Gaztransport & Technigaz SA: history, ownership, mission, how it works & makes money

A Brief History of Gaztransport & Technigaz SA

Founded in 1963, Gaztransport & Technigaz SA (GTT) specializes in the engineering of systems for the transport and storage of LNG (liquefied natural gas). The company originated from a collaboration between Gaz de France and the French engineering company Technigaz.

Over the years, GTT has developed several innovative technologies. In 1996, it introduced the Mark III containment system, which represented a significant advance in the design and efficiency of LNG carriers. This system was widely adopted, leading to major contracts with shipbuilders across the globe.

In 2008, GTT began its public offering on the Euronext Paris, further solidifying its position as a leading player in the LNG sector. The IPO was successful, raising over €100 million, and the company continued to grow its market share.

As of 2022, GTT reported a revenue of €186.6 million, reflecting an increase of approximately 23% compared to 2021. The net income for the same year stood at €88.3 million, representing a growth rate of 29%.

Throughout its history, GTT has secured numerous contracts with major maritime companies and shipyards worldwide, including Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries, and Samsung Heavy Industries. By the end of 2022, GTT had received orders for 66 LNG carriers equipped with its technology, demonstrating continued demand in a booming LNG market.

GTT's research and development investments have consistently been around 10% of its annual revenue. In 2021, R&D expenses were reported at €17.7 million, aimed at enhancing its technologies and expanding its applications to include floating LNG units.

In recent developments, GTT has been actively pursuing new markets, especially in Asia and the Middle East, where demand for LNG is surging. The company has established partnerships with key players in these regions to expand its technological reach and market presence.

As of October 2023, GTT's stock price is trading at approximately €138.40, with a market capitalization of €1.65 billion. The company maintains a healthy P/E ratio of around 18.5, indicating strong investor confidence and expectations for future growth.

In December 2022, GTT announced a significant collaboration with the Indian conglomerate, Adani Group, to develop LNG storage solutions in India, which is expected to enhance its footprint in the Asian market.

Looking forward, GTT aims to leverage its strong R&D capabilities to advance new technologies, including solutions for carbon capture and storage, thereby aligning with global sustainability goals. The company remains committed to leading innovations in the LNG sector while navigating the challenges of the energy transition.

A Who Owns Gaztransport & Technigaz SA

As of the latest available data, Gaztransport & Technigaz SA (GTT) is primarily owned by institutional investors and key shareholders. The ownership structure is diverse, reflecting a mix of French and international investors.

The largest institutional shareholder, Amundi Asset Management, holds approximately 8% of GTT's shares. Following closely, BlackRock controls around 5%.

In addition, GTT is listed on the Euronext Paris under the ISIN code FR0011726835, which has contributed to its visibility and accessibility to a broader investor base.

As of the fiscal year ending December 2022, GTT reported total revenues of €141.9 million, marking an increase of 15% year-over-year. The company has consistently delivered dividends, with a payout ratio of 60%.

The following table details the company's recent financial performance:

With regards to share performance, GTT's stock has shown resilience in the past year, trading between €80 and €120, closing at approximately €115 as of late September 2023. This performance reflects investor confidence amid a recovering global economy.

Furthermore, GTT's strategic partnerships in the liquefied natural gas (LNG) sector underline its market position. The company's technological edge is reinforced by its intellectual property portfolio, which consists of over 300 patents.

In summary, Gaztransport & Technigaz SA's ownership is predominantly institutional, with significant participation from retail investors, complemented by strong financial metrics and a robust market presence in the energy sector.

Gaztransport & Technigaz SA Mission Statement

Gaztransport & Technigaz SA (GTT) specializes in the design and engineering of containment systems for the maritime transportation and storage of liquefied natural gas (LNG) and other cryogenic fluids. The company's mission is focused on providing sustainable solutions for the energy sector by promoting technological innovation and enhancing safety in LNG transportation.

GTT aims to lead in its sector by offering high-quality, reliable, and efficient services. Its strategic objectives include:

• Continuous improvement of containment technology for LNG vessels.
• Supporting the transition to cleaner energy sources.
• Ensuring safety and reliability in the maritime transportation of LNG.
• Enhancing the company’s global presence through strategic partnerships.

As of 2023, GTT reported a revenue of €166 million, representing an increase of 24% from the previous year. The company’s net income for the year was approximately €68 million, yielding a net profit margin of around 41%. This performance underscores GTT’s commitment to operational excellence and innovation.

The company’s key financial ratios for 2022 included:

GTT's innovative solutions are pivotal in facilitating the global shift toward LNG as a cleaner energy source. In recent years, the company has secured multiple contracts, including a significant partnership with Samsung Heavy Industries, resulting in the design of advanced LNG carriers.

The ongoing investments in research and development are a testament to GTT’s dedication to maintaining a competitive edge in the market. In 2022, GTT invested approximately €30 million in R&D, reflecting its focus on developing eco-friendly technologies and improving safety protocols.

GTT’s mission is encapsulated in its commitment to environmental sustainability and technological advancement, striving to support the transition toward a low-carbon future while ensuring the highest standards of safety and efficiency in LNG transportation.

How Gaztransport & Technigaz SA Works

Gaztransport & Technigaz SA (GTT) is a French engineering company specializing in cryogenic containment systems for the transport and storage of liquefied natural gas (LNG). Established in 1994, GTT provides technologies that enable the safe and efficient handling of LNG across the supply chain, from production to consumption.

GTT's primary business model revolves around the design and licensing of its proprietary membrane technologies. The company holds a significant market position, with a reported market share of approximately 90% in the construction of LNG carriers. This leadership has enabled GTT to secure numerous contracts with major shipbuilders and energy companies worldwide.

In 2022, GTT reported total revenues of €161.9 million, reflecting a 35% increase from the previous year. The rise in revenue can be attributed to a surge in orders for the construction of new LNG vessels and storage facilities. The company currently has a robust backlog of orders valued at approximately €136 million, ensuring future revenue streams.

The company's technology is centered on the following key systems:

• Mark III: A proven design for LNG carriers, featuring excellent thermal insulation properties.
• No96: Offers high performance with economic benefits, widely used in various types of LNG ships.
• GTT Flex: A flexible solution for ship owners, suited for a variety of applications including floating storage units.

GTT's financial health can be assessed through several key metrics:

GTT also benefits from international expansion, particularly in key markets such as Asia and the Middle East. The company has established joint ventures and partnerships, further extending its reach. Notably, the Asian shipbuilding market accounted for around 50% of GTT’s revenue in 2022.

Furthermore, GTT’s investment in research and development (R&D) is notable, with R&D expenditures amounting to €12 million in 2022, representing about 7.4% of total revenue. This investment aims to innovate and enhance its existing technologies, ensuring GTT remains competitive in an evolving energy landscape.

In terms of stock performance, GTT's shares have shown resilience, with a market capitalization of approximately €1.2 billion as of October 2023. The stock price saw a notable increase of 25% year-to-date, driven by positive earnings forecasts and the global shift towards cleaner energy sources.

GTT's strategic initiatives also include pursuing diversification into hydrogen and ammonia storage technologies, responding to the increasing demand for cleaner energy solutions. This positions the company well in a transitioning market, where LNG is expected to play a crucial role in the energy mix for the foreseeable future.

How Gaztransport & Technigaz SA Makes Money

Gaztransport & Technigaz SA (GTT) primarily generates revenue through the design and engineering of membrane containment systems for the transport and storage of liquefied natural gas (LNG). This specialized technology is crucial for the LNG market, characterized by increasing global energy demands and a shift toward cleaner energy sources.

In 2022, GTT reported a total revenue of €156.7 million, up from €134.4 million in 2021, reflecting a significant growth rate of 16.6%. The company's revenue mainly comes from:

• Licensing of technology to shipbuilders and LNG operators
• Engineering services related to the construction of LNG carriers and storage facilities
• Support services including training and maintenance

For the fiscal year ending December 31, 2022, the breakdown of revenue sources was as follows:

The growth in GTT's revenue can be attributed to several factors. The global LNG market has been expanding, with an expected compound annual growth rate (CAGR) of 10.6% from 2021 to 2028. In addition, GTT has solidified partnerships with major shipbuilders, including Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, which have increased the number of orders for LNG carriers equipped with GTT's technology.

In 2022, GTT secured contracts worth approximately €140 million. The company's order book has reached €400 million, indicating significant future revenue potential. GTT's technology is utilized in over 200 LNG carriers, and it is estimated that around 70% of the global LNG fleet incorporates their membrane technology.

Moreover, GTT invests in research and development (R&D) to innovate and improve its product offerings. The R&D spending for 2022 was approximately €9 million, which represents around 5.7% of total revenue. This investment is critical for maintaining GTT's competitive edge in a rapidly evolving energy market.

Another avenue of revenue is through the growing market for onshore LNG storage tanks. The increasing need for energy storage solutions has prompted GTT to expand its offerings in this area. The onshore storage market is expected to grow at a CAGR of 7.2% from 2022 to 2030, providing GTT with further opportunities for revenue generation.

In summary, Gaztransport & Technigaz SA's revenue model is multifaceted, relying heavily on licensing agreements, engineering services, and ongoing support for its technologies. With robust demand for LNG solutions and strategic partnerships, GTT is well-positioned for continued growth in the energy sector.