In This Article:
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Revenue: EUR295 million, a 66% increase compared to the first half of 2023.
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EBITDA: EUR177 million, up 70% from last year, with an EBITDA margin of 60%.
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Order Book: 58 new orders for core business, with a total of 325 LNG carriers to deliver.
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Elogen Revenue: EUR6.1 million, representing a 178% increase compared to last year.
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Elogen EBITDA: Minus EUR13.6 million, reflecting the structuring and industrialization phase.
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Free Cash Flow: EUR127 million, a slight decrease from last year.
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Interim Dividend: EUR3.67 per share, up 98% versus last year.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Gaztransport et technigaz SA (GZPZY) reported a 66% increase in revenue for the first half of 2024, reaching EUR295 million.
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The company's EBITDA rose by 70% to EUR177 million, with a strong EBITDA margin of 60%.
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The order book is at an all-time high with 58 new orders, providing high visibility until 2028 and beyond.
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Gaztransport et technigaz SA (GZPZY) received major approvals for its GTT NEXT1 technology, enhancing its competitive edge.
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The construction of the Elogen Gigafactory has begun, with expectations to start production in Q4 2025, indicating future growth potential.
Negative Points
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The anticipated takeoff of the hydrogen market has not yet occurred, leading to delays in final investment decisions for Elogen.
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The company faces competition from Chinese shipyards promoting type B tanks, challenging its LNG as fuel market position.
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High construction activity in Korean and Chinese shipyards poses a risk to meeting delivery schedules.
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Elogen reported an EBITDA loss of EUR13.6 million, reflecting challenges in the nascent hydrogen market.
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The supply chain is under tension due to high demand, which could impact future operations and deliveries.
Q & A Highlights
Q: What caused the increase in core revenue expectations from the order book for 2024? Is it due to an acceleration of vessel construction or new orders? A: The increase is related to the new orders won in the first half. The construction schedules at the shipyards are proceeding as planned, despite the high activity levels at both Korean and Chinese shipyards. (Jean-Baptiste Choimet, CEO)
Q: Can you explain the EUR21 million positive impact from the release of provision that affected net income? A: The EUR21 million is from a settlement received in March 2024 for unauthorized use of GTT's intellectual property. This receivable was fully depreciated in 2023 due to uncertainties, but was recognized in 2024 upon receipt. (Thierry Hochoa, CFO)