(News Bulletin 247) – The manufacturer of cryogenic membranes for the transport of natural gas expects to reveal 2024 turnover and gross operating income at the top of its ranges communicated at the start of the year.

The year 2024 promises to be a good vintage for GTT. The manufacturer of cryogenic membranes for the transport of natural gas is now targeting the upper end of its revenue and profitability targets, after having achieved better-than-expected activity over nine months.

At the end of September 2024, GTT revealed a turnover of 464.7 million euros, up 54.9% compared to the first nine months of 2023. The group did better than the 458.8 million euros. euros estimated by Oddo BHF as well as the 454.9 million euros expected by the consensus cited by the research office.

The “new construction” activity, which accounts for 92% of overall turnover, increased by 57.4% year-on-year, to reach 429 million euros. GTT explains that it has benefited from the gradual increase in the number of LNG carriers under construction.

“The growth in demand for LNG indeed generates additional needs for LNG carriers, supported by ongoing investments in liquefaction plants and the increase in construction capacities of shipyards,” declared Jean-Baptiste Choimet, Managing Director from GTT.

“High visibility over the coming years”

“This dynamic is a continuation of an extremely strong order book,” notes Oddo BHF. Indeed, GTT claims an order book, excluding LNG fuel, of 350 units, including 325 LNG carriers and 16 ethane carriers. If we only focus on LNG-powered ships, the number of units on order as of September 30, 2024 rises to 61.

“Since the start of the second half, GTT has received 16 new orders for LNG carriers (compared to 52 in the first half) and 8 LNG carriers. In total, the group has 68 new orders for LNG carriers compared to 73 for the whole year. 2023 which constituted the second year of highest orders”, suggests Oddo BHF.

The group’s order book therefore ensures strong visibility over the years to come, since these latest orders should for the most part be delivered by 2027, further strengthening the secure turnover for 2026 and 2027. , respectively 545 million euros and almost 300 million euros, recalls the design office.

The action progresses

The group also reports an absence of significant delays in ship construction schedules, which allows it to anticipate reaching the top of the initial ranges for 2024, in terms of turnover and gross operating income ( Ebitda) first revealed in February.

GTT then said it was targeting a turnover of 600 to 640 million euros, an Ebitda of 345 to 385 million, and a distribution, for 2024, of a dividend corresponding to a minimum rate of 80% of net income. .

For its part, Oddo BHF is once again adjusting its 2024 Ebitda estimates upwards to 384.5 million euros, and is also revising its Ebitda estimate upwards by 2%.

“The newsflow should remain solid and the current valuation is based on the current core business and not the new markets including LNG Fuel. Also note a still limited share of the renewal market (8% of the current backlog (order book) and potentially 50% in the long term)”, concludes Oddo BHF which raises its price target to 180 euros, while maintaining its outperformance opinion.

On the Paris Stock Exchange, GTT rose 3.1% around 3:30 p.m. after sluggish trading at the start of the session.