Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — H1 2024 Earnings Presentation
38 slides from Gaztransport & Technigaz Sa's earnings presentation, Jul 26, 2024
Slide 1: H1 2024 Results
H1 2024 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 26 July 2024
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 Key Strategy & Financials Outlook & Highlights Activity Conclusion 3
Slide 4: Key Highlights
1 Key Highlights
Slide 5: H1 2024 Key Highlights
H1 2024 Key Highlights LNG Market • LNG demand remains strong as evidenced by 2 new Final Investments Decisions (FIDs) on new liquefaction projects Innovation Core business 58 new • New AiPs for key technologies, notably LH2 carriers, and final approval for orders in H1 2024 GTT NEXT1 technology Ser
Slide 6: H1 2024 Orderbook: Strong commercial momentum continues
H1 2024 Orderbook: Strong commercial momentum continues Order book Dec. 2023 H1 2024 new orders H1 2024 deliveries Order book June 2024 LNGC 296 +52 (23) 325 VLEC 4 +4 - 8 FSRU 1 +1 - 2 FSU 0 - - 0 Order book FLNG 1 +1 - 2 at historical Onshore 9 - (4) 5 record level (27) GTT order book movements +5
Slide 7: Strategy & Activity: LNG Carriers and Other Core Applications
2 Strategy & Activity LNG CARRIERS AND OTHER CORE APPLICATIONS
Slide 8: Dynamic LNG Carrier demand led by a combination of growth drivers
Dynamic LNG Carrier demand led by a combination of growth drivers Growth drivers Natural Gas LNG Carriers Coal-to-gas switch Switch from old to new (environment & health vessels issues) LNG Renewal market driven by an ageing fleet and increasingly stringent environmental regulations Pipe-to-LNG swit
Slide 9: Strong LNG demand growth by 2030 and 2040
Strong LNG demand growth by 2030 and 2040 LNG DEMAND OUTLOOK LNG SUPPLY/DEMAND BALANCE 2040 S/D Gap 800 750 140-200 Mtpa BP Current Trajectories 700 CENTRAL 700 CAGR 2023-2030: Wood Mackenzie SCENARIOS 650 +4.7 to 5.4%/y Shell 600 600 500 550 IEA Stated Policies mtpa 500 NET ZERO 400 mtpa COMMITMENT
Slide 10: FIDs taken in Q2 2024 totaling 13 Mtpa
2 FIDs taken in Q2 2024 totaling 13 Mtpa VOLUME Contracted PROJECT COUNTRY OPERATOR Comments (Mtpa) (SPA) Cedar FLNG Canada Pembina/Haisla Nation 3.3 FID in Q2 2024 FID in 9.6 FID in Q2 2024 Al Ruwais UAE ADNOC 2024 Total FID in 2024 c.13 Mtpa Woodfibre W Canada Pacific O&G 2.1 100% Genting FLNG Ind
Slide 11: Requirements for under construction plants: Numerous LNGCs still to be ordered
Requirements for under construction plants: Numerous LNGCs still to be ordered Total Volume Project Name Location Startup date Capacity (Mtpa) Plaquemines Ph1 US East 2024 13,3 Up to 100 more LNGCs needed for under Golden Pass US East 2024 18,1 construction plants Costa Azul Mexico West 2025 2,5 Cor
Slide 12: Replacement: Currently picking up, expected to fasten by end of the decade
Replacement: Currently picking up, expected to fasten by end of the decade Replacement requirements remain constrained compared to the demand for new LNG carriers AGE: More than 300 LNGCs • c. 5-10% of current orderbook will be 20y+ old in the next 10 years (of which 200 will be 25y+ old) FOUR KEY D
Slide 13: Long term estimates for GTT orders
Long term estimates for GTT orders ESTIMATED GTT CUMULATED ORDERS OVER 2024-2033 LNGC More than 450 units VLEC Between 25 & 40 units FSRU Up to 10 units(1) FLNG Up to 10 units Onshore & GBS tanks Between 25 & 30 units (1) Exclude conversion of existing LNG carriers into FSRU H1 2024 Results – 26 Jul
Slide 14: Continuous R&D effort driving innovation: GTT NEXT1
Continuous R&D effort driving innovation: GTT NEXT1 Latest innovation in Cargo Containment Systems (CCS) Final approvals received from Bureau Veritas1 and Lloyd’s Register2 • Granted at the Posidonia 2024 maritime show • GTT NEXT1 now ready for commercial deployment Continuous optimisation • The bes
Slide 15: Strategy & Activity: LNG as Fuel
2 Strategy & Activity LNG AS FUEL
Slide 16: LNG as fuel: The only solution already available to reduce emissions
LNG as fuel: The only solution already available to reduce emissions LNG as a fuel is a must-have • To enable shipowners to remain profitable in an A very quiet market in H1 2024 … increasingly competitive market by reducing fuel • Only c. 30 container ship ordered in H1 costs and emissions of ships
Slide 17: Strategy & Activity: Services and Digital Solutions
2 Strategy & Activity SERVICES AND DIGITAL SOLUTIONS
Slide 18: Services to make LNG easy
Services to make LNG easy • Support for GTT’s LNG core + LNG as a fuel activities • Support for digital transformation CONSULTING TRAINING LNG OPERATIONS EMERGENCY to get LNG as fuel to raise awareness to support operators in the to avoid escalation and projects on track about LNG first LNG operatio
Slide 19: Digital - H1 2024 achievements
Digital - H1 2024 achievements February March March June Acquisition of VPS Sloshing virtual sensor New approval New contract Champion of ship performance New study concludes that Ascenz Marorka obtains type Latsco selected Ascenz management with more than 1,200 predictive technology could approval
Slide 20: Strategy & Activity: Elogen
2 Strategy & Activity ELOGEN
Slide 21: Market: Solid growth expected despite delay in market take-off
Market: Solid growth expected for the years to come despite delay in market take-off CURRENT MARKET SITUATION KEY GROWTH DRIVERS Green H2 market take off has not happened yet due • Important electrolyser requirements even in the lowest scenario (55 GW* to be installed by 2030 i.e. IEA’s STEPS to sce
Slide 22: Elogen: H1 2024 Financial performance
Elogen : H1 2024 Financial performance Key figures • H1 2024 revenues1 of €6.1 M, +178% vs. H1 2023 Order book* H1 2024 revenues • H1 2024 EBITDA losses contained at -13.6 M€ in a context of structuration and industrialisation phase 8.6 M€ 6.1 M€ • EBITDA expected to break even from mid-decade Emplo
Slide 23: GTT Strategic Ventures
2 GTT Strategic Ventures INVESTING IN A SUSTAINABLE WORLD
Slide 24: GTT Strategic Ventures: Investing in a sustainable world
GTT Strategic Ventures: Investing in a sustainable world Q2 24 Q2 24 Q2 24 GTT Strategic Ventures in a nutshell • Launched in the second half of 2022 • GTT’s vehicle to take minority ownerships in innovative start-ups, whose innovations have the potential to contribute to the Group's strategic Finni
Slide 25: Financials
"7 Py: Financials
Slide 26: H1 2024 Core business Orderbook: €2.0 Bn of secured revenues
H1 2024 Core business(1) Orderbook: € 2.0 Bn of secured revenues ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) In units In units As of June 2023 As of June 2024 99 342 87 86 77 78 70 67 302 27 (2) 40 32 50 5 June 2023 June 2024 2024 2025 2026 2027 ≥2028 ORDER BOOK IN VALUE REVE
Slide 27: H1 2024: Consolidated Revenues
H1 2024: Consolidated Revenues SUMMARY REVENUES KEY HIGHLIGHTS in €m H1 2023 H1 2024 Change (%) Strong growth in revenues in H1 2024 (+65.8% vs H1 2023) Total Revenues 177.8 294.8 +65.8% Newbuilds 163.5 271.0 +65.7% Revenues from newbuilds (royalties): • €271.0 million, +65.7% vs H1 2023 % of revenu
Slide 28: H1 2024: Financial Performance
H1 2024: Financial Performance SUMMARY CONSOLIDATED ACCOUNTS KEY HIGHLIGHTS in €m H1 2023 H1 2024 Change (%) EBITDA +70.1% vs H1 2023 Total Revenues 177.8 294.8 +65.8% €177M • In line with the increase EBITDA 104.2 177.2 +70.1% in revenues from core business Margin (%) 58.6% 60.1% • Impact of Elogen
Slide 29: Outlook & Conclusion
4 Outlook & Conclusion
Slide 30: 2024 Outlook confirmed
2024 Outlook confirmed Revenue 2024 consolidated revenue estimated in a range of €600M to €640M EBITDA 2024 consolidated EBITDA estimated in a range of €345M to €385M Dividend 2024 dividend payout of at least 80% of consolidated net income Payment(1) Note: In the absence of any significant delays or
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Slide 32: Appendices
Appendices
Slide 33: GTT's Strategic Roadmap: Towards a zero-carbon future
GTT’s Strategic Roadmap: Towards a zero-carbon future Venture capital • Tunable • Sarus • bound4blue Transformation Digital services • Electrolysers • Energy optimisation • Carbon capture • Emissions monitoring • NH3 compatibility • Operational excellence • Gas management technologies Core services
Slide 34: #LNGCs exiting the market
Replacement: Currently picking up, expected to fasten by end of the decade NUMBER OF LNGCS EXITING THE MARKET ECONOMICS: Reduced newbuild prices will push ST LNGC out of the market 14 Daily shipping cost (174k eq) 12 140 #LNGCs exiting the market 7 120 19 10 15 31 7 100 8 31 80 K$/d 6 66 84 60 4 90
Slide 35: US: Despite Panama bottleneck, US LNG remains largely attractive in Asia
US: Despite Panama bottleneck, US LNG remains largely attractive in Asia US LNG still very economic US LNG COMPETITIVE IN ASIA • Rising EPC costs and bottleneck at Panama canal have slightly increased US LNG price, but it remains largely economic 16 14 $/mmbtu 12 10 8 6 Jan-23 Apr-23 Jul-23 Oct-23 D
Slide 36: An attractive business model supporting high cash generation
An attractive business model supporting high cash generation INVOICING AND REVENUE RECOGNITION Business model supports % of contract (1) high cash generation c. 9 to12 months c. 18 months Delivery 10000 studies royalties • Revenue is recognized pro-rata temporis between construction milestones • Ini
Slide 37: 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
Slide 38: H1 2024 Results
H1 2024 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 26 July 2024
Gaztransport & Technigaz — H1 2024 Earnings Presentation on 6ix