Gaztransport & Technigaz (GTT) Q3 2024 earnings summary

Executive summary

• Strong commercial momentum in 9M 2024 with 68 LNG carrier orders, 12 ethane carriers (including 8 ultra-large), 12 LNG-powered container vessels, 1 FSRU, 1 FLNG, and 1 bunker vessel, with deliveries scheduled through 2031.

• Order book at an all-time high with 82 core business orders and 43 deliveries; ethane carriers form a significant portion.

• Strategic investments in Bluefins and other ventures to advance sustainable propulsion, digital solutions, and decarbonisation; four such investments in 2024.

• Innovation focus with approvals for new tank concepts, alternative fuel compatibility, and multi-fuel readiness for Mark III system.

• Services and digital solutions saw significant growth, with new contracts and the acquisition of VPS enhancing smart shipping capabilities.

Financial highlights

• Revenues for the first nine months of 2024 reached €475 million, up 55% year-over-year from €300 million; newbuild royalties contributed €429 million (+57.4%).

• LNG/Ethane carrier revenues grew 62.2% due to higher construction activity; LNG as fuel revenues up 22%.

• Services revenue increased 40.7% to €29.1 million, driven by digital and pre-engineering services.

• Elogen electrolyser revenues nearly stable at €6.6 million amid weak market conditions.

Outlook and guidance

• 2024 consolidated revenues and EBITDA expected at the top of the €600–640 million and €345–385 million ranges, respectively, assuming no major shipyard delays.

• Dividend payout target set at a minimum of 80% of consolidated net income, subject to shareholder approval.

• Hydrogen market (Elogen) remains slow; EBITDA breakeven for Elogen still targeted by mid-decade.