Gaztransport & Technigaz (GTT) Q2 2024 earnings summary

Executive summary

• Revenues reached €295 million in H1 2024, up 66% year-over-year, with EBITDA at €177.2 million, up 70.1%, and net income more than doubled to €170.3 million, driven by strong LNG demand and innovation in core technologies.

• Order intake remained robust with 58 new core business orders, including 52 LNG carriers, 4 ethane carriers, 1 FSRU, and 1 FLNG, with deliveries scheduled through 2031.

• Strategic focus on LNG market growth, innovation (GTT NEXT1), digital services, and hydrogen (Elogen), with ongoing investments and selective commercial approach.

• Major technology approvals for LNG and hydrogen containment systems, and acquisition of VPS to enhance digital solutions.

• Elogen began construction of a hydrogen electrolyser gigafactory in Vendôme, targeting Q4 2025 for production start and received Korean certification for its stacks.

Financial highlights

• Consolidated revenues: €294.8 million (+65.8% year-over-year); EBITDA: €177.2 million (+70.1%), margin at 60.1%; net income: €170.3 million (+102.7%), net margin at 57.7%.

• Free cash flow for H1 2024 was €126.9 million, with a cash position of €303.1 million as of June 30, 2024.

• Interim dividend of €3.67 per share, up 98% year-over-year, to be paid in December 2024.

• Basic EPS rose to €4.61 from €2.28 year-over-year.

• CapEx increased to €33.4 million, mainly for HQ refurbishment, VPS acquisition, and strategic investments.

Outlook and guidance

• 2024 revenue guidance: €600–640 million; EBITDA: €345–385 million; dividend payout targeted at least 80% of consolidated net income.

• Order book visibility supports €2,016 million in royalty revenues through 2028 and beyond.

• More than 450 new LNG carriers expected to be ordered between mid-2024 and mid-2033.

• Elogen expected to break even by mid-decade as production scales up.