(AOF) – GTT has been chosen by its partner, the Korean shipyard Hyundai Heavy Industries, to design the tanks of a storage and regasification unit (FSRU) on behalf of the American LNG company, Excelerate Energy, Inc. GTT will design the tanks for this FSRU with a capacity of 170,000 m3. The tanks will be equipped with the Mark III Flex membrane containment system developed by GTT. Delivery of this FSRU is scheduled for the second quarter of 2026.
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Key points
– World leader in the design of containment systems with cryogenic membranes used for the storage and naval transport of LNG or liquefied natural gas;
– Turnover of €315 million, 94% of which was achieved in the construction of tanks or stationary ships and drawn on 9/10ths of royalties, hence margins of over 50%;
– Capitalization business model on the growth of the natural gas markets (25% of energy consumption expected for 2040) and LNG fuel (“Global Sulfur Cap”, incentive for the propulsion of commercial vessels by LNG) and extension of the service offering through acquisitions;
– Capital held at 21.45% by Engie, Philippe Berterottière being CEO of the 9-member board of directors;
– Very solid debt-free balance sheet with cash of €168m at the end of June.
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– 2019-2021 strategy to respond, in particular through digital innovation, to a maritime sector that emits less carbon emissions, and to obtain €524 million in cumulative turnover;
– Innovation strategy with a research & development budget of €20 million, aimed at strengthening gas management technologies, improving Mark Systems and NO 96 solutions, reducing carbon impacts via artificial intelligence and Smart Shipping and to participate in the growth of the hydrogen market;
– 1st French ETI by the number of patents filed, 8/10ths of the order book from technologies offered for less than 3 years,
– certification of technologies intended for GL fuel;
– partnership with the Marseilles incubator Zebox, specialized in maritime transport;
– 2025 net zero ambition environmental strategy for the company’s carbon emissions;
– Ramp-up of service activities carried out and offers to GBS (seabed, ethane transport, etc.) as well as green hydrogen storage carried by the subsidiary Elogen (partnerships in the design of hydrogen carriers and catalysts) ;
– Record order book: 269 units including 250 LNG carriers and 70 units including 42 tanks for LNG fuel, hence visibility until 2029.
Challenges
– Russian-Ukrainian conflict: high risk of postponement or cancellation of contracts:
– ongoing design of tanks for 15 ice-breaking LNG carriers for the Zvezda shipyard disrupted by sanctions on product imports and end of the contract with Saren,
– maintenance of current orders in Asian shipyards for 6 ice-breaking LNG carriers and 2 FS for Russian Arctic projects, i.e. €38 million in revenue by 2023,
– maintenance of orders for 8 conventional LNG carriers in Asian shipyards, intended for the Arctic LNG2 project but operable elsewhere;
– Other geopolitical risks: Qatar, Malaysia and Indonesia, which account for more than half of the world’s LNG liquefaction supply;
– Expensiveness of LNG in Europe: risk of a slowdown in order intake;
– After a 7.5% decline in revenues at the end of September, confirmation of the 2022 target of €290-320m in revenues and €140-170m in operating profit, rather at the bottom of the range;
– Towards a 2023 financial year of significant increase in results and turnover;
– Installment payable in December of €1.55 on a 2022 dividend at least equal to that of 2021.
Threat to the European energy system
The leading importer of German gas, Uniper posts 54% of the volumes it buys from Russia. Following the war in Ukraine, the group had to acquire the volumes it lacked on the spot market, the prices of which had exploded. In difficulty, he requested aid from the German state, which raises concerns for all European energy companies. Nevertheless the German RWE and the French Engie reacted by arguing that their situation was very different. RWE stressed that it was less dependent on Russian gas. As for Engie, it benefits from the diversification of its sources of supply, with an increase in the volumes of LNG delivered in France and contracts with Norway and Algeria. The group has also adapted its hedging strategy to strengthen its resilience.