurement
In compliance with IFRS 13 \u201cFair value measurement\u201d, the
Technip Energies Group measures certain financial
instruments (including derivatives) at fair value at each
balance sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when
pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant\u2019s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.
The Technip Energies Group uses valuation techniques that
are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the consolidated financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to
the fair value measurement as a whole:
\u25a0Level 1: Observable inputs that reflect quoted prices
(unadjusted) for identical assets or liabilities in active
markets;
\u25a0Level 2: Inputs other than quoted prices included in Level
1 that are observable for the asset or liability either
directly or indirectly;
\u25a0Level 3: Unobservable inputs (e.g., a reporting entity\u2019s own
data).
For assets and liabilities that are recognized in the
consolidated financial statements at fair value on a recurring
basis, the Technip Energies Group determines whether
transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input
that is significant to the fair value measurement as a whole)
at the end of each reporting period.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM4_e7beebd4-8ade-4c91-8a8c-45dbb7d0e901": {
"value": "
m.Fair value measurement
In compliance with IFRS 13 \u201cFair value measurement\u201d, the
Technip Energies Group measures certain financial
instruments (including derivatives) at fair value at each
balance sheet date.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when
pricing the asset or liability, assuming that market
participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into
account a market participant\u2019s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.
The Technip Energies Group uses valuation techniques that
are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximizing the use of
relevant observable inputs and minimizing the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the consolidated financial statements are
categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to
the fair value measurement as a whole:
\u25a0Level 1: Observable inputs that reflect quoted prices
(unadjusted) for identical assets or liabilities in active
markets;
\u25a0Level 2: Inputs other than quoted prices included in Level
1 that are observable for the asset or liability either
directly or indirectly;
\u25a0Level 3: Unobservable inputs (e.g., a reporting entity\u2019s own
data).
For assets and liabilities that are recognized in the
consolidated financial statements at fair value on a recurring
basis, the Technip Energies Group determines whether
transfers have occurred between levels in the hierarchy by
re-assessing categorization (based on the lowest level input
that is significant to the fair value measurement as a whole)
at the end of each reporting period.
| | | | | |
| |
| Analysis by category of financial instruments |
| | At fair value through profit or loss | | At fair value through OCI | |
Other non-current financial assets (excl. derivatives) | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
Long-term debt, less current portion | | | | | |
Other non-current financial liabilities (excl. derivatives) | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
| | | | | |
Other current liabilities (excl. derivatives) | | | | | |
TOTAL FINANCIAL LIABILITIES | | | | | |
During the financial years 2022 and 2021, there were no
transfers between Level 1 and Level 2 fair value
measurements, and no transfers into or out of Level 3 fair
value measurements.
Investments \u2014 The fair value measurement of quoted equity
instruments is based on quoted prices that the Technip
Energies Group has the ability to access in public markets.
Mandatorily redeemable financial liability \u2014 Management
determined the fair value of the mandatorily redeemable
financial liability using a discounted cash flow model. The key
assumptions used in applying the income approach are the
selected discount rates and the expected dividends to be
distributed in the future to the non-controlling interest
holders. Expected dividends to be distributed are based on
the non-controlling interests\u2019 share of the expected
profitability of the underlying contract, the selected discount
rate, and the overall timing of completion of the project. The
fair value measurement is based upon significant inputs not
observable in the market and is consequently classified as a
Level 3 fair value measurement.
Changes in the fair value of Level 3 mandatorily redeemable
financial liability (Note 20. Other liabilities (non-current and
current)) are presented in the below table. Over the periods
presented, the Technip Energies Group consolidated the total
results of the Yamal entities and recorded a mandatorily
redeemable financial liability representing the Group\u2019s
dividend obligation.
| | |
| | |
Balance at beginning of the period | | |
Add: Expenses recognized in statement of income | | |
| | |
Net foreign exchange differences | | |
BALANCE AT END OF THE PERIOD | | |
Fair value of debt \u2014 The fair values (based on Level 2 inputs) of the Technip Energies Group debt, carried at amortized cost,
are presented in Note 22. Debt (long and short-term).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NjcvZnJhZzpkMDNiZjQ2MzBlOTA0MzQxYjlhOWZjNzRhNzBhNDc3My90ZXh0cmVnaW9uOmQwM2JmNDYzMGU5MDQzNDFiOWE5ZmM3NGE3MGE0NzczXzI1Mjg4NzY3NjU5OTM5_59d420e7-4922-4020-bc0d-3d741e75630c": {
"value": "
n.Financial assets
Financial assets are categorized at initial recognition, as
subsequently measured at either amortized cost, at fair value
through other comprehensive income (\u201cFVOCI\u201d), or at fair
value through profit or loss (\u201cFVTPL\u201d).
For debt instruments this classification depends on the
financial asset\u2019s contractual cash flow characteristics as well
as business model according to which the Technip Energies
Group is managing them. Financial assets are initially
measured at their fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant
financing component are measured at the transaction price
determined under IFRS\u00a015.
A financial asset is classified and measured at amortized
cost or fair value through other comprehensive income
(\u201cOCI\u201d) if and only if it gives rise to cash flows that are \u2018solely
payments of principal and interest (\u201cSPPI\u201d), i.e., the asset
meets the SPPI test criteria, which are assessed at an
instrument level.
The business model applied by the Technip Energies Group
determines whether the cash flows from the instruments will
be realized through collecting contractual cash flows, selling
the financial assets, or both.
Transactions on financial assets that require delivery of
assets within a time frame legally or contractually (regular
way trades) are recognized on the trade date, being the date
when the Technip Energies Group commits to acquire or sell
the asset.
For purposes of subsequent measurement, financial assets
are classified into three categories:
\u25a0Financial assets at amortized cost;
\u25a0Financial assets at fair value through OCI, either with
recycling or no recycling of cumulative gains and losses;
\u25a0Financial assets at fair value through profit or loss.
Financial assets at amortized cost
A financial asset is measured at amortized cost if both of the
following conditions are met:
\u25a0The financial asset is held within a business model with
the objective to hold financial assets in order to collect
contractual cash flows; and
\u25a0The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
Financial assets at amortized cost are subsequently
measured using the effective interest rate and are also
subject to impairment. Gains and losses are recognized in the
Statement of income, within the Other income, expenses
(net) line when the asset is derecognized.
The Technip Energies Group\u2019s financial assets at amortized
cost include trade receivables, loans issued to third or
related parties and debt notes receivable presented under
other non-current assets or other current assets, as
applicable.
Financial assets at fair value through OCI
Financial assets are classified and measured at fair value
through other comprehensive income if they are held in a
business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include:
\u25a0Financial assets held for trading (i.e., those which are
acquired for the purpose of selling or repurchasing in the
near term);
\u25a0Financial assets designated upon initial recognition at fair
value through profit or loss (in order to eliminate, or
significantly reduce, an accounting mismatch); or
\u25a0Financial assets required to be measured at fair value (i.e.
assets with cash flows that are not solely payments of
principal and interest, irrespective of the business model).
Derivatives, including separated embedded derivatives, are
also classified as held for trading except for those designated
as effective hedging instruments. Financial assets at fair
value through profit or loss are carried in the statement of
financial position at fair value with net changes in fair value
recognized in the statement of income.
This category includes derivative instruments, listed and non-
quoted equity investments which the Technip Energies Group
had not irrevocably elected to classify at fair value through
OCI, as well as certain liquid, frequently traded debt
instruments such as treasury bills.
Dividends on listed equity investments are also recognized in
the statement of income when the right of payment has
been established.
Impairment of financial assets
An allowance for Expected Credit Losses (ECL) is recognized
for all debt instruments not held at fair value through profit
or loss. As opposed to the incurred loss approach, ECL is
based on the difference between the carrying amount (as per
the contractual cash flows of the instruments) and all the
cash flows that the Technip Energies Group expects to
receive, discounted at the original effective interest rate. The
expected cash flows will include consideration of collaterals
or other credit enhancements that are integral to the
contractual terms.
In case of instruments for which there has not been a
significant increase in credit risk since initial recognition, ECL
is applied for default events that are possible within the next
twelve months (a 12-month ECL). In case there has been a
significant increase in credit risk since initial recognition, an
ECL is applied over the remaining life of the exposure
(lifetime ECL).
For trade receivables and contract assets, the Technip
Energies Group applies a simplified approach permitted by
IFRS 9. Therefore, the Technip Energies Group recognizes
lifetime ECL at initial recognition and at each reporting date.
The Technip Energies Group has considered historical credit
loss experience, adjusted for forward-looking factors specific
to the debtors and the economic environment to determine
lifetime expected losses.
For debt instruments recognized at amortized cost, as
permitted by IFRS 9, the Technip Energies Group applies the
low credit risk simplification. Accordingly, the Technip
Energies Group evaluates whether the debt instrument is
considered to have low credit risk at the reporting date, using
available, reasonable and supportable information. The
Technip Energies Group considers its internal credit rating of
the debt instrument, and also considers that there has been
a significant increase in credit risk when contractual
payments are more than 90 days past due. For debt
instruments that continue to have low credit risk after the
evaluation, the Technip Energies Group assumes that there is
no significant increase in the credit risk of the instrument.
ECL on such instruments is measured on a 12-month basis.
However, when there has been a significant increase in credit
risk since origination, the allowance will be based on the
lifetime ECL. The Technip Energies Group uses the ratings
from credit rating agencies both to determine whether the
debt instrument has significantly increased in credit risk and
to estimate ECLs.
The Technip Energies Group considers a financial asset in
default when contractual payments are 90 days past due.
Also, in cases when internal or external information indicates
that it is unlikely to receive the outstanding contractual cash
flows before considering any credit enhancements,
the\u00a0Technip Energies Group considers a financial asset to be
in default. A financial asset is written off when there
is\u00a0no\u00a0reasonable expectation of recovering the contractual
cash\u00a0flows.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is
primarily derecognized when:
\u25a0The rights to receive cash flows from the asset have
expired; or
\u25a0The Technip Energies Group has transferred its rights to
receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without
material delay to a third party under a \u2018pass-through\u2019
arrangement and either (a) the Technip Energies Group
has transferred substantially all the risks and rewards of
the asset, or (b) the Technip Energies Group has neither
transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the
asset.
When the Technip Energies Group has transferred its rights
to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what
extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred control
of the asset, the Technip Energies Group continues to
recognize the transferred asset to the extent of its
continuing involvement. In that case, the Technip Energies
Group also recognizes an associated liability. The transferred
asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Technip
Energies Group has retained.
Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Technip Energies Group
could be required to repay.
Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the
net amount is reported in the consolidated statement of
financial position if there is a currently enforceable legal right
to offset the recognized amounts and there is an intention to
settle on a net basis, or to realize the assets and settle the
liabilities simultaneously.
26.1.Financial assets and liabilities by category
The Technip Energies Group holds the following financial assets and liabilities:
| | | | | |
| |
| Analysis by category of financial instruments |
| | At fair value through profit or loss | | At fair value through OCI | |
Other non-current financial assets (excl. derivatives) | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
Long-term debt, less current portion | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
| | | | | |
Other current liabilities (excl. derivatives) | | | | | |
TOTAL FINANCIAL LIABILITIES | | | | | |
| | | | | |
| |
| Analysis by category of financial instruments |
| | At fair value through profit or loss | | At fair value through OCI | |
Other non-current financial assets (excl. derivatives) | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
Cash and cash equivalents | | | | | |
| | | | | |
Long-term debt, less current portion | | | | | |
Other non-current financial liabilities (excl. derivatives) | | | | | |
Derivative financial instruments (non-current and current) | | | | | |
| | | | | |
| | | | | |
Other current liabilities (excl. derivatives) | | | | | |
TOTAL FINANCIAL LIABILITIES | | | | | |
During the financial years 2022 and 2021, there were no
transfers between Level 1 and Level 2 fair value
measurements, and no transfers into or out of Level 3 fair
value measurements.
Investments \u2014 The fair value measurement of quoted equity
instruments is based on quoted prices that the Technip
Energies Group has the ability to access in public markets.
Mandatorily redeemable financial liability \u2014 Management
determined the fair value of the mandatorily redeemable
financial liability using a discounted cash flow model. The key
assumptions used in applying the income approach are the
selected discount rates and the expected dividends to be
distributed in the future to the non-controlling interest
holders. Expected dividends to be distributed are based on
the non-controlling interests\u2019 share of the expected
profitability of the underlying contract, the selected discount
rate, and the overall timing of completion of the project. The
fair value measurement is based upon significant inputs not
observable in the market and is consequently classified as a
Level 3 fair value measurement.
Changes in the fair value of Level 3 mandatorily redeemable
financial liability (Note 20. Other liabilities (non-current and
current)) are presented in the below table. Over the periods
presented, the Technip Energies Group consolidated the total
results of the Yamal entities and recorded a mandatorily
redeemable financial liability representing the Group\u2019s
dividend obligation.
| | |
| | |
Balance at beginning of the period | | |
Add: Expenses recognized in statement of income | | |
| | |
Net foreign exchange differences | | |
BALANCE AT END OF THE PERIOD | | |
Fair value of debt \u2014 The fair values (based on Level 2 inputs) of the Technip Energies Group debt, carried at amortized cost,
are presented in Note 22. Debt (long and short-term).
26.2.Derivative financial instruments
The management of the Technip Energies Group derivatives
and hedge accounting was carried out centrally by Technip
Energies as of December\u00a031, 2022.
For purposes of mitigating the effect of changes in exchange
rates, Technip Energies holds derivative financial instruments
to hedge the risks of certain identifiable and anticipated
transactions and recorded assets and liabilities in the
consolidated statement of financial position. The types of
risks hedged are those relating to the variability of future
earnings and cash flows caused by movements in foreign
currency exchange rates. The Technip Energies Group's policy
is to hold derivatives only for the purpose of hedging risks
associated with anticipated foreign currency purchases and
sales created in the normal course of business and not for
trading purposes where the objective is solely or partially to
generate profit.
Generally, Technip Energies enters into hedging relationships
so that changes in the fair values or cash flows of the
transactions being hedged are expected to be offset by
corresponding changes in the fair value of the derivatives. For
derivative instruments that qualify as a cash flow hedge, the
effective portion of the gain or loss of the derivative, which
does not include the time value component of a forward
currency rate, is reported as a component of OCI and
reclassified into earnings in the same period or periods
during which the hedged transaction affects earnings. For
derivative instruments not designated as hedging
instruments, any change in the fair value of those
instruments is reflected in earnings in the period such
change occurs. For further information on foreign currency
risk exposure and management, refer to Note 28. Market-
related exposure.
Technip Energies used the following types of derivative
instruments: foreign exchange rate forward contracts. In
general embedded derivative instruments are separated from
the host contract if the economic characteristics and risks of
the embedded derivative instrument are not clearly and
closely related to those of the host contract and the host
contract is not marked-to-market at fair value. The purpose
of these instruments is to hedge the risk of changes in future
cash flows of highly probable purchase or sale commitments
denominated in foreign currencies and recorded assets and
liabilities in the consolidated statement of financial position.
As of December\u00a031, 2022, and 2021, the Group held the following material net positions:
| | | | |
| | |
| Net notional amount bought (sold) | Net notional amount bought (sold) |
(In millions of currency ) | | | | |
| | | | |
| | | | |
Chinese yuan renminbi (CNY) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Cash flow hedges of forecasted transactions resulted in
accumulated other comprehensive (loss)/income of \u20ac16.4
million and \u20ac(18.3) million as of December\u00a031, 2022 and 2021.
The Technip Energies Group expects to transfer an
approximately \u20ac9.1\u00a0million loss from accumulated other
comprehensive income to earnings during the next 12 months
when the anticipated transactions actually occur. All
anticipated transactions currently being hedged are expected
to occur by the last quarter of 2027.
The following table presents the location of gains (losses) in
the consolidated statement of income related to derivative
instruments designated as cash flow hedges:
| | |
| Gain\u00a0(Loss)\u00a0recognized\u00a0in\u00a0OCI (Effective\u00a0Portion) |
| | |
Foreign exchange contracts | | |
Other comprehensive income/(loss) | | |
The following table presents the location of cash flow hedge gain (loss) reclassified from accumulated other comprehensive
income into profit (loss):
| | |
| Gain (Loss)\u00a0reclassified\u00a0from accumulated OCI into profit (loss) (Effective portion) |
| | |
Foreign exchange contracts | | |
Other income (expense), net | | |
The following table presents the location of cash flow hedge gain (loss) recognized in profit (loss):
| | |
| Gain\u00a0(Loss)\u00a0recognized\u00a0in\u00a0profit (loss) (Ineffective\u00a0portion and amount excluded from effectiveness testing) |
| | |
Foreign exchange contracts | | |
Other income (expense), net | | |
is to hold derivatives only for the purpose of hedging risks
associated with anticipated foreign currency purchases and
sales created in the normal course of business and not for
trading purposes where the objective is solely or partially to
generate profit.
Generally, Technip Energies enters into hedging relationships
so that changes in the fair values or cash flows of the
transactions being hedged are expected to be offset by
corresponding changes in the fair value of the derivatives. For
derivative instruments that qualify as a cash flow hedge, the
effective portion of the gain or loss of the derivative, which
does not include the time value component of a forward
currency rate, is reported as a component of OCI and
reclassified into earnings in the same period or periods
during which the hedged transaction affects earnings. For
derivative instruments not designated as hedging
instruments, any change in the fair value of those
instruments is reflected in earnings in the period such
change occurs. For further information on foreign currency
risk exposure and management, refer to Note 28. Market-
related exposure.
Technip Energies used the following types of derivative
instruments: foreign exchange rate forward contracts. In
general embedded derivative instruments are separated from
the host contract if the economic characteristics and risks of
the embedded derivative instrument are not clearly and
closely related to those of the host contract and the host
contract is not marked-to-market at fair value. The purpose
of these instruments is to hedge the risk of changes in future
cash flows of highly probable purchase or sale commitments
denominated in foreign currencies and recorded assets and
liabilities in the consolidated statement of financial position.
As of December\u00a031, 2022, and 2021, the Group held the following material net positions:
| | | | |
| | |
| Net notional amount bought (sold) | Net notional amount bought (sold) |
(In millions of currency ) | | | | |
| | | | |
| | | | |
Chinese yuan renminbi (CNY) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Cash flow hedges of forecasted transactions resulted in
accumulated other comprehensive (loss)/income of \u20ac16.4
million and \u20ac(18.3) million as of December\u00a031, 2022 and 2021.
The Technip Energies Group expects to transfer an
approximately \u20ac9.1\u00a0million loss from accumulated other
comprehensive income to earnings during the next 12 months
when the anticipated transactions actually occur. All
anticipated transactions currently being hedged are expected
to occur by the last quarter of 2027.
The following table presents the location of gains (losses) in
the consolidated statement of income related to derivative
instruments designated as cash flow hedges:
| | |
| Gain\u00a0(Loss)\u00a0recognized\u00a0in\u00a0OCI (Effective\u00a0Portion) |
| | |
Foreign exchange contracts | | |
Other comprehensive income/(loss) | | |
The following table presents the location of cash flow hedge gain (loss) reclassified from accumulated other comprehensive
income into profit (loss):
| | |
| Gain (Loss)\u00a0reclassified\u00a0from accumulated OCI into profit (loss) (Effective portion) |
| | |
Foreign exchange contracts | | |
Other income (expense), net | | |
The following table presents the location of cash flow hedge gain (loss) recognized in profit (loss):
| | |
| Gain\u00a0(Loss)\u00a0recognized\u00a0in\u00a0profit (loss) (Ineffective\u00a0portion and amount excluded from effectiveness testing) |
| | |
Foreign exchange contracts | | |
Other income (expense), net | | |
A substantial portion of cash and securities are recorded or
invested in either Euro or U.S. dollar which are frequently
used by the Group within the framework of its commercial
relationships. Cash and securities in other currencies
correspond either to deposits retained by subsidiaries
located in countries where such currencies are the national
currencies in order to ensure their own liquidity, or to
amounts received from customers prior to the payment of
expenses in these same currencies or the payment of
dividends. Short-term deposits are classified as cash
equivalents along with other securities.
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},
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"value": "
s.Share-based compensation
The Technip Energies Group employees participated in
TechnipFMC\u2019s share-based plans accounted for in
accordance with IFRS 2 \u201cShare-based payments\u201d (\u201cIFRS 2\u201d).
Share-based compensation expense has been allocated to
the Technip Energies Group based on the awards and terms
previously granted to the Technip Energies Group\u2019s
employees as well as an allocation of TechnipFMC\u2019s
management expenses attributable to the Technip Energies
Group for the year ended December\u00a031, 2020.
Within the Company there are three types of share-based
payment plans that qualify as equity-settled:
\u25a0Restricted Share Unit (RSU);
\u25a0Performance Share Unit (PSU);
\u25a0Stock Options.
The measurement of share-based compensation expense on
restricted share awards is based on the market price at the
grant date and the number of shares awarded. The fair value
of performance shares is estimated using a combination of
the closing stock price on the grant date and the Monte Carlo
simulation model.
TechnipFMC used the Black-Scholes options pricing model to
measure the fair value of share options granted on or after
January 1, 2017, excluding from such valuation the service
and non-market performance conditions (which are
considered in the expected number of awards that will
ultimately vest) but including market conditions (Note 8.
Share-based compensation).
The share-based compensation expense for each award is
recognized during the vesting period (i.e. the period in which
the service and, where applicable, the performance
conditions are fulfilled). The cumulative expense recognized
for share-based employee compensation at each reporting
date reflects the already expired portion of the vesting period
and the Technip Energies Group\u2019s best estimate of the
number of awards that will ultimately vest. The expense or
credit in the statement of income for a period represents the
movement in cumulative expense recognized as at the
beginning and end of that period.
Note 8.Share-based compensation
The expense related to compensation based on performance
shares (\u201cPerformance Shares\u201d) and stock options granted to
employees and board members was recorded in the
consolidated statement of income for \u20ac16.7 million and \u20ac17.3
million as of December\u00a031, 2022, and 2021 respectively.
8.1.Performance and restricted shares
a.2022 Performance shares program under the
Technip Energies N.V. Incentive Award Plan
The Compensation Committee of the Board of Directors, at
its meeting of February 22, 2021, established the terms and
conditions of the 2021 Performance shares program (the
\u201c2021 Program\u201d) under and pursuant to the terms of the
Technip Energies N.V. Incentive Award Plan (the \u201cPlan\u201d).
The\u00a02021 Program provided for the allocation of shares
granted in either the form of performance stock units
(\u201cPSUs\u201d) or restricted stock units (\u201cRSUs\u201d).
On February 28, 2022, the Compensation Committee
delegated to the Chief Executive Officer the decision to
implement the granting of Performance Shares under the
2022 Program. Main grant and additional grant of these
Performance Shares were allocated respectively as of March
28, 2022 and September 19, 2022 by the Chief Executive
Officer under the 2022 Program pursuant to his decision.
Performance Shares generally vest after 3 years of service.
Share-based compensation expense is recognized ratably
over the vesting period. Exceptions to the service period are
the death or disability of the employee upon which vesting
accelerates.
The Compensation Committee of the Board of Directors, at
its meeting of February 28, 2022, has approved the terms of
the 2022 Long-Term Incentive Program, and the LTI
performance metrics. Under this program, certain Employees,
Senior Executives, Executive Committee members or Officers
benefit from PSUs that vest subject to achieving satisfactory
performances and/or from RSUs that vest subject to
continuous presence within the Group. The performance
metrics that rule performance criteria of the PSUs are
detailed below:
\u25a0The Total Shareholder Return (\u201cTSR\u201d) represents now
37.5% of the performance conditions mix (vs 100% in 2021
Performance Shares Program). The TSR peer group
to\u00a0assess Technip Energies has also been revised from
8\u00a0to 10 reference companies;
\u25a0Earnings Per Share (\u201cEPS\u201d) has been set as a second
financial indicator for 37.5% of the performance
conditions mix;
\u25a0An E.S.G. performance metric, representing 25.0% of PSUs
performance conditions, combines 3 Key Performance
Indicators. They are evenly weighted and described below:
\u2022E: reduce 30% on scope 1&2 GHG emissions by 2025
compared to 2019,
\u2022S: 25% of women in leadership positions including
ExCom by 2025,
\u2022G: reduce by 2025 non-mandatory commercial
intermediaries by 100%.
The fair value of such PSUs is estimated using both a Monte
Carlo simulation model and closing stock price at the grant
date whereas RSUs fair value is based on the closing stock
price at the grant date.
Under the 2022 Program, \u20ac21.0 million were authorized for
awards. A first grant of 1,659,182 shares (897,084 PSUs and
762,098 RSUs, representing \u20ac18.9 million at \u20ac11.36 (closing
stock price at the grant date) was made on March 28, 2022. A
second grant of 167,476 shares (94,792 PSUs and 72,684
RSUs) was performed on September 19, 2022 representing
\u20ac2.1 million at \u20ac12.60 per share (closing stock price at the
grant date).
b.Vesting of March 8, 2019, September 23,
2019 and April 15, 2021 Long-Term Incentive
programs
In connection with the separation of Technip Energies from
TechnipFMC, the outstanding rights to receive ordinary
shares of TechnipFMC pursuant to Restricted Stock Units
and Performance Stock Units awarded on March 8, 2019 and
September 23, 2019, were converted as RSUs on the same
terms and conditions under Technip Energies\u2019 Long Term
Incentive programs.
March 8, 2019 program
Out of the 560,006 Performance Shares granted to certain
Employees, Senior Executives, Executive Committee
members or Officers:
\u25a0538,124 shares were vested on March 8, 2022, at an
acquisition price of \u20ac9.16 per share (Technip Energies\u2019
stock price on the vesting date, i.e.: the opening of the
Paris stock exchange market on March 8, 2022), for
grantees having fulfilled the presence conditions for PSUs
and RSUs (3 years of service) and after having applied
100% performance conditions for PSUs;
\u25a021,882 shares were forfeited due to the unfulfillment of
presence condition from grantees, according to the
requirement of program terms and conditions.
September 23, 2019 program
Out of the 56,806 Performance Shares granted to certain
Employees, Senior Executives, Executive Committee
members or Officers:
\u25a043,028 shares were vested on September 23, 2022, at an
acquisition price of \u20ac12.00 per share (Technip Energies\u2019
stock price on the vesting date, i.e.: the opening of the
Paris stock exchange market on September 23, 2022), for
grantees having fulfilled the presence conditions for PSUs
and RSUs (3 years of service) and after having applied
100% performance conditions for PSUs;
\u25a013,778 shares were forfeited due to the unfulfillment of
presence condition from grantees, according to the
requirement of program terms and conditions.
April 15, 2021 program \u2013 Non-Executive Directors
A Restricted Shares Units (RSUs) Program was granted to
7\u00a0Non-Executive Directors on April 15, 2021, subject to a one-
year vesting and to presence condition as of April 15, 2022.
These 94,829 RSUs were vested in full on April 15, 2022,
at\u00a0the\u00a0acquisition price of \u20ac12.18 per share (Technip Energies\u2019
stock price at\u00a0the\u00a0opening of the Paris stock exchange
market on April\u00a019, 2022).
April 15, 2021 program \u2013 Executive Committee
(1st\u00a0Tranche Vesting)
The Compensation Committee awarded a special grant of
shares to the Executive Committee of the company as of
April 15, 2021 including the Executive Director. The value of
the special grant was set at 50% of annual base salary at the
date of the grant and constitutes an entitlement to receive
shares in the form of PSUs at the end of two vesting periods
as follows: 50% of PSUs are to vest after 18 months from the
grant date, and 50% of PSUs are to vest after 30 months
from the grant date.
The performance measure used for the special grant is the
Total Shareholder Return over the vesting periods and is
subject to no termination of service occurring prior to the
end of the vesting periods. The Total Shareholder Return
(TSR) is the rate of return observed, taking into account the
payment of a dividend during the period. The dividend is
assumed to be reinvested immediately into the share itself at
the closing share price of the dividend payment day. The
calculated TSR is then compared to the TSR peer group.
The Compensation Committee by written resolution on
October 11, 2022 approved the financial performance of the
TSR (Total Shareholder Return) at 100% for the period
concerning the first vesting tranche of PSU\u2019s, in accordance
with the terms of the \u201c2021 - Technip Energies N.V. Incentive
Award Plan /Special Grant\u201d.
As a result, out of 147,741 Performance Shares granted as of
April 15, 2021:
\u25a066,784 shares were vested on October 15, 2022, at an
acquisition price of \u20ac12,49 per share (Technip Energies\u2019
stock price on the vesting date, i.e.: the opening of the
Paris stock exchange market on October 17, 2022);
\u25a07,086 shares have been forfeited due to the unfulfillment
of presence condition or the lack of formal acceptance
from grantees, according to the requirement of program
terms and conditions.
8.2.Stock options
During the years ended December\u00a031, 2022 and 2021 there
were no movements regarding stock options.
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s.Share-based compensation
The Technip Energies Group employees participated in
TechnipFMC\u2019s share-based plans accounted for in
accordance with IFRS 2 \u201cShare-based payments\u201d (\u201cIFRS 2\u201d).
Share-based compensation expense has been allocated to
the Technip Energies Group based on the awards and terms
previously granted to the Technip Energies Group\u2019s
employees as well as an allocation of TechnipFMC\u2019s
management expenses attributable to the Technip Energies
Group for the year ended December\u00a031, 2020.
Within the Company there are three types of share-based
payment plans that qualify as equity-settled:
\u25a0Restricted Share Unit (RSU);
\u25a0Performance Share Unit (PSU);
\u25a0Stock Options.
The measurement of share-based compensation expense on
restricted share awards is based on the market price at the
grant date and the number of shares awarded. The fair value
of performance shares is estimated using a combination of
the closing stock price on the grant date and the Monte Carlo
simulation model.
TechnipFMC used the Black-Scholes options pricing model to
measure the fair value of share options granted on or after
January 1, 2017, excluding from such valuation the service
and non-market performance conditions (which are
considered in the expected number of awards that will
ultimately vest) but including market conditions (Note 8.
Share-based compensation).
The share-based compensation expense for each award is
recognized during the vesting period (i.e. the period in which
the service and, where applicable, the performance
conditions are fulfilled). The cumulative expense recognized
for share-based employee compensation at each reporting
date reflects the already expired portion of the vesting period
and the Technip Energies Group\u2019s best estimate of the
number of awards that will ultimately vest. The expense or
credit in the statement of income for a period represents the
movement in cumulative expense recognized as at the
beginning and end of that period.",
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t.Provisions
Provisions are recognized if and only if the following criteria
are simultaneously met:
\u25a0The Technip Energies Group has an ongoing obligation
(legal or constructive) as a result of a past event;
\u25a0The settlement of the obligation will likely require an
outflow of resources embodying economic benefits
without expected counterpart; and
\u25a0The amount of the obligation can be reliably estimated:
provisions are measured according to the risk assessment
or the exposed charge, based upon best-known elements.
Contingencies related to contracts
These provisions relate to claims and litigation on contracts.
Restructuring
Once a restructuring plan has been decided and the
interested parties have been informed, the plan is scheduled
and valued. Restructuring provisions are recognized in
accordance with IAS 37 \u2013 Provisions, Contingent Liabilities
and Contingent Assets and presented within Impairment,
Restructuring and Other Expenses (Income) in the
consolidated statement of income.
24.3.Defined benefit asset (liability) recognized in the consolidated statement of financial
position
The liability recorded in the statement of financial position is as follows:
| | | | | | |
| | |
| Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation | Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation |
Defined benefit obligation as of the prior period end date | | | | | | |
Acquisition/divestiture/business combination | | | | | | |
Expense as recorded in the statement of income | | | | | | |
Total current service cost | | | | | | |
| | | | | | |
Actuarial gains of the year | | | | | | |
Administrative costs and taxes and others | | | | | | |
Actuarial gain/loss recognized in other comprehensive income | | | | | | |
Actuarial gain/loss on defined benefit obligation | | | | | | |
| | | | | | |
\u25a0Financial assumptions | | | | | | |
\u25a0Demographic assumptions | | | | | | |
Actuarial gain (loss) on plan assets | | | | | | |
Contributions and benefits paid | | | | | | |
Contributions by employer | | | | | | |
Benefits paid by employer | | | | | | |
Benefits paid from plan assets | | | | | | |
Exchange difference and other settlements | | | | | | |
DEFINED BENEFIT OBLIGATION AS OF THE PERIOD END DATE | | | | | | |
As of December\u00a031, 2022, the discounted defined benefit obligation included \u20ac107.8 million for funded plans (compared to
\u20ac149.7 million in 2021) and \u20ac100.2 million for unfunded plans (compared to \u20ac127.1 million in 2021).
The breakdown of the net defined-benefit liability by type of benefit plans is as follows:
| | |
| | |
| | |
| | |
| | |
NET DEFINED BENEFIT OBLIGATION | | |
The table below presents the liabilities per country:
| | | |
| |
| Defined benefit obligation | | |
| | | |
| | | |
| | | |
| | | |
The principles used to evaluate the amounts and types of provisions for liabilities and charges are described in Note 1.
Accounting principles.
Movements in provisions as of December\u00a031, 2022 were as follows:
| | | | | | |
| | | | | | |
| | | | | | |
Restructuring obligations | | | | | | |
| | | | | | |
Other non-current provisions | | | | | | |
Total non-current provisions | | | | | | |
Contingencies related to contracts | | | | | | |
| | | | | | |
Restructuring obligations | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
ESG roadmap is also reflected in its increased R&D efforts.
As of December\u00a031, 2022, R&D expenses related to energy
transition amounted to \u20ac41.1 million on the total \u20ac49.5
million 2022 expense.
\u25aaImpairment test and valuation of assets
The Group is currently engaged in activities and markets for
which the demand provides a high multiyear visibility and are
not subject to regulations that would jeopardize its activities
in the short or medium term.
The business plan underpinning the impairment test
performed by the Group as of December\u00a031, 2022 is in line
with market demand and does not include any disruptive
elements that would be required to be reflected in future
cash flows. Finally, the prospective financial information
reflects the future opportunities in the energy transition
markets.
\u25aaShare-based compensation and remuneration policy
applied to Executive Officer, Executive Committee
members, Senior Managers, and other key employees
The Compensation Committee of the Board of Directors has
granted to the Executive Officer, Executive Committee
members, Senior Managers, and other key employees (e.g.,
technical experts, high potentials) a Long-Term Incentive
plan in the form of Performance Stock Units (PSUs) and
Restricted Stock Units (RSUs). The PSUs vesting is subject to
the satisfactory achievement of performance conditions. As
of 2022, the performance conditions comprise the total
shareholder return (\u201cTSR\u201d), EPS and a set of three weighted
ESG indicators directly derived from our ESG Roadmap to
support Technip Energies vision in accelerating energy
transition for a \u201cbetter tomorrow\u201d and to strengthen the
alignment with sustainable long-term value creation. One of
these indicators is a climate-friendly objective: 30% decrease
in scope 1 and 2 greenhouse gas emissions between 2019 and
2025.
In addition, the Compensation Committee reviewed the
Executive Director\u2019s remuneration and notably reinforced the
weighting of the ESG component in the Short-Term Incentive
program with ESG KPIs derived from the Company\u2019s ESG
roadmap. These changes have been introduced in 2022 and
are described in section 6.6.1. Executive Director
remuneration. As compared to December\u00a031, 2021, the ESG
business performance indicators weighting increased from
15% to 25% to emphasize ESG performance and to signal the
Company\u2019s commitment to embed sustainable, socially
responsible and ethical business practices.
\u25aaGreen financing
The terms and conditions of the Group financing agreements
do not include climate-friendly covenants or objectives,
except for the Revolving Facility for which the applicable
margin is adjusted based on the successful completion by
the Group of the 3 ESG key performance indicators defined
in the facility agreement: reduction of carbon footprint,
supporting of ESG ratings and improvement of gender
diversity. On May 24, 2022, the Revolving Credit Facility
margin was adjusted accordingly following the successful
achievement of all three KPI\u2019s for the year 2021. As of today,
the Revolving Credit Facility remains undrawn, the financial
cost associated with the facility is therefore immaterial. For
further information, refer to Note 22. Debt (long and short-
term).
Conflict in Ukraine
The Conflict in Ukraine and sanctions imposed against Russia
and Belarus pose significant challenges to business activities
and introduce a degree of uncertainty on the expected
development of such activities. The Group considered its
direct and indirect risk exposure resulting from the conflict
in the preparation of its consolidated financial statements
and its assessment is discussed below.
\u25aaImpairment of non-financial assets
The Group considered the conflict as an impairment trigger
and conducted a dedicated ad hoc goodwill impairment test.
This test was based on the Group CGU\u2019s carrying values as of
March 31, 2022. The prospective financial information used
excluded net cash-flows related to Arctic LNG 2 project as
well as new business opportunities in Russia.
Risk-adjusted post tax discount rate for both CGUs used for
this impairment test was 12.0% for Project Delivery and 10.5%
for Technology, Products & Services. This compares to 11.5%
and 9.5% as of December\u00a031, 2021, for Project Delivery and
Technology, Products & Services, respectively.
This dedicated test did not lead to an impairment. The
excess of value in use over carrying values was approximately
\u20ac700.0 million and \u20ac625.0 million for Project Delivery and
Technology, Products & Services, respectively. The Group also
performed a sensitivity analysis on discount and long-term
growth rates. A 1.0% increase of the discount rate and a 1.0%
decrease of the long-term growth rate would result in excess
of value in use over carrying values of approximately \u20ac568.0
million for Project Delivery and \u20ac443.0 million for Technology,
Products & Services.
The conclusions of this dedicated impairment test remained
unchanged after allocating corporate assets.
The carrying value of goodwill allocated by CGU for this
specific test was \u20ac1,551.5 million for Project Delivery and
\u20ac534.6 million for Technology, Products & Services. This
compares to \u20ac1,542.8 million and \u20ac531.6 million as of
December\u00a031, 2021, for Project Delivery and for Technology,
Products & Services, respectively.
This test did not replace the one performed on an annual
basis, the conclusions of which are discussed in Note 14.
Goodwill and intangible assets, net.
In addition, the Group does not hold significant non-financial
assets located in Russia or Ukraine that would directly or
indirectly be impacted by the conflict.
\u25aaRevenue from Contracts with Customers
The Group evaluated the potential implications of the
Ukraine conflict on revenue recognition for the financial year
ended December\u00a031, 2022 and concluded that current
developments did not affect its ability to recognize revenue
nor the measurement of variable considerations over the
year.
The analysis performed confirms that the criteria to
recognize revenue are met. To date, the Group considers that
any outstanding consideration due is collectible on the Arctic
LNG 2 project.
Although the Group\u2019s revenue will be affected by the inability
to pursue its operations in Russia due to the sanctions
associated to the Ukraine conflict, suspension and
termination of the Arctic LNG 2 contract will not give rise to
variable considerations arising out of contractual penalties,
liquidated damages, or price concessions that could be
granted to the Arctic LNG 2 customer.
There are no refund liabilities, termination penalties or other
contractual liability that would not already have materialized
in the balance sheet positions of the Arctic LNG 2 contract.
The Group did not identify significant additional costs to be
incurred to satisfy its performance obligation under the
Arctic LNG 2 contract that would be included in the cost-to-
cost input method for measuring progress and revenue
recognition.
Discussions with the client have resulted in the signing of an
Exit Framework Agreement in the third quarter of 2022. This
process is expected to be completed within the first half of
2023. Technip Energies recognized revenue where it was
authorized to do so, in compliance with applicable sanctions
adopted by the European Union, the United States, and other
countries. The Group does not expect any negative net
financial exposure due to its contractual rights and the
balance sheet position of the Arctic LNG 2 project.
\u25aaExpected credit loss
In assessing impairment of financial instruments, the Group
considered the potential effects of the conflict in Ukraine on
the measurement of its weighted average expected credit
loss rate. The analysis of the increase in the credit risk on
financial instruments has been performed on a collective
basis. Counterparties which are Russian or have links with
Russia have been identified. The Group concluded that there
is no impact on the rate used to measure the expected credit
loss at Group level. As of December\u00a031, 2022, balance sheet
positions of the Arctic LNG 2 project reflect the Group\u2019s
assessment of its exposure and level of collectability.
Excluding Arctic LNG 2, the Group\u2019s positions with Russian
external third parties are not material, and the collection of
receivables is considered highly probable.
Finally, these elements are reinforced by the way most of the
Group's long-term contracts are financed, notably through
advanced payments presented as contract liabilities on the
statement of financial position, and by the nature and
financial strength of the Group's major clients.
\u25aaLiquidity and currency risk
Further to the conflict in Ukraine and the consecutive sets of
sanctions and counter sanctions which have been enacted
by, amongst others, the European Union, the United States
authorities and the Central Bank of Russia, the Group is
monitoring financial risks to which it may be exposed such as
credit risk, liquidity risk and currency risk. The Group no
longer has any foreign exchange instruments related to
Rubles in its books, nor any debit situation with its treasury
center. The cash position held by Russian subsidiaries is not
material at Group level, and no loan is in place to Russian
entities or other Russian parties. The Group does not hold
significant balances of cash in Rubles or located in Russia
(detail by currency provided in Note 19. Cash and cash
equivalents).
\u25aaCyber impacts
As part of Technip Energies\u2019 ongoing cybersecurity strategy,
the Group undertakes regular reviews of external threats and
evaluates them against its existing systems and processes.
Following the beginning of the conflict in Ukraine, the Group
increased its threat monitoring capabilities through a
combination of additional technologies and services to
mitigate any additional threats that are identified. These can
be from several threats including nation states and political
hacktivists. Technip Energies has also increased its
employees\u2019 awareness of these threats through a
combination of additional awareness campaigns and
supplemental training.
On April 1, 2022, the Group renewed its cyber insurance
policy with Lloyd\u2019s syndicates Brit and Kiln who, in the cover
provided under this policy have expressly excluded:
\u2022Any loss or damage or liability in or from any
occurrence in Russia or their respective territorial
waters,
\u2022Any loss or damage or liability incurred by persons or
entities located in Russia or their respective territorial
waters.
Following key assessments described above, we have not
identified any significant risk that could result in a material
adjustment to the carrying amount of assets and liabilities
within the next financial year.
Macroeconomic conditions
Current macroeconomic conditions (inflationary pressures,
increases in interest rates and raw material and energy costs,
shortages, exchange rate volatility) may increase economic
uncertainties and have effects on Technip Energies
consolidated financial statements. The estimates described
below have been reviewed to take in consideration this
specific macroeconomic environment:
\u25aaMeasurement of the present value of the post-
employment benefit obligations
Actuarial assumptions have been revalued (wage and
discount rate increase) to reflect long term economic
forecast. Assumptions used to assess post-retirement
valuation as of December\u00a031, 2022, include as compared to
December\u00a031, 2021, an increase of:
\u25a0The expected long-term inflation assumption set by the
European Central Bank;
\u25a0The spread above assumed the long-term inflation to
derive the expected yearly salary increase.
Moreover, to consider increased volatility observed on key
assumptions such as discount rate and inflation rate,
sensitivities shown include +/- 50 bps ranges as compared to
+/- 25bps last year.
\u25aaImpairment test of goodwill
During the year ended December\u00a031, 2022, global
macroeconomic conditions have significantly deteriorated.
The increase in interest rates and inflation were considered
in the discount rates and in the prospective financial
information used in the determination of the value in use.
Regarding discount rates, the increase in weighted average cost of capital, period over period, reflected the rise in risk-free
rates. The variation, per operating segment compared to last year is the following:
| | |
| | |
| | |
Technology, Products & Services | | |
Besides, the long-term growth rates used to estimate cash
flow projections beyond the period covered by the budgets
were unchanged from last year, remaining at 1.9% for both
operating segments. Macroeconomic conditions, in particular
wage increases, or higher commodity prices were also
reflected in the future cash flows used to determine the
value in use of the CGUs. The consideration of the above-
mentioned did not lead to the recognition of an impairment,
as described in Note 14. Goodwill and intangible assets, net.
\u25aaEstimates on long-term and onerous contracts
Estimates on long-term and onerous contracts have been
reviewed to evaluate the expected economic benefits and
the performance obligations. As of December\u00a031, 2022, the
Group considered increased prices and rising inflation in its
assessment of onerous contracts. The current
macroeconomic conditions did not lead the Group to
consider long-term contracts in force as onerous; thus, no
additional provisions were accounted for as a direct
consequence of the market situation.
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"value": "
b.Assumptions and sources of estimation
uncertainty
The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
which could have a significant risk of causing a material
adjustment to the carrying amount of assets and liabilities
within the next financial year relate to:
\u25a0Impairment of non-financial assets;
\u25a0Income tax;
\u25a0Accounting for pension and other post-retirement benefit
plans;
\u25a0Provisions.
Impairment of non-financial assets
\u25aaGoodwill
Goodwill represents the excess of cost over the fair market
value of net assets acquired in business combinations.
Goodwill is not subject to amortization but is tested for
impairment at the level of CGU or GCGUs the goodwill has
been allocated to, on an annual basis, or more frequently if
impairment indicators arise. Management has established
September 30 as the date of its annual test for impairment
of goodwill. Management identifies a potential impairment by
comparing the recoverable amount of the applicable CGU or
GCGUs to its carrying amount, including goodwill. If the
carrying amount exceeds the recoverable amount of the
applicable CGU or GCGUs, management measures the
impairment by comparing the carrying value of the CGU or
GCGUs to its recoverable amount. CGUs with goodwill are
tested for impairment using a quantitative impairment test.
Determining the recoverable amount of CGUs is judgmental
and involves the use of significant estimates and
assumptions. Management estimates the recoverable amount
of the Group CGUs using a discounted future cash flow
model. Most of the estimates and assumptions used in a
discounted future cash flow model on a post-tax basis
involve unobservable inputs reflecting management\u2019s own
assumptions about the assumptions market participants
would use in estimating the fair value of a business. These
estimates and assumptions include revenue growth rates and
operating margins used to calculate projected future cash
flows, discount rates and future economic and market
conditions. The estimates are based upon assumptions
believed to be reasonable, but which are inherently uncertain
and unpredictable and do not reflect unanticipated events
and circumstances that may\u00a0occur.
A lower recoverable amount estimate in the future for any of
the Group\u2019s CGUs could result in a goodwill impairment.
Factors that could trigger a lower recoverable amount
estimate include sustained price declines of the CGUs\u2019
products and services, cost increases, regulatory or political
environment changes, changes in customer demand, and
other changes in market conditions, which may affect certain
market participant assumptions used in the discounted
future cash flow model based on internal forecasts of
revenues and expenses over a specified period plus a
terminal value (the income approach).
The income approach estimates recoverable amount by
discounting each CGUs estimated future cash flows using a
weighted-average cost of capital that reflects current market
conditions and the risk profile of CGUs. To arrive at future
cash flows, management uses estimates of economic and
market assumptions, including growth rates in revenues,
costs, estimates of future expected changes in operating
margins, tax rates and capital expenditures. Future revenues
are also adjusted to match changes in the Group business
strategy. Management believes this approach is an
appropriate valuation method and utilizes this approach in
determining the CGUs valuations.
For additional information related to goodwill impairment
testing during the periods presented, refer to Note 14.
Goodwill and intangible assets, net.
\u25aaProperty, plant and equipment and identifiable
intangible assets
Property, plant and equipment and identifiable intangible
assets being amortized are reviewed for impairment
whenever events or changes in circumstances indicate the
carrying amount of the non-financial assets may not be
recoverable. The carrying amount of a non-financial asset is
not recoverable if it exceeds the recoverable amount
determined as the higher of an asset\u2019s fair value less costs of
disposal and its value in use. If it is determined that an
impairment loss has occurred, the loss is measured as the
amount by which the carrying amount of the non-financial
asset exceeds its recoverable amount. The determination of
future value in use as well as the estimated fair value of
non-financial assets involves significant estimates on the
part of management. Because there usually is a lack of
quoted market prices for non-financial assets, fair value of
impaired assets is typically determined based on the present
values of expected future cash flows using discount rates
believed to be consistent with those used by principal
market participants or based on a multiple of operating cash
flow validated with historical market transactions of similar
assets where possible. The expected future cash flows used
for impairment reviews and related fair value calculations are
based on judgmental assessments of future productivity of
the asset, operating costs and capital decisions and all
available information at the date of review. If future market
conditions deteriorate beyond current expectations and
assumptions, impairments of non-financial assets may be
identified if management concludes that the carrying
amounts are no longer recoverable.
Refer to paragraphs i) Property, plant and equipment and
k)\u00a0Intangible assets for estimates and accounting policies
relevant to those assets.
Income tax
Income tax expense, deferred tax assets and liabilities, and
reserves for uncertain tax positions reflect management\u2019s
best assessment of estimated future taxes to be paid. The
Group is subject to income taxes in France and numerous
other jurisdictions. Judgments and estimates are required in
determining the consolidated income tax expense.
In determining the current income tax provision,
management assesses temporary differences resulting from
differing treatments of items for tax and accounting
purposes. These differences result in deferred tax assets and
liabilities, which are recorded in the consolidated statement
of financial position. When management assesses deductible
temporary differences, including those originating from tax
losses carried forward, management must assess the
probability that these will be recovered through the future
taxable income. To the extent management believes recovery
is not probable, no deferred tax asset is recognized.
Management believes the assessment related to the
availability of future taxable income is a critical accounting
estimate because it is highly susceptible to change from
period to period, requires management to make assumptions
about future income over the period of deductible temporary
differences, and finally, the impact of increasing or
decreasing deferred tax assets is potentially material to the
results of operations.
Forecasting future income requires the use of a significant
amount of judgment. In estimating future income,
management uses internal operating budgets and long-range
planning projections. Management develops its budgets and
long-range projections based on recent results, trends,
economic and industry forecasts influencing the Group\u2019s
performance, its backlog, planned timing of new product
launches and customer sales commitments. Significant
changes in management\u2019s judgment related to the expected
realizability of deductible temporary differences result in an
adjustment to the associated deferred tax asset.
The calculation of income tax expense involves dealing with
uncertainties in the application of complex tax laws and
regulations in numerous jurisdictions in which the Group
operates. Management recognizes tax benefits related to
uncertain tax positions when, in management\u2019s judgment, it
is more likely than not that such positions will be sustained
on examination, including resolutions of any related appeals
or litigation, based on the technical merits. Management
adjusts liabilities for uncertain tax positions when its
judgment changes because of new information previously
unavailable. Due to the complexity of some of these
uncertainties, their ultimate resolution may result in
payments that are materially different from current
estimates. Any such differences will be reflected as
adjustments to income tax expense in the periods in which
they are determined.
IFRIC\u00a023 \u201cUncertainty over Income Tax Treatments\u201d provides
guidance on how to recognize and measure uncertainty over
\u201cincome tax\u201d treatment as defined by paragraph 5 of IAS 12.
The Group analyses all the tax treatments impacting current
tax or deferred tax and reported or planned to be reported in
income tax filings that could be challenged by the tax
authorities. The tax assets and liabilities relating to these
uncertain tax treatments are\u00a0reviewed on a case-by-case
basis assuming a full knowledge of the tax authorities and
measured at the most probable\u00a0amount.
For further information, refer to Note 13. Income tax.
Accounting for pension and other post-retirement
benefit plans
The determination of the projected benefit obligations of
pension and other post-retirement benefit plans are
important to the recorded amounts of such obligations in the
consolidated statement of financial position and to the
amount of pension expense in the consolidated statement of
income. To measure the projected benefit obligations of
pension and other post-retirement benefit plans and the
expense associated with such benefits, management must
make a variety of assumptions and estimates, including
discount rates used to value certain liabilities, rates of
compensation increase, employee turnover rates, retirement
rates, mortality rates and other factors. Management updates
these assumptions and estimates on an annual basis or more
frequently upon the occurrence of significant events. These
accounting assumptions and estimates consider the risk of
change due to the uncertainty and difficulty in estimating
these measures. Different assumptions and estimates used
by management could result in recognition of different
amounts of expense over different periods of time.
The discount rate affects the interest cost component of net
periodic pension cost and the calculation of the projected
benefit obligation. The discount rate is based on rates at
which the pension benefit obligation could be effectively
settled on a present value basis. Discount rates are derived
by identifying a theoretical settlement portfolio of long-term,
high quality (\u201cAA\u201d rated) corporate bonds at determination
date that is sufficient to provide for the projected pension
benefit payments. A single discount rate is determined that
results in a discounted value of the pension benefit
payments that equate to the market value of the selected
bonds. The resulting discount rate is reflective of both the
current interest rate environment and the pension\u2019s distinct
liability characteristics. Significant changes in the discount
rate, such as those caused by changes in the yield curve, the
mix of bonds available in the market, the duration of
selected bonds and the timing of expected benefit payments,
may result in volatility in pension expense and pension
liabilities.
Due to the specialized and statistical nature of these
calculations which attempt to anticipate future events,
management engages third-party specialists to assist in
evaluating assumptions as well as appropriately measuring
the costs and obligations associated with these pension and
other post-retirement benefits.
The actuarial assumptions and estimates made by
management in determining pension and other post-
retirement benefit obligations may materially differ from
actual results because of changing market and economic
conditions and changes in plan participant assumptions.
While management believes the assumptions and estimates
used are appropriate, differences in actual experience or
changes in plan participant assumptions may materially
affect the Technip Energies Group\u2019s financial position or
results of operations.
The Group\u2019s pension and other post-retirement obligations
are described in Note 24. Pensions and other long-term
employee benefits plans.
Provisions
The Group is involved in judicial or administrative litigation.
The process for assessing and measuring the risks related to
these proceedings is based on multiple factors that require
to make assumptions and estimates, particularly regarding
the assessment of uncertainties. Provisions are estimated
based on the Group best estimate of the expenditure
required to settle the obligations, considering all relevant
information available and different possible outcomes at the
reporting date.
",
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},
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"value": "b.Assumptions and sources of estimation uncertaintyThe key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which could have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year relate to:\u25a0Impairment of non-financial assets;\u25a0Income tax;\u25a0Accounting for pension and other post-retirement benefit plans;\u25a0Provisions.Impairment of non-financial assets\u25aaGoodwillGoodwill represents the excess of cost over the fair market value of net assets acquired in business combinations. Goodwill is not subject to amortization but is tested for impairment at the level of CGU or GCGUs the goodwill has been allocated to, on an annual basis, or more frequently if impairment indicators arise. Management has established September 30 as the date of its annual test for impairment of goodwill. Management identifies a potential impairment by comparing the recoverable amount of the applicable CGU or GCGUs to its carrying amount, including goodwill. If the carrying amount exceeds the recoverable amount of the applicable CGU or GCGUs, management measures the impairment by comparing the carrying value of the CGU or GCGUs to its recoverable amount. CGUs with goodwill are tested for impairment using a quantitative impairment test.Determining the recoverable amount of CGUs is judgmental and involves the use of significant estimates and assumptions. Management estimates the recoverable amount of the Group CGUs using a discounted future cash flow model. Most of the estimates and assumptions used in a discounted future cash flow model on a post-tax basis involve unobservable inputs reflecting management\u2019s own assumptions about the assumptions market participants would use in estimating the fair value of a business. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, discount rates and future economic and market conditions. The estimates are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and do not reflect unanticipated events and circumstances that may\u00a0occur.A lower recoverable amount estimate in the future for any of the Group\u2019s CGUs could result in a goodwill impairment. Factors that could trigger a lower recoverable amount estimate include sustained price declines of the CGUs\u2019 products and services, cost increases, regulatory or political environment changes, changes in customer demand, and other changes in market conditions, which may affect certain market participant assumptions used in the discounted future cash flow model based on internal forecasts of revenues and expenses over a specified period plus a terminal value (the income approach).The income approach estimates recoverable amount by discounting each CGUs estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of CGUs. To arrive at future cash flows, management uses estimates of economic and market assumptions, including growth rates in revenues, costs, estimates of future expected changes in operating margins, tax rates and capital expenditures. Future revenues are also adjusted to match changes in the Group business strategy. Management believes this approach is an appropriate valuation method and utilizes this approach in determining the CGUs valuations.For additional information related to goodwill impairment testing during the periods presented, refer to Note 14. Goodwill and intangible assets, net.\u25aaProperty, plant and equipment and identifiable intangible assetsProperty, plant and equipment and identifiable intangible assets being amortized are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of the non-financial assets may not be recoverable. The carrying amount of a non-financial asset is not recoverable if it exceeds the recoverable amount determined as the higher of an asset\u2019s fair value less costs of disposal and its value in use. If it is determined that an impairment loss has occurred, the loss is measured as the amount by which the carrying amount of the non-financial asset exceeds its recoverable amount. The determination of future value in use as well as the estimated fair value of non-financial assets involves significant estimates on the part of management. Because there usually is a lack of quoted market prices for non-financial assets, fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or based on a multiple of operating cash flow validated with historical market transactions of similar assets where possible. The expected future cash flows used for impairment reviews and related fair value calculations are based on judgmental assessments of future productivity of the asset, operating costs and capital decisions and all available information at the date of review. If future market conditions deteriorate beyond current expectations and assumptions, impairments of non-financial assets may be identified if management concludes that the carrying amounts are no longer recoverable.Refer to paragraphs i) Property, plant and equipment and k)\u00a0Intangible assets for estimates and accounting policies relevant to those assets.Income taxIncome tax expense, deferred tax assets and liabilities, and reserves for uncertain tax positions reflect management\u2019s best assessment of estimated future taxes to be paid. The Group is subject to income taxes in France and numerous other jurisdictions. Judgments and estimates are required in determining the consolidated income tax expense.In determining the current income tax provision, management assesses temporary differences resulting from differing treatments of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded in the consolidated statement of financial position. When management assesses deductible temporary differences, including those originating from tax losses carried forward, management must assess the probability that these will be recovered through the future taxable income. To the extent management believes recovery is not probable, no deferred tax asset is recognized. Management believes the assessment related to the availability of future taxable income is a critical accounting estimate because it is highly susceptible to change from period to period, requires management to make assumptions about future income over the period of deductible temporary differences, and finally, the impact of increasing or decreasing deferred tax assets is potentially material to the results of operations.Forecasting future income requires the use of a significant amount of judgment. In estimating future income, management uses internal operating budgets and long-range planning projections. Management develops its budgets and long-range projections based on recent results, trends, economic and industry forecasts influencing the Group\u2019s performance, its backlog, planned timing of new product launches and customer sales commitments. Significant changes in management\u2019s judgment related to the expected realizability of deductible temporary differences result in an adjustment to the associated deferred tax asset.The calculation of income tax expense involves dealing with uncertainties in the application of complex tax laws and regulations in numerous jurisdictions in which the Group operates. Management recognizes tax benefits related to uncertain tax positions when, in management\u2019s judgment, it is more likely than not that such positions will be sustained on examination, including resolutions of any related appeals or litigation, based on the technical merits. Management adjusts liabilities for uncertain tax positions when its judgment changes because of new information previously unavailable. Due to the complexity of some of these uncertainties, their ultimate resolution may result in payments that are materially different from current estimates. Any such differences will be reflected as adjustments to income tax expense in the periods in which they are determined.IFRIC\u00a023 \u201cUncertainty over Income Tax Treatments\u201d provides guidance on how to recognize and measure uncertainty over \u201cincome tax\u201d treatment as defined by paragraph 5 of IAS 12. The Group analyses all the tax treatments impacting current tax or deferred tax and reported or planned to be reported in income tax filings that could be challenged by the tax authorities. The tax assets and liabilities relating to these uncertain tax treatments are\u00a0reviewed on a case-by-case basis assuming a full knowledge of the tax authorities and measured at the most probable\u00a0amount.For further information, refer to Note 13. Income tax.Accounting for pension and other post-retirement benefit plansThe determination of the projected benefit obligations of pension and other post-retirement benefit plans are important to the recorded amounts of such obligations in the consolidated statement of financial position and to the amount of pension expense in the consolidated statement of income. To measure the projected benefit obligations of pension and other post-retirement benefit plans and the expense associated with such benefits, management must make a variety of assumptions and estimates, including discount rates used to value certain liabilities, rates of compensation increase, employee turnover rates, retirement rates, mortality rates and other factors. Management updates these assumptions and estimates on an annual basis or more frequently upon the occurrence of significant events. These accounting assumptions and estimates consider the risk of change due to the uncertainty and difficulty in estimating these measures. Different assumptions and estimates used by management could result in recognition of different amounts of expense over different periods of time.The discount rate affects the interest cost component of net periodic pension cost and the calculation of the projected benefit obligation. The discount rate is based on rates at which the pension benefit obligation could be effectively settled on a present value basis. Discount rates are derived by identifying a theoretical settlement portfolio of long-term, high quality (\u201cAA\u201d rated) corporate bonds at determination date that is sufficient to provide for the projected pension benefit payments. A single discount rate is determined that results in a discounted value of the pension benefit payments that equate to the market value of the selected bonds. The resulting discount rate is reflective of both the current interest rate environment and the pension\u2019s distinct liability characteristics. Significant changes in the discount rate, such as those caused by changes in the yield curve, the mix of bonds available in the market, the duration of selected bonds and the timing of expected benefit payments, may result in volatility in pension expense and pension liabilities.Due to the specialized and statistical nature of these calculations which attempt to anticipate future events, management engages third-party specialists to assist in evaluating assumptions as well as appropriately measuring the costs and obligations associated with these pension and other post-retirement benefits.The actuarial assumptions and estimates made by management in determining pension and other post-retirement benefit obligations may materially differ from actual results because of changing market and economic conditions and changes in plan participant assumptions. While management believes the assumptions and estimates used are appropriate, differences in actual experience or changes in plan participant assumptions may materially affect the Technip Energies Group\u2019s financial position or results of operations.The Group\u2019s pension and other post-retirement obligations are described in Note 24. Pensions and other long-term employee benefits plans.ProvisionsThe Group is involved in judicial or administrative litigation. The process for assessing and measuring the risks related to these proceedings is based on multiple factors that require to make assumptions and estimates, particularly regarding the assessment of uncertainties. Provisions are estimated based on the Group best estimate of the expenditure required to settle the obligations, considering all relevant information available and different possible outcomes at the reporting date.",
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},
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"value": "49500000",
"decimals": -5,
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},
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"value": "Expected credit loss
In assessing impairment of financial instruments, the Group
considered the potential effects of the conflict in Ukraine on
the measurement of its weighted average expected credit
loss rate. The analysis of the increase in the credit risk on
financial instruments has been performed on a collective
basis. Counterparties which are Russian or have links with
Russia have been identified. The Group concluded that there
is no impact on the rate used to measure the expected credit
loss at Group level. As of December\u00a031, 2022, balance sheet
positions of the Arctic LNG 2 project reflect the Group\u2019s
assessment of its exposure and level of collectability.
Excluding Arctic LNG 2, the Group\u2019s positions with Russian
external third parties are not material, and the collection of
receivables is considered highly probable.
Finally, these elements are reinforced by the way most of the
Group's long-term contracts are financed, notably through
advanced payments presented as contract liabilities on the
statement of financial position, and by the nature and
financial strength of the Group's major clients.
\u25aaLiquidity and currency risk
Further to the conflict in Ukraine and the consecutive sets of
sanctions and counter sanctions which have been enacted
by, amongst others, the European Union, the United States
authorities and the Central Bank of Russia, the Group is
monitoring financial risks to which it may be exposed such as
credit risk, liquidity risk and currency risk. The Group no
longer has any foreign exchange instruments related to
Rubles in its books, nor any debit situation with its treasury
center. The cash position held by Russian subsidiaries is not
material at Group level, and no loan is in place to Russian
entities or other Russian parties. The Group does not hold
significant balances of cash in Rubles or located in Russia
(detail by currency provided in Note 19. Cash and cash
equivalents).
Note 28.Market-related exposure
28.1.Liquidity risk
The primary objectives of liquidity management consist of
meeting the continuing funding requirements of Technip
Energies global operations with cash generated by such
operations and Technip Energies existing commercial paper
program.
Cash pooling and external financing are largely centralized at
T.EN Eurocash SNC. Funds are provided to Technip Energies
companies on the basis of an \u201cin-house banking\u201d solution.
The financing requirements of Technip Energies companies
are determined on the basis of short and medium-term
liquidity planning. The financing is controlled and
implemented centrally on a forward-looking basis in
accordance with the planned liquidity requirements or
surplus. Relevant planning factors taken into consideration
include operating cash flow, capital expenditures,
divestments, margin payments and the maturities of financial
liabilities.
Commercial paper program and credit facility
Under the commercial paper program, Technip Energies,
through its treasury center T.EN Eurocash SNC, has the
ability to access up to \u20ac750.0 million of financing through its
commercial paper dealers. Technip Energies had respectively
\u20ac79.9 million and \u20ac80.0 million of commercial paper issued
under the facility as of December\u00a031, 2022, and 2021. Refer to
Note 22. Debt (long and short-term) for more details.
The following is a summary of the credit facility as of December\u00a031, 2022:
| | | | |
| | | Commercial paper outstanding | |
Revolving credit facility | | | | |
Technip Energies\u2019 available capacity under the Revolving Facility is reduced by any outstanding commercial paper. As of
December\u00a031, 2022, all restrictive covenants were complying under the Revolving Facility agreement.
Undiscounted financial liabilities
The contractual undiscounted repayment schedule of financial liabilities as of December\u00a031, 2022 was as follows:
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Derivative financial instruments | | | | | | | |
Redeemable financial liability | | | | | | | |
TOTAL FINANCIAL LIABILITIES AS OF DECEMBER\u00a031, 2022 | | | | | | | |
The contractual undiscounted repayment schedule of financial liabilities as of December\u00a031, 2021 was as follows:
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Derivative financial instruments | | | | | | | |
Redeemable financial liability | | | | | | | |
Due to TechnipFMC - Trade payables | | | | | | | |
Due to TechnipFMC - Loans | | | | | | | |
TOTAL FINANCIAL LIABILITIES AS OF DECEMBER\u00a031, 2021 | | | | | | | |
28.2.Foreign currency exchange rate risk
Technip Energies conducts operations around the world in
several different currencies. Many of the Technip Energies
Group\u2019s significant foreign subsidiaries have designated the
local currency as their functional currency. Earnings are
therefore subject to change due to fluctuations in foreign
currency exchange rates when the earnings in foreign
currencies are translated into Euro. The Technip Energies
Group does not hedge this translation impact on earnings. A
10% increase or decrease in the average exchange rates of all
foreign currencies as of December\u00a031, 2022, would have
changed the Technip Energies Group\u2019s revenue and profit
(loss) before income taxes attributable to the Technip
Energies Group by approximately \u20ac319.4\u00a0million and
\u20ac32.6\u00a0million, respectively. A 10% increase or decrease in the
average exchange rates of all foreign currencies as of
December\u00a031, 2021 would have changed the Technip Energies
Group\u2019s revenue and profit (loss) before income taxes
attributable to the Technip Energies Group by approximately
\u20ac221.1 million and \u20ac33.6 million, respectively.
When transactions are denominated in currencies other than
the respective functional currencies of the applicable
subsidiaries of the Technip Energies Group, the Group
manages these exposures through derivative instruments.
The Group primarily uses foreign currency forward contracts
to hedge the foreign currency fluctuations associated with
firmly committed and forecasted foreign currency
denominated payments and receipts. The derivative
instruments associated with these anticipated transactions
are usually designated and qualify as cash flow hedges, and
as such the gains and losses associated with these
instruments are recorded in other comprehensive income
until such time that the underlying transactions are
recognized. Unless these cash flow contracts are deemed to
be ineffective or are not designated as cash flow hedges at
inception, changes in the derivative fair value will not have an
immediate impact on results of operations since the gains
and losses associated with these instruments are recorded in
other comprehensive income. When the anticipated
transactions occur, these changes in value of derivative
instrument positions will be offset against changes in the
value of the underlying transaction. When an anticipated
transaction in a currency other than the functional currency
of an entity is recognized as an asset or liability on the
statement of financial position, we also hedge the foreign
currency fluctuation of these assets and liabilities with
derivative instruments after netting the Technip Energies
Group\u2019s exposures worldwide. These derivative instruments
do not qualify as cash flow hedges.
Occasionally, the Technip Energies Group enters into
contracts or other arrangements containing terms and
conditions that qualify as embedded derivative instruments
and are subject to fluctuations in foreign exchange rates. In
those situations, the Technip Energies Group enters into
derivative foreign exchange contracts that hedge the price or
cost fluctuations due to movements in the foreign exchange
rates. These derivative instruments are not designated as
cash flow hedges.
For foreign currency forward contracts hedging anticipated
transactions that are accounted for as cash flow hedges, a
10% increase in the value of the Euro would have resulted in
an additional loss of \u20ac68.3\u00a0million and \u20ac65.0 million in the
net fair value of cash flow hedges reflected in the
consolidated statement of financial position as of
December\u00a031, 2022 and 2021 respectively.
For certain committed and anticipated future cash flows and
recognized assets and liabilities that are denominated in a
foreign currency the Technip Energies Group may choose to
manage risk against changes in the exchange rates, when
compared against the functional currency, through the
economic netting of exposures instead of derivative
instruments. Cash outflows or liabilities in a foreign currency
are matched against cash inflows or assets in the same
currency such that movements in exchange rates will result
in offsetting gains or losses. Due to the inherent
unpredictability of the timing of cash flows, gains and losses
in the current period may be economically offset by gains
and losses in a future period. All gains and losses are
recorded in the consolidated statement of income in the
period in which they are incurred. Gains and losses from the
remeasurement of assets and liabilities are recognized in
other income (expense), net.
28.3.Interest rate risk
The Technip Energies Group is generally financed using the
internal cash pooling system. Cash pooling balances earn and
bear interest on normal market terms and conditions (rates
of interest for specific maturities and currencies). Individual
members of the Technip Energies Group that are not
included in the internal cash pool due to legal restrictions
arrange financing independently or with discrete
intercompany loans at arm\u2019s length terms and conditions or
deposit their excess liquidity with leading local banks.
The Technip Energies Group assesses the effectiveness of
forward foreign currency contracts designated as cash flow
hedges based on changes in fair value attributable to
changes in spot rates. The Technip Energies Group excludes
the impact attributable to changes in the difference between
the spot rate and the forward rate for the assessment of
hedge effectiveness and recognizes the change in fair value
of this component immediately in earnings. Considering that
the difference between the spot rate and the forward rate is
proportional to the differences in the interest rates of the
countries of the currencies being traded, the Technip
Energies Group has exposure in the unrealized valuation of
its forward foreign currency contracts to relative changes in
interest rates between countries in its results of operations.
Based on the Technip Energies Group\u2019s portfolio as of
December\u00a031, 2022, the Technip Energies Group has material
positions with exposure to interest rates in the United States
of America and the European Union.
The Technip Energies Group\u2019s fixed-rate borrowings include
commercial paper. There are no floating rate borrowings.
| | |
| | |
| | |
Commercial paper (note 22) | | |
Bank borrowings and other (note 22) | | |
| | |
| | |
Sensitivity analysis as of December\u00a031, 2022
As of December\u00a031, 2022, the net cash position of the
Technip Energies Group (cash and cash equivalents, less
financial debts) amounted to \u20ac2,758.4 million. A 1% (100 basis
points) increase in interest rates would have generated an
additional profit of \u20ac27.6 million before tax in the net cash
position. A 1% (100\u00a0basis points) decrease in interest rates
would have generated a loss of the same amount.
Sensitivity analysis as of December\u00a031, 2021
As of December\u00a031, 2021, the net short-term cash position of
the Technip Energies Group (cash and cash equivalents, less
short-term financial debt) amounted to \u20ac2,955.3 million.
A\u00a01% (100 basis points) increase in interest rates would have
generated an additional profit of \u20ac29.6 million before tax in
the net cash position. A 1% (100 basis points) decrease in
interest rates would have generated a loss of the same
amount.
28.4.Credit risk
Valuations of derivative assets and liabilities reflect the value
of the instruments, including the values associated with
counterparty risk. These values must also take into account
the Technip Energies Group\u2019s credit standing, thus including
in the valuation of the derivative instrument the value of the
net credit differential between the counterparties to the
derivative contract. The methodology includes the impact of
both counterparties and such entity\u2019s own credit standing.
Adjustments to derivative assets and liabilities related to
credit risk were not material for any period presented.
By their nature, financial instruments involve risk, including
credit risk, for non-performance by counterparties. Financial
instruments that potentially subject the Technip Energies
Group to credit risk primarily consist of trade receivables,
contract assets, contractual cash flows from debt
instruments (primarily loans), cash equivalents and deposits
with banks, as well as derivative contracts. The Technip
Energies Group manages the credit risk on financial
instruments by transacting only with what management
believes are financially secure counterparties, requiring credit
approvals and credit limits, and monitoring counterparties\u2019
financial condition. The maximum exposure to credit loss in
the event of non-performance by the counterparty is limited
to the amount drawn and outstanding on the financial
instrument. The Technip Energies Group mitigates credit risk
on derivative contracts by executing contracts only with
counterparties that consent to a master netting agreement,
which permits the net settlement of gross derivative assets
against gross derivative liabilities.
The Group has applied the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables and
contract assets.
Credit risk exposure on trade receivables and contract assets using a provision matrix are set out as follows:
| | | | | | |
| |
| | | |
| | | | |
| | | | | | |
Weighted average expected credit loss rate | | | | | | |
| | | | | | |
| |
| | | |
| | | | |
| | | | | | |
Weighted average expected credit loss rate | | | | | | |
",
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},
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"value": "
Note 2.Changes in the scope of consolidation
Year ended December\u00a031, 2022
The Group did not have any significant acquisitions and divestitures during the twelve months ended December\u00a031, 2022.
Year ended December\u00a031, 2021
On April 27, 2021, the Technip Energies Group\u2019s participation in Inocean AS was increased to 100% by acquiring the remaining
49% of Inocean AS that the Group did not already own for \u20ac2.0 million. Inocean AS was already fully consolidated. The carrying
amount of non-controlling interests, at the date of acquisition, was \u20ac0.5 million.
The Group did not have any other significant acquisitions and divestitures during the twelve months ended December\u00a031, 2021.
The legal entities comprising Technip Energies\u2019 scope of consolidation including principal subsidiaries, associates and joint
ventures as of December\u00a031, 2022 are listed below:
31.1.Principal subsidiaries
| | |
| | Interest held in % as of December\u00a031, 2022 |
| | |
Genesis Energies Consultants Pty Ltd | Ground Floor, 1 William Street Perth WA 6000 | |
T.EN Australia and New Zealand Pty Ltd | Ground Floor, 1 William Street Perth WA 6000 | |
| | |
| Unitary Enterprise \u201cDeloitte Legal\u201d 51A K. Tsetkin St. 220004 Minsk | |
| | |
Genesis Oil & Gas Brasil Engenharia Ltda. | Rua Paulo Em\u00eddio Barbosa, 485, quadra 4 (parte) Cidade Universit\u00e1ria 21941-615, Rio de Janeiro | |
| | |
T.EN Engineering (B) Snd. Bhd. | B6, Second Floor, Block B, Shakirin Complex, Kampong Kiulap BE1518, Bandar Seri Begawan, Brunei Darussalam | |
| | |
Shanghai T.EN Trading Co. Ltd. | Room 1904, 19th Floor, Xuhui Vanke Center 55 Ding\u2019An Road 200030, Shanghai | |
T.EN Chemical Engineering (Tianjin) Co. Ltd. | 521 Jing Jin Road 300400, Tianjin | |
T.EN Engineering Consultant (Shanghai) Co. Ltd. | Room 1902, 19th Floor, Xuhui Vanke Center 55 Ding\u2019An Road 200030, Shanghai | |
Gydan Yard Management Services (Shanghai) Co. Ltd. | 18F/1329 Huai Hai Middle Road 200010, Shanghai | |
| | |
| Calle 38 # 8-62 Piso 3, 110111, Bogota D.C. | |
| | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
| Technop\u00f4le de Ch\u00e2teau Gombert 306 Rue Albert Einstein BP 94 13382 Marseille Cedex 13 | |
| Technop\u00f4le de Ch\u00e2teau Gombert 306 Rue Albert Einstein BP 94 13382 Marseille Cedex 13 | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
| | |
| | Interest held in % as of December 31, 2022 |
| | |
ENHL- TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
JGC Fluor TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo Maputo | |
| Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
| | |
| Afrikaweg 30, 2713 AW, Zoetermeer | |
Etileno XXI Services B.V. | Beursplein 37, Office 869, 3011 AA Rotterdam | |
| | |
| Vollsveien 17A , 1366, Lysaker | |
| | |
Technip Italy S.p.A. & Dar Al Riyadh for Engineering Consulting | P.O. Box 3596, 34423 Al-Khobar | |
| | |
| 50 Gul Road, 629351 Singapore | |
| | |
| Office # LB15312 P.O. Box 17891 Jebel Ali Free Zone - Dubai | |
| | |
Spars International, Inc. | c/o CT Corporation System 1999 Bryan Street, Suite 900 Dallas, Texas 75201 | |
Deep Oil Technology, Inc. | c/o CT Corporation System 818 W. Seven St. Los Angeles, California 90017 | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NzYvZnJhZzpiMDM5NzFmZTU2ZjM0NzQyYWYwNzJkMmVmNTcyZTc4ZS90ZXh0cmVnaW9uOmIwMzk3MWZlNTZmMzQ3NDJhZjA3MmQyZWY1NzJlNzhlXzI1Mjg4NzY3NDQzOTE1_128b4322-e970-4fc7-9149-b4e0743c2856": {
"value": "
Note 4.Revenue
4.1.Principal revenue generating activities
As one of the largest E&T groups by revenue, Technip
Energies Group offers what it characterizes as a full range of
design and project development services to its customers
spanning the downstream value chain, from early
engagement technical consulting through final acceptance
testing.
The Group\u2019s offering to its clients consists of Project
Delivery, and Technology, Products & Services. Technip
Energies Group business focuses on the study, engineering,
procurement, construction, and project management of the
entire range of onshore and offshore facilities related to gas
monetization, refining, and chemical processing from biofuels
and hydrocarbons.
The majority of the Technip Energies Group revenue is from
long-term contracts associated with designing and
manufacturing products and systems and providing services
to customers involved in the energy sector.
Many of these contracts provide a combination of
engineering, procurement, construction, project management
and installation services, which may last several years.
Management has determined that contracts of this nature
have generally one performance obligation. In these
contracts, the final product is highly customized to the
specifications of the field and the customer\u2019s requirements.
Therefore, the customer obtains control of the asset over
time, and thus revenue is recognized over time.
These customized products do not have an alternative use
for Technip Energies Group. The Group has an enforceable
right to payment plus reasonable profit for performance
completed to date.
4.2.Disaggregation of revenue
The Technip Energies Group disaggregates revenue from external customers as follows:
| | | | | | |
| | |
| | Technology, Products & Services | | | Technology, Products & Services | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The increase in our contract assets from December\u00a031, 2021,
to December\u00a031, 2022, was primarily due to the timing of
milestones.
The increase in contract liabilities was primarily due to
additional cash received, excluding amounts recognized as
revenue during the period.
To determine revenue recognized in the period from contract
liabilities, the Group allocates revenue to the individual
contract liability balance outstanding at the beginning of the
period until the revenue exceeds that balance. Revenue
recognized for the years ended December\u00a031, 2022 and 2021
that were included in the contract liabilities balance at
December\u00a031, 2021 and 2020 was \u20ac2,524.2 million and
\u20ac2,016.8 million, respectively.
Revenue recognized for the years ended December\u00a031, 2022
and 2021 from the Technip Energies Group's performance
obligations satisfied in previous periods had a favorable
impact of \u20ac133.2 million and \u20ac434.0 million respectively. This
primarily relates to changes in the estimate of the stage of
completion.
4.4.Transaction price allocated to the remaining unsatisfied performance obligations
Remaining unsatisfied performance obligations (\u201cbacklog\u201d)
represent the transaction price for products and services for
which we have an enforceable right but work has not been
performed. Transaction price of the backlog includes the
base transaction price, variable consideration, and changes in
transaction price. The backlog table does not include
contracts for which we recognize revenue at the amount to
which we have the right to invoice for services performed.
The transaction price of backlog related to unfilled,
confirmed customer orders is estimated at each reporting
date. As of December\u00a031, 2022 and 2021, the aggregate
amount of the transaction price allocated to backlog was
\u20ac12,494.2 million and \u20ac15,916.9 million, respectively.
Remaining unsatisfied performance obligations as of
December\u00a031, 2022 takes into consideration the revision of
the backlog associated with Arctic LNG 2 project.
The following table details the backlog as of December\u00a031, 2022:
| | | |
| | | |
Total remaining unsatisfied performance obligations | | | |
The following table details the backlog as of December\u00a031, 2021:
| | | |
| | | |
Total remaining unsatisfied performance obligations | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82NzkvZnJhZzo2NTI3ZDA2ZDEzZTY0NzlkOTRiNWQzNjNjNTVjN2NiYi90ZXh0cmVnaW9uOjY1MjdkMDZkMTNlNjQ3OWQ5NGI1ZDM2M2M1NWM3Y2JiXzI1Mjg4NzY3NDQ1NjY4_736287b3-d4f6-496a-908a-54cfb7d4863b": {
"value": "
Note 5.Impairment, restructuring and other expense
Impairment, restructuring and other expense is detailed as follows:
| | |
| | |
| | |
Restructuring and non-recurring income (expense) | | |
| | |
| | |
TOTAL IMPAIRMENT, RESTRUCTURING AND OTHER EXPENSE | | |
Impairment costs
As of December\u00a031, 2022, three buildings leased and used by
the Group for its offices have been impaired for an aggregate
of \u20ac12.7 million. The impairment test conducted on Goodwill
is discussed in detail in Note 1. Accounting principles and
presented in Note 14. Goodwill and intangible assets, net and
concluded to the absence of impairment.
Restructuring and non-recurring income (expense)
As of December\u00a031, 2022, restructuring and non-recurring
income (expense) were made of releases of provisions for
which risks expired, partially offset by severance costs.
During the year ended December\u00a031, 2021, restructuring and
non-recurring income (expense) included \u20ac3.8 million of
severance costs and \u20ac0.4 million of release of provision on
facility costs (mainly early lease termination and relocation).
Separation costs
Separation-related costs include fees and expenses
associated with the separation transaction from TechnipFMC
(the \u201cSpin-off\u201d) for \u20ac28.3 million as of December\u00a031, 2021.
The costs included legal and tax advice expenses, consulting
services and other separation activities related costs. There
were no separation related costs incurred as of December\u00a031,
2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82ODIvZnJhZzoyMTg0OTFlZTQxY2I0MjNmOGM1MDIyNGJhNzkyZmNiNC90ZXh0cmVnaW9uOjIxODQ5MWVlNDFjYjQyM2Y4YzUwMjI0YmE3OTJmY2I0XzI1Mjg4NzY3NDM4OTIy_54e3092b-3f55-4ffd-bace-4504d84c82db": {
"value": "
Note 6.Other operating income (expense), net
Total other income and expense, net is as follows:
| | |
| | |
Foreign currency gain (loss) | | |
Reinsurance income (expense) | | |
Net gain (loss) from disposal of property, plant and equipment and intangible assets | | |
| | |
TOTAL OTHER OPERATING INCOME (EXPENSE), NET | | |
",
"dimensions": {
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"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTEvZnJhZzowOWUyYmFiMDU2NGY0YmYwYmIwZjkwNzVhNjhmYjMwMC90ZXh0cmVnaW9uOjA5ZTJiYWIwNTY0ZjRiZjBiYjBmOTA3NWE2OGZiMzAwXzI1Mjg4NzY3NDQzMDgx_a92533de-95b6-4480-a220-14b7ed33801b": {
"value": "
Note 9.Investment in equity affiliates, joint ventures and other
construction project entities
The carrying amounts of the Technip Energies Group's equity affiliates and joint ventures accounted for under the equity
method amounted to \u20ac106.3 million and \u20ac75.4 million as of December\u00a031, 2022 and December\u00a031, 2021, respectively.
Main equity investments were as follows as of December\u00a031, 2022, and December\u00a031, 2021:
| | | | | |
| | | |
(In millions of \u20ac, except %) | Place of business/ incorporation | | | | |
| | | | | |
| | | | | |
| France, Russian Federation | | | | |
| | | | | |
| | | | | |
| | | | | |
ENI Coral FLNG is an affiliated company in the form of a joint
venture between Technip Energies, JGC Corporation,
Samsung Heavy Industries and TechnipFMC, all partners in
the TJS Consortium. ENI Coral FLNG was formed in 2017
when awarded a contract for the Engineering, Procurement,
Construction, Installation, Commissioning and Startup of the
Coral South FLNG facility. The 50.0% investment has been
accounted for using the equity method.
BAPCO Sitra Refinery is an affiliated company in the form of
a joint venture between Technip Energies and Samsung
Engineering and T\u00e9cnicas Reunidas. BAPCO Sitra Refinery was
formed in 2018 when awarded a contract from Bahrain
Petroleum Company for the BAPCO Modernization Program
(BMP) for the expansion of the capacity of the existing Sitra
oil refinery in Bahrain's Eastern coast. The 36.0% investment
has been accounted for using the equity method.
Novarctic is an affiliated company in the form of a joint
venture between Technip Energies, Saipem and Nipigas. The
entity was formed in 2019 when awarded a contract from
Novatek for three liquefied natural gas (LNG) trains to
manage the construction located in the Gydan peninsula in
West Siberia, Russia. The 33.3% investment has been
accounted for using the equity method.
With our partner Chiyoda Corporation, Technip Energies was
awarded a contract from Qatar Petroleum for the onshore
facilities of the North Field East Project for four liquefied
natural gas (LNG) trains and associated utility facilities (NFE
Project). To carry out our performance obligation under the
contract, various legal companies and arrangements have
been established, some of which qualify as joint operations
according to IFRS 11 and are accounted at our proportionate
share of such operations and others are joint ventures which
are accounted for using the equity method.
The Technip Energies Group's total net profit from equity
affiliates and joint ventures was \u20ac78.1 million and \u20ac33.1
million as of December\u00a031, 2022 and 2021 respectively.
The Technip Energies Group\u2019s dividends received from equity
affiliates and joint ventures was \u20ac52.8 million as of
December\u00a031, 2022 and was nil as of December\u00a031, 2021.
The summarized financial information (at 100%) of these
investments in joint ventures and associates is presented
below for all entities as well as separately for the three
major equity investments:
Summarized statement of financial position:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
| | | | |
Cash and cash equivalents | | | | |
| | | | |
Total non-current liabilities | | | | |
Total current liabilities | | | | |
| | | | |
Net assets attributable to Technip Energies Group | | | | |
Negative investments reclassification | | | | |
Investments in equity affiliates | | | | |
Summarized statement of total comprehensive income:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
Depreciation and amortization | | | | |
| | | | |
| | | | |
Income tax (expense)/profit | | | | |
| | | | |
Other comprehensive income | | | | |
TOTAL COMPREHENSIVE INCOME (LOSS) | | | | |
| | |
| | Interest held in % as of December 31, 2022 |
| | |
ENHL- TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
JGC Fluor TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo Maputo | |
| Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
| | |
| Afrikaweg 30, 2713 AW, Zoetermeer | |
Etileno XXI Services B.V. | Beursplein 37, Office 869, 3011 AA Rotterdam | |
| | |
| Vollsveien 17A , 1366, Lysaker | |
| | |
Technip Italy S.p.A. & Dar Al Riyadh for Engineering Consulting | P.O. Box 3596, 34423 Al-Khobar | |
| | |
| 50 Gul Road, 629351 Singapore | |
| | |
| Office # LB15312 P.O. Box 17891 Jebel Ali Free Zone - Dubai | |
| | |
Spars International, Inc. | c/o CT Corporation System 1999 Bryan Street, Suite 900 Dallas, Texas 75201 | |
Deep Oil Technology, Inc. | c/o CT Corporation System 818 W. Seven St. Los Angeles, California 90017 | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTEvZnJhZzowOWUyYmFiMDU2NGY0YmYwYmIwZjkwNzVhNjhmYjMwMC90ZXh0cmVnaW9uOjA5ZTJiYWIwNTY0ZjRiZjBiYjBmOTA3NWE2OGZiMzAwXzI1Mjg4NzY3NDQzMDgx_fb3f140b-3e13-4a0e-a99d-9339a8d6d582": {
"value": "
Note 9.Investment in equity affiliates, joint ventures and other
construction project entities
The carrying amounts of the Technip Energies Group's equity affiliates and joint ventures accounted for under the equity
method amounted to \u20ac106.3 million and \u20ac75.4 million as of December\u00a031, 2022 and December\u00a031, 2021, respectively.
Main equity investments were as follows as of December\u00a031, 2022, and December\u00a031, 2021:
| | | | | |
| | | |
(In millions of \u20ac, except %) | Place of business/ incorporation | | | | |
| | | | | |
| | | | | |
| France, Russian Federation | | | | |
| | | | | |
| | | | | |
| | | | | |
ENI Coral FLNG is an affiliated company in the form of a joint
venture between Technip Energies, JGC Corporation,
Samsung Heavy Industries and TechnipFMC, all partners in
the TJS Consortium. ENI Coral FLNG was formed in 2017
when awarded a contract for the Engineering, Procurement,
Construction, Installation, Commissioning and Startup of the
Coral South FLNG facility. The 50.0% investment has been
accounted for using the equity method.
BAPCO Sitra Refinery is an affiliated company in the form of
a joint venture between Technip Energies and Samsung
Engineering and T\u00e9cnicas Reunidas. BAPCO Sitra Refinery was
formed in 2018 when awarded a contract from Bahrain
Petroleum Company for the BAPCO Modernization Program
(BMP) for the expansion of the capacity of the existing Sitra
oil refinery in Bahrain's Eastern coast. The 36.0% investment
has been accounted for using the equity method.
Novarctic is an affiliated company in the form of a joint
venture between Technip Energies, Saipem and Nipigas. The
entity was formed in 2019 when awarded a contract from
Novatek for three liquefied natural gas (LNG) trains to
manage the construction located in the Gydan peninsula in
West Siberia, Russia. The 33.3% investment has been
accounted for using the equity method.
With our partner Chiyoda Corporation, Technip Energies was
awarded a contract from Qatar Petroleum for the onshore
facilities of the North Field East Project for four liquefied
natural gas (LNG) trains and associated utility facilities (NFE
Project). To carry out our performance obligation under the
contract, various legal companies and arrangements have
been established, some of which qualify as joint operations
according to IFRS 11 and are accounted at our proportionate
share of such operations and others are joint ventures which
are accounted for using the equity method.
The Technip Energies Group's total net profit from equity
affiliates and joint ventures was \u20ac78.1 million and \u20ac33.1
million as of December\u00a031, 2022 and 2021 respectively.
The Technip Energies Group\u2019s dividends received from equity
affiliates and joint ventures was \u20ac52.8 million as of
December\u00a031, 2022 and was nil as of December\u00a031, 2021.
The summarized financial information (at 100%) of these
investments in joint ventures and associates is presented
below for all entities as well as separately for the three
major equity investments:
Summarized statement of financial position:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
| | | | |
Cash and cash equivalents | | | | |
| | | | |
Total non-current liabilities | | | | |
Total current liabilities | | | | |
| | | | |
Net assets attributable to Technip Energies Group | | | | |
Negative investments reclassification | | | | |
Investments in equity affiliates | | | | |
Summarized statement of total comprehensive income:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
Depreciation and amortization | | | | |
| | | | |
| | | | |
Income tax (expense)/profit | | | | |
| | | | |
Other comprehensive income | | | | |
TOTAL COMPREHENSIVE INCOME (LOSS) | | | | |
method amounted to \u20ac106.3 million and \u20ac75.4 million as of December\u00a031, 2022 and December\u00a031, 2021, respectively.
Main equity investments were as follows as of December\u00a031, 2022, and December\u00a031, 2021:
| | | | | |
| | | |
(In millions of \u20ac, except %) | Place of business/ incorporation | | | | |
| | | | | |
| | | | | |
| France, Russian Federation | | | | |
| | | | | |
| | | | | |
| | | | | |
ENI Coral FLNG is an affiliated company in the form of a joint
venture between Technip Energies, JGC Corporation,
Samsung Heavy Industries and TechnipFMC, all partners in
the TJS Consortium. ENI Coral FLNG was formed in 2017
when awarded a contract for the Engineering, Procurement,
Construction, Installation, Commissioning and Startup of the
Coral South FLNG facility. The 50.0% investment has been
accounted for using the equity method.
BAPCO Sitra Refinery is an affiliated company in the form of
a joint venture between Technip Energies and Samsung
Engineering and T\u00e9cnicas Reunidas. BAPCO Sitra Refinery was
formed in 2018 when awarded a contract from Bahrain
Petroleum Company for the BAPCO Modernization Program
(BMP) for the expansion of the capacity of the existing Sitra
oil refinery in Bahrain's Eastern coast. The 36.0% investment
has been accounted for using the equity method.
Novarctic is an affiliated company in the form of a joint
venture between Technip Energies, Saipem and Nipigas. The
entity was formed in 2019 when awarded a contract from
Novatek for three liquefied natural gas (LNG) trains to
manage the construction located in the Gydan peninsula in
West Siberia, Russia. The 33.3% investment has been
accounted for using the equity method.
With our partner Chiyoda Corporation, Technip Energies was
awarded a contract from Qatar Petroleum for the onshore
facilities of the North Field East Project for four liquefied
natural gas (LNG) trains and associated utility facilities (NFE
Project). To carry out our performance obligation under the
contract, various legal companies and arrangements have
been established, some of which qualify as joint operations
according to IFRS 11 and are accounted at our proportionate
share of such operations and others are joint ventures which
are accounted for using the equity method.
The Technip Energies Group's total net profit from equity
affiliates and joint ventures was \u20ac78.1 million and \u20ac33.1
million as of December\u00a031, 2022 and 2021 respectively.
The Technip Energies Group\u2019s dividends received from equity
affiliates and joint ventures was \u20ac52.8 million as of
December\u00a031, 2022 and was nil as of December\u00a031, 2021.
The summarized financial information (at 100%) of these
investments in joint ventures and associates is presented
below for all entities as well as separately for the three
major equity investments:
Summarized statement of financial position:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
| | | | |
Cash and cash equivalents | | | | |
| | | | |
Total non-current liabilities | | | | |
Total current liabilities | | | | |
| | | | |
Net assets attributable to Technip Energies Group | | | | |
Negative investments reclassification | | | | |
Investments in equity affiliates | | | | |
Summarized statement of total comprehensive income:
| | | | |
| Total for all JVs and associates | Bapco, Coral and Novarctic only |
| | | | |
| | | | |
| | | | |
Depreciation and amortization | | | | |
| | | | |
| | | | |
Income tax (expense)/profit | | | | |
| | | | |
Other comprehensive income | | | | |
TOTAL COMPREHENSIVE INCOME (LOSS) | | | | |
| | |
| | Interest held in % as of December 31, 2022 |
| | |
ENHL- TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
JGC Fluor TechnipFMC Mozambique, LDA | Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo Maputo | |
| Av. Vladimir Lenine, 1123, 7\u00ba andar Edif\u00edcio Topazio Maputo | |
| | |
| Afrikaweg 30, 2713 AW, Zoetermeer | |
Etileno XXI Services B.V. | Beursplein 37, Office 869, 3011 AA Rotterdam | |
| | |
| Vollsveien 17A , 1366, Lysaker | |
| | |
Technip Italy S.p.A. & Dar Al Riyadh for Engineering Consulting | P.O. Box 3596, 34423 Al-Khobar | |
| | |
| 50 Gul Road, 629351 Singapore | |
| | |
| Office # LB15312 P.O. Box 17891 Jebel Ali Free Zone - Dubai | |
| | |
Spars International, Inc. | c/o CT Corporation System 1999 Bryan Street, Suite 900 Dallas, Texas 75201 | |
Deep Oil Technology, Inc. | c/o CT Corporation System 818 W. Seven St. Los Angeles, California 90017 | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTEvZnJhZzowOWUyYmFiMDU2NGY0YmYwYmIwZjkwNzVhNjhmYjMwMC90ZXh0cmVnaW9uOjA5ZTJiYWIwNTY0ZjRiZjBiYjBmOTA3NWE2OGZiMzAwXzEwOTk1MTE2MjgyMjI1_5d57e30c-96b2-4467-abd9-b62e3c7f79c3": {
"value": "33100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzI1Mjg4NzY3NDQwMDU3_5e221131-09f1-4cb3-8b56-87fadfeb3043": {
"value": "
Note 10.Financial income (expense)
Total financial income was as follows for the years ended December\u00a031, 2022 and 2021:
| | |
| | |
| | |
Dividends from non-consolidated investments | | |
| | |
| | |
Interest income reached \u20ac41.1 million and \u20ac13.8 million as of
December\u00a031, 2022 and 2021 respectively. The variation was
mainly caused by the increase of the average deposit amount
and the rise of the interest rate during 2022.
Other financial income included fair value through profit and
loss of quoted equity instruments for \u20ac5.9 million and \u20ac2.1
million, as of December\u00a031, 2022 and 2021.
Total financial expense was as follows for the years ended
December\u00a031, 2022 and 2021:
| | |
| | |
| | |
Financial expense related to long-term employee benefit plan | | |
Redeemable financial liability fair value measurement | | |
| | |
| | |
Total financial expense was mainly composed of \u20ac154.1
million and \u20ac182.9\u00a0million as of December\u00a031, 2022 and 2021
respectively, related to the Yamal redeemable financial
liability fair value measurement (Note 26.).
Interest expense included lease interest for \u20ac4.6\u00a0million and
\u20ac5.8 million as of December\u00a031, 2022 and 2021 respectively.
Other financial expense included fair value through profit and
loss of quoted equity instruments for \u20ac6.0 million and \u20ac8.1
million as of December\u00a031, 2022 and 2021 respectively.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzg3OTYwOTMwMjM4Mzc_967c533b-4105-4372-a712-7e9ded29cf00": {
"value": "
Total financial income was as follows for the years ended December\u00a031, 2022 and 2021:
| | |
| | |
| | |
Dividends from non-consolidated investments | | |
| | |
| | |
Interest income reached \u20ac41.1 million and \u20ac13.8 million as of
December\u00a031, 2022 and 2021 respectively. The variation was
mainly caused by the increase of the average deposit amount
and the rise of the interest rate during 2022.
Other financial income included fair value through profit and
loss of quoted equity instruments for \u20ac5.9 million and \u20ac2.1
million, as of December\u00a031, 2022 and 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzI1Mjg4NzY3NDQwMDU5_67e6b8c4-b059-4686-a901-055468104a43": {
"value": "
Interest income reached \u20ac41.1 million and \u20ac13.8 million as of
December\u00a031, 2022 and 2021 respectively. The variation was
mainly caused by the increase of the average deposit amount
and the rise of the interest rate during 2022.
Interest expense included lease interest for \u20ac4.6\u00a0million and \u20ac5.8 million as of December\u00a031, 2022 and 2021 respectively.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzI1Mjg4NzY3NDQwMDU5_f5410ee2-37de-43d9-81c3-247d435e4005": {
"value": "
Interest income reached \u20ac41.1 million and \u20ac13.8 million as of
December\u00a031, 2022 and 2021 respectively. The variation was
mainly caused by the increase of the average deposit amount
and the rise of the interest rate during 2022.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzI1Mjg4NzY3NDQwMDYw_d1987ee3-48c1-4598-a0a8-bc362df7f580": {
"value": "
Total financial expense was as follows for the years ended
December\u00a031, 2022 and 2021:
| | |
| | |
| | |
Financial expense related to long-term employee benefit plan | | |
Redeemable financial liability fair value measurement | | |
| | |
| | |
Total financial expense was mainly composed of \u20ac154.1
million and \u20ac182.9\u00a0million as of December\u00a031, 2022 and 2021
respectively, related to the Yamal redeemable financial
liability fair value measurement (Note 26.).
Interest expense included lease interest for \u20ac4.6\u00a0million and
\u20ac5.8 million as of December\u00a031, 2022 and 2021 respectively.
Other financial expense included fair value through profit and
loss of quoted equity instruments for \u20ac6.0 million and \u20ac8.1
million as of December\u00a031, 2022 and 2021 respectively.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTQvZnJhZzphNzI0ZGNjNGUwY2U0NDRmYTg4ZDIwNTYwZDIwNjY5ZC90ZXh0cmVnaW9uOmE3MjRkY2M0ZTBjZTQ0NGZhODhkMjA1NjBkMjA2NjlkXzI1Mjg4NzY3NDQwMDYx_b09b3469-e77c-4e81-bc45-e8b19a53ce9a": {
"value": "
Interest expense included lease interest for \u20ac4.6\u00a0million and \u20ac5.8 million as of December\u00a031, 2022 and 2021 respectively.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl82OTcvZnJhZzpjMWJiMzg0NGRlZDk0MTFlYTQxYmJhNTZlYzcxNzdlNS90ZXh0cmVnaW9uOmMxYmIzODQ0ZGVkOTQxMWVhNDFiYmE1NmVjNzE3N2U1XzI1Mjg4NzY3NDM4OTQx_30fd324c-95ac-486c-93b6-9be78fe9cc85": {
"value": "
Note 11.Expenses by nature
Operating expenses by nature
Total operating expenses by nature were as follows:
| | |
| | |
Wages, salaries and other pension costs | | |
Depreciation and amortization | | |
Purchases, external charges and other expenses | | |
| | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MDAvZnJhZzoyYTJhODRiOWY2YmQ0YzIyOTQwYjIxYjFkYzYwMTg0Ni90ZXh0cmVnaW9uOjJhMmE4NGI5ZjZiZDRjMjI5NDBiMjFiMWRjNjAxODQ2XzI1Mjg4NzY3NDM4OTk3_18cf3dbd-89fd-4af0-b496-213b71025569": {
"value": "
Note 12.Payroll staff
As of December\u00a031, 2022 and 2021, the Technip Energies Group employed 14,515 and 15,586 full-time employees respectively.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MDMvZnJhZzo0NWI2M2U4ZGNlNWI0OWNjYTNlNzk5NmUxYTk1YzdhMS90ZXh0cmVnaW9uOjQ1YjYzZThkY2U1YjQ5Y2NhM2U3OTk2ZTFhOTVjN2ExXzI1Mjg4NzY3NDQxMjc0_a0125510-e5a8-48ac-bb40-cccf07abe2de": {
"value": "
Note 13.Income tax
13.1.Income tax expense
Technip Energies N.V. is incorporated in the Netherlands.
However, for income tax purposes Technip Energies N.V. is
resident in France where its effective place of management
is located and where some of its main entities operate.
Therefore, Technip Energies N.V. earnings are subject to tax
at the French statutory tax rate of 25.83% (vs. 28.41% in
2021).
The following table provides details of income taxes, including deferred taxes for 2022 and 2021:
| | |
| | |
Current income tax credit (expense) | | |
Deferred income tax credit (expense) | | |
Income tax credit (expense) as recognized in the consolidated statement of income | | |
Income tax credit (expense) as recognized in consolidated statement of other comprehensive income at opening | | |
Deferred income tax related to items booked to equity during the year | | |
INCOME TAX CREDIT (EXPENSE) AS RECOGNIZED IN CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | | |
(1) | | Difference between Technip Energies N.V. and affiliates tax rates | | |
Non creditable foreign taxes | | |
Lump sum taxes classified as income taxes | | |
Non-deductible expenses for tax purposes(2) | | |
Net change in tax contingencies | | |
Adjustments on prior year taxes | | |
Net change in deferred tax assets recognized | | |
Share of profit (loss) of equity-accounted investees | | |
IFRS adjustments with no tax impact | | |
Deferred tax impact related to change in tax rate | | |
| | |
Effective income tax credit (expense) | | |
| | |
INCOME TAX CREDIT (EXPENSE) AS RECOGNIZED IN THE CONSOLIDATED STATEMENT OF INCOME | | |
(1)The tax rate used for the purpose of the income tax expense reconciliation was 25.83% in 2022 and 28.41% in 2021. The rate corresponds to the statutory rate in France where the parent company is tax resident, as well as many other Group\u2019s entities. (2)Formerly Other non-deductible expenses. |
| | | | | | |
| | Recognized in statement of Income | Recognized in statement of OCI | Net foreign exchange difference | | |
Tax loss carry-forwards and tax credits | | | | | | |
| | | | | | |
Foreign exchange derivatives | | | | | | |
Employee compensation and benefits | | | | | | |
| | | | | | |
Construction contract accounting | | | | | | |
Total deferred income tax assets | | | | | | |
Property, plant and equipment, goodwill and other assets | | | | | | |
| | | | | | |
Total deferred income tax liabilities | | | | | | |
DEFERRED INCOME TAX ASSETS (LIABILITIES), NET | | | | | | |
| | | | | | |
| | Recognized in statement of Income | Recognized in statement of OCI | Net foreign exchange difference | | |
Tax loss carry-forwards and tax credits | | | | | | |
| | | | | | |
Foreign exchange derivatives | | | | | | |
Employee compensation and benefits | | | | | | |
| | | | | | |
Construction contract accounting | | | | | | |
Total deferred income tax assets | | | | | | |
Property, plant and equipment, goodwill and other assets | | | | | | |
| | | | | | |
Total deferred income tax liabilities | | | | | | |
DEFERRED INCOME TAX ASSETS (LIABILITIES), NET | | | | | | |
Current assets are as follows:
| | |
| | |
Value added and other tax receivables | | |
| | |
| | |
| | |
| | |
TOTAL OTHER CURRENT ASSETS | | |
The following table provides a breakdown of other current liabilities:
| | |
| | |
Redeemable financial liability | | |
Current financial liability at FVTPL, total | | |
Accruals on completed contracts | | |
| | |
Social security liabilities | | |
| | |
| | |
Other current liabilities, total | | |
TOTAL OTHER CURRENT LIABILITIES | | |
(1)For the year ended December 31, 2022, \u201cOthers\u201d notably included government grants for \u20ac27.4 million, a \u20ac23.7 million liability incurred by Technip Energies N.V. in relation to the Spin-off, \u20ac24.6 million of customer advance payment and other current liabilities as well as the short-term portion of provisions for pensions and other employee benefits for \u20ac8.8 million. As of December 31, 2021, \u201cOthers\u201d notably included liability on lawsuit litigation for \u20ac48.6 million, a \u20ac24.8 million liability incurred by Technip Energies N.V. in relation to the Spin-off, \u20ac24.2 million of customer advance payment and other current liabilities as well as the short-term portion of provisions for pensions and other employee benefits for \u20ac9.9 million. |
",
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"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MjQvZnJhZzphY2ExYWQ0YzE3MGU0YzY1YWE3NjE5MWY0MDMxYThmNS90YWJsZTo2NDUwZWExOWRjMzg0ZWJjOWE2NDBmY2ZkYTFlYmIwZC90YWJsZXJhbmdlOjY0NTBlYTE5ZGMzODRlYmM5YTY0MGZjZmRhMWViYjBkXzExLTAtMS0xLTMwMDY4NQ_2ae0d582-06ba-4be5-b793-81c1747982dd": {
"value": "
(1)For the year ended December 31, 2022, \u201cOthers\u201d notably included government grants for \u20ac27.4 million, a \u20ac23.7 million liability incurred by Technip
Energies N.V. in relation to the Spin-off, \u20ac24.6 million of customer advance payment and other current liabilities as well as the short-term portion of
provisions for pensions and other employee benefits for \u20ac8.8 million. As of December 31, 2021, \u201cOthers\u201d notably included liability on lawsuit litigation
for \u20ac48.6 million, a \u20ac24.8 million liability incurred by Technip Energies N.V. in relation to the Spin-off, \u20ac24.2 million of customer advance payment
and other current liabilities as well as the short-term portion of provisions for pensions and other employee benefits for \u20ac9.9 million.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MjcvZnJhZzozZTI1ZmFlOTY0ZTY0YjhlYjUzMzM5NjIxNTY1NGZlNS90ZXh0cmVnaW9uOjNlMjVmYWU5NjRlNjRiOGViNTMzMzk2MjE1NjU0ZmU1XzI1Mjg4NzY3NDM5MDk1_16c352e2-29d4-4828-a8ae-38bf1758c961": {
"value": "
Accounts payable, trade amounted to \u20ac1,662.7 million, and \u20ac1,497.1 million as of December\u00a031, 2022, and 2021 respectively.
Accounts payable, trade maturities are linked to the operating cycle of contracts and mature within 12 months.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MjcvZnJhZzozZTI1ZmFlOTY0ZTY0YjhlYjUzMzM5NjIxNTY1NGZlNS90ZXh0cmVnaW9uOjNlMjVmYWU5NjRlNjRiOGViNTMzMzk2MjE1NjU0ZmU1Xzc2_292bdf8f-aee1-4740-b5d1-6f77ce3b98c9": {
"value": "1662700000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2023-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MjcvZnJhZzozZTI1ZmFlOTY0ZTY0YjhlYjUzMzM5NjIxNTY1NGZlNS90ZXh0cmVnaW9uOjNlMjVmYWU5NjRlNjRiOGViNTMzMzk2MjE1NjU0ZmU1Xzkz_3c13f696-0b7f-4e1d-907c-cde8c5a9bfd1": {
"value": "1497100000",
"decimals": -5,
"dimensions": {
"concept": "ifrs-full:TradeAndOtherCurrentPayables",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00",
"unit": "iso4217:EUR"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MzAvZnJhZzo5MWY5OWFiOGI4Yjc0YjdjODY4NmFhNmNkOWQ2Yjk1Yy90ZXh0cmVnaW9uOjkxZjk5YWI4YjhiNzRiN2M4Njg2YWE2Y2Q5ZDZiOTVjXzI1Mjg4NzY3NDQ1NjUy_14d1ffcd-2c71-4462-8b78-6f24c960d2c1": {
"value": "
Long and short-term debt consisted of the following:
| | | | |
| | |
| | | | |
| | | | |
| | | | |
Bank borrowings and other | | | | |
| | | | |
| | | | |
FINANCIAL DEBTS & LEASE LIABILITY | | | | |
The split by maturity as of December\u00a031, 2022 was as follows:
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bank borrowings and other | | | | | |
| | | | | |
| | | | | |
FINANCIAL DEBTS & LEASE LIABILITY | | | | | |
Commercial paper
Under the commercial paper program, the Technip Energies
Group through its treasury center company T.EN Eurocash
SNC has the ability to access \u20ac750 million of short-term
financing through commercial paper dealers. The program's
rating by S&P Global was revised to \u2018A-3\u2019 from \u2018A-2\u2019 on
March\u00a011, 2022. As of December\u00a031, 2022, the Technip
Energies Group\u2019s Euro based commercial paper borrowings
had a weighted average interest rate of 2.01%.
Revolving Facility and Senior unsecured notes
On February 10, 2021, Technip Energies N.V. and T.EN
Eurocash SNC entered into a\u00a0 Facilities Agreement with
Cr\u00e9dit Agricole Corporate and Investment Bank, as Agent, and
the lenders party thereto (the \u201cFacilities Agreement\u201d) .
The Facilities Agreement provides for the establishment of a
bridge facility in an amount of up to \u20ac650 million (the
\u201cBridge Facility\u201d), to which Technip Energies N.V. was the
sole borrower and a revolving facility in an amount of \u20ac750
million (the \u201cRevolving Facility\u201d) to which Technip Energies
N.V. and T.EN Eurocash SNC are the Borrowers. Subject to
certain conditions, borrowers may request the aggregate
commitments under the Revolving Facility to be increased by
up to \u20ac250 million to reach \u20ac1.0 billion.
The Bridge Facility was prepaid and cancelled in full on May
31, 2021, upon issuance of \u20ac600 million of 1.125% senior
unsecured notes by Technip Energies N.V. on May 28, 2021.
The notes have a 7-year maturity, are currently rated \u2018BBB-\u2019
by Standard & Poor\u2019s and are listed on Euronext Paris.
The Revolving Facility provided for an initial three-year tenor
as from the Initial Availability Date (February 15, 2021) and
could be extended twice by one year each time. The first and
the second extensions of the Revolving Facility were
successfully completed on December 6, 2021, and December
16, 2022, respectively. Consequently, the termination date of
the Revolving Facility is February 13, 2026.
The Revolving Facility is available in Euros only. The available
capacity under the Revolving Facility is reduced by any
outstanding commercial paper borrowings of T.EN Eurocash
SNC.
The Revolving Facility contains usual and customary
covenants, representations and warranties, mandatory
prepayments and events of default for investment-grade
credit facilities of this type. It also contains covenants
restricting Technip Energies N.V.\u2019s and certain of its
subsidiaries\u2019 ability to provide additional securities and incur
additional indebtedness, enter into asset sales, or make
certain investments. It does not include any financial
covenant.
",
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"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
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"value": "
Note 23.Shareholder's equity
23.1.Shareholder\u2019s equity activity
As of December\u00a031, 2022, Technip Energies N.V. had 179,827,459 common shares issued with a nominal value of \u20ac0.01 per
share.\u00a0 After cancellation of 5,487,378 treasury shares, the number of shares outstanding is 174,340,081.
Changes in shares outstanding are as follows:
| |
| |
Shares issued as of December 31, 2020 | |
Issuance of shares - Contribution | |
Issuance of shares - Reserve allocation | |
Issuance of shares - Share-based payment | |
Shares issued as of December 31, 2021 | |
| |
Shares issued as of December 31, 2022 | |
| |
SHARES OUTSTANDING AS OF DECEMBER\u00a031, 2022 | |
Refer to Note 7 for more information about number of shares considered for the calculation of earnings per share. |
23.2.Dividends
| |
| |
Final dividend for the year ended 31 December, 2021 of \u20ac0.45 per outstanding common share | |
Interim dividend for the year ended 31 December, 2022 | |
TOTAL DIVIDENDS PROVIDED FOR OR PAID | |
| |
Dividends paid in cash or satisfied by the issue of shares during the year ended December 31, 2022 | |
| |
Satisfied by issue of shares | |
TOTAL DIVIDENDS PAID IN CASH OR SATISFIED BY ISSUE OF SHARES FOR THE YEAR ENDED DECEMBER 31, 2022 | |
| |
Dividends not recognized at the end of the reporting period | |
In addition to the above dividends, a dividend of \u20ac0.52 per share amounting to \u20ac91.2 million will be proposed to the Group\u2019s Annual Shareholder Meeting of May 10, 2023, in respect of the financial year ended December 31, 2022. The aggregate amount of the proposed dividend expected to be paid but not recognized as a liability as of December 31, 2022, is: | |
",
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},
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"value": "
23.1.Shareholder\u2019s equity activity
As of December\u00a031, 2022, Technip Energies N.V. had 179,827,459 common shares issued with a nominal value of \u20ac0.01 per
share.\u00a0 After cancellation of 5,487,378 treasury shares, the number of shares outstanding is 174,340,081.
Changes in shares outstanding are as follows:
| |
| |
Shares issued as of December 31, 2020 | |
Issuance of shares - Contribution | |
Issuance of shares - Reserve allocation | |
Issuance of shares - Share-based payment | |
Shares issued as of December 31, 2021 | |
| |
Shares issued as of December 31, 2022 | |
| |
SHARES OUTSTANDING AS OF DECEMBER\u00a031, 2022 | |
Refer to Note 7 for more information about number of shares considered for the calculation of earnings per share. |
",
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},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MzMvZnJhZzoxMmRlYzk5NWE4YTQ0YmMxYTJlZjU1MjA3OTBiYzQ5Ny90ZXh0cmVnaW9uOjEyZGVjOTk1YThhNDRiYzFhMmVmNTUyMDc5MGJjNDk3XzI1Mjg4NzY3NDQ2MzIw_0555f453-8cbc-4882-80ac-88990ed884a9": {
"value": "
23.2.Dividends
| |
| |
Final dividend for the year ended 31 December, 2021 of \u20ac0.45 per outstanding common share | |
Interim dividend for the year ended 31 December, 2022 | |
TOTAL DIVIDENDS PROVIDED FOR OR PAID | |
| |
Dividends paid in cash or satisfied by the issue of shares during the year ended December 31, 2022 | |
| |
Satisfied by issue of shares | |
TOTAL DIVIDENDS PAID IN CASH OR SATISFIED BY ISSUE OF SHARES FOR THE YEAR ENDED DECEMBER 31, 2022 | |
| |
Dividends not recognized at the end of the reporting period | |
In addition to the above dividends, a dividend of \u20ac0.52 per share amounting to \u20ac91.2 million will be proposed to the Group\u2019s Annual Shareholder Meeting of May 10, 2023, in respect of the financial year ended December 31, 2022. The aggregate amount of the proposed dividend expected to be paid but not recognized as a liability as of December 31, 2022, is: | |
",
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},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83MzYvZnJhZzoxNWNiM2RjZTA3NjE0MWNmOWI4YTM3ZGQ2NDllNmU3Mi90ZXh0cmVnaW9uOjE1Y2IzZGNlMDc2MTQxY2Y5YjhhMzdkZDY0OWU2ZTcyXzI1Mjg4NzY3NDQ1NjI5_6a65f2f4-6a78-4154-828b-221e3ba75691": {
"value": "
24.1.Description of the Technip Energies Group\u2019s benefit plans
Technip Energies has two types of retirement plans: defined
benefit plans and defined contribution plans. Depending on
the employing entity, our pension provision encompasses
various defined benefit plans, such as:
\u25a0End of service benefits, to be paid at the termination of
service;
\u25a0Retirement benefits;
\u25a0Jubilee benefits;
\u25a0Post-retirement medical benefits (health care and life
insurance).
The defined benefits obligations are estimated by
independent actuaries using the projected unit credit
actuarial valuation method as per IAS 19 \u201cEmployee
Benefits\u201d. The actuarial assumptions used to determine the
obligations may vary depending on the country, plan duration
and type of plans. The actuarial estimation is based on usual
parameters such as wage, seniority, age and assumptions
including discount rate, retirement age, salary increase rate,
life expectancy, staff turnover and inflation rate.
Plan assets are managed by separate legal entities and
measured at their fair value.
A review of benefit plans is performed for all Technip
Energies entities on a yearly basis. Depending on the
collected information, materiality of the plans, or if
significant changes occurred, a full valuation may be
performed. The most material plans are fully evaluated every
year while a roll forward is applied for immaterial plans
which are fully evaluated every 3 years.
According to IAS 19, Technip Energies Group recognized the
funded status of defined benefit plans as an asset or liability
in the consolidated statements. The Group recognized in
Other Comprehensive Income the changes related to
actuarial gains and losses resulting either from actuarial
assumptions changes or from experience adjustments. The
Technip Energies Group measured its plan\u2019s assets at fair
value as of the date of the consolidated financial statements.
The Technip Energies Group has applied this guidance to its
pension and other employee defined benefit plans which are
primarily located in the Netherlands (43% of Group total
obligations), France (31%), India (10%), the United Arab
Emirates (7%), Italy (4%) and Germany (2%).
In the Netherlands, these obligations are generated by a
legacy defined benefit plan which has been closed for new
participants since December\u00a031, 2014. It was agreed that the
entitlement is fixed and that the Company will contribute a
fixed annual amount to the plan assets to finance an
increase of the defined benefit plan pension rights that were
accrued up to December\u00a031, 2014, for a period of 14 years
subsequent to the curtailment of the defined benefit plan.
The Company does not pay any other funding contributions
other than these fixed annual contribution amounts. The
pension provision as at December\u00a031, 2022 represents the net
present value of the remaining 7 annual contribution
payments. The current assets are entirely invested in a Dutch
pension insurance policy.
In France, these obligations are mostly generated by legal or
collectively bargained end of career benefit plans and jubilee
plans. The indemnities paid by the French entities when the
employees leave for retirement are calculated based on their
Group seniority and their salary at the time of departure.
The Group obligations with respect to post-employment
healthcare benefits are not significant.
The Group is expected to pay \u20ac1.4 million of employer
contribution in 2023 to the Dutch fund.
The Group is also expected to pay \u20ac7.1 million of pension and
end of service benefits directly to Technip Energies
employees in 2023.
The expected benefits payments (paid by the employer and by the plan assets) for the next 10 years are as follows:
| | | | |
| Total expected benefit payments | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
24.2.Net benefit expense recognized in the consolidated statement of income
The net benefit expense recognized in the statement of income is as follows:
| | |
| | |
| | |
| | |
| | |
Remeasurements of other long-term benefits | | |
Special events (curtailment/settlement) | | |
| | |
DEFINED BENEFIT COST INCLUDED IN THE STATEMENT OF INCOME | | |
As of December\u00a031, 2022, the Group recognized \u20ac25.5 million
of actuarial gains in OCI amongst which, \u20ac63.8 generated on
the defined benefit obligation offset by \u20ac(38.3) million
actuarial losses on plan assets.
The effect of changes in financial assumptions in 2022
amounts to \u20ac63.8 million for all group entities. The actuarial
gain in financial assumption of \u20ac 68.5 million was partly
offset with a loss generated by demographic assumptions
\u20ac(2.7) million and an experience actuarial loss of \u20ac(2.0)
million for the total of actuarial gain of \u20ac63.8 million. This
significant increase in actuarial gains on DBO mainly results
from the rise in discount rates used for valuation (especially
in the Eurozone where discount rates increased from 0.9% to
3.75%). The actuarial return on plan asset represents a loss
of \u20ac38.3 million mainly related to the Netherlands asset
plans, which fair value is determined as the present value of
accrued benefits, using the year-end 2022 discount rate.
24.3.Defined benefit asset (liability) recognized in the consolidated statement of financial
position
The liability recorded in the statement of financial position is as follows:
| | | | | | |
| | |
| Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation | Defined benefit obligation | Fair value of plan assets | Net defined benefit obligation |
Defined benefit obligation as of the prior period end date | | | | | | |
Acquisition/divestiture/business combination | | | | | | |
Expense as recorded in the statement of income | | | | | | |
Total current service cost | | | | | | |
| | | | | | |
Actuarial gains of the year | | | | | | |
Administrative costs and taxes and others | | | | | | |
Actuarial gain/loss recognized in other comprehensive income | | | | | | |
Actuarial gain/loss on defined benefit obligation | | | | | | |
| | | | | | |
\u25a0Financial assumptions | | | | | | |
\u25a0Demographic assumptions | | | | | | |
Actuarial gain (loss) on plan assets | | | | | | |
Contributions and benefits paid | | | | | | |
Contributions by employer | | | | | | |
Benefits paid by employer | | | | | | |
Benefits paid from plan assets | | | | | | |
Exchange difference and other settlements | | | | | | |
DEFINED BENEFIT OBLIGATION AS OF THE PERIOD END DATE | | | | | | |
As of December\u00a031, 2022, the discounted defined benefit obligation included \u20ac107.8 million for funded plans (compared to
\u20ac149.7 million in 2021) and \u20ac100.2 million for unfunded plans (compared to \u20ac127.1 million in 2021).
The breakdown of the net defined-benefit liability by type of benefit plans is as follows:
| | |
| | |
| | |
| | |
| | |
NET DEFINED BENEFIT OBLIGATION | | |
The table below presents the liabilities per country:
| | | |
| |
| Defined benefit obligation | | |
| | | |
| | | |
| | | |
| | | |
24.4.Actuarial assumptions
In 2022, the average duration of the Group's liability is 10.6
years. The average duration is 12.4 years in France and 11.7
years in the Netherlands.
In the Eurozone, the rates used to discount obligations are
fixed by reference to the rates of bonds issued by companies
within the main iBoxx Corporate AA index considering the
duration of each plan.
In the Eurozone, the inflation rate used to calculate the
obligations is fixed by reference to the long-term inflation
target of 2.1% set by the European Central Bank.
The below sensitivity analyses are based on a change in an
assumption while holding all other assumptions constant:
Assets plans break down:
| | |
| | |
Equity instruments (shares) | | |
| | |
| | |
| | |
Fair value of debt \u2014 The fair values (based on Level 2 inputs) of the Technip Energies Group debt, carried at amortized cost,
are presented in Note 22. Debt (long and short-term).
",
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Receivables, payables, revenues and expenses which are included in the consolidated financial statements as transactions with
related parties, defined as entities related to Technip Energies' directors and Technip Energies' main Shareholders as well as
direct and indirect affiliates of Technip Energies and the partners of the Technip Energies Group's joint ventures, were as
follows:
27.1.Transactions with related parties and equity affiliates
Trade receivables consisted of receivables due from the following related parties:
Trade payables consisted of payables due to the following related parties:
Transactions with related parties also included loans to
equity affiliates for an amount of \u20ac27.1 million as of
December\u00a031, 2022, and \u20ac8.8 million as of December\u00a031, 2021.
Chiyoda and JGC Corporation are joint venture partners on
Yamal and Qatar NFE projects. Saipem and Nipigas are joint
venture partners on the Arctic LNG 2 project. CTEP France
and CTEP Japan are joint ventures established to carry out
our performance obligation under the Qatar NFE project and
are accounted for using the equity method.
Revenue consisted of amounts with the following related parties:
27.2.Key management remuneration
Technip Energies Executive Committee remuneration was as follows for December\u00a031, 2022 and 2021 respectively:
| | |
| | |
Salaries and fringe benefits | | |
| | |
Long-term incentive awards | | |
| | |
| | |
The Board of Directors remuneration was \u20ac1.4 million and \u20ac1.5 million as of December\u00a031, 2022 and 2021 respectively.
",
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"value": "
27.2.Key management remuneration
Technip Energies Executive Committee remuneration was as follows for December\u00a031, 2022 and 2021 respectively:
| | |
| | |
Salaries and fringe benefits | | |
| | |
Long-term incentive awards | | |
| | |
| | |
The Board of Directors remuneration was \u20ac1.4 million and \u20ac1.5 million as of December\u00a031, 2022 and 2021 respectively.
",
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28.1.Liquidity risk
The primary objectives of liquidity management consist of
meeting the continuing funding requirements of Technip
Energies global operations with cash generated by such
operations and Technip Energies existing commercial paper
program.
Cash pooling and external financing are largely centralized at
T.EN Eurocash SNC. Funds are provided to Technip Energies
companies on the basis of an \u201cin-house banking\u201d solution.
The financing requirements of Technip Energies companies
are determined on the basis of short and medium-term
liquidity planning. The financing is controlled and
implemented centrally on a forward-looking basis in
accordance with the planned liquidity requirements or
surplus. Relevant planning factors taken into consideration
include operating cash flow, capital expenditures,
divestments, margin payments and the maturities of financial
liabilities.
Commercial paper program and credit facility
Under the commercial paper program, Technip Energies,
through its treasury center T.EN Eurocash SNC, has the
ability to access up to \u20ac750.0 million of financing through its
commercial paper dealers. Technip Energies had respectively
\u20ac79.9 million and \u20ac80.0 million of commercial paper issued
under the facility as of December\u00a031, 2022, and 2021. Refer to
Note 22. Debt (long and short-term) for more details.
The following is a summary of the credit facility as of December\u00a031, 2022:
| | | | |
| | | Commercial paper outstanding | |
Revolving credit facility | | | | |
Technip Energies\u2019 available capacity under the Revolving Facility is reduced by any outstanding commercial paper. As of
December\u00a031, 2022, all restrictive covenants were complying under the Revolving Facility agreement.
Undiscounted financial liabilities
The contractual undiscounted repayment schedule of financial liabilities as of December\u00a031, 2022 was as follows:
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Derivative financial instruments | | | | | | | |
Redeemable financial liability | | | | | | | |
TOTAL FINANCIAL LIABILITIES AS OF DECEMBER\u00a031, 2022 | | | | | | | |
The contractual undiscounted repayment schedule of financial liabilities as of December\u00a031, 2021 was as follows:
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Derivative financial instruments | | | | | | | |
Redeemable financial liability | | | | | | | |
Due to TechnipFMC - Trade payables | | | | | | | |
Due to TechnipFMC - Loans | | | | | | | |
TOTAL FINANCIAL LIABILITIES AS OF DECEMBER\u00a031, 2021 | | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NDgvZnJhZzo3MzNjOWVmMTMzMzA0MTg0YjI4YjhmYjNiZTVlNjkyMy90ZXh0cmVnaW9uOjczM2M5ZWYxMzMzMDQxODRiMjhiOGZiM2JlNWU2OTIzXzM3MzgzMzk1MzU3OTg2_e45fe987-bd0f-429d-83e0-253e2a61a3b9": {
"value": "
28.2.Foreign currency exchange rate risk
Technip Energies conducts operations around the world in
several different currencies. Many of the Technip Energies
Group\u2019s significant foreign subsidiaries have designated the
local currency as their functional currency. Earnings are
therefore subject to change due to fluctuations in foreign
currency exchange rates when the earnings in foreign
currencies are translated into Euro. The Technip Energies
Group does not hedge this translation impact on earnings. A
10% increase or decrease in the average exchange rates of all
foreign currencies as of December\u00a031, 2022, would have
changed the Technip Energies Group\u2019s revenue and profit
(loss) before income taxes attributable to the Technip
Energies Group by approximately \u20ac319.4\u00a0million and
\u20ac32.6\u00a0million, respectively. A 10% increase or decrease in the
average exchange rates of all foreign currencies as of
December\u00a031, 2021 would have changed the Technip Energies
Group\u2019s revenue and profit (loss) before income taxes
attributable to the Technip Energies Group by approximately
\u20ac221.1 million and \u20ac33.6 million, respectively.
When transactions are denominated in currencies other than
the respective functional currencies of the applicable
subsidiaries of the Technip Energies Group, the Group
manages these exposures through derivative instruments.
The Group primarily uses foreign currency forward contracts
to hedge the foreign currency fluctuations associated with
firmly committed and forecasted foreign currency
denominated payments and receipts. The derivative
instruments associated with these anticipated transactions
are usually designated and qualify as cash flow hedges, and
as such the gains and losses associated with these
instruments are recorded in other comprehensive income
until such time that the underlying transactions are
recognized. Unless these cash flow contracts are deemed to
be ineffective or are not designated as cash flow hedges at
inception, changes in the derivative fair value will not have an
immediate impact on results of operations since the gains
and losses associated with these instruments are recorded in
other comprehensive income. When the anticipated
transactions occur, these changes in value of derivative
instrument positions will be offset against changes in the
value of the underlying transaction. When an anticipated
transaction in a currency other than the functional currency
of an entity is recognized as an asset or liability on the
statement of financial position, we also hedge the foreign
currency fluctuation of these assets and liabilities with
derivative instruments after netting the Technip Energies
Group\u2019s exposures worldwide. These derivative instruments
do not qualify as cash flow hedges.
Occasionally, the Technip Energies Group enters into
contracts or other arrangements containing terms and
conditions that qualify as embedded derivative instruments
and are subject to fluctuations in foreign exchange rates. In
those situations, the Technip Energies Group enters into
derivative foreign exchange contracts that hedge the price or
cost fluctuations due to movements in the foreign exchange
rates. These derivative instruments are not designated as
cash flow hedges.
For foreign currency forward contracts hedging anticipated
transactions that are accounted for as cash flow hedges, a
10% increase in the value of the Euro would have resulted in
an additional loss of \u20ac68.3\u00a0million and \u20ac65.0 million in the
net fair value of cash flow hedges reflected in the
consolidated statement of financial position as of
December\u00a031, 2022 and 2021 respectively.
For certain committed and anticipated future cash flows and
recognized assets and liabilities that are denominated in a
foreign currency the Technip Energies Group may choose to
manage risk against changes in the exchange rates, when
compared against the functional currency, through the
economic netting of exposures instead of derivative
instruments. Cash outflows or liabilities in a foreign currency
are matched against cash inflows or assets in the same
currency such that movements in exchange rates will result
in offsetting gains or losses. Due to the inherent
unpredictability of the timing of cash flows, gains and losses
in the current period may be economically offset by gains
and losses in a future period. All gains and losses are
recorded in the consolidated statement of income in the
period in which they are incurred. Gains and losses from the
remeasurement of assets and liabilities are recognized in
other income (expense), net.
28.3.Interest rate risk
The Technip Energies Group is generally financed using the
internal cash pooling system. Cash pooling balances earn and
bear interest on normal market terms and conditions (rates
of interest for specific maturities and currencies). Individual
members of the Technip Energies Group that are not
included in the internal cash pool due to legal restrictions
arrange financing independently or with discrete
intercompany loans at arm\u2019s length terms and conditions or
deposit their excess liquidity with leading local banks.
The Technip Energies Group assesses the effectiveness of
forward foreign currency contracts designated as cash flow
hedges based on changes in fair value attributable to
changes in spot rates. The Technip Energies Group excludes
the impact attributable to changes in the difference between
the spot rate and the forward rate for the assessment of
hedge effectiveness and recognizes the change in fair value
of this component immediately in earnings. Considering that
the difference between the spot rate and the forward rate is
proportional to the differences in the interest rates of the
countries of the currencies being traded, the Technip
Energies Group has exposure in the unrealized valuation of
its forward foreign currency contracts to relative changes in
interest rates between countries in its results of operations.
Based on the Technip Energies Group\u2019s portfolio as of
December\u00a031, 2022, the Technip Energies Group has material
positions with exposure to interest rates in the United States
of America and the European Union.
The Technip Energies Group\u2019s fixed-rate borrowings include
commercial paper. There are no floating rate borrowings.
| | |
| | |
| | |
Commercial paper (note 22) | | |
Bank borrowings and other (note 22) | | |
| | |
| | |
Sensitivity analysis as of December\u00a031, 2022
As of December\u00a031, 2022, the net cash position of the
Technip Energies Group (cash and cash equivalents, less
financial debts) amounted to \u20ac2,758.4 million. A 1% (100 basis
points) increase in interest rates would have generated an
additional profit of \u20ac27.6 million before tax in the net cash
position. A 1% (100\u00a0basis points) decrease in interest rates
would have generated a loss of the same amount.
Sensitivity analysis as of December\u00a031, 2021
As of December\u00a031, 2021, the net short-term cash position of
the Technip Energies Group (cash and cash equivalents, less
short-term financial debt) amounted to \u20ac2,955.3 million.
A\u00a01% (100 basis points) increase in interest rates would have
generated an additional profit of \u20ac29.6 million before tax in
the net cash position. A 1% (100 basis points) decrease in
interest rates would have generated a loss of the same
amount.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NDgvZnJhZzo3MzNjOWVmMTMzMzA0MTg0YjI4YjhmYjNiZTVlNjkyMy90ZXh0cmVnaW9uOjczM2M5ZWYxMzMzMDQxODRiMjhiOGZiM2JlNWU2OTIzXzM3MzgzMzk1MzU3OTg3_855d4f98-f54e-44e9-b319-566822727890": {
"value": "
28.4.Credit risk
Valuations of derivative assets and liabilities reflect the value
of the instruments, including the values associated with
counterparty risk. These values must also take into account
the Technip Energies Group\u2019s credit standing, thus including
in the valuation of the derivative instrument the value of the
net credit differential between the counterparties to the
derivative contract. The methodology includes the impact of
both counterparties and such entity\u2019s own credit standing.
Adjustments to derivative assets and liabilities related to
credit risk were not material for any period presented.
By their nature, financial instruments involve risk, including
credit risk, for non-performance by counterparties. Financial
instruments that potentially subject the Technip Energies
Group to credit risk primarily consist of trade receivables,
contract assets, contractual cash flows from debt
instruments (primarily loans), cash equivalents and deposits
with banks, as well as derivative contracts. The Technip
Energies Group manages the credit risk on financial
instruments by transacting only with what management
believes are financially secure counterparties, requiring credit
approvals and credit limits, and monitoring counterparties\u2019
financial condition. The maximum exposure to credit loss in
the event of non-performance by the counterparty is limited
to the amount drawn and outstanding on the financial
instrument. The Technip Energies Group mitigates credit risk
on derivative contracts by executing contracts only with
counterparties that consent to a master netting agreement,
which permits the net settlement of gross derivative assets
against gross derivative liabilities.
The Group has applied the IFRS 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables and
contract assets.
Credit risk exposure on trade receivables and contract assets using a provision matrix are set out as follows:
| | | | | | |
| |
| | | |
| | | | |
| | | | | | |
Weighted average expected credit loss rate | | | | | | |
| | | | | | |
| |
| | | |
| | | | |
| | | | | | |
Weighted average expected credit loss rate | | | | | | |
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NTEvZnJhZzpmNGZhZjYxNTFhYzg0ZDlhOTdmNWE2ZTQ5MzFmZGIxZS90ZXh0cmVnaW9uOmY0ZmFmNjE1MWFjODRkOWE5N2Y1YTZlNDkzMWZkYjFlXzI1Mjg4NzY3NDQ0MTY0_aebed9db-1449-42b8-8b44-38617549b433": {
"value": "
29.1.Contingent liabilities associated with guarantees
In the ordinary course of business, the Technip Energies
Group enters into standby letters of credit, performance
bonds, surety bonds and other guarantees with financial
institutions for the benefit of its customers, vendors and
other parties.
Most of these financial instruments expire within five years.
Management does not expect any of these financial
instruments to result in losses that, if incurred, would have a
material adverse effect on the Technip Energies Group's
consolidated financial position, results of operations or cash
flows.
Guarantees consisted of the following:
| | |
| | |
| | |
Performance guarantees(2) | | |
MAXIMUM POTENTIAL UNDISCOUNTED PAYMENTS | | |
(1)Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party as primary obligor. These would be drawn down only if there is a failure to fulfill financial obligations by the primary obligor. (2)Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a non-financial agreement. Events that trigger payment are performance-related, such as failure to ship a product or provide a service. |
29.2.Contingent liabilities associated with legal matters
The Group is involved in various pending or potential legal
actions, disputes and proceedings, whether initiated by the
Company or by third parties (including governmental
authorities) any of which could result in sanctions of a
financial, administrative or criminal nature or proceedings.
Management is unable to predict the ultimate outcome of
these actions because of their inherent uncertainty. However,
management believes that the most probable, ultimate
resolution of these matters will not have a material adverse
effect on the Technip Energies Group's financial position or
profitability.
In late 2016, TechnipFMC was contacted by the United States
Department of Justice (\u201cDOJ\u201d) regarding its investigation of
offshore platform projects awarded between 2003 and 2007,
performed in Brazil by a joint venture company in which
TechnipFMC was a minority participant. Subsequently
TechnipFMC also raised the subject with the DOJ of certain
other projects performed by TechnipFMC subsidiaries in
Brazil between 2002 and 2013. The DOJ has also inquired
about projects in Ghana and Equatorial Guinea that were
awarded to TechnipFMC subsidiaries in 2008 and 2009,
respectively. TechnipFMC cooperated with the DOJ in its
investigation into the potential violations of the U.S. Foreign
Corrupt Practices Act (the \u201cFCPA\u201d) in connection with these
projects, and contacted and cooperated with the Brazilian
authorities (the Federal Prosecution Service (the \u201cMPF\u201d), the
Comptroller General of Brazil (the \u201cCGU\u201d) and the Attorney
General of Brazil (the \u201cAGU\u201d)) as relates to their investigation
concerning the projects in Brazil. Technip Energies is subject
to an ongoing investigation by the French Parquet National
Financier (\u201cPNF\u201d) related to the above referenced projects in
Equatorial Guinea and Ghana. Technip Energies was later
informed by the PNF that the PNF was also reviewing certain
historical projects in\u00a0Angola.
On June 25, 2019, TechnipFMC announced a global resolution
to pay a total of $301.3 million to the DOJ, the SEC, the MPF,
and the CGU/AGU to resolve these anti-corruption
investigations, of which $281.3 million related to Technip
Energies\u2019 business. The final amount due in accordance with
the global resolution was paid by Technip Energies during the
second quarter of 2021. As part of this resolution,
TechnipFMC entered into a three-year deferred prosecution
agreement with the DOJ related to charges of conspiracy to
violate the FCPA in relation to conduct in Brazil and other
matters (\u201cDPA\u201d). In addition, Technip USA, Inc (since renamed\u00a0
Technip Energies USA, Inc.), a U.S. subsidiary, pled guilty to
one count of conspiracy to violate the FCPA related to
conduct in Brazil.
To date, the investigation by the PNF has related to certain
historical projects in Equatorial Guinea, Ghana and Angola
and has not reached a resolution. Technip Energies and
TechnipFMC are cooperating and Technip Energies remains
committed to finding a resolution with the PNF.
There is no certainty that a settlement with the PNF will be
reached. The PNF has a broad range of potential sanctions
under anticorruption laws and regulations that it may seek to
impose in appropriate circumstances including, but not
limited to, fines, penalties, the appointment of a monitor,
and modifications to business practices and compliance
programs. Any of these measures, if applicable to the
Company, as well as potential customer reaction to such
measures, could have a material adverse impact on its
financial position or profitability. The financial consequences
of these investigations are to be retained by TechnipFMC by
way of an indemnity provided by TechnipFMC to the
Company under the Separation and Distribution Agreement.
In 2003, Petrobras B.V. (\u201cPNBV\u201d) and FSTP, a Joint Venture
between Keppel (75%) and Technip Brasil Engenharia (25%)
signed a contract for construction of the P-52 offshore
platform (the \u201cProject\u201d). In 2007 the Brazilian Tribunal de
Contas da Uni\u00e3o (\u201cTCU\u201d) contested the validity of an
amendment to the contract which compensated FSTP for
additional costs incurred in relation to the Project (the
\u201cContested Payments\u201d). To ensure project completion and
avoid suspension of payments pending the outcome of
proceedings initiated by the TCU to recover the Contested
Payments, FSTP issued a USD 126M letter of credit in favor of
PNBV, with the Company being responsible for 25%.
Proceedings relating to the Contested Payments have been
ongoing since 2007.\u00a0 Technip Energies and Keppel continue to
contest TCU\u2019s efforts to have PNBV recover the Contested
Payments.
Contingent liabilities associated with liquidated
damages
Some of the Technip Energies Group's contracts contain
provisions that require the relevant Technip Energies Group
company to pay liquidated damages if the relevant company
is responsible for the failure to meet specified contractual
milestone dates and the applicable customer asserts a
conforming claim under these provisions. These contracts
define the conditions under which the customers of Technip
Energies may make claims against it for liquidated damages.
Based upon the evaluation of Technip Energies Group's
performance and other commercial and legal analysis,
management believes that the Group has appropriately
recognized probable liquidated damages as of December\u00a031,
2022, and 2021, and that the ultimate resolution of such
matters will not materially affect its consolidated financial
position, consolidated results of operations, or consolidated
cash flows.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NTEvZnJhZzpmNGZhZjYxNTFhYzg0ZDlhOTdmNWE2ZTQ5MzFmZGIxZS90ZXh0cmVnaW9uOmY0ZmFmNjE1MWFjODRkOWE5N2Y1YTZlNDkzMWZkYjFlXzI1Mjg4NzY3NDQ0MTY0_bc8b3433-f22f-4ce3-ac5f-608ecc79ff29": {
"value": "
29.1.Contingent liabilities associated with guarantees
In the ordinary course of business, the Technip Energies
Group enters into standby letters of credit, performance
bonds, surety bonds and other guarantees with financial
institutions for the benefit of its customers, vendors and
other parties.
Most of these financial instruments expire within five years.
Management does not expect any of these financial
instruments to result in losses that, if incurred, would have a
material adverse effect on the Technip Energies Group's
consolidated financial position, results of operations or cash
flows.
Guarantees consisted of the following:
| | |
| | |
| | |
Performance guarantees(2) | | |
MAXIMUM POTENTIAL UNDISCOUNTED PAYMENTS | | |
(1)Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party as primary obligor. These would be drawn down only if there is a failure to fulfill financial obligations by the primary obligor. (2)Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a non-financial agreement. Events that trigger payment are performance-related, such as failure to ship a product or provide a service. |
29.2.Contingent liabilities associated with legal matters
The Group is involved in various pending or potential legal
actions, disputes and proceedings, whether initiated by the
Company or by third parties (including governmental
authorities) any of which could result in sanctions of a
financial, administrative or criminal nature or proceedings.
Management is unable to predict the ultimate outcome of
these actions because of their inherent uncertainty. However,
management believes that the most probable, ultimate
resolution of these matters will not have a material adverse
effect on the Technip Energies Group's financial position or
profitability.
In late 2016, TechnipFMC was contacted by the United States
Department of Justice (\u201cDOJ\u201d) regarding its investigation of
offshore platform projects awarded between 2003 and 2007,
performed in Brazil by a joint venture company in which
TechnipFMC was a minority participant. Subsequently
TechnipFMC also raised the subject with the DOJ of certain
other projects performed by TechnipFMC subsidiaries in
Brazil between 2002 and 2013. The DOJ has also inquired
about projects in Ghana and Equatorial Guinea that were
awarded to TechnipFMC subsidiaries in 2008 and 2009,
respectively. TechnipFMC cooperated with the DOJ in its
investigation into the potential violations of the U.S. Foreign
Corrupt Practices Act (the \u201cFCPA\u201d) in connection with these
projects, and contacted and cooperated with the Brazilian
authorities (the Federal Prosecution Service (the \u201cMPF\u201d), the
Comptroller General of Brazil (the \u201cCGU\u201d) and the Attorney
General of Brazil (the \u201cAGU\u201d)) as relates to their investigation
concerning the projects in Brazil. Technip Energies is subject
to an ongoing investigation by the French Parquet National
Financier (\u201cPNF\u201d) related to the above referenced projects in
Equatorial Guinea and Ghana. Technip Energies was later
informed by the PNF that the PNF was also reviewing certain
historical projects in\u00a0Angola.
On June 25, 2019, TechnipFMC announced a global resolution
to pay a total of $301.3 million to the DOJ, the SEC, the MPF,
and the CGU/AGU to resolve these anti-corruption
investigations, of which $281.3 million related to Technip
Energies\u2019 business. The final amount due in accordance with
the global resolution was paid by Technip Energies during the
second quarter of 2021. As part of this resolution,
TechnipFMC entered into a three-year deferred prosecution
agreement with the DOJ related to charges of conspiracy to
violate the FCPA in relation to conduct in Brazil and other
matters (\u201cDPA\u201d). In addition, Technip USA, Inc (since renamed\u00a0
Technip Energies USA, Inc.), a U.S. subsidiary, pled guilty to
one count of conspiracy to violate the FCPA related to
conduct in Brazil.
To date, the investigation by the PNF has related to certain
historical projects in Equatorial Guinea, Ghana and Angola
and has not reached a resolution. Technip Energies and
TechnipFMC are cooperating and Technip Energies remains
committed to finding a resolution with the PNF.
There is no certainty that a settlement with the PNF will be
reached. The PNF has a broad range of potential sanctions
under anticorruption laws and regulations that it may seek to
impose in appropriate circumstances including, but not
limited to, fines, penalties, the appointment of a monitor,
and modifications to business practices and compliance
programs. Any of these measures, if applicable to the
Company, as well as potential customer reaction to such
measures, could have a material adverse impact on its
financial position or profitability. The financial consequences
of these investigations are to be retained by TechnipFMC by
way of an indemnity provided by TechnipFMC to the
Company under the Separation and Distribution Agreement.
In 2003, Petrobras B.V. (\u201cPNBV\u201d) and FSTP, a Joint Venture
between Keppel (75%) and Technip Brasil Engenharia (25%)
signed a contract for construction of the P-52 offshore
platform (the \u201cProject\u201d). In 2007 the Brazilian Tribunal de
Contas da Uni\u00e3o (\u201cTCU\u201d) contested the validity of an
amendment to the contract which compensated FSTP for
additional costs incurred in relation to the Project (the
\u201cContested Payments\u201d). To ensure project completion and
avoid suspension of payments pending the outcome of
proceedings initiated by the TCU to recover the Contested
Payments, FSTP issued a USD 126M letter of credit in favor of
PNBV, with the Company being responsible for 25%.
Proceedings relating to the Contested Payments have been
ongoing since 2007.\u00a0 Technip Energies and Keppel continue to
contest TCU\u2019s efforts to have PNBV recover the Contested
Payments.
Contingent liabilities associated with liquidated
damages
Some of the Technip Energies Group's contracts contain
provisions that require the relevant Technip Energies Group
company to pay liquidated damages if the relevant company
is responsible for the failure to meet specified contractual
milestone dates and the applicable customer asserts a
conforming claim under these provisions. These contracts
define the conditions under which the customers of Technip
Energies may make claims against it for liquidated damages.
Based upon the evaluation of Technip Energies Group's
performance and other commercial and legal analysis,
management believes that the Group has appropriately
recognized probable liquidated damages as of December\u00a031,
2022, and 2021, and that the ultimate resolution of such
matters will not materially affect its consolidated financial
position, consolidated results of operations, or consolidated
cash flows.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NTEvZnJhZzpmNGZhZjYxNTFhYzg0ZDlhOTdmNWE2ZTQ5MzFmZGIxZS90ZXh0cmVnaW9uOmY0ZmFmNjE1MWFjODRkOWE5N2Y1YTZlNDkzMWZkYjFlXzM3MzgzMzk1MzQ5NzA1_418647f9-e2c2-4336-af81-4b2b9a6c6e9f": {
"value": "
29.1.Contingent liabilities associated with guarantees
In the ordinary course of business, the Technip Energies
Group enters into standby letters of credit, performance
bonds, surety bonds and other guarantees with financial
institutions for the benefit of its customers, vendors and
other parties.
Most of these financial instruments expire within five years.
Management does not expect any of these financial
instruments to result in losses that, if incurred, would have a
material adverse effect on the Technip Energies Group's
consolidated financial position, results of operations or cash
flows.
Guarantees consisted of the following:
| | |
| | |
| | |
Performance guarantees(2) | | |
MAXIMUM POTENTIAL UNDISCOUNTED PAYMENTS | | |
(1)Financial guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on changes in an underlying agreement that is related to an asset, a liability, or an equity security of the guaranteed party as primary obligor. These would be drawn down only if there is a failure to fulfill financial obligations by the primary obligor. (2)Performance guarantees represent contracts that contingently require a guarantor to make payments to a guaranteed party based on another entity's failure to perform under a non-financial agreement. Events that trigger payment are performance-related, such as failure to ship a product or provide a service. |
29.2.Contingent liabilities associated with legal matters
The Group is involved in various pending or potential legal
actions, disputes and proceedings, whether initiated by the
Company or by third parties (including governmental
authorities) any of which could result in sanctions of a
financial, administrative or criminal nature or proceedings.
Management is unable to predict the ultimate outcome of
these actions because of their inherent uncertainty. However,
management believes that the most probable, ultimate
resolution of these matters will not have a material adverse
effect on the Technip Energies Group's financial position or
profitability.
In late 2016, TechnipFMC was contacted by the United States
Department of Justice (\u201cDOJ\u201d) regarding its investigation of
offshore platform projects awarded between 2003 and 2007,
performed in Brazil by a joint venture company in which
TechnipFMC was a minority participant. Subsequently
TechnipFMC also raised the subject with the DOJ of certain
other projects performed by TechnipFMC subsidiaries in
Brazil between 2002 and 2013. The DOJ has also inquired
about projects in Ghana and Equatorial Guinea that were
awarded to TechnipFMC subsidiaries in 2008 and 2009,
respectively. TechnipFMC cooperated with the DOJ in its
investigation into the potential violations of the U.S. Foreign
Corrupt Practices Act (the \u201cFCPA\u201d) in connection with these
projects, and contacted and cooperated with the Brazilian
authorities (the Federal Prosecution Service (the \u201cMPF\u201d), the
Comptroller General of Brazil (the \u201cCGU\u201d) and the Attorney
General of Brazil (the \u201cAGU\u201d)) as relates to their investigation
concerning the projects in Brazil. Technip Energies is subject
to an ongoing investigation by the French Parquet National
Financier (\u201cPNF\u201d) related to the above referenced projects in
Equatorial Guinea and Ghana. Technip Energies was later
informed by the PNF that the PNF was also reviewing certain
historical projects in\u00a0Angola.
On June 25, 2019, TechnipFMC announced a global resolution
to pay a total of $301.3 million to the DOJ, the SEC, the MPF,
and the CGU/AGU to resolve these anti-corruption
investigations, of which $281.3 million related to Technip
Energies\u2019 business. The final amount due in accordance with
the global resolution was paid by Technip Energies during the
second quarter of 2021. As part of this resolution,
TechnipFMC entered into a three-year deferred prosecution
agreement with the DOJ related to charges of conspiracy to
violate the FCPA in relation to conduct in Brazil and other
matters (\u201cDPA\u201d). In addition, Technip USA, Inc (since renamed\u00a0
Technip Energies USA, Inc.), a U.S. subsidiary, pled guilty to
one count of conspiracy to violate the FCPA related to
conduct in Brazil.
To date, the investigation by the PNF has related to certain
historical projects in Equatorial Guinea, Ghana and Angola
and has not reached a resolution. Technip Energies and
TechnipFMC are cooperating and Technip Energies remains
committed to finding a resolution with the PNF.
There is no certainty that a settlement with the PNF will be
reached. The PNF has a broad range of potential sanctions
under anticorruption laws and regulations that it may seek to
impose in appropriate circumstances including, but not
limited to, fines, penalties, the appointment of a monitor,
and modifications to business practices and compliance
programs. Any of these measures, if applicable to the
Company, as well as potential customer reaction to such
measures, could have a material adverse impact on its
financial position or profitability. The financial consequences
of these investigations are to be retained by TechnipFMC by
way of an indemnity provided by TechnipFMC to the
Company under the Separation and Distribution Agreement.
In 2003, Petrobras B.V. (\u201cPNBV\u201d) and FSTP, a Joint Venture
between Keppel (75%) and Technip Brasil Engenharia (25%)
signed a contract for construction of the P-52 offshore
platform (the \u201cProject\u201d). In 2007 the Brazilian Tribunal de
Contas da Uni\u00e3o (\u201cTCU\u201d) contested the validity of an
amendment to the contract which compensated FSTP for
additional costs incurred in relation to the Project (the
\u201cContested Payments\u201d). To ensure project completion and
avoid suspension of payments pending the outcome of
proceedings initiated by the TCU to recover the Contested
Payments, FSTP issued a USD 126M letter of credit in favor of
PNBV, with the Company being responsible for 25%.
Proceedings relating to the Contested Payments have been
ongoing since 2007.\u00a0 Technip Energies and Keppel continue to
contest TCU\u2019s efforts to have PNBV recover the Contested
Payments.
Contingent liabilities associated with liquidated
damages
Some of the Technip Energies Group's contracts contain
provisions that require the relevant Technip Energies Group
company to pay liquidated damages if the relevant company
is responsible for the failure to meet specified contractual
milestone dates and the applicable customer asserts a
conforming claim under these provisions. These contracts
define the conditions under which the customers of Technip
Energies may make claims against it for liquidated damages.
Based upon the evaluation of Technip Energies Group's
performance and other commercial and legal analysis,
management believes that the Group has appropriately
recognized probable liquidated damages as of December\u00a031,
2022, and 2021, and that the ultimate resolution of such
matters will not materially affect its consolidated financial
position, consolidated results of operations, or consolidated
cash flows.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NTQvZnJhZzo2ZDZmZDNhNjM3MGI0NTJhODVmYjVjYjEyZGRhMWJjNy90ZXh0cmVnaW9uOjZkNmZkM2E2MzcwYjQ1MmE4NWZiNWNiMTJkZGExYmM3XzI1Mjg4NzY3NDM5NTI0_c4b11040-9f0d-45b5-b77f-45481fcc17c1": {
"value": "
Auditor\u2019s remuneration as of December 31, 2022 and 2021 is as follows:
| | |
| | |
Fees payable to Technip Energies\u2019 auditors for the audit of its annual financial statements | | |
Fees payable to Technip Energies\u2019 auditors and its associates for the audit of its subsidiaries | | |
TOTAL FEES PAYABLE FOR AUDIT SERVICES | | |
| | |
| | |
| | |
TOTAL FEES PAYABLE FOR OTHER SERVICES | | |
Of the total fees billed, an amount of \u20ac0.2 million relates to PricewaterhouseCoopers Accountants NV for audit services. The
remainder relates to other firms within the PwC network.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"id3VybDovL2RvY3MudjEvZG9jOmY4MWFiZjc2ZDQwMDQ1OWM5NGZhOTIzZmU5M2YxNTM2L3NlYzpmODFhYmY3NmQ0MDA0NTljOTRmYTkyM2ZlOTNmMTUzNl83NTcvZnJhZzoxODI2ZjE2OTZjMmE0MGYzODIwNTJjZDZmYTU5ODIwNS90ZXh0cmVnaW9uOjE4MjZmMTY5NmMyYTQwZjM4MjA1MmNkNmZhNTk4MjA1XzM3MzgzMzk1MzQ0NzU5_4f2cfd24-29c5-47b5-8f99-a1c42c13568a": {
"value": "
31.1.Principal subsidiaries
| | |
| | Interest held in % as of December\u00a031, 2022 |
| | |
Genesis Energies Consultants Pty Ltd | Ground Floor, 1 William Street Perth WA 6000 | |
T.EN Australia and New Zealand Pty Ltd | Ground Floor, 1 William Street Perth WA 6000 | |
| | |
| Unitary Enterprise \u201cDeloitte Legal\u201d 51A K. Tsetkin St. 220004 Minsk | |
| | |
Genesis Oil & Gas Brasil Engenharia Ltda. | Rua Paulo Em\u00eddio Barbosa, 485, quadra 4 (parte) Cidade Universit\u00e1ria 21941-615, Rio de Janeiro | |
| | |
T.EN Engineering (B) Snd. Bhd. | B6, Second Floor, Block B, Shakirin Complex, Kampong Kiulap BE1518, Bandar Seri Begawan, Brunei Darussalam | |
| | |
Shanghai T.EN Trading Co. Ltd. | Room 1904, 19th Floor, Xuhui Vanke Center 55 Ding\u2019An Road 200030, Shanghai | |
T.EN Chemical Engineering (Tianjin) Co. Ltd. | 521 Jing Jin Road 300400, Tianjin | |
T.EN Engineering Consultant (Shanghai) Co. Ltd. | Room 1902, 19th Floor, Xuhui Vanke Center 55 Ding\u2019An Road 200030, Shanghai | |
Gydan Yard Management Services (Shanghai) Co. Ltd. | 18F/1329 Huai Hai Middle Road 200010, Shanghai | |
| | |
| Calle 38 # 8-62 Piso 3, 110111, Bogota D.C. | |
| | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
| Technop\u00f4le de Ch\u00e2teau Gombert 306 Rue Albert Einstein BP 94 13382 Marseille Cedex 13 | |
| Technop\u00f4le de Ch\u00e2teau Gombert 306 Rue Albert Einstein BP 94 13382 Marseille Cedex 13 | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
| 2126 boulevard de La D\u00e9fense Immeuble Origine CS 10266 92741 Nanterre Cedex | |
8.2.3.GENERAL
The Company financial statements are part of the 2022
financial statements of Technip Energies N.V.
The Company was a private limited liability company
(besloten vennootschap met beperkte aansprakelijkheid)
incorporated under the laws of The Netherlands on October
16, 2019 with a share capital of 0,01 euro at this date.
Following the signature of the contribution agreement with
TechnipFMC plc on January 31, 2021, TechnipFMC\u2019s Onshore/
Offshore business was contributed to Technip Energies N.V.
in exchange for 4 499 999 ordinary shares of \u20ac0.01 issuance
in the share capital of Technip Energies. At this date, Technip
Energies N.V. was converted into a public limited liability
company (Naamloze Vennootschap) incorporated and
operating under the laws of the Netherlands. On February 6,
2021, new shares were created by reserve allocation, the new
number of shares amounting to 175 313 880 with a nominal
value of \u20ac0.01 each.
Listing and first admission to trading on Euronext in Paris of
ordinary shares in the share capital of Technip Energies N.V.
took place on February 16, 2021.
The company is registered at the Chamber of Commerce with
registration number 76122654 and it has its statutory seat in
Amsterdam, the Netherlands.
The company has no establishment in the Netherlands. The
company address is: 2126, boulevard de La D\u00e9fense CS10266
92741 Nanterre France.
Technip Energies N.V. costs mainly comprise of management
activities and cost of the headquarters office at Nanterre
(France) of which part is recharged to Group companies.
Management fees and other corporate recharges are
recognized in the financial year in which services are
rendered to the entities and the costs are incurred.
Principles for the measurement of assets and
liabilities and the determination of the result
The stand-alone financial statements were prepared in
accordance with the statutory provisions of Part 9, Volume\u00a02
of the Dutch Civil Code and the firm pronouncements of the
\u201cRaad voor de Jaarverslaggeving\u201d. Technip Energies N.V. uses
the option provided in section\u00a02:362 (8) of the Dutch Civil
Code in that the principles for the recognition and
measurement of assets and liabilities and determination of
result (hereinafter referred to as principles for recognition
and measurement) of the separate financial statements of
Technip Energies N.V. are the same as those applied for the
consolidated financial statements. These principles also
include the classification and presentation of financial
instruments, being equity instruments or financial liabilities.
The consolidated financial statements are prepared
according to the standards set by the International
Accounting Standards Board and adopted by the European
Union (referred to as EU-IFRS). Reference is made to the
notes to the consolidated financial statements (8.1.6. Note 1.
Accounting principles) for a description of these principles.
As a consequence of the Spin-off described in the paragraph
above, the Company changed its accounting principles from
Dutch GAAP to the accounting principles of the consolidated
financial statements as explained above; however, this did
not result in a change of the measurement in assets and
liabilities.
In case no other policies are mentioned, refer to the
accounting policies as described in the accounting policies in
the consolidated financial statements of this Annual Report.
For an appropriate interpretation, the company financial
statements should be read in conjunction with the
consolidated financial statements.
Investments in subsidiaries, associates and joint ventures
Consolidated subsidiaries are all entities (including
intermediate subsidiaries) over which the company has
control. The company controls an entity when it is exposed,
or has rights, to variable returns from its involvement with
the subsidiary and has the ability to affect those returns
through its power over the subsidiary. Subsidiaries are
recognized from the date on which control is transferred to
the company or its intermediate holding entities.
They are derecognized from the date that control ceases.
Investments in consolidated subsidiaries are measured at net
asset value. Net asset value is based on the measurement of
assets, provisions and liabilities and determination of profit
based on the principles applied in the consolidated financial
statements. Investments in Group companies, over which
control is exercised, are stated on the basis of the net asset
value.
The equity method is used for joint ventures and for
investments over which Technip Energies exercises a
significant influence on operational and financial policies.
Results on transactions, involving the transfer of assets and
liabilities between Technip Energies N.V. and its participating
interests or between participating interests themselves, are
not incorporated insofar as they are deemed to be
unrealized.
As those financial statements were prepared applying the
equity method, goodwill is presented together with
investment in subsidiaries net asset value.
Separation and Distribution Agreement
Technip Energies N.V. and TechnipFMC entered into a Separation and Distribution Agreement on January 7, 2021. Pursuant to
the Separation and Distribution Agreement, the following assets and liabilities were contributed to Technip Energies N.V.:
| |
| |
| |
| |
| |
Other current liabilities | |
| |
The assets and liabilities contributed have been measured according to the same accounting principles as those used in the
consolidated financial statements.
Taxation
Corporate tax is payable on taxable profits at amounts expected to be paid, or recovered, under the tax rates and laws that
have been enacted or substantively enacted at the balance sheet date. Reference is made to note 8.2.4.2. Deferred tax asset
and 8.2.4.12. Income tax of Technip Energies company financial statements.
8.2.4.NOTES TO THE COMPANY FINANCIAL STATEMENTS
The accompanying notes are an integral part of the company financial statements.
\u25cf Contents of notes
| | | |
| | | |
| | | |
| | | |
| | Cash and cash equivalents | |
| | Shareholders\u2019 equity | |
| | | |
| | | |
| | Other current liabilities | |
| | | | | | |
| Investments in subsidiaries | Investments in associates and joint ventures | Other investments and quoted equity instruments at FVTPL | | | |
Balance at January 1, 2022 | | | | | | |
Result of Group companies | | | | | | |
| | | | | | |
| | | | | | |
Divestments and capital repayments | | | | | | |
Purchase of deposits through liquidity contract | | | | | | |
Share in other comprehensive income | | | | | | |
Change in quoted equity instruments at FVTPL | | | | | | |
| | | | | | |
Foreign currency variations | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Balance at December 31, 2022 | | | | | | |
All receivables included under the financial assets fall due in more than one year. The loan to Engineering Re of \u20ac20.6 million
was fully refunded in 2022.
An overview of the Company\u2019s direct investments required under Articles 2:379 of the Dutch Civil Code is given below:
| | |
| | |
| | Interest held in % as of\u00a0December 31,2022 |
| | |
T.EN Australia and New-Zealand Pty Ltd | 1120 Hay St, West Perth WA 6005 | |
| | |
T.EN Chemical Engineering (Tianjin) Co., Ltd. | 10th Floor \u2013 Yunhai Mansion 200031 Shanghai | |
| | |
| Calle 38 # 8-62 Piso 3 Santafe de Bogota D.C. | |
| | |
| 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| Technop\u00f4le de Ch\u00e2teau-Gombert 13382 Marseille Cedex 13 | |
Middle East Projects International (T.EN Mepi) | 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
T.EN Catering Services SAS | 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
T.EN Corporate Services SAS | 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
Technip Energies France SA | 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| 2126 Boulevard de La D\u00e9fense Immeuble Origine-CS 10266 92741 Nanterre Cedex | |
| Technop\u00f4le de Ch\u00e2teau-Gombert 13382 Marseille Cedex 13 | |
| Technop\u00f4le de Ch\u00e2teau-Gombert 13382 Marseille Cedex 13 | |
| | |
Technip Energies Italy S.P.A. | 68, Viale Castello della Magliana 00148 Rome | |
| | |
| Suite 13.03, 13th Floor 207 Jalan Tun Razak Kuala Lumpur 50400 | |
T.EN Consultant (M) Sdn. Bhd | Suite 13.03, 13th Floor 207 Jalan Tun Razak 50400 Kuala Lumpur | |
Technip Energies (M) Sdn. Bhd. | Suite 13.03, 13th Floor 207 Jalan Tun Razak 50400 Kuala Lumpur | |
| | |
T.EN de Mexico S. de R.L. de C.V. | Blvd. Manuel \u00c1vila Camacho 36, Piso 10, Torre Esmeralda II, Col. Lomas de Chapultepec, Miguel Hidalgo, 11000, Ciudad de M\u00e9xico, Mexico | |
| | |
Technip Energies International B.V. | Afrikaweg 30 Zoetermeer 2713 AW | |
NEW-CALEDONIA - FRENCH OVERSEAS TERRITORY | | |
T.EN Nouvelle-Cal\u00e9donie SAS | 27 bis Avenue du Mar\u00e9chal Foch - Galerie Center Foch - Centre-Ville B.P. 4460 98847 Noum\u00e9a | |
| | |
| | |
| Nye Vakas vei 80 1395 Hvalstad | |
| | |
| | |
| | Interest held in % as of\u00a0December 31,2022 |
| | |
| East 53rd Street Marbella, Humboldt Tower 2nd Floor Panama | |
| | |
| 266 Litera O, Ligovsky Prospect 196084 St Petersburg | |
| | |
Technip Energies Singapore Pte. Ltd. | 149 Gul Circle - 629605 Singapore | |
| | |
Technip Energies Iberia, S.A. | Building n\u00b0 8 - Floor 4th Pla\u00e7a de la Pau s/n World Trade Center - Almeda Park - Cornell\u00e0 de Llobregat 08940 Barcelona | |
| | |
| Vulkanstrasse 106 8048 Zurich | |
| | |
| Avenida Principal de La Urbina, calle 1 con calle 2, Centro Empresarial INECOM, piso 1, oficina 1-1 La Urbina, Minicipio Sucre, 1070, Caracas, Venezuela | |
| | |
| 7F, Centec Tower Building 72-74 Nguyen Thi Minh Khai Street and 143-145B Hai Ba Trung Street, Ward 6, District 3, Ho Chi Minh City | |
| | |
Associates and joint ventures | | |
| | Interest held in % as of December 31, 2022 |
| | |
Petrolinvest, D.D. Sarajevo | Tvornicka 3 71000 Sarajevo | |
| | |
| Vollsveien 17A 1327 Lysaker | |
| | |
TSKJ Servicos de Engenharia Lda | Avenida Arriaga, numero trinta, terceiro andar - H, Freguesia da S\u00e9, Concelho do Funchal, 9000-064, Funchal, Portugal | |
| | |
Other investments and quoted equity instruments | |
| | Interest held in % as of December 31, 2022 |
| | |
| 1115, route de Saint Thomas 26190 La Motte Fanjas | |
| | |
| Klingholzstra\u00dfe , 65189 Wiesbaden | |
| | |
Malaysia Marine & Heavy Engineering Holdings Bhd | PLO 3, Jalan Pekeliling Pasir Gudang, 81700 Malaysia | |
| | |
| 25A Boulevard Royal, L \u2013 2449 Luxembourg Grand-Duche du Luxembourg | |
| | |
Exponential Renewables S.L (X1 winds) | Avenida Pedralbes, 18 - 20 esc. B P. 3 PTA. 1 08034, Barcelona | |
8.2.4.2.Deferred tax asset
Deferred tax income
The tax rate utilized to compute deferred taxes depends on
the location of the underlying transaction. Although
registered in the Netherlands, Technip Energies N.V. is tax
resident in France, so that the transactions are tax effected
using the French tax rate.
Technip Energies N.V. earnings are subject to the French
statutory rate which is 25.83% starting 2021 and onwards.
Technip Energies N.V. is the head of the French tax
consolidated group.
A deferred tax asset is recognized on the tax losses of the
French tax consolidated group which can be carried forward
and are expected to be recovered based on anticipated
future taxable profits within the French tax consolidated
group. The tax losses recognized for the years until 2021 can
be carried forward for an unlimited period of time.
As of December\u00a031, 2021, \u20ac18.1 million of deferred tax assets
on carried forward loss has been recognized and recorded in
the accounts.
In 2022, the amount of \u20ac15.7 million of this tax asset on
losses carried forward has been used to offset taxable
incomes of the French Tax consolidated group.
As of December\u00a031, 2022, the balance of Deferred tax assets
amounts to \u20ac 2.7 million, including \u20ac2.4 million of deferred
tax asset on losses carried forward and deferred tax asset on
pension for \u20ac0.3 million.
8.2.4.3.Other receivables
| | |
| | |
Amounts owed by Group Companies | | |
Current income tax receivables(1) | | |
| | |
| | |
| | |
(1)Income tax installments paid in 2022 exceed the final tax due. This balance will be refunded to Technip Energies N.V. by French tax authority in June 2023. |
Other receivables fall due in less than one year. The fair value of the receivables reasonably approximates the book value, due
to their short-term character.
8.2.4.4.Cash and cash equivalents
Cash and cash equivalents are at Technip Energies N.V.\u2019s free disposal.
8.2.4.5.Shareholders\u2019 equity
Share capital
As of December\u00a031, 2022, Technip Energies N.V. had 179,827,459 common shares issued with a nominal value of \u20ac0.01 per
share.
Changes in shares outstanding are as follows:
| | |
| | |
Number of shares at January 1, 2021 | | |
Issuance of shares - Contribution | | |
Issuance of shares - Reserve allocation | | |
Issuance of shares - Share-based payment | | |
Purchase of shares - Share-based payment | | |
Net Purchase of shares through liquidity contract | | |
NUMBER OF SHARES AT DECEMBER 31, 2021 | | |
Purchase of shares - Share-based payment | | |
Delivery of shares \u2013 Share-based payment | | |
Net Purchase of shares through liquidity contract | | |
NUMBER OF SHARES AT DECEMBER 31, 2022 | | |
| | | | | | | | |
| | | | | | | | |
Balance at January 1, 2022 | | | | | | | | |
Appropriation of the result of preceding year | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Translation reserve change of the year | | | | | | | | |
Cash flow hedges change of the year | | | | | | | | |
| | | | | | | | |
Other comprehensive income change of the year | | | | | | | | |
Value of employee services | | | | | | | | |
| | | | | | | | |
Non distributable share in profit and other gains regarding associates and joint ventures | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
BALANCE AT DECEMBER 31, 2022 | | | | | | | | |
Difference in equity and profit/loss between the company and consolidated financial statements
The 2021 difference between the consolidated equity and Company equity is presented below:
| | | |
| Equity in the company financial statements | Differences in equity between the company and consolidated financial statements | Equity in the consolidated financial statements |
Invested equity as of January 1, 2021 | | | |
| | | |
Other comprehensive income (loss) | | | |
Net contribution from distribution to TechnipFMC | | | |
| | | |
| | | |
| | | |
INVESTED EQUITY AS OF DECEMBER 31, 2021 | | | |
As of December\u00a031, 2022, there is no difference between the consolidated equity and company equity:
| | | |
| Equity in the company financial statements | Differences in equity between the company and consolidated financial statements | Equity in the consolidated financial statements |
Invested equity as of January 1, 2022 | | | |
| | | |
Other comprehensive income (loss) | | | |
| | | |
| | | |
| | | |
| | | |
INVESTED EQUITY AS OF DECEMBER 31, 2022 | | | |
Legal reserves
The legal reserves can be broken down as follows:
| | |
| | |
| | |
| | |
Non distributable share in profit and other gains regarding associates and joint ventures | | |
| | |
The reserve for translation differences concerns all exchange
rate differences arising from the translation of the net
investment in foreign entities.
Proposed appropriation of result
Article 10 of the Articles of Association stipulates, among
other things, that the Board of directors shall annually decide
which part of the profit shall be allocated to the reserves.
The remaining part of the profit shall be at the disposal of
the Annual General Meeting. The profit attributable to the
equity holders of the Company for fiscal year 2022 amounts
to \u20ac306.3 million. The board of directors proposes to add an
amount of \u20ac209.9 million to retained earnings and to present
for approval to the Annual General Meeting its proposal to
distribute in cash a dividend amount of \u20ac91.2 million, which
represents a dividend of \u20ac0.52 per share.
8.2.4.6.Provisions
| | |
| | |
Provisions for pensions and other employee benefits | | |
Provisions for liabilities guarantee(1) | | |
Provisions for lawsuit contingency(1) | | |
| | |
(1)In connection with the Spin-off, Technip Energies N.V. and TechnipFMC entered into a Separation and Distribution Agreement on January 7, 2021. Pursuant to this agreement, certain lawsuits and provisions were transferred to Technip Energies N.V. |
In 2022, all provisions can be classified as non-current (longer than one year). For more information on provisions for lawsuit
contingency and provision guarantee, please refer to Note 25. Provisions (non-current and current) of the consolidated financial
statements.
8.2.4.7.Loans and borrowing
| | |
| | |
| | |
Accrued interests - Bonds (non-current) | | |
TOTAL NON CURRENT LIABILITIES | | |
Accrued interests - Bonds (current) | | |
Accrued interests - Bank borrowing | | |
Financial debts and liabilities with Group companies(1) | | |
TOTAL LOANS AND BORROWING (CURRENT) | | |
(1)Current account with Group cash pooling entity bearing interests at Libor +0.40%. |
Refer to Note 22.: Debt (long and short-term) for more details and notes of the consolidated financial statements.
8.2.4.8.Other current liabilities
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Amounts owed to Group companies | | |
Payroll costs and social security charges | | |
Current income tax payable | | |
Tax consolidation payable(1) | | |
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TOTAL CURRENT LIABILITIES | | |
(1)This is the balance of Income tax due to French subsidiaries, which are part of Tax consolidation group. It represents the difference between Income tax advances paid by subsidiaries during the year and the actual income tax due by subsidiaries in 2022. (2)Including \u20ac26.7 million liability in relation to the Spin-off. Technip Energies N.V. and TechnipFMC entered into a Separation and Distribution Agreement on January 7, 2021. Pursuant to this agreement, certain liabilities were incurred by Technip Energies N.V. |
The other current liabilities fall due in less than one year. The fair value of other current liabilities approximates the book
value, due to their short-term character.
8.2.4.9.Revenue
Revenue comprises of management fees and other corporate costs recharged to the group companies.
8.2.4.10. General and administrative expenses
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Services rendered by subsidiaries | | |
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TOTAL GENERAL AND ADMINISTRATIVE EXPENSES | | |
Wages and salaries
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Costs with respect to Long-Term incentive Awards(1) | | |
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(1) The cost with respect to Long-Term incentive Awards is related to all group employees. |
8.2.4.12.Income tax
Income tax is calculated based on the income before taxes,
taking into account temporary and permanent differences.
Technip Energies N.V. net income is subject to the French
statutory rate which is 25.83% in 2022 and onwards.
The French companies of the group form a tax consolidated
group headed by Technip Energies NV. According to the
French tax law, Technip Energies NV is solely liable toward
French tax authorities for the corporate income tax due for
the entire tax consolidated group. However, every French
affiliate member of the French tax consolidated group is
liable toward Technip Energies NV for the corporate income
tax resulting from the taxation of its share in the
consolidated group taxable income. Therefore, every French
affiliate member of the French tax consolidated group
recognize a corporate income tax liability based on their
taxable profit.
Income tax reconciliation
The reconciliation between taxes calculated using the
statutory tax rate applicable to Technip Energies and the
amount of tax effectively recognized in the income
statement is as follows:
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Profit/(Loss) before taxation | | | |
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Theoretical income tax expense | | | |
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Benefit of the tax consolidation | | | |
Change in quoted equity instruments at FVTPL | | | |
Gains/Losses on purchase/disposal of financial assets | | | |
| | | |
Share of expense allocated to dividends received | | | |
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8.2.4.13.Commitments and contingencies
Company and bank guarantees
Technip Energies N.V. has issued guarantees for contractual
obligations to complete and deliver projects for the account
of several Group companies, and fulfillment of other
obligations. Guarantees given by Technip Energies N.V.
consist of bank guarantees for a total amount of \u20ac1,186
million and parental company guarantee for a total amount
of \u20ac29,968 million as of December\u00a031, 2022. In 2021 bank and
parental company guarantees amounted to \u20ac822.4 million
and \u20ac24,617 million respectively. Please refer to Note 29.
Commitments and contingent liabilities of the consolidated
financial statements.
Contingent liabilities
Technip Energies N.V. committed to provide all the requisite
financial support to ensure that the subsidiaries listed below
can continue as a going concern and meet all liabilities and
obligations as they fall due. This support is provided for at
least the next twelve months from the date that the
Directors approved and signed the most recent financial
statements:
|
Middle East Projects International (T.EN Mepi) |
|
|
|
T.EN International UK LTD |
Genesis Oil & Gas Consultants Ltd |
|
Cybernetix S.R.I.S Limited |
|
|
|
Genesis Oil & Gas Consultants Malaysia Sdn. Bhd. |
|
8.2.4.14.Board of Directors remuneration
Remuneration of Executive Director
The total remuneration cost of the Executive Director amounted respectively to \u20ac4,657.2 thousands in 2021 and \u20ac5,068.2
thousands in 2022.
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Costs with respect to Long-Term incentive Awards | | |
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Effective March 1, 2022, the total remuneration for the Non-Executive Directors was modified in structure by eliminating the
award of Restricted Stock.
| | | | | |
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2021 Non-Executive Directors | | | | | |
| Salaries and fringe benefits | | Long-Term incentive Awards | | |
| | | | | |
Pascal Colombani (ESG Chair) | | | | | |
Marie-Ange Debon (Audit Chair) | | | | | |
| | | | | |
Alison Goligher (Compensation Chair, ESG) | | | | | |
Didier Houssin (ESG Chair) | | | | | |
Joseph Rinaldi (Non-Executive Chair, Audit, Compensation) | | | | | |
Nello Uccelletti (Compensation) | | | | | |
| | | | | |
| | | | | |
(1)Mr.\u00a0Arnaud Caudoux waived his cash and equity remuneration because of the policies of his employer, Bpifrance. Ms Colette Cohen attended the February 28 and April 21, 2022 Board Session as an Observer and received \u20ac4,223 in fees. |
No payments for termination were made neither in 2021 nor in 2022 to any Board members. For an explanation of the
Remuneration Policy, see the Remuneration report at chapter 6.
8.2.4.15.Number of employees
The 9 employees of Technip Energies N.V. are members of the Executive Committee. These employees are located outside of
the Netherlands.
8.2.4.16.Independent audit fees
For the audit fees relating to the procedures applied to Technip Energies N.V. and its consolidated group entities by accounting
firms and external independent auditors, reference is made to Note 30. Auditor's remuneration of the consolidated financial
statements.
8.2.4.17.Events after end of reporting
Dividend
A dividend of \u20ac91.2 million (which equals to \u20ac0.52 per share, based on the number of shares outstanding less the expected
number of treasury shares held at the dividends record date), will be proposed at the Annual General Meeting on May 10, 2023.
In addition please refer to Note 32. Subsequent events of the Consolidated Financial Statements.
Nanterre, France
March 10, 2023
Executive Committee
\u25a0Arnaud Pieton, Chief Executive Officer
\u25a0Marco Villa, Chief Operating Officer
\u25a0Bruno Vibert, Chief Financial Officer
\u25a0Michael McGuinty, Chief Legal Officer
\u25a0Wei Cai, Chief Technology Officer
\u25a0Christophe B\u00e9lorgeot, Senior Vice President of Communications
\u25a0Magali Castano, Senior Vice President People & Culture
\u25a0Samir Karoum, Chief Strategy & Sustainability Officer
\u25a0Alain Poincheval, Fellow Executive Project Director
\u25a0Christophe Virondaud, Senior Vice President Commercial
Board of Directors
\u25a0Joseph Rinaldi, Chairman
\u25a0Arnaud Pieton, Chief Executive Officer
\u25a0Arnaud Caudoux
\u25a0Marie-Ange Debon
\u25a0Simon Eyers
\u25a0Alison Goligher
\u25a0Didier Houssin
\u25a0Nello Uccelletti
\u25a0Colette Cohen
\u25a0Francesco Venturini
8.2.5.APPROPRIATION OF RESULT
Articles of association governing profit appropriation
With regard to the appropriation of results, Article 10 of the
Articles of Association provides as follows:
\u25a010.1 Profit and loss. Distributions on Shares:
\u202210.1.1 Distribution of dividends pursuant to this Article
10.1 will take place after the adoption of the Annual
Accounts which show that the distribution is allowed,
\u202210.1.2 The Company may make distributions on Shares
only to the extent that its Shareholders\u2019 equity exceeds
the sum of the paid-up and called-up part of the
capital and the reserves which must be maintained by
Dutch law or the articles of association,
\u202210.1.3 The Board may determine that any amount out of
the profit will be added to the reserves,
\u202210.1.4 The profit remaining after application of Article
10.1.3 will be at the disposal of the General Meeting,
\u202210.1.5 The General Meeting may only resolve to make a
distribution on Shares in kind or in the form of Shares
at the proposal of the Board,
\u202210.1.6 Subject to the other provisions of this Article 10.1,
the General Meeting may, at the proposal of the Board,
resolve to make distributions on Shares to the debit of
one or several reserves which the Company is not
prohibited from distributing by virtue of Dutch law or
the articles of association,
\u202210.1.7 For the purpose of calculating the amount of any
distribution, Shares held by the Company shall not be
taken into account. No distribution shall be made on
Shares held by the Company, unless those Shares are
encumbered with a right of usufruct or a right of
pledge;
\u25a010.2 Interim distributions:
\u202210.2.1 The Board may resolve to make interim
distributions on Shares if an interim statement of
assets and liabilities shows that the requirement of
article 10.1.2 has been met,
\u202210.2.2 The interim statement of assets and liabilities
referred to in Article 10.2.1 relates to the condition of
the assets and liabilities on a date no earlier than the
first day of the third month preceding the month in
which the resolution to distribute is published. This
interim statement must be prepared on the basis of
generally acceptable valuation methods. The amounts
to be reserved under Dutch law and the articles of
association must be included in the statement of
assets and liabilities. This statement must be signed by
the Directors. If one or more of their signatures are
missing, this absence and the reason for this absence
must be stated;
\u25a010.3 Notices and payments:
\u202210.3.1 Any proposal for a distribution on Shares must
immediately be published by the Board in accordance
with the regulations of the stock exchange where the
Shares are officially listed at the Company's request.
The notification must specify the date when and the
manner in which the distribution will be payable or \u2013 in
the case of a proposal for distribution \u2013 is expected to
be made payable,
\u202210.3.2 Distributions will be payable on the day
determined by the Board. 10.3.3 The persons entitled to
a distribution shall be the relevant Shareholders,
holders of a right of usufruct on Shares and holders of
a right of pledge on Shares, at a date to be determined
by the Board for that purpose. This date shall not be
earlier than the date on which the distribution was
announced,
\u202210.3.4 Distributions which have not been claimed upon
the expiry of five years and one day after the date
when they became payable will be forfeited to the
Company and will be carried to the reserves,
\u202210.3.5 The Board may determine that distributions will
be made payable in euros or in another currency.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:724500FLODI49NSCIP70",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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}