(AOF) – GTT announced that it had received an order in the second quarter from its partner, the Chinese shipyard Jiangnan, for the design of the tanks of three new LNG carriers. The French group will design the tanks of these LNG carriers, each of which will offer a cargo capacity of 175,000 cubic meters and will incorporate the Mark III Flex membrane containment system developed by GTT. The delivery of the vessels is scheduled during the third quarter of 2025 and the second quarter of 2026.
AOF – LEARN MORE
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 ships 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 €204 million.
Challenges
– 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 participate in the growth of the hydrogen market: 1
time
French ETI by the number of patent filings, 8/10
th
the order book from technologies offered for less than 3 years / certification of technologies intended for GL fuel / partnership with the Marseille incubator Zebox, specializing 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 (cooperation agreement with Shell for the design of a hydrogen maker);
– Record order book at 193 units worth €795m, including 32 for the LNG fuel business, providing visibility until 2029.
Challenges
– Exposure to Russia: 12% of the order book linked to units under construction in the Arctic and 5.7% linked to Asian shipyard projects intended for the Arctic;
– Other geopolitical risks: Qatar, Malaysia and Indonesia, which account for more than half of the world’s LNG liquefaction supply;
– 2022 target of €290 to €320 million in revenue and €140 to €170 million in operating profit;
– Towards a 2023 financial year of sharp increase in results and turnover (€319 million).
Waste management with high stakes
350 million tons of waste are generated annually in France. If 66% is recycled, the rates vary according to the nature of the waste. Thus only 21% of plastics are. In order to strengthen the circular economy, the State massively supports R&D within the framework of the 3R strategy (“Recyclability, Recycling and Reincorporation of materials”). An envelope of 370 million euros will be devoted to it. Regarding hazardous waste, this activity is very profitable. In France, storage and processing capacities are stretched compared to annual needs.