GTT revenues stand at €222 million in Jan-Sept 2022
GTT, the technological expert in membrane containment systems used to transport and store liquefied gases, has announces its revenues for the first nine months of 2022.
In the LNG as fuel business, GTT booked 42 orders during the first nine months of 2022.
From a financial perspective, Q3 2022 revenues were up 4.1% versus Q3 2021. As expected, nine-month 2022 revenues were down compared to the same period in 2021 due to an unfavourable base effect.
In the first nine months of 2022, GTT booked 134 orders for LNG carriers, including 46 in the third quarter. Delivery is scheduled between Q3 2024 and Q2 2027. In particular, 58 orders for projects in Qatar were received during the first nine months.
In addition to the 38 orders for LNG-powered vessels received in the first half of 2022, four new orders were received in the third quarter of 2022, bringing the total to 42 orders for the first nine months. While the high price of LNG in Europe could slow order intake in the short term, GTT is convinced of the relevance of its solutions and the potential of this business over the medium and long term.
In the third quarter of 2022, GTT signed two new Technical Assistance and Licensing Agreements (TALA), with the Yangzijiang Shipbuilding and China Merchants Heavy Industries shipyards for the construction of GTT membrane containment systems. This brings to five the number of construction sites now operating in China and contributes to increasing vessel construction capacity.
In July, GTT signed a contract with Antarctica21, the world’s leading operator of fly and cruise expeditions to Antarctica, to install “GTT Digital” smart shipping solutions in its cutting-edge expedition vessel Magellan Explorer.
Following the selection by the European Commission of Elogen’s “gigafactory” project and the strengthening of its R&D division as part of the Hydrogen IPCEI, Elogen has been awarded a maximum of €86 million in subsidies by the French government. An agreement regarding this subsidy will shortly be signed with Bpifrance. For the record, the Elogen gigafactory will start production in 2025 with a production capacity of over 1 GW.
Furthermore, in July 2022, Elogen was selected by Symbio to supply an electrolyser with an initial capacity of 2.5 MW for Symbio’s new fuel cell plant. This new contract represents an important milestone for Elogen, as it highlights the company’s ability to deploy its technologies on multi-megawatt capacities for large industrial projects.
Finally, as previously announced, in the first half of 2022 Elogen entered into several international partnerships for the manufacture and sale of electrolysers for producing green hydrogen:
with HiFraser Group in Australia and New Zealand;
with Valmax Technology Corporation in South Korea;
with Charbone Hydrogène in North America.
In the first half of 2022, GTT received several approvals in principle from classification societies, including:
Bureau Veritas for a new LNG conversion concept for large-capacity container ships;
ClassNK for a new design of LNG fuel tank with 2 bar gauge pressure applicable to PCTC vessels as well as LNG-powered cruise ships;
DNV for an innovative LNG-powered PCTC vessel design;
Lloyd’s Register for GTT’s future NEXT1 containment system;
Bureau Veritas for Shear-Water, a ballast-free vessel concept for LNG bunkering and refuelling vessels.
In the third quarter of 2022, GTT obtained five new approvals in principle from:
DNV for a containment system enabling the transport of liquid hydrogen, as well as the concept for a hydrogen carrier vessel. Both approvals in principle were obtained in the framework of the cooperation agreement with Shell announced early 2022 and reflect the progress of this project;
Lloyd’s Register for a new digital solution named “POWER” designed to optimise transhipment operations between LNG carriers and floating units;
Bureau Veritas for the design of a LNG-powered and “NH3-ready” Very Large Crude Carrier;
Bureau Veritas and DNV for an innovative three-tank LNG carrier concept.
On January 1, 2022, GTT’s order book excluding LNG as fuel comprised 161 units, and subsequently changed as follows:
Deliveries completed: 21 LNG carriers, 4 ethane carriers, 1 FLNG;
Orders received: 134 LNG carriers.
At September 30, 2022, the order book excluding LNG as fuel stood at 269 units, breaking down as follows:
250 LNG carriers;
2 ethane carriers;
2 FSUs;
3 GBSs;
12 onshore storage tanks.
Regarding LNG as fuel, following the delivery of four vessels, and orders for 42 container ship tanks, the number of vessels in the order book stood at 70 units at September 30, 2022.
Work on projects in which the Group is involved in Russia is currently continuing, in compliance with the applicable sanction regimes.
In Russia, the Group is involved in tank design for 15 ice-breaking LNG carriers currently being built at the Zvezda Shipbuilding Complex (Zvezda), as well as in the design of 3 GBSs currently under construction at Saren B.V. At October 1, 2022, revenues of €74 million have yet to be recognised by 2025 for ice-breaking LNG carriers, including €4 million in Q4 2022. Revenues of €12 million have yet to be recognised for 2027 for GBSs, including €1 million in Q4 2022.
Given the impact of international sanctions on LNG liquefaction projects in Russia, the continuation and successful execution of these contracts are still exposed to risks of postponement or cancellation. In particular, sanctions are still affecting Russian imports of certain products and equipment used in current projects, including the Zvezda project. Furthermore, as previously announced, in July Saren B.V. notified GTT of its intention to terminate the contract between them. The termination date has not yet been finally set. In this context, GTT continues to investigate solutions to ensure the proper implementation and integrity of its technology, in strict compliance with international sanctions.
As a reminder, other orders in progress in Asian shipyards for six ice-breaking LNG carriers and two FSUs are specifically intended for Russian Arctic projects. These projects are currently proceeding according to plan. At October 1, 2022, these orders represented total revenues of €31 million for GTT, to be recognized by 2024, including €7 million in Q4 2022.
Finally, eight conventional LNG carriers ordered by international shipowners, under construction in Asian shipyards, are intended for the Arctic LNG 2 project, but can operate in all types of conditions.
GTT is a technological expert in containment systems with cryogenic membranes used to transport and store liquefied gases. For over 50 years, GTT has been designing and providing cutting-edge technologies for a better energy performance, which combine operational efficiency and safety, to equip LNG carriers, floating terminals, land storage, and multi-gas carriers. GTT also develops systems dedicated to the use of LNG as fuel, as well as a full range of services, including digital services in the field of Smart Shipping. The Group is also active in hydrogen through its subsidiary Elogen, which designs and assembles electrolysers notably for the production of green hydrogen.
