Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — H1 2023 Earnings Presentation
39 slides from Gaztransport & Technigaz Sa's earnings presentation, Jul 28, 2023
Slide 1: H1 2023 Results
H1 2023 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 28 July 2023
Slide 2: Disclaimer
Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. It includes only summary information and does not purport to be comprehensive. No representation,
Slide 3: Agenda
Agenda 01 02 03 04 05 Key Focus on Strategy & Financials Outlook highlights R&D activity 3
Slide 4: Key highlights
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Slide 5: H1 2023 Key Highlights
H1 2023 Key Highlights Key figures KFTC • New orders (core business): 43 in H1 2023 • Court decision leads to potential commercial negotiations with Korean shipyards • H1 2023 revenues: 177,8 M€, +23,3% vs H1 2022 Elogen • H1 2023 EBITDA: 104,2 M€, 58,6% margin Market • Increase in H1 revenues; acce
Slide 6: H1 2023 orderbook: strong commercial momentum
H1 2023 orderbook: strong commercial momentum Order book Dec. 2022 H1 2023 new orders H1 2023 deliveries Order book June 2023 LNGC 256 +42 (11) 287 VLEC 4 - (2) 2 FSRU 1 - - 1 FSU 2 - (2) 0 FLNG 0 +1 - 1 Onshore 11 - - 11 (15) GTT order book movements +43 (core business) 274 302 Order book Dec. 2022
Slide 7: GTT's Strategic roadmap
GTT’s Strategic roadmap TOWARDS A ZERO-CARBON FUTURE Transformation • Transportation of LH2 • Electrolysers • Carbon capture • NH3 compatibility • Gas management technologies (Recycool™) Consulting & Improvement of GTT systems: - NO96 Super+ optimisation - Mark III Flex+ • Digital solutions - Energy
Slide 8: Focus on R&D and innovation
Focus on R&D and innovation Git
Slide 9: New AiPs for key technologies
New AiPs for key technologies JDP WITH SHI AIP FROM BUREAU 3 AIPS FROM DNV FOR GTT’S THREE-TANK VERITAS FOR ALTERNATIVE FUELS CONCEPT FOR LNG DUAL-FUEL VLCC Innovative LNGC three-tank New 10,000 m3 capacity LNG fuel • LNG dual-fuel Suezmax tanker concept offering stakeholders tank concept offering g
Slide 10: Zero-Carbon Solutions Innovation: Very large LH2 carrier concept
Zero-Carbon Solutions Innovation Very large LH2 carrier concept New JDP signed with TotalEnergies, LMG Marin and Bureau Veritas to develop a 150,000 m3 capacity LH2 carrier concept design fitted with GTT’s membrane-type containment system : • TotalEnergies will work on defining the vessel’s specific
Slide 11: Strategy and activity: LNG carriers and other core applications
3 Strategy and activity LNG CARRIERS AND OTHER CORE APPLICATIONS
Slide 12: LNG prices softening
LNG prices softening Spot LNG prices reach a two-year low • Europe ended winter with storage more than 50% full SPOT LNG & GAS PRICES • Prices currently in the $10-15/Mmbtu area • High storage level, population behaviour, new Ukraine Russia war FSRUs and increased LNG flows should enable 60 couleur
Slide 13: EU importing capacity up 50 Mtpa by 2025
EU importing capacity up 50 Mtpa by 2025 REGAS CAPACITY FROM NEW FSRU IN THE EU The newly signed FSRUs will enable to increase capacity by 50 Mtpa in the EU by 2025 • +c.40% of capacity vs existing EU regas capacity (2021 regas capacity in the EU was 120 Mtpa) Source: GTT/ Woodmackenzie Utilisation
Slide 14: LNG imports up again in China
LNG imports up again in China LNG MONTHLY CONSUMPTION IN CHINA As expected, Chinese demand has picked up vs 2022 but is still below 2021 According to Wood Mackenzie forecast, the uptrend should resume over the decade Source: Argus Other South-East Asian countries LNG DEMAND FORECAST IN CHINA represe
Slide 15: Long-term contracting remains dynamic
Long-term contracting remains dynamic SALES AND PURCHASE AGREEMENTS (SPA >10Y) SALES AND PURCHASE AGREEMENTS (SPA >10Y) BY TYPE OF PROJECT BY DESTINATION SINCE EARLY 2022 40 50 35 45 40 30 Existing/UC 35 25 30 Projects now FIDed Mtpa Mtpa 20 (Pre FID when SPA 25 signed) 20 15 Other Pre FID 15 10 10
Slide 16: Numerous US projects in line for FID
Numerous US projects in line for FID VOLUME Contracted PROJECT COUNTRY OPERATOR Comments (Mtpa) (SPA) Plaquemines Phase 2 US Venture Global 7 FID in Q1 23 Port Arthur US Sempra 13 FID in Q1 23 FID in 2023 C.40 Gabon FLNG Gabon Perenco 0.7 FID in Q1 23 (end of July) Mtpa Altamira FLNG US NFE 1.4 FID
Slide 17: New environmental regulation: accelerating fleet renewal and sustaining orders
New environmental regulation: accelerating fleet renewal and sustaining orders …MAINLY EQUIPPED WITH OLDER AN AGING FLEET OF LNGCS… ENGINE TECHNOLOGIES… 60 # LNGCs deliveries 50 40 Steam 30 DFDE; 20 Turbine; 163; 26% 10 228; 36% 0 Before 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 20
Slide 18: Strategy and activity: LNG as fuel
3 Strategy and activity LNG AS FUEL
Slide 19: LNG as fuel: only available solution to reduce emissions
LNG as fuel: only available solution to reduce emissions As anticipated, H1 2023 order activity 7K+ TEU LNG FUELED CONTAINERSHIPS ORDERS slowed down sharply vs 2021 and 2022 Methanol as fuel picking-up despite: 120 70% 250 • Scarce and expensive supply of green # 7k+ TEU LNG fueled orders methanol t
Slide 20: Methanol as fuel: more GHG and higher CO2 emissions than LNG
Methanol as fuel: more GHG and higher CO2 emissions than LNG EXTRA EMISSIONS AND COSTS OF METHANOL VS LNG FUEL Choosing methanol fuel today means ON A LARGE CONTAINERSHIP TO BE COMPLIANT WITH FUEL EU committing to more CO2 emissions... +225,000 tons 100% 250000 ● 225,000 tons additional CO2 emitted
Slide 21: Strategy and activity: Digital solutions
3 Strategy and activity DIGITAL SOLUTIONS
Slide 22: Digital Solutions: 2023 key highlights
Digital Solutions: 2023 key highlights ENVIRONMENTAL COMPLIANCE ENERGY EFFICIENCY PREDICTIVE MAINTENANCE Type Approval certification from Two new contracts to equip Two new contracts to equip DNV for the Shaft Power two LNGCs and 30 container three LNGCs with the predictive Limitation solution ships
Slide 23: Digital solutions: A state-of-the-art Weather Routing solution
Digital solutions: A state-of-the-art Weather Routing solution Ship Commercial Communication Artificial Modelling planning with crew intelligence Our adaptive routing optimizer is supporting onboard and onshore teams to : Elaborate safe and efficient passage plans Reduce emissions and energy consump
Slide 24: Strategy and activity: Elogen
3 Strategy and activity ELOGEN
Slide 25: In H1 2023, Elogen pursued the implementation of its strategy
In H1 2023, Elogen pursued the implementation of its strategy H1 2023 performance Key figures • H1 Revenues at €2.2 M, +26.2% vs H1 2022 (€4.7 M in FY 2022), with an expected acceleration of revenue growth in H2 2023 Order book* H1 2023 Revenues(2) • EBITDA losses controlled at -€7.7 M vs -€4.8 M in
Slide 26: Elogen know-how to help build intelligent wind farms
Elogen know-how to help build intelligent 2.5 MW electrolyser with production capacity of up to 1t of H2 / day at 99.999% purity wind farms Offshore adaptation and integration into a topside module Part of a “Baseload Power Hub” concept: Facility that integrates battery storage and green hydrogen el
Slide 27: First contract within collaboration agreement with Valmax in South Korea
First contract within collaboration agreement 2.5 MW PEM electrolyser with production capacity of up to 1t of H2 / day at with Valmax in South 99.999% purity Korea Mobility project based on green hydrogen production from a wind turbine Pyeongchang project is one of the first two sites selected in So
Slide 28: Financials
4 Financials
Slide 29: H1 2023 core business orderbook: strong visibility
H1 2023 core business(1) orderbook: strong visibility ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) Order book at Dec. 31, 2022 In units In units Order book at June 30, 2023 84 87 78 302 72 70 57 274 45 42 37 15 (2) 19 30 As at Dec.31, 2022 As at June 30, 2023 2023 2024 2025 20
Slide 30: H1 2023 Consolidated Revenues
H1 2023 Consolidated Revenues SUMMARY REVENUES KEY HIGHLIGHTS in €m H1 2022 H1 2023 Change (%) H1 2023 Revenue growth (+23.3% vs H1 2022) Total Revenues 144.2 177.8 +23.3% - Revenues from newbuilds (royalties): Newbuilds 130.7 163.5 +25.2% • €163.5 million, +25.2% vs H1 22 % of revenues 91% 92% • Re
Slide 31: H1 2023 Evolution of cost base
H1 2023 Evolution of cost base GTT CONSOLIDATED OPERATIONAL COSTS KEY HIGHLIGHTS in €m H1 2022 H1 2023 Change (%) Goods purchased (6.0) (5.6) -6.7% Goods purchased (-€0.4 million vs H1 2022) % of revenues -4% -3% €5.6M • Slight decrease due to Elogen Subcontracted Test and Studies (12.7) (17.8) +40.
Slide 32: H1 2023 Financial performance
H1 2023 Financial performance KEY HIGHLIGHTS SUMMARY CONSOLIDATED ACCOUNTS EBITDA (+30.7% vs H1 2022) in €m H1 2022 H1 2023 Change (%) €104M • In line with the increase in revenues from core business Total Revenues 144.2 177.8 +23.3% • Impact of Elogen EBITDA(1) 79.7 104.2 +30.7% • Impact of compens
Slide 33: Outlook
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Slide 34: 2023 Outlook confirmed
2023 Outlook confirmed Revenue 2023 consolidated revenue estimated in a range of €385M to €430M EBITDA 2023 consolidated EBITDA estimated in a range of €190M to €235M Dividend 2023 dividend payout of at least 80% of consolidated net income Payment(1) Note: In the absence of any significant delays or
Slide 35: Appendices
Appendices
Slide 36: LNG demand: strong growth expected by 2040
LNG demand: strong growth expected by 2040 LNG DEMAND OUTLOOK LNG SUPPLY/DEMAND BALANCE 800 CAGR 2023-2040: 2.6-3.5%/y 800 BP New Momentum CENTRAL 700 Shell 700 SCENARIOS Wood Mackenzie 600 600 Supply/Demand Gap c.180-275 Mtpa BP Accelerated NET ZERO 500 COMMITMENT 500 IEA Stated Policies SCENARIOS(
Slide 37: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation Invoicing and revenue recognition Business model supports high cash generation % of contract (1) Revenue is recognized pro-rata temporis c. 9 to12 months c. 18 months Delivery between construction milestones 10000 studies royalties Initial
Slide 38: Elogen: order book, revenues and EBITDA
€M 2021 2022 Order book 5.7 16.1 Revenues 5.0 4.7 EBITDA (8.2) (14.7) €M H1 2022 H1 2023 Order book 5.9 20.3 Revenues 1.7 2.2 EBITDA (4.8) (7.7) H1 2023 Results Presentation – 28 July 2023 38 38
Slide 39: Glossary
Glossary The following abbreviations have been used throughout this document BOR Boil Off Rate FSU Floating Storage Unit MEGI M-type, Electronically Controlled Gas Injection APAC Asia-Pacific GBS Gravity Based Structure Mtpa Million tons per annum CAGR Compound Annual Growth Rate GHG Greenhouse Gase
Gaztransport & Technigaz (GTT) — H1 2023 Earnings Presentation on 6ix