Gaztransport & Technigaz Sa · EURONEXT:GTT
Gaztransport & Technigaz Sa — FY2023 Earnings Presentation
53 slides from Gaztransport & Technigaz Sa's earnings presentation, Feb 27, 2024
Slide 1: FY 2023 Results
FY 2023 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 27 February 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 05 Key Focus on Strategy & Financials Outlook & Highlights R&D Activity Conclusion 3
Slide 4: Key Highlights
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Slide 5: 2023 Key figures
2023 Key figures Employees New patents 750+ 64 73 LNGCs Core business LNG as fuel 2 VLECs order book order book 311 units / €1,815 M 76 units 1Sec FLNG Revenues EBITDA €428 M / +39% €235 M / +46% EBITDA Margin 15 LNG as fuel 55% Dividend Second record year for orders Free Cash-Flow €4.36 +53% to €21
Slide 6: 2023 Key Highlights: Very dynamic activity and strong visibility
2023 Key Highlights: Very dynamic activity and strong visibility Market Services • A record year for new liquefaction facilities • Digital services activity intensifies: sanctioned in 2023 representing a total amount new key services, including weather routing, of 56 Mtpa (incl. Qatar NFS) and signi
Slide 7: 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 8: ESG: Becoming a strong sustainability partner for our stakeholders
ESG: Becoming a strong sustainability partner for our stakeholders Achievements A strengthened ESG Governance FIGHTING AGAINST RESPONSIBLE EMPLOYER CORPORATE CITIZEN GLOBAL WARMING • Strategic and CSR Committee, supervising Designing Fostering Contributing sustainability policy and targets technolog
Slide 9: Focus on R&D and Innovation
Focus on R&D and Innovation GTi
Slide 10: R&D and Innovation Roadmap
R&D and Innovation Roadmap BUSINESS Improvement of containment system performance CORE Further reducing LNGC CO2 footprint Enabling better energy efficiency and reducing vessel construction & operating costs GTT Next1 Efficool 200k Slow Steaming LNGc design Offering the best technologies AS FUEL Rec
Slide 11: Zero-Carbon Solutions Innovation: Very large LH2 carrier concept
Zero-Carbon Solutions Innovation Very large LH2 carrier concept GTT, TotalEnergies, LMG Marin and Bureau Veritas reached a new milestone in liquefied hydrogen transport, in the framework of a JDP announced in early 2023 Two AiP received in January 2024 from Bureau Veritas: • The first approval conce
Slide 12: Strategy & Activity: LNG Carriers and Other Core Applications
3 Strategy & Activity LNG CARRIERS AND OTHER CORE APPLICATIONS
Slide 13: Dynamic LNG Carrier demand led by a combination of growth drivers
Dynamic LNG Carrier demand led by a combination of growth drivers Natural Gas LNG LNG Carriers Coal-to-gas switch Pipe-to-LNG switch Switch from old to new flexibility, security of supply Growth vessels drivers (environment & health issues) and reduced dependency Renewal market driven by Increase in
Slide 14: Strong LNG demand growth by 2030 and 2040
Natural Gas LNG LNG Carriers Strong LNG demand growth by 2030 and 2040 LNG DEMAND OUTLOOK NEW SPAs VS LNG SUPPLY/DEMAND 800 650 BP New 750 Momentum 625 CENTRAL SCENARIOS Wood Mackenzie CENTRAL 700 Q4 23 600 CAGR 2023-2030 (and Q2 23 in dotted lines) SCENARIOS 650 +4.9 to 5.7%/y 575 Shell 600 550 Mtp
Slide 15: 2023: 56 Mtpa of FIDs, second best year ever
Natural Gas LNG LNG Carriers 2023: 56 Mtpa of FIDs, second best year ever 2023, 2nd best year for FIDs with 56 Mtpa LNG FIDs BY YEAR • Best year ever if we exclude the 2019 plants in Force Majeure (Arctic LNG-2 and Mozambique LNG-1) Force Majeure 2023 has seen 3 major FIDs • 3 major FIDs above 13 Mt
Slide 16: Numerous projects in line for new FIDs in the near future
Natural Gas LNG LNG Carriers Numerous projects in line for new FIDs in the near future VOLUME Contracted PROJECT COUNTRY OPERATOR Comments (Mtpa) (SPA) Coral Norte FLNG Mozambique ENI 3.4 Cedar FLNG Canada Pembina 3 Woodfibre W Canada Pacific O&G 2.1 100% Most likely CP2 Phase 1 US Venture Global 10
Slide 17: Requirements for under construction plants: Numerous LNGCs still to be ordered
Natural Gas LNG LNG Carriers Requirements for under construction plants: Numerous LNGCs still to be ordered Volume (mtpa) According to GTT’s analysis, market still Startup date Vessels requirements Total Capacity Contracted requires up to 95 LNGCs for contracted Plaquemines Ph1 US East 2024 13,3 13,
Slide 18: Three drivers of fleet replacement: Ageing fleet, economics, environment
Natural Gas LNG LNG Carriers Three drivers of fleet replacement: Ageing fleet, economics, environment … MAINLY EQUIPPED WITH AN AGEING FLEET OF LNGCs… OLDER ENGINE TECHNOLOGIES… … LESS PERFORMING BOIL OFF… 70 Modern #LNGC deliveries 60 technologies 50 (Boil Off≤0,125%/d) 40 30 MEGI/XDF ST 207; 32% 2
Slide 19: Long term estimates for GTT orders
Natural Gas LNG LNG Carriers 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
Slide 20: Strategy & Activity: LNG as Fuel
3 Strategy & Activity LNG AS FUEL
Slide 21: 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 15 new orders booked in 2023 increasingly competitive market by reducing fuel • Total order book reaches 76 LNG fuel vessels costs and emissions of ship
Slide 22: Strategy & Activity: Services and Digital Solutions
3 Strategy & Activity SERVICES AND DIGITAL SOLUTIONS
Slide 23: 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 24: Digital solutions for sustainable ships: Optimising energy efficiency & safety
Digital solutions for sustainable ships: Optimising energy efficiency & safety A recognised provider of vessel performance solutions for all types State-of-the-art digital technologies to of commercial ships • Reduce operational cost • Reduce emissions • Improve safety Strong aims and ambition • Bec
Slide 25: Digital solutions: A buoyant activity driven by decarbonisation of maritime transport
Digital solutions: A buoyant activity driven by the decarbonisation of maritime transport Deep sea Offshore LNG 2023 Addressable market Decarbonisation Innovations Increase vessel Digital +117 Weather routing new vessels Global fleet performance solutions equipped c.60,000 vessels Predictive for shi
Slide 26: Digital Solutions: 2023 Key milestones
Digital Solutions: 2023 Key milestones Launch of the new brand: First contracts for the First contracts for the Important contracts Weather Routing solution Sloshing Virtual Sensor with major customers supported by a Fleet Center for LNG tank predictive like Gaslog, Technomar maintenance and others
Slide 27: Acquisition of VPS, a Danish company specialised in smart shipping
Acquisition of VPS, a Danish company specialised in smart shipping Steering Vessel Performance GTT today announces the acquisition of VPS (Vessel Performance Solutions), a Danish company champion of ship performance management – Founded in 2014 – Based in Copenhagen (Denmark), with a commercial pres
Slide 28: Strategy & Activity: Elogen
Strategy & Activity ELOGEN Git
Slide 29: Market: Despite delay in market take-off, solid growth expected
Market: Despite delay in market take-off, solid growth expected for the years to come and on-going structuration of the ecosystem EVOLUTION OF 2030 GREEN H2 PRODUCTION IEA & BP SCENARIOS BETWEEN 2022 AND 2023 • Shift in market take-off due to delayed FIDs 60 58 • Ongoing structuration of the Europea
Slide 30: Our offer: Manufacturing green electrolysers and electrolysis plants
Our offer: Manufacturing green electrolysers and electrolysis plants with a customer-centric approach Turnkey electrolysers Electrolysis plants Customer services • Several MW • Several dozen MW per plant • 2023: creation of an after-sale • In partnership with EPCs services dedicated team • Commercia
Slide 31: Commercial activity: Selective approach with an international and diversified pipeline
Commercial activity: Selective approach with an international and diversified pipeline Flagship contracts Commercial strategy announced in 2023 First double-digit project in Germany Building a diversified portfolio of (10 MW) projects, by geography and end-market First offshore Targeting reasonable
Slide 32: Strategy: Be Efficient, Be Reliable, Be Ready
Strategy: Be Efficient, Be Reliable, Be Ready Be Efficient Be Reliable Be Ready Cutting-edge technologies are Need for green hydrogen is huge, the cornerstone to make green End-to-end quality is a must demand and supply will align thanks hydrogen revolution a reality to production massification We a
Slide 33: Production: A two-pillar approach
Production: A two-pillar approach Current production capacity: building Elogen’s unique offer • Les Ulis / 2300 m² / up to 160 MW production capacity Focus on • Industrialisation center innovation: building a unique • Innovation and R&D center offer while • Customer and after-sales services center c
Slide 34: Elogen: FY 2023 key figures
Elogen: FY 2023 key figures Key figures FY 2023 Financial Performance • FY Revenues at €10.1m, +116.6% vs FY 2022 Order book* FY 2023 Revenues • EBITDA losses controlled at -€19.7m in a context of increasing workforce EBITDA breakeven expected from mid-decade €16.5 M €10.1 M • Solid commercial momen
Slide 35: Financials
"7 Py: Financials
Slide 36: FY 2023 Orderbook: Strong commercial momentum continues
FY 2023 Orderbook: Strong commercial momentum continues Order book Dec. 2022 FY new orders FY deliveries Order book Dec. 2023 LNGC 256 +73 (21) 296 VLEC 4 +2 (2) 4 FSRU 1 - - 1 FSU 2 - (2) 0 Order book FLNG 0 +1 - 1 at record Onshore 11 - (2) 9 level (39) GTT order book movements +76 (core business)
Slide 37: 2023 Core business Orderbook: €1.8 Bn of secured revenues
2023 Core business(1) Orderbook: € 1.8 Bn of secured revenues ORDER BOOK IN UNITS ORDER BOOK BY YEAR OF DELIVERY (UNITS PER YEAR) In units In units 84 84 85 311 77 72 274 65 57 161 19 30 Dec. 2021 Dec. 2022 December 2023 2024 2025 2026 ≥ 2027 ORDER BOOK IN VALUE REVENUES EXPECTED FROM CURRENT ORDER
Slide 38: FY 2023: Consolidated Revenues
FY 2023: Consolidated Revenues SUMMARY REVENUES KEY HIGHLIGHTS in €m 2022 2023 Change (%) 2023 Revenue growth (+39.2% vs 2022) Total Revenues 307.3 427.7 +39.2% Revenues from newbuilds (royalties): 279.5 389.5 +39.3% • €389.5 million, +39% / +€109.9 m vs 2022 Newbuilds • Revenues from LNGC and Ethan
Slide 39: FY 2023: Financial Performance
FY 2023: Financial Performance SUMMARY CONSOLIDATED ACCOUNTS KEY HIGHLIGHTS in €m 2022 2023 Change (%) EBITDA +45.6% vs 2022 Total Revenues 307.3 427.7 +39.2% €234.5M • In line with the increase EBITDA(1) 161.1 234.5 +45.6% in revenues from core business Margin (%) 52.4% 54.8% • Impact of Elogen Ope
Slide 40: 2023 Dividend: A record year
2023 Dividend: A record year 2018 2019 2020 2021 2022 2023 Consolidated net profit (IFRS) €142.8 M €143.4 M €198.9 M €134.1 M 128.3 201.4 Net earnings per share(1) €3.85 €3.87 €5.36 €3.63 €3.48 €5.45 86% 89% 84% 80% Pay-Out(2) 81% 80% 4.29 4.36 Dividend 3.25 Balance dividend of €2.51(3) 3.12 1.79 3.
Slide 41: Outlook & Conclusion
5 Outlook & Conclusion
Slide 42: 2024 Outlook
2024 Outlook 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 cancellat
Slide 43: Performance of GTT shares since the IPO on 27 February 2014
Performance of GTT shares since the IPO on 27 February 2014 Absolute performance of the share since the IPO: +185.4% Total return: +383.3% Market capitalization as of February 16, 2024: €4,868 billion GTT ranks in the SBF 120 in 54th position and in the Stoxx Europe 600 in 397th position(1) Note
Slide 44: 10th anniversary of GTT's listing on Euronext Paris (2014 – 2024)
10th anniversary of GTT's listing on Euronext Paris (2014 – 2024) FY 2023 Results Presentation – 27 February 2024 44
Slide 45: Appendices
Appendices
Slide 46: LNG prices softening
LNG prices softening Spot LNG prices reach a two-year low • Europe storage almost full SPOT LNG & GAS PRICES • Prices trading in the $10-15/Mmbtu area • High storage level, population behaviour, new FSRUs and increased LNG flows 60 Ukraine Russia war have enabled to avoid the price levels observed c
Slide 47: LNG supply/demand: Market potentially balanced by 2030
LNG supply/demand: Market potentially balanced by 2030 LNG SUPPLY/DEMAND BALANCE 800 2040 S/D Gap 150-250 Mtpa 700 2030 Supply/Demand Gap 600 up to 30 Mtpa 500 Mtpa 400 300 200 100 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Demand range
Slide 48: LNG fuel: A well established industry
LNG fuel: A well established industry* LNG BUNKERING MAP (LNGBV > 2K CBM) LNG VS METHANOL FUEL TODAY LNG fuel Methanol fuel Fleet in service >500 30 (+c.650 LNGC) First vessel in 1960 2015 operation Largest engine 96MW 24MW installed c.40 in service # ports with 0 in service c.10 under bunker vessel
Slide 49: 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 50: GTT Strategic Ventures: Investing for a sustainable world
GTT Strategic Ventures: Investing for a sustainable world 3 INVESTMENTS AS OF TODAY GTT Strategic Ventures in a nutshell • Launched in the second half of 2022 Sept. 22 Dec. 22 Sept. 23 • GTT’s vehicle to take minority ownerships in innovative start-ups, whose innovations have the potential to contri
Slide 51: FY 2023: Evolution of Cost Base
FY 2023: Evolution of Cost Base GTT CONSOLIDATED OPERATIONAL COSTS KEY HIGHLIGHTS in €m 2022 2023 Change (%) Goods purchased (+€4.2 million vs 2022) Goods purchased (13.5) (17.8) +31.3% €17.8M • Increase due to Elogen’s activity % of revenues -4% -4% Subcontracted Test and Studies (26.9) (49.0) +82.
Slide 52: 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 53: FY 2023 Results
FY 2023 Results TECHNOLOGY FOR A SUSTAINABLE WORLD 27 February 2024
Gaztransport & Technigaz (GTT) — FY2023 Earnings Presentation on 6ix