(AOF) – GTT announces that it has received an order from its partner Dalian Shipbuilding Industry Co. Ltd. for the design of the tanks of two new LNG carriers, on behalf of Sea Jade Investment Ltd. GTT will design the tanks of these two LNG carriers, which will each have a total capacity of 175,000 m3, and will incorporate the Mark III Flex membrane containment system developed by GTT. Delivery of the vessels is scheduled between the first and third quarters of 2027.
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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 €307 million, 91% generated in the construction of tanks or stationary vessels and 17% in the electrolyzers of the Elogen division;
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Revenues derived at 9/10ths from royalties, hence margins above 50%
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– 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 €213m.
Challenges
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Response strategy, in particular through digital innovation, to a maritime sector that emits less carbon emissions
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– 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 and a new structure for financing start-ups, endowed with €25 million;
– 2025 net zero ambition environmental strategy for the company’s carbon emissions, the approach of which will be formalized and validated by the SBTi in 2023;
– Rapid development of the Elogen subsidiary: order intake up 150%, driven by partnerships in the design of hydrogen generators and electrolysers and public support for the construction of the Vendôme gigafactory;
– Record order book: 274 units including 70 units for LNG fuel ensuring visibility of €1.5 billion by 2027 to 2029.
Challenges
– Russian-Ukrainian conflict: suspension of the Zvezda shipyard (15 ice-breaking LNG carriers and 3 GBS), maintenance of current orders in Asian shipyards (6 ice-breaking LNG carriers and 2 FS) for Russian Arctic projects, i.e. €24 million revenue by 2024, and for the Arctic LNG2 project (8 conventional LNG carriers:
– Other geopolitical risks: Qatar, Malaysia and Indonesia, which account for more than half of the world’s LNG liquefaction supply;
– Waiting for orders in the transport of liquid hydrogen and 3-tank LNG carriers;
– After a drop in sales, 2023 objectives of a significant increase in turnover, between €385 and €430 million, and in operating profit, from €190 to €235 million, and a dividend of 80% of net profit ;
– 2022 dividend stable at €3.1, including interim payment of €1.55 paid in December.
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According to a report by the World Economic Forum, the demand for water will jump by 55% by 2050. However, only 11% of water is recycled worldwide, with strong disparities depending on the country: if this rate reaches 89% in Israel, it drops to 15% in Spain. It is even less than 1% in France! The leader of Veolia nevertheless estimates that the rate of 10% targeted by 2030, within the framework of the new Water plan announced by the authorities, is achievable under certain conditions. First and foremost is administrative simplification. Veolia is committed to tripling its production of recycled water by 2030 to bring it to 3 billion m3. In this field, the world leader in environmental services strengthened its know-how during its takeover bid on the former Suez group.