Technip Energies Lands HPCL Refinery Upgrade Worth Up to €500M

Technip Energies NV (OTCPK: THNPF) won an EPC contract from Hindustan Petroleum Corp. Ltd. (HPCL) worth between €250 million and €500 million, the company announced Oct. 12. The job covers a major upgrade of HPCL's Mumbai Refinery.

The scope calls for a 550 KTA integrated hydrocracker and catalytic dewaxing unit and an 850 KTA solvent deasphalting unit. Hydrocracking and solvent deasphalting are the processes refiners use to extract more finished product from each barrel of crude oil; catalytic dewaxing improves the cold-flow performance of the diesel and jet fuel produced. The new units are designed to raise the Mumbai Refinery's processing capacity and product quality, strengthening HPCL's competitive position in the Indian and regional markets.

Technip Energies was spun off from TechnipFMC in 2021 and operates in two segments. Project Delivery handles engineering and construction work for onshore and offshore energy infrastructure; Technology, Products & Services licenses proprietary processes and supplies equipment and aftermarket services. The company, worth $5.68 billion at current prices, serves clients across Europe, Asia, Africa and the Americas in oil and gas, refining, petrochemicals and low-carbon projects.

Shares last traded at $31.19. GuruFocus' GF Value estimate is $39.55, about 21.1% above the current price, and the alert called the gap evidence that the market may be underpricing the shares. The trailing P/E of 19.08 is close to its one-year low of 13.76, which GuruFocus said left the stock reasonably valued against recent history.

GuruFocus' GF Score, a composite of financial health, profitability, growth, valuation and momentum, comes to 81 of 100. Valuation scores a perfect 10 and growth scores 7, the areas the alert flagged as the profile's strength. Financial strength and profitability each score 6. GuruFocus tied the moderate scores to declining margins and an Altman Z-Score financial distress warning. Momentum is average.

The income case rests on a 3.72% yield, close to a three-year high. The payout ratio is 58%, a level GuruFocus said leaves enough earnings retained to support the dividend. The dividend has compounded at 24.4% a year over three years, a record the alert read as evidence of management's commitment to returning value to shareholders.

Margin pressure and the company's moderate financial strength could weigh on future cash-flow stability, GuruFocus warned. GuruFocus reports no premium 13F holdings for the stock, and no insider buying or selling has been reported in the past 12 months. The alert read the absence of insider activity as neutral, neither confidence nor concern.

Technip Energies will add the award to its Project Delivery backlog for the third quarter of 2026.