GTT: Nine-month 2024 revenues stand at 465 million euros,
up 55%; good order momentum continues
Nine-month 2024 revenues stand at
465 million euros, up 55%; good order momentum
continues
- 9M 2024 revenues:
464.7 million euros, +54.9% compared to 9M
2023
- Sustained order level:
68 LNG carriers, 12 ethane carriers, 1 FSRU,
1 FLNG, 12 LNG-powered container ships and 1 LNG bunker
vessel
- 2024 objectives: revenues
and EBITDA expected to be at the top of the ranges
Paris – October 25, 2024. GTT,
the technological expert in membrane containment systems used to
transport and store liquefied gases, today announces its revenues
for the first nine months of 2024.
Commenting on the results, Jean-Baptiste
Choimet, Chief Executive Officer of GTT, said: “With a
total of 68 LNG carrier orders, 12 ethane carrier orders, one
regasification unit order and one FLNG unit order, the commercial
performance of our core business was particularly strong in the
first nine months of 2024. As demand for LNG grows, so does
the need for additional LNG carriers, which is supported by the
ongoing investments in liquefaction plants and increasing
construction capacity at shipyards.
For LNG as fuel, GTT booked 12 orders for
container ships and one order for a LNG bunker vessel in the third
quarter of 2024, in a context of increased orders for new
LNG-powered vessels, but also heightened competition from
containment technologies marketed by Chinese shipyards.
Since the start of the year, our Services
activities, which include Ascenz Marorka, have won some major
contracts with leading ship-owners, underlining the relevance of
our digital solutions. Finally, Elogen, our subsidiary specialising
in electrolysers for green hydrogen production, posted nearly
stable revenues, in a weak market volume and a very low level of
order intake.
The GTT Group is pursuing its continued
R&D and innovation efforts, as evidenced by the numerous new
approvals obtained from classification societies during the first
nine months of 2024, notably in the fields of liquid hydrogen
transport and alternative fuels.
On the financial front, revenues for the
first nine months of 2024 were up by nearly 55% compared to the
first nine months of 2023, driven by the gradual increase in
the number of LNG carriers under construction. Therefore, in the
absence of significant delays in vessel building schedules, the
Group confirms its 2024 objectives, which it now expects at the top
of the initial ranges.”
Group business activity during the first
nine months of 2024
- LNG carriers: Order momentum
continues
During the first nine months of 2024, GTT booked
68 orders for LNG carriers, including 18 very-large capacity LNG
carriers (271,000 m3). Delivery of all these vessels is
scheduled between 2026 and 2031. Over the period, GTT also received
one FSRU1 order and one FLNG2 order.
- Ethane carriers: A pioneering
position
During the first nine months of 2024, GTT
received 12 orders for large-capacity ethane carriers (including
eight ultra-large ethane carriers, i.e. 150,000 m3,
which is a world first). Deliveries are scheduled for 2026 and
2027.
- LNG as fuel: Commercial activity picks
up amid heightened competition
In July 2024, GTT received an order from the
shipyard HD KSOE to design the cryogenic tanks for 12 LNG-powered
very large container ships for CMA CGM. Delivery of these container
ships is scheduled between the second quarter of 2027 and the
second quarter of 2028.
Also in the third quarter of 2024, GTT received
a new order from the Ibaizabal Group for an LNG bunker vessel with
a capacity of 18,600 m3, to be chartered by
TotalEnergies.
These orders point to a recovery of LNG-as-fuel
activity, in a context of increased orders for new LNG-powered
vessels, but also heightened competition from containment
technologies marketed by Chinese shipyards.
In this context, GTT continued its efforts to
develop new applications to meet environmental requirements and
announced the first implementation of its “1 barg” concept in
collaboration with an Asian shipyard. This innovative concept will
be applied to the tanks of 12 recently ordered LNG-powered
container ships (see above). It will enable these vessels to comply
with future port regulations requiring cold ironing at the
quayside.
During the first nine months of 2024, GTT also
received an order to equip ten LNG-powered container ships with the
Recycool™ reliquefaction system in collaboration with Nikkiso.
Developed by GTT, this advanced passive boil-off gas management
system significantly reduces CO2 emissions from
LNG-powered vessels.
- Services and digital solutions: new
contracts, pre-engineering studies, services to vessels in
operation, “cybersecurity” certification and acquisition of
VPS
During the first nine months of 2024, revenues
of Services activities, which include Ascenz Marorka’s digital
solutions, were up +41%, thanks to new commercial successes with
tier-1 ship-owners. In particular, Ascenz Marorka’s weather routing
solution was selected by the ship-owner Latsco to equip several
vessels of its fleet, and its “Smart Shipping” solution to equip
the ship-owner Gazocean’s entire fleet of LNG carriers.
Moreover, Ascenz Marorka has been granted
“cybersecurity” certification approval for its digital solutions by
the classification society, Bureau Veritas.
Lastly, as a reminder, on February 25,
2024, GTT acquired the Danish company VPS (Vessel Performance
Solutions), which specialises in vessel performance management.
This acquisition complements the expertise of GTT and its
subsidiary Ascenz Marorka in the field of smart shipping, with its
innovative solutions based notably on the analysis of operational
data from vessels, captured without on-board sensors. The systems
designed by VPS are used by more than 1,200 vessels around the
world.
- Elogen
The structuring and industrialisation phase
continues, with a stack production rate doubling since the
beginning of the year. In a weak market volume and a very low level
of order intake, Elogen is paying a particular attention to its
costs evolution.
- Innovation: continued development of
new technologies
GTT obtained several Approvals in Principle
(AiPs) at the Gastech exhibition in Houston in September 2024:
- three AiPs paving the way for the
use of ammonia (ABS and Bureau Veritas) and methanol (Bureau
Veritas) as alternative fuels for LNG-powered vessels equipped with
the Mark III system. This allows ship-owners to prepare their
vessels for a future conversion without major structural
changes.
- two AiPs from Lloyd’s Register and
Bureau Veritas for the cutting-edge new 200,000 m³ LNG carrier
concept, which has been specially designed for optimised speed. By
incorporating three tanks (rather than the traditional four), this
design makes it possible to deliver the same amount of LNG
annually, while reducing fuel consumption thanks to a slower
cruising speed. With a reduced capital and operational cost, this
solution also enables ship-owners to decrease unit transport costs
by approximately 5% and to reduce their CO2 emissions by
around 20%.
It should also be noted that in January 2024, as
part of a joint development project between GTT, TotalEnergies, LMG
Marin and Bureau Veritas, GTT received two AiPs from Bureau
Veritas: one for the design of a cryogenic membrane containment
system for liquefied hydrogen, and the other for the preliminary
design of a large-capacity hydrogen carrier. These approvals mark
the first major achievement in the development of a liquid hydrogen
transport sector.
In June 2024, GTT also received two major
approvals from Bureau Veritas and Lloyd’s Register for
GTT NEXT1, its latest-generation LNG containment technology.
This state-of-the-art solution combines the best of GTT’s
technologies to deliver optimal performance and enhanced
reliability for LNG transport.
- GTT Strategic Ventures
During the first nine months of 2024, the GTT
investment fund acquired minority stakes in four companies: three
in the first half of the year and one in the third quarter.
In the first half of 2024:
- Energo, the French technological
expert in the production of synthetic molecules using plasma
catalysis;
- CryoCollect, a French engineering
company specialising in technologies for the treatment,
liquefaction and separation of gases such as biomethane, carbon
dioxide or hydrogen;
- Seaber.io, a Finnish software
company specialising in the digitalisation of scheduling and
chartering processes for bulk shipping.
In the third quarter of 2024, GTT announced that
it had acquired a minority stake in Bluefins, an innovative
start-up in the field of vessel propulsion systems. Bluefins is a
French company founded in 2021 that has developed a technology
inspired by whales’ tail fins. Installed at the stern of vessels,
this system uses articulated mechanisms to convert pitching motion
into forward thrust, thereby reducing fuel consumption and
CO2, SOx and NOx emissions by around 20%.
Bluefins is the seventh investment made by GTT
Strategic Ventures since its creation in 2022.
Membership to MAMII
In September 2024, GTT joined MAMII, the Methane
Abatement in Maritime Innovation Initiative. Alongside leaders such
as BP and CMA CGM, the Group is committed to developing innovative
solutions to measure and mitigate methane emissions throughout the
LNG value chain. This membership demonstrates the Group's
commitment to participate in the decarbonisation of the maritime
industry and its willingness to collaborate with top-tier partners
for a more sustainable future.
SBTi validation process
As part of its commitment to the ecological
transition, GTT has set an ambitious greenhouse gas reduction
trajectory aiming to reduce its scope 1 & 2 emissions by -55%
and its scope 3 emissions by -33% by 2033. This trajectory is part
of the Group’s CSR 2024-2026 roadmap, published in January 2024,
and was submitted to the Science Based Targets Initiative (SBTi)
earlier this year.
Following discussions with the SBTi as part of
reviewing this trajectory, the GTT Group ultimately decided to
withdraw from the validation process. The methodological approaches
currently proposed by the SBTi are not suited to the company’s
business model due to its licencing activity. These methodologies
would lead to exclude categories 1 (materials) and 11 (use of
containment systems) from its indirect emissions reduction target.
Since these two categories account for the bulk of GTT’s Scope 3
emissions, the Group decided to maintain them in its reduction
target in order to avoid limiting it to a minimum scope of
activities (e.g. business travel), which would reflect neither the
Group’s emission profile, nor its impact on the maritime sector
decarbonisation.
In line with its commitments and to ensure
transparency, GTT will continue to provide information related to
its decarbonisation trajectory in order for its stakeholders to
assess its contribution to the decarbonisation of the maritime
sector, and will take part in relative sectorial initiatives.
Order book at September 30, 2024
At January 1, 2024, GTT’s order book excluding
LNG as fuel comprised 311 units. The following changes have
occurred since January 1:
- Deliveries completed: 39 LNG
carriers, 4 onshore storage tanks;
- Orders received: 68 LNG
carriers, 12 ethane carriers, 1 FSRU and 1 FLNG.
At September 30, 2024, the order book excluding LNG as fuel
stood at 350 units, breaking down as follows:
- 325 LNG carriers;
- 16 ethane carriers;
- 2 FSRU;
- 2 FLNG;
- 5 onshore
storage tanks.
Regarding LNG as fuel, following the delivery of
28 vessels and orders for 12 container ships and one LNG
bunker vessel, the number of vessels in the order book stood at
61 units at September 30, 2024.
Change in consolidated revenues for the
first nine months of 2024
(in € million) |
9M 2023 |
9M 2024 |
Change |
Revenues |
300.0 |
464.7 |
+54.9% |
|
|
|
|
New builds |
272.6 |
429.0 |
+57.4% |
of which LNG carriers/ethane carriers |
246.9 |
400.4 |
+62.2% |
of which FSUs3 |
2.4 |
- |
-100.0% |
of which FSRUs4 |
- |
- |
- |
of which FLNGs5 |
- |
2.7 |
na |
Onshore storage tanks |
3.4 |
1.7 |
-50.7% |
of which LNG-powered vessels |
19.9 |
24.2 |
+22.0% |
Electrolysers |
6.7 |
6.6 |
-1.3% |
Services |
20.7 |
29.1 |
+40.7% |
Consolidated revenues for the first
nine months of 2024 were 464.7 million euros, up
54.9% compared to the first nine months of 2023.
- Newbuild
revenues amounted to 429.0 million euros, up 57.4%
compared to newbuild revenues for the first nine months of 2023,
benefitting from the gradual increase in the number of LNG carriers
under construction.
- Royalties
amounted to 400.4 million euros from LNG and ethane
carriers (up 62.2%), 2.7 million euros from FLNGs and
1.7 million euros from onshore storage tanks.
- Royalties
generated by the LNG-as-fuel business
(24.2 million euros, up 22.0%) are now reflecting the
large number of orders received in 2021 and 2022.
- Revenues from
the Elogen electrolyser business amounted to
6.6 million euros for the first nine months of 2024,
compared to 6.7 million euros for the first nine months
of 2023, amid a challenging market context.
- Revenues from
services, including digital solutions, were up 40.7% at
29.1 million euros for the first nine months of 2024,
mainly due to revenue growth generated by assistance services for
vessels in operation, digital services and pre-project studies.
2024 objectives expected at the top of the
ranges
In its 2023 annual results press release dated
February 26, 2024, the Group issued the following objectives
for 2024, assuming no significant order deferrals or
cancellations:
- 2024 consolidated revenues of
between 600 million euros and 640 million euros;
- 2024 consolidated EBITDA of between
345 million euros and 385 million euros;
- a 2024 dividend payout target
corresponding to a minimum payout of 80% of consolidated net
income6.
Given the absence of any significant delay in
ship construction schedules during the first nine months of
2024, the Group now expects to reach the top of the revenue and
EBITDA ranges indicated last February.
***
First nine months of 2024 activity update
presentation
Jean-Baptiste Choimet, Chief Executive Officer,
and Thierry Hochoa, Chief Financial Officer, will comment on GTT’s
business during the first nine months of 2024 and answer
questions from the financial community during a conference call to
be held, in English, on Friday, October 25, 2024, at
6.15 p.m. Paris time.
This conference will be broadcast live on GTT’s
website.
To participate in the conference call, please
dial one of the following numbers five to ten minutes before the
start of the conference:
- France: +33 1 70 91 87 04
- UK: +44 1 212 818 004
- USA: +1 718 705 87 96
Confirmation code: 140215
The presentation document will be available on
the website on October 25, 2024 from 5:45 p.m.
Financial agenda
- Publication of 2024 annual results:
February 20, 2025 (after close of trading)
- 2025 first-quarter activity update:
April 17, 2025 (after close of trading)
- Shareholders’
Meeting: June 11, 2025
- Publication of
2025 half-year results: July 29, 2025 (after close of trading)
- 2025 third-quarter activity update:
October 31, 2025 (after close of trading)
About GTT
GTT is a technology and engineering group with
expertise in the design and development of cryogenic membrane
containment systems for use in the transport and storage of
liquefied gases. Over the past 60 years, the GTT Group has designed
and developed, to the highest standards of excellence, some of the
most innovative technologies used in LNG carriers, floating
terminals, onshore storage tanks and multi-gas carriers. As part of
its commitment to building a sustainable world, GTT develops new
solutions designed to support ship-owners and energy providers in
their journey towards a decarbonised future. As such, the Group
offers systems designed to enable commercial vessels to use LNG as
fuel, develops cutting-edge digital solutions to enhance vessels’
economic and environmental performance, and actively pursues
innovation in the field of low-carbon solutions. Through its
subsidiary, Elogen, which designs and manufactures proton exchange
membrane (PEM) electrolysers, GTT is also actively involved in the
green hydrogen sector.
GTT is listed on Euronext Paris, Compartment A
(ISIN FR0011726835 Euronext Paris: GTT) and is notably included in
the CAC Next 20, SBF 120, Stoxx Europe 600 and MSCI Small Cap
indices.
Investor Relations Contact:
information-financiere@gtt.fr / +33 1 30 23 20 87
Press Contact:
press@gtt.fr / +33 1 30 23 56 37
For more information, visit www.gtt.fr.
Important notice
The figures presented here are those customarily
used and communicated to the markets by GTT. This message includes
forward- looking information and statements. Such statements
include financial projections and estimates, the assumptions on
which they are based, as well as statements about projects,
objectives and expectations regarding future operations, profits or
services, or future performance. Although GTT’s management believes
that these forward-looking statements are reasonable, investors and
GTT shareholders should be aware that such forward-looking
information and statements are subject to many risks and
uncertainties that are generally difficult to predict and beyond
the control of GTT, and may cause results and developments to
differ significantly from those expressed, implied or predicted in
the forward-looking statements or information. Such risks include
those explained or identified in the public documents filed by GTT
with the French Financial Markets Authority (AMF – Autorité des
Marchés Financiers), including those listed in the “Risk Factors”
section of the GTT Registration Document filed with the AMF on
April 29, 2024, and the half-year financial report released on
July 30, 2024. Investors and GTT shareholders should note that if
some or all of these risks are realised they may have a significant
unfavourable impact on GTT.
1 Floating Storage Regasification Unit.
2 Floating LNG Unit.
3 Floating Storage Unit.
4 Floating Storage Regasification Unit.
5 Floating Liquefied Natural Gas units.
6 Subject to approval by the Shareholders’ Meeting and the amount
of distributable net income in the GTT S.A. corporate financial
statements.
- GTT - Q3 2024 - Activity Update - Press release
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