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French oil and gas services provider Technip Energies has ceased new business opportunities in Russia, in response to military action against Ukraine.

With the decision, which was announced along with the company’s 2021 financial results, the firm joins oil majors such as BP, Shell, and ExxonMobil who have decided to exit the energy-rich nation following the invasion of Ukraine.

Technip Energies CEO Arnaud Pieton said: “The potential financial impact the crisis is having on our company is contained.

“We have ceased to work on future business opportunities in Russia, and are confident in the robustness of Technip Energies’ global and diversified business, balance sheet, and our ability to invest and deliver on our strategy.”

By the end of December last year, Technip Energies had approximately $4.22bn (€3.8bn), or 23%, of its order backlog related to projects under execution in Russia.

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By GlobalData

The company said it plans to execute this backlog over a period of five years, starting in 2022.

The firm reported a full year adjusted revenue of €6.67bn, an increase from €6.01bn a year ago. Its net profit rose to €251.4, from €206.7 in financial year 2020.

In a press statement, the firm said: “We have a strong balance sheet, positive project cash flows, and relevant contractual protections, which together would limit our exposure to this ongoing situation.

For this year, the company anticipates an adjusted revenue of €5bn to €5.5bn, excluding an estimated €1.4bn contribution from projects under execution in Russia.

It also anticipates a recurring EBIT margin of at least 6.5%. This excludes an estimated EBIT contribution of less than €70m from Russian projects that are under the execution phase.

Amid surging oil prices, in the wake of Russia’s invasion of Ukraine, the International Energy Agency (IEA) agreed to release 60 million barrels from emergency stockpiles earlier this week, to try and rebalance the market.