Half Year 2026 Gaztransport et Technigaz SA Earnings Call

July 29, 2026

Speaker #1: Good morning, everyone. I am very pleased to welcome you all here in Paris, and online today, for GTT's Activity Update for the first half of 2026.

François Michel: Good morning, everyone. I am very pleased to welcome you all here in Paris and online today for GTT's activity update for H1 2026. I am here with Thierry Hochoa, our CFO, and together we will walk you through, as usual, our key business highlights, our financials for H1, and a couple of updates also on our two divisions, GTT Marine second and GTT Energy first. Thierry will elaborate on our financials for H1, and I will share with you closing remarks before we open the floor to your questions. An important figure, of course, for this H1 2026 is the 65 new orders that we have recorded over H1, including 56 new LNG carriers, which is very much in line with what we expected the last time we spoke.

Speaker #1: I am here with Thierry Ochoa, our CFO, and together we will walk you through, as usual, our key business highlights, our financials for the first half of the year, and a couple of updates on our two divisions.

Speaker #1: GTC Marine II and GTC Energy First. Thierry will elaborate on our financials for the first half of the year, and I will share with you some closing remarks before we open the floor to your questions.

Speaker #1: An important figure, of course, for this first half of 2026 is the 65 new orders that we have recorded over the first half of the year, including 56 new LNG carriers, which is very much in line with what we expected the last time we spoke.

Speaker #1: Second, despite the high pace of deliveries, the sustained commercial momentum led to an increase in our order book, amounting to a very high level of €1.9 billion on June 30th, among the very highest levels in the history of the company.

François Michel: Despite the high pace of deliveries, the sustained commercial momentum led to an increase of our order book amounting to a very high level of EUR 1.9 billion on 30 June, amongst the very highest level in the history of the company. Revenue came in as expected at EUR 387 million, EBITDA at EUR 264 million. The EBITDA margin is good, 68.1%, and net income is at EUR 210 million. In view of this performance, the board of directors has approved the payment of an interim dividend of EUR 4.30 per share. Now, looking back at the commercial dynamics of GTT Energy. As I was saying, H1 2026 is very much in line with our expectations. It contrasts with H1 2025 in several aspects. The 56 new LNG carrier orders in H1 versus only 10 in H1 2025.

Speaker #1: Revenue came in as expected, as three at €387 million. EBITDA at €264 million, the EBITDA margin is good at 68.1%, and net income is at €210 million.

Speaker #1: In view of this performance, the Board of Directors has approved the payment of an interim dividend of €4.30 per share. Now, looking back at the commercial dynamics of GTT Energy, as I was saying, the first half of 2026 is very much in line with our expectations.

Speaker #1: It contrasts with H1 2025 in several aspects. First, of course, the 56 new LNG carrier orders in the first half versus only 10 in H1 2025, and an important point is that only 18 of those 56 orders are tied to FIDs taken in '25 and in '26.

François Michel: An important point is that only 18 of those 56 orders are tied to FIDs taken in 2025 and in 2026. Another very good point, we announced orders for LNG-related infrastructure, five onshore tanks, one FLNG, and one FSRU. I expect more, which confirms that our membrane technology is equally well-suited for complex projects and onshore applications. Those are key areas for growth in the coming years, as you know, in addition to our core of LNG sea construction, and I will come back to this point later in the presentation. On the FID front, as you know, the positive momentum continues. After the 84 million MTPA of new liquefaction capacity last year, we have registered 37 million MTPA of new projects that have reached FID this year.

Speaker #1: Second, another very good point—we announced orders for LNG-related infrastructure: five onshore tanks, one FLNG, and one FSRU. I expect more, which confirms that our membrane technology is equally well suited for complex projects and onshore applications.

Speaker #1: Those are key areas for growth in the coming years. As you know, in addition to our core of LNG, C construction, and I will come back to this point later in the presentation.

Speaker #1: On the FID front, as you know, the positive momentum continues. After the 84 million tons per annum of new liquefaction capacity last year, we have registered 37 million tons per annum of new projects that have reached FID this year.

Speaker #1: In addition to the 37, we have seen 29 million tons per annum of liquefaction projects that have been confirmed in limited notice to proceed.

François Michel: In addition to the 37, we have seen 29 million MTPA of liquefaction projects that have been confirmed in a limited notice to proceed. Some people call them pre-FID. It means that even if FIDs have not yet been formally signed, stakeholders feel confident enough to start ordering long-lead items or start some civil and pre-construction work in order to speed up the construction once FIDs are reached. Of course, all of this bodes very well for the level of activity and orders to come. Again, the vast majority of the ships for the recent FIDs have not been ordered yet. From a geographical standpoint, the location of the liquefaction units are not the Middle East. It's mostly the US and the Western Hemisphere. Since we talk about the Middle East, a couple of comments on the situation.

Speaker #1: Some people call them pre-FID. But it means that even if FIDs have not yet been formally signed, stakeholders will be confident enough to start ordering long lead items or start some civil and pre-construction work.

Speaker #1: In order to speed up the construction once FIDs are reached—and, of course, all of this bodes very well for the level of activity and orders to come.

Speaker #1: Again, the vast majority of the ships for the recent FIDs have not been ordered yet. From a geographical standpoint, the location of the liquefaction units is not the Middle East.

Speaker #1: It's mostly the USA and the Western Hemisphere. Now, since we're talking about the Middle East, a couple of comments on the situation. Of course, since we spoke in April for the Q1 business update, the situation has remained quite volatile.

François Michel: Of course, since we spoke in April for the Q1 business update, the situation has remained quite volatile and highly uncertain. We are monitoring the situation by the day. What I can share with you confidently, in line with what we said before, is that the conflict has not had any impact on the LNG long-term fundamentals. That's the first part. Neither any material impact on the LNGC shipbuilding business. As a reminder, today, only 3% of the global production capacity of LNG liquefaction, in fact, have been physically damaged. Two liquefaction trains in Ras Laffan for a total of 13 million MTPA. To export, yes, currently constrained by the closure of the straits, but liquefaction capacity is available in the world and will continue to increase very fast up to well through 2030.

Speaker #1: And highly uncertain. So, we are monitoring the situation day by day. But what I can share with you confidently, in line with what we said before, is that the conflict has not had any impact on the LNG long-term fundamentals.

Speaker #1: That's the first part. Neither any material impact on the LNGC shipbuilding business. As a reminder, today, only 3% of the global production capacity of LNG liquefaction, in fact, has been physically damaged.

Speaker #1: Two liquefaction trains in Rastafan for a total of 13 million MTPA. And exports are, yes, currently constrained by the closure of the straits, but liquefaction capacity is available in the world and will continue to increase very fast well through 2030.

Speaker #1: When we look at LNG prices, it is true that in the short run, supply disruptions have led to an increase in the LNG spot price.

François Michel: When we look at LNG prices, it is true that in the short run, supply disruptions have led to an increase in LNG spot price, quite moderate versus 2022. It is worth noting that LNG long-term contracted prices have not increased at all by the same extent. Our reading is that, yes, there have been some short-term disruptions in this market, not the construction market, but the LNG market. That the mitigation measures that have been taken and implemented by countries have worked, and that none of these questions, the fundamentals of the LNG demand and LNGC demand, as in fact we can see with a good level of FIDs recorded in H1 of the year. Why is this demand growing? Of course, this is what we see with the upward revision of all demand forecasts released in June of this year.

Speaker #1: Quite moderate versus 2022, but it is worth noting that LNG long-term contract prices have not increased at all by the same extent. And so our reading is that, yes, there have been some short-term disruptions in this market—not the construction market, but the LNG market—that the mitigation measures that have been taken and implemented by countries have worked, and that none of these questions the fundamentals of LNG demand, LNGC demand, and LNGC demand has, in fact, we can see with the good level of FIDs recorded in the first half of the year.

Speaker #1: So why is this demand growing? Of course, this is what we see with the long-term revision of with the upward revision of all demand forecast released in June of this year, major forecasts such as wood by Kedzie and Shell are pointing to sustained growth in demand for LNG well until 2035 with the Kager of at least five percent.

François Michel: Major forecasts such as Wood Mackenzie and Shell are pointing to sustained growth in demand for LNG well until 2035, with a CAGR of at least 5%. Demand is in fact driven by Asian growth. It is a point that has been shared several times, but also with growing concerns over energy security in Europe and also higher intake in the MENA region to secure LNG supply. Over the long run, the increase in LNG demand is tied to two things, Asian growth and the growing share of gas in the global energy mix. By 2050, as you can see on the left chart, coal and oil are expected to account for a smaller share of the energy mix, while natural gas and the renewables in tandem are expected to play a larger role. This transition towards renewable and gas is supported by several long-term factors.

Speaker #1: And demand is, in fact, driven by Asian growth. It is a point that has been shared several times, but also with growing concerns over energy security in Europe.

Speaker #1: And also, higher intake in the MENA region to secure LNG supply. Over the long run, the increase in LNG demand is tied to two things: Asian growth and the growing share of gas in the global energy mix.

Speaker #1: By 2050, as you can see on the left chart, coal and oil are expected to account for a smaller share of the energy mix, while natural gas and renewables, the renewables in tandem, are expected to play a larger role.

Speaker #1: And this transition towards renewables and gas is supported by several long-term factors. The abundant availability and operational flexibility of natural gas, its environmental advantages—even though it is a transition energy—make it a long-term transition energy.

François Michel: The abundant availability and operational flexibility of natural gas, its environmental advantages, even though it is a transition energy, it is a long-term transition energy over coal and oil, of course, including lower air pollutant emissions, it's the key role of gas in supporting the renewable power generation by helping managing intermittencies. On the back of these drivers, after cautious, really cautious calculations and many interactions, consulting with many customers. It's not a macro view. It's a very solid work. Without waiting for the full year 2026 results, we have decided to revise our 10-year estimates for LNGC orders of our technologies. We now expect that about circa 550 LNG carrier units should be ordered by 2035 to meet the LNG demand and export growing volumes, primarily from the USA to Asia in particular.

Speaker #1: Over coal and oil, of course, including lower air pollutant emissions. And it's the key role of gas in supporting renewable power generation by helping manage intermittency.

Speaker #1: On the back of these drivers, and after really cautious calculations and many interactions, consulting with many customers. So it's not a macro view; it's very solid work.

Speaker #1: Without waiting for the full-year 2026 results, we have decided to revise our 10-year estimates for LNGC orders for our technologies. We now expect that approximately 550 LNG carrier units should be ordered by 2035 to meet the LNG demand and growing export volumes, primarily from the USA to Asia in particular.

Speaker #1: Second, we have also increased our estimate on onshore storage tanks to approximately 30 units. We will keep revising this estimate regularly. Also, I don't see them changing in the very near future.

François Michel: Second, we have also increased our estimate on onshore storage tanks to circa 30 units. We will keep revising these estimates regularly. I don't see them changing in the very near future. Another question that we look at and that we regularly have relates to shipyard capacity. Shipyards have a key role to play in delivering the LNGCs that have been ordered. What I can share with you also here, also in confidence, is that the supply chain is solid, and it is well-positioned to meet the expected demand of new LNG carriers. Shipyards continue to expand capacity in South Korea a lot with schedule optimization and debottlenecking. In China, in new investments, new docks, which leads to additional slots, at least 100 slots per year in 2028, according to our estimates.

Speaker #1: Another question that we look at, and that we regularly have, relates to shipyard capacity. Shipyards have a key role to play in delivering the LNGCs that have been ordered.

Speaker #1: And what I can share with you also here, in confidence, is that the supply chain is solid and is well positioned to meet the expected demand for new LNG carriers.

Speaker #1: Shipyards continue to expand capacity. In South Korea, a lot with schedule optimization and debottlenecking. In China, new investments in new docks, which leads to additional slots—at least 100 slots per year in 2028 according to our estimates.

Speaker #1: In addition to this base, a number of important countries have expressed their interest in developing domestic LNG carrier construction capabilities, including first Japan, who has a plan to revive its shipbuilding industry, which could add a handful of ships but also, in the medium term, the USA and India and a couple of other countries. GTT is involved in these preliminary or advanced discussions.

François Michel: In addition to this base, a number of important countries have expressed their interest in developing domestic LNG carrier construction capabilities, including first, Japan, who has a plan to revive its shipbuilding industry, which could add a handful of ships, but also for the medium term, the USA and India and a couple of other countries, and GTT is involved in these preliminary or advanced discussions. Now, a couple of comments on three important milestones for the energy business in H1 2026. The first one is the second consecutive order for a three-tank LNG carrier which has been placed by the same ship owner. It is a joint development with HHI, with Hyundai. It confirms that our pioneering design, which it is really a breakthrough design, is able to meet customer and end users' requirements. By redesigning completely the ship with three tanks, we can enhance cargo handling.

Speaker #1: Now, a couple of comments on three important milestones for the energy business in H1 2026. First, the first one is the second consecutive order for three-tank LNG carriers.

Speaker #1: Which has been placed by the same ship owner. It's a joint development with HHI, with Hyundai. And it confirms that our pioneering design, it's a really a breakthrough design, is able to meet customer and end users requirements.

Speaker #1: By completely redesigning the ship with three tanks, we can enhance cargo handling. We can increase the volume of the cargo for the same size of the ship by about 3,000 cubic meters.

François Michel: We can increase the volume of the cargo for the same size of the ship by about 3,000 cubic meters. We can improve the overall performance, reduce the boil off, reduce construction costs, reduce shipping costs, and all of this through advanced engineering in good cooperation with the yard. Second important milestone, the first half of the year was also marked by the first order of an FLNG infrastructure for the USA in general, and it is also the largest LNG production capacity in the world, with a total output of 4.4 million ton per annum. It is the eighth FLNG that will be delivered with GTT's technology. This is a Delfin FLNG one project. It will be operated off the coast of Louisiana. It will be delivered. The delivery is scheduled for mid-2030.

Speaker #1: We can improve the overall performance, reduce boil-off, reduce construction costs, and reduce shipping costs—all of this through advanced engineering and good cooperation with the yard.

Speaker #1: Second important milestone: the first half of the year was also marked by the first order of an FLNG infrastructure for the USA in general.

Speaker #1: And it's also the largest LNG production capacity in the world, with a total output of 4.4 million tons per annum. It is the eighth FLNG that will be delivered with GTT's technology.

Speaker #1: This is a delphin FLNG one project. It will be operated off the coast of Louisiana. It will be delivered the delivery is scheduled for mid 2030.

Speaker #1: It is also worth mentioning that, amongst the 29 million tons per annum of projects that have been confirmed in limited notice to proceed that I was mentioning earlier, 4.4 million tons per annum are related to a second FLNG for the same project.

François Michel: It is also worth mentioning that amongst the 29 million ton per annum of projects that have been confirmed in limited notice to proceed, that I was mentioning earlier, 4.4 million ton per annum are related to a second FLNG for the same project. Last comment on GTT Energy. The first half of the year was marked by five orders for onshore tanks. GTT will license our GST technology for the construction first of the three largest LNG onshore storage tanks ever built in the world, each with a capacity of 240,000 cubic meters, all of them in China. We are the only company able to do so. We also recorded the largest onshore ethane storage tank ever built in the world with a capacity of 200,000 cubic meters, and here also in China. Our GST technology is a very strong technology.

Speaker #1: Last comment on GTP energy. The first half of the year was marked by five orders for onshore tanks. GTT will license—we will license—our GST technology for the construction of the three largest LNG onshore storage tanks ever built in the world.

Speaker #1: Each with a capacity of 240,000 cubic meters, all of them in China. We are the only company able to do so. We also recorded the largest onshore ethane storage tank ever built in the world, with a capacity of 200,000 cubic meters, and here also in China.

Speaker #1: Our GST technology is a very strong technology. It offers several advantages compared with traditional onshore solutions, which work for small-scale tanks but certainly not for large tanks.

François Michel: It offers several advantages compared with traditional onshore solutions, which are functioning for small-scale tanks, but certainly not for large tanks. In the same concrete envelope, we can allow for up to 25% additional net volumes at the same capacity. Conversely, we can allow for a 40% reduction in metal tonnage as well as a significant reduction in the concrete tonnage. We have major benefits in terms of operations and environmental performance of the tanks. Last, those infrastructures are, in addition to being long-lasting, they are also versatile. They can be used for different liquefied gases such as LNG, ethane, but also ammonia, as confirmed by the AIPs we have received recently from classification societies. These recent developments further strengthen our track record, and they pave the way, of course, for future opportunities, not only in China but in the rest of the world.

Speaker #1: In the same concrete envelope, we can allow for up to 25% additional net volumes at the same capacity. Conversely, we can allow for a 40% reduction in metal tonnage, as well as a significant reduction in the concrete tonnage.

Speaker #1: We have major benefits in terms of operations and environmental performance of the tanks. And last, those infrastructures, in addition to being long-lasting, are also versatile.

Speaker #1: They can be used for different liquefaction cases—liquefied gases such as LNG, ethane, but also ammonia—as confirmed by the AIPs we have received.

Speaker #1: Recently, from classification societies, these recent developments further strengthen our track record, and they paved the way, of course, for future opportunities not only in China but in the rest of the world.

Speaker #1: This is one area of focus for us. Now, a couple of comments on GTT Marine. I will say here that we are well on track with the integration of Danelec, which is a success.

François Michel: This is one area of focus for us. Now, a couple of comments on GTT Marine. I will say here that we are well on track for the integration of Danelec, which is a success. We have presented at Posidonia 2026 our concept for unified integrated software platform. We are receiving very good feedback from customers. In terms of operations in Q2 of this year, we have signed a key software and hardware contract with PETRONAS, which brings solutions to PETRONAS's LNGC chartered fleet, ranging from data collection, performance, voyage optimization to LNG software solutions. We have signed other good contracts this H1, including more than 150 shaft power meters sold to various ship owners, about 50 VDR sold to European partners. Finally, as promised, we are able to give you more color on GTT Marine's financial metrics.

Speaker #1: We have presented at Posidonia 2026 our concept for a unified, integrated software platform. We are receiving very good feedback from customers. In terms of operations, in the second quarter of this year we have signed a key software and hardware contract with Petronas, which brings solutions to Petronas's LNGC chartered fleet ranging from data collection, performance, voyage optimization, to LNG solution software solutions.

Speaker #1: We have signed other good contracts this first half of the year, including more than 150 shaft power meters sold to various ship owners, and about 50 VDRs sold to European partners.

Speaker #1: And finally, as promised, we are able to give you more color on GTT Marine's financial metrics. We'll be reporting on this activity separately, even though there are strong synergies with the core business.

François Michel: We'll be reporting on this activity separately, even though there are strong synergies with the core business. The revenue for H1 was EUR 31.8 million, EBITDA EUR 5.7 million, and that represents an EBITDA margin of 17.6% in line with our expectations, which is a good level of margin for an activity being in the scope of integration. Again, this gives us a very solid base, business base, and technical base to develop fast in services, in general for the shipping industry, but also for the LNGC industry in particular. Let me hand over the floor to Thierry for financials.

Speaker #1: The revenue for this first half of the year was €31.8 million. EBITDA was €5.7 million. That represents an EBITDA margin of 17.6%, in line with our expectations.

Speaker #1: Which is a good level of margin for an activity being in the scope of integration? This, again, gives us a very solid business base and technical base to develop fast in services in general for the shipping industry.

Speaker #1: But also for the LNGC industry in particular. Now, let me hand over the floor to Thierry for financials.

Speaker #2: Thank you, Francois. Good morning, everyone. Now let's move to the financial part of the presentation, and let's start with our order book for the first semester, which evolves as follows.

Thierry Hochoa: Thank you, François. Good morning, everyone. Let's move to the financial part of the presentation. Let's start with our order book for H1, which evolves as follows. As mentioned by François, we benefit from a very high order intake with 65 orders with LNGCs and 5 onshore tanks, as you can see on the screen. Deliveries amount to 47 units with 45 LNGCs for H1 2026, 1 VLEC, and 1 FSRU. This results in a strong core business order book with 306 units at the end of H1. Regarding LNG as fuel, with the delivery of only 5 units in H1, we have 43 units to deliver in the coming years.

Speaker #2: As mentioned by François, we benefit from a very high order intake, with 65 orders for LNGCs and five onshore tanks, as you can see on the screen.

Speaker #2: Deliveries amount to 47 units, with 45 LNGCs for the first semester of 2026, one VLEC, and one FSRU. This results in a strong core business order book with 306 units at the end of the first semester.

Speaker #2: Regarding LNG as fuel, with the delivery of only five units in the first semester, we have 43 units to deliver in the coming years.

Speaker #2: As mentioned just before, our core business order book, which consisted of 306 units at the end of June 2026, translates into €1.9 billion of revenues for years to come.

Thierry Hochoa: As mentioned just before, our core business order book, with which 306 units at the end of June 2026 translate into EUR 1.9 billion of revenues for years to come, of which EUR 65 million for 2027 and EUR 603 million for 2028 of revenue already secured. As mentioned in the graph at the bottom right, where you can see the consumption and flows of our backlog in the years to come, in terms of revenues. This give us a very strong visibility and confidence on top of the commercial momentum. Now moving to more details on revenues by activity. Revenues are almost flat year-on-year for H1 2026 at EUR 387 million for H1. This is mainly due to a lower number of LNG carriers under construction and a high comparison base in 2025, resulting in a slight decrease of GTT Energy revenue.

Speaker #2: Of which €65 million for 2027 and €63 million for 2028 of revenue are already secured, as mentioned in the graph at the bottom right where you can see the consumption and flows of our backlog in the years to come in terms of revenues.

Speaker #2: This gives us very strong visibility and confidence on top of the commercial momentum. Now, moving to more details on revenues by activity. Revenues are almost flat year on year for the first semester of 2026 at €387 million for the first semester.

Speaker #2: This is mainly due to a lower number of LNG carriers under construction and a high comparison base in 2025, resulting in a slight decrease of GTT energy revenue.

Speaker #2: This is partly compensated by higher revenue of GTT Marine linked to Danelec's acquisition, which was not contributing last year to the revenue of the group.

Thierry Hochoa: This is partly compensated by higher revenue of GTT Marine linked to the Danelec acquisition, which not contributing last year for the revenue of the group. This division of GTT Marine now accounts for 8% of group revenue. One comment on electrolyzers or hydrogen revenues which are down as Elogen is continuing its transition and repositioning. Sorry. Let's continue with the other main aggregates of the P&L, in particular with EBITDA. Our EBITDA remains very solid at EUR 264 million. This is mainly explained by our operating leverage, explained by the absence of significant delays in ship construction schedules, but explained as well by the close monitoring of our cost. As a consequence, the EBITDA margin remains at a very high level and amounts to 68% in H1 2026. Our net income at EUR 210 million.

Speaker #2: This division of GTT Marine now accounts for 8% of group revenue. One comment on electrolyzers or hydrogen: revenues are down, as Elogen is continuing its transition and repositioning.

Speaker #2: Sorry. Let's continue with the other main aggregates of the P&L, in particular with EBITDA. Our EBITDA remains very solid at €264 million. This is mainly explained by our operating leverage.

Speaker #2: Explained by the absence of significant delays in ship construction schedules, but explained as well by the close monitoring of our costs. As a consequence, the EBITDA margin remains at a very high level.

Speaker #2: And amounts to 68% in H1 2026. Our net income, at €210 million, this means an improvement of 17% compared to 2025.

Thierry Hochoa: This means an improvement of 17% compared to 2025, and this is mainly due to a comparison effect with our one-off cost that we booked last year for the restructuring of Elogen. One comment on our cash position. As you know, we finance the Danelec acquisition with cash and debt, and we still have EUR 90 million of financial debt in our books. This brings our net cash position to EUR 295 million at the end of June 2026. This is, of course, after the 2025 dividend balance payment for EUR 183 million. On that subject, the board approved yesterday the payment of 2026 interim dividend at EUR 4.30 per share to be paid later this year in December. I now hand back the floor to François for the 2026 outlook and the conclusions

Speaker #2: And this is mainly due to a comparison effect, with our one-off cost that we booked last year for the restructuring of Elogen.

Speaker #2: One comment on our cash position. As you know, we financed the Danelec acquisition with cash and debt, and we still have €90 million of financial debt on our books.

Speaker #2: This brings our net cash position to €295 million at the end of June 2026. This is, of course, after the 2025 dividend balance payment of €183 million.

Speaker #2: And on that subject, the Board approved yesterday the payment of a 2026 interim dividend at €4.30 per share, to be paid later this year in December.

Speaker #2: I now hand back the floor to François for the 2026 outlook and the conclusion.

Speaker #1: Thank you. Thierry. No. I need the next No, no, no, no. I need a I need the next page. Yes. Thank you. So a couple of comments on our outlook.

François Michel: Thank you, Thierry. No. I need the next

François Michel: Thank you, Thierry. No. I need the next-

[Company Representative] (GTT): Sorry.

François Michel: No, I need the next page. Yes, thank you. A couple of comments on our outlook. We are, of course, confirming our guidance for the year 2026. As a reminder, we expect revenue to be in the range of EUR 740 to 780 million, where EBITDA will be in between EUR 490 to 530 million. We will maintain scrupulously our dividend policy that has been a commitment since the IPO. We have no intention to change this at all. Now, a few takeaways before taking your questions. The commercial dynamic is the one that we expected, but it is very good. 65 orders in the H1 of the year. We are currently on a record level of order book. I expect more. As explained, LNG demand is solid for the medium term. It is resilient. It will keep increasing over the coming years.

Speaker #1: We are, of course, confirming our guidance for the year 2026. As a reminder, we expect revenue to be in the range of €740 million to €780 million.

Speaker #1: EBITDA will be between €490 million and €530 million. And we will scrupulously maintain our dividend policy, which has been a commitment since the IPO.

Speaker #1: We have no intention to change this at all. A few takeaways before taking your questions: the commercial dynamic is the one that we expected.

Speaker #1: But it is very good—65 orders in the first half of the year. We are currently at a record level of order book. I expect more.

Speaker #1: As explained, LNG demand is solid for the medium term. It is resilient. It will keep increasing over the coming years. Of course, we are closely monitoring the situation in the Middle East.

François Michel: Of course, we are closely monitoring the situation in the Middle East. So far, and while we are cautious, we have not seen a direct impact on our business, or at least any material or significant impact beyond the anecdotes. The 84 million tons per annum of new liquefaction capacity decided last year, the 37 million tons decided this year, the 29 additional pre-FID projects that we expect will drive the need for new vessels to transport new volumes that will come online in the next couple of years. We will build on this momentum and leverage our strength on this market and our track record, our 60-year track record in this industry to bring more value for our customers first, but for all shareholders and all stakeholders in general.

Speaker #1: But so far, and while we are cautious, we have not seen direct impact on our business, or at least any material or significant impact.

Speaker #1: Beyond the anecdotes, the 84 million tons per annum of new liquefaction capacity decided last year, the 37 million tons decided this year, and the 29 million additional of pre-FID projects that we expect, will drive the need for new vessels to transport new volumes that will come online in the next couple of years.

Speaker #1: We will build on this momentum and leverage our strengths in this market and our 60-year track record in this industry to bring more value for our customers first, but for all shareholders and all stakeholders in general.

Speaker #1: This will be done with the two divisions that we have now well in place and which are working in a very synergetic manner.

François Michel: This will be done with the two divisions that we have now well in place and which are working in a very synergetic manner around the priorities that I shared with you earlier. One is accelerating the core business innovation close to our core business, close to our customers, and you have seen examples of that. Developing a service offering built around our digital offer. Third, improving our value proposition with turnkey solutions on a couple of markets for a couple of applications, including some onshore storage and LNG as a fuel. Thank you for your attention.

Speaker #1: Around the priorities that I shared with you earlier—one is accelerating the core business innovation close to our core business, close to our customers. And you have seen examples of that.

Speaker #1: Developing a service offering built around our digital offer, and third, improving our value proposition with turnkey solutions in a couple of markets for a couple of applications.

Speaker #1: Including some onshore storage and LNG as a fuel. Thank you for your attention.

Speaker #3: Ladies and gentlemen, if you wish to ask a question, please press star and one on your phone. Thank you.

Operator: Ladies and gentlemen, if you wish to ask a question, please press star and one on your phone. Thank you.

Speaker #4: Hi. For those of you who are online, we will take the questions from the room first, and then we will take your questions.

[Company Representative] (GTT): Hi. For those of you who are online, we will take the question from the room first, and then we will take your questions.

François Michel: Okay.

Henri Patricot: Henri Patricot from UBS. Thank you for the update. The first question is on the long-term outlook, the 10-year forecast that you give us for LNGCs at around 550 units. Could you share with me some details on the ping stat number? What's your assumption around replacement, the size of the LNG market that you use for that forecast? Secondly, on the deliveries for 2026. I'm thinking you're now expecting slightly below 100. I think at the end of the full year results, you had a bit above 100. Just wondering if there is some slippage because of the Middle East or if you're just being a bit more conservative with deliveries for this year. Thank you.

Speaker #1: From EBS: Thank you for the ED update. The first question is on the long-term outlook—the ten-year forecast that you give us for LNGCs at around 550 units.

Speaker #1: Could you share some details on what an opinion start number what your assumption around replacement the size of the LNG market that you use for that forecast?

Speaker #1: And then, secondly, on the deliveries for 2026. I think you're now expecting slightly below 100. At the end of the full year results, you had a bit above 100.

Speaker #1: Just wondering if there is some slippage because of the Middle East, or if you're just being a bit more conservative with deliveries for this year.

Speaker #1: Thank you.

Speaker #2: Thank you. So the 550 long-term estimates that we are releasing is a solid estimate. It consists of three parts. First, when we look at the ships that need to be ordered for FIDs that have already been taken, we find a total of—and by doing a micro work—we find a total of 250 ships that need to be ordered for existing leak of action FID projects, leak of action capacity, leak of action trains that have—that are being built today.

François Michel: Thank you. The 550 long-term estimate that we are releasing is a solid estimate. It consists in three parts. First, when we look at the ships that need to be ordered for FIDs that have already been taken, by doing micro work, we find a total of 250 ships that need to be ordered for existing liquefaction, FID project, liquefaction capacity, liquefaction trains that are being built today. That's the first bucket. Second, we have made an estimate of new FID trains that will be most likely ordered in the coming years. That includes the 29 million tons per annum of limited notice to proceed or pre-FID projects that I spoke about earlier. That gives me a total of, let's say, 150 to 200 ships for the second bucket, depending on how you suit.

Speaker #2: That's the first bucket. Second, we have made an estimate of new FID trains that will most likely be ordered in the coming years.

Speaker #2: That includes the 29 million tons per annum of limited notice to proceed, or pre-FID projects, that I spoke about earlier. And that gives me a total of, let's say, 150 to 200 ships for this second bucket.

Speaker #2: Depending on how you take the average shipping intensity for this, of course, we have to look at where those projects are and what is the likely customer base. But for the average shipping intensity, we have taken a conservative approach of keeping it to about two, which is around the shipping intensity today.

François Michel: The average shipping intensity for this, of course, we have to look at where these projects are and what is the likely customer base. The average shipping intensity, we have taken a conservative approach of keeping it to about two, which is the shipping intensity today. The number of ships for 1 million tons per annum of liquefaction capacity is about two. That gives me 150 to 200. Third, we know that over the coming 10 years, old ships, and we have a list of all the ships, we know very well which ones are getting old. In particular, the old steam turbines and diesel ships will need to be retired and replaced. Here we have taken an assumption of 150 to 200 ships to be retired.

Speaker #2: The number of ships for 1 million tons per annum of leak-off action capacity is about two. So that gives me 150 to 200. We know that over the coming 10 years, all the ships—and we have a list of all the ships—we know very well which ones are getting old.

Speaker #2: In particular the old steam turbines and and diesel ships will need to be retired and replaced. And here we have taken an assumption of 150 to 200 ships to be retired.

Speaker #2: So if I take 250 plus 150 plus 150 in general I find about 550 ships to be ordered in the coming decade. That's the that's the base for the for the estimates.

François Michel: If I take 250 plus 150 plus 150, in general, I find about 550 ships to be older in the coming decade. That's the base for the estimate. Gaumont, your question on the pace of delivery, we don't see any slippage in the pace of delivery. We are looking very closely at whether or not there could be an impact of the Middle East disruptions on the supply chain upstream from yards. I cannot say in general whether there could not be any impact in particular on electronic components or anything like this, that is beyond what I can say. What we know is that from our deep engagement and direct engagement from myself with suppliers, for the moment, we don't see and we don't expect any delivery.

Speaker #2: Second your question on the pace of delivery we don't see any slippage in the pace of delivery. We are looking very closely at whether or not there could be an impact of the Middle East disruptions on the supply chain upstream from from yards.

Speaker #2: I cannot say in general whether there could not be any impact in particular on electronic components or anything like this. That that is beyond what I can say.

Speaker #2: But what we know is that, from our deep engagement and direct engagement from myself with suppliers, for the moment we don't see and we don't expect any deliveries.

Speaker #2: So there is no direct impact on the supply chain from the Middle East conflict on the ability of the yard to build and deliver ships.

François Michel: There is no direct impact of the supply chain of the Middle East conflict on the ability of the yard to build and deliver ships. When I share all this with other member of the industries or other companies in the shipbuilding industry, this is also their analysis. Now, there is some degree of, I would say not Noise around exactly how many ships can be built in a single year, there's no slippage whatsoever in our forecast. It's just standard noise.

Speaker #2: And when I share this with other members of the industries or other companies in the shipbuilding industry, this is also their analysis.

Speaker #2: No, there is some degree of, I would say, not the noise around exactly which—how many ships can be built in a single year.

Speaker #2: So that we have—not there is no slippage whatsoever in our forecast. It's a standard noise.

Speaker #4: Jean Lecromin at CIC CIB. You had very successful orders in the services business. If we compare to the order book of €1.9 billion you have for GTT Energy, how much do these orders represent in terms of turnover to be booked by you in the next few years?

Jean Romain: Jean Romain at CIC CIB. You had very successful orders in the services business, GTT Marine. If we would compare to the order book of EUR 1.9 billion you have for GTT Energy, how much do these orders represent in terms of turnover to be booked by you in the next few years?

Jean-Luc Romain: Jean-Luc Romain at CIC CIB. You had very successful orders in the services business, GTT Marine. If we would compare to the order book of EUR 1.9 billion you have for GTT Energy, how much do these orders represent in terms of turnover to be booked by you in the next few years?

Speaker #1: You you you discuss about you discuss about services and two of the the the correspondence regarding our backlog. I think that today we have 11 million years of services.

Thierry Hochoa: You discuss about services and two of the correspondents regarding our backlog. I think that today we have EUR 11 million of services, last year, EUR 23 million, and definitely based on the discussion that we have with GTT Marine to have a solution on LNG or digital LNG. We expect to have more revenue. We do not discuss today this potential of revenues. Definitely, if we are working on this aspect and to have synergies with GTT Marine and Danelec acquisition, it's not to have only EUR 23 million that we booked last year. Definitely, we expect to have more and more revenues, and we will present at the beginning of September solutions during the Gastech exhibition.

Speaker #1: Last year, 23 million euros, and definitely based on the discussions that we have with GTT Marine to have a solution on LNG or digital LNG, we expect to have more revenue.

Speaker #1: We do not discuss today, you know, this potential for revenues, but definitely we are working on this aspect and to have synergies with GTT Marine and the Danelec acquisition. It's not to have only €23 million that we booked last year.

Speaker #1: Definitely we expect to have more and more revenues and we will present at the beginning of September solutions to during the gas tech exhibition and we are working on the business plan on it and we expect you know to to have not a guidance but to have some key elements to to to share with you when we we will have you know this solution.

Thierry Hochoa: We are working on the business plan on it, and we expect to have not a guidance, but to have some key elements to share with you when we will have this solution. First, the product and solution, and after the business plan.

Speaker #1: But first the the the product and after and solution and after the business plan.

Speaker #4: Thank you very much.

Jean Romain: Thank you very much.

Jean-Luc Romain: Thank you very much.

François Michel: Let's start. Yes.

Speaker #1: Good morning. Kevin Roger from Kepler Cheuvreux. I have three questions, if I may. The first one is on the order intake of LNG cargo. You mentioned 56 units, of which 18 are related to 2025–2026 FID.

Kevin Roger: Good morning. Kevin Roger. I have three questions, if I may. The first one is on the order intake, LNG cargo. You mentioned 56 units, of which 18 are related to 2025, 2026 FID. The gap, the roughly 40 units, do you have a view if it's a speculative replacement or even, let's say, pre-2025 FID? Just to understand the 40 units, what are they related to? The second one on GTT Marine, Thierry, is there any tools or guidance, whatever, that you can share with us on the organic growth, excluding the acquisition of Danelec, just to understand the dynamic. The third one, is there any update that you can share with us on the new strategy, if I can call it like that, on Danelec for the LNG cargo or the services that you want to create around the cargo tanks?

Kevin Roger: Good morning. Kevin Roger from Kepler Cheuvreux. I have three questions, if I may. The first one is on the order intake, LNG cargo. You mentioned 56 units, of which 18 are related to 2025, 2026 FID. The gap, the roughly 40 units, do you have a view if it's a speculative replacement or even, let's say, pre-2025 FID? Just to understand the 40 units, what are they related to? The second one on GTT Marine, Thierry, is there any tools or guidance, whatever, that you can share with us on the organic growth, excluding the acquisition of Danelec, just to understand the dynamic. The third one, is there any update that you can share with us on the new strategy, if I can call it like that, on Danelec for the LNG cargo or the services that you want to create around the cargo tanks?

Speaker #1: The gap—the roughly 40 units—do you have a view if it’s speculative replacement or even, let’s say, pre-2025 FID? Just to understand, you know, the 40 units, what are they related to?

Speaker #1: The the second one on GTT Marine Thierry is there any tools or guidance whatever that you can share with us on the organic growth excluding the acquisition of Danelec just to understand the the dynamic and the third one is there any update that you can share with us on the the new strategy if I can call it like that on you know Danelec for the LNG cargo all the services that you want to create around the the the cargo.

Speaker #1: o. Thanks.

Speaker #2: I'll take the first one. You take the second. Okay. You, you—I will start with your question on the order intake for 56.

Thierry Hochoa: Take the first and third. I take the second.

François Michel: Yes.

Kevin Roger: Okay.

Thierry Hochoa: Okay.

François Michel: I will start with your question on the order intake for 56. It is hard for us to know exactly what is speculative or what could be speculative and what can be related to previous projects. What I expect is that the vast majority is related to pre-FIDs or to pre-FID projects. I don't have exactly the details. We just don't have it. It's a good question. Of course, we ask ourselves exactly this question. I don't expect that the speculative investments are significant in a way that it would change the overall balance between what is directly related to current FID projects and the past. It's mostly for the past. Second, your third question was about our strategy to build basically synergies between Danelec and in fact the digital part and our LNG historic activity.

Speaker #2: It's hard for us to know exactly what is speculative or what could be speculative or and what is what can be related to to previous projects what I expect is that the vast majority is related to previous to pre FIDs to pre FID projects but I don't have exactly the the the details we we we just don't don't have it but it's it's a good question of course we we ask ourselves exactly this question but I don't expect that the speculative investments are significant in a way that it would change the overall balance between what is directly related to current FID projects and the past.

Speaker #2: It's mostly for the past. Second the third your third question was about our strategy to to to build basically synergies between Danelec and in fact the digital part and our LNG LNG historic activity.

Speaker #2: We are very confident about the fact that integrating hardware and software, and data collection and data handling capabilities as part of our technical service offer for the operations of the ships and for optimizing the maintenance of the ships, can create a lot of value.

François Michel: We are very confident about the fact that integrating hardware and software and data collection and data handling capabilities as part of our Offer technical service offer for the operations of the ships and for optimizing the maintenance of the ships can create a lot of value. For this, we need a number of bricks. Developing a good LNG specific software platform for the full LNG fleet of LNG carriers in the world is one of such bricks. It's one important element as part of that. We will release this software, or at least some of it, before the end of the year. That's one important element, and there are a number of other elements in the service strategy that we are working on very actively and that we will be releasing before the end of the year.

Speaker #2: For this, we need a number of bricks. Developing a good LNG-specific software platform for the full LNG fleet of LNG carriers in the world is one of such bricks.

Speaker #2: It's one important element as part of that. We will release this software, or at least some of it, before the end of the year.

Speaker #2: So, that's one important element. And there are a number of other elements in the service strategy that we are working on very actively, and that we will be releasing before the end of the year.

Speaker #4: Kevin, in, regarding your your second question within GTT Marine, you know that we have two divisions. The first one is data and performance. The previous Athens Maroca legacy for software and the other division is safety and monitoring for Danelec with the black box mainly the black box of of the vessels.

Thierry Hochoa: Kevin, regarding your second question. Within GTT Marine you know that we have two divisions. The first one is data and performance, the previous Ascenz Marorka legacy for software, and the other division is safety and monitoring for Danelec with the black box, mainly the black box of the vessels. Regarding the black box and the safety and monitoring division, we expect the CAGR is around 5% within five years. That is international but external studies as well. For the data and performance is around 12%. That's the CAGR. That's the percentage I can share with you. We expect to capture a large portion of this market because as you know, we discussed about this topic previously, the acquisition, our ambition is to be a leader on these different areas. Because when you are a leader, you can monitor your price, you are the pricing power.

Speaker #4: Regarding the black box and the Safety and Monitoring division, we expect, or the CAGR is, around 5% within five years. That is from internal studies, but external studies as well.

Speaker #4: And for the data and performance is around 12%. That the CAGA that the percentage percentage I can share with you. And we expect to capture a large portion of this market because as you know and we discuss about this topic previously the acquisition our ambition is to be a leader on this different areas and to because when you are a leader you can monitor your price you are the pricing power and definitely we expect to have you know to capture large portion of this market.

Thierry Hochoa: Definitely we expect to capture a large portion of this market.

Speaker #2: The synergy I mean the what I was referring to on the building up the service business for LNGC comes on top of that. That is really Danelec is a game changer for us because it gives us a base of activity that allows us to develop a service business and you have seen in the accounts that for the moment our service offer is not material enough.

François Michel: The synergy, what I was referring to on the building up the service business for an LNGC comes on top of that. Danelec is a game changer for us because it gives us a base of activity that allows us to develop a service business. You have seen in the accounts that for the moment, our service offer is not material enough. That is the trigger, if you want to develop over the long run, a very compelling case for a service business. Sorry.

Speaker #2: So that is the trigger if you want to develop over the long run a very compelling case for a service business. Sorry.

Speaker #1: Jean-François Rangean, audio PHF. Three questions from my side. The first one: could you come back on the onshore tank business and market? You mentioned an acceleration for this business, mainly in China and in Asia.

Jean-François Granjon: Jean-François Granjon, Oddo BHF. Three questions from my side. The first one, could you come back on the onshore tank business market? You mentioned an acceleration for this business, mainly in China, in Asia. Could you give us an overview on the market, the size of the market, the trend expected, the growth expected, and what you expect for your own business? It will represent a huge business in the coming years for the company. The second question concerned the margin of GTT Marine. You mentioned 7.9% EBITDA margin. Do you expect a potential improvement for this business to be more or less more than 20%? The last question regarding the guidance. Despite the pretty good H1 with a flat EBITDA level, why do you not improve the guidance?

Speaker #1: Could you give us our view on the market, the size of the market, the trend perspective, the growth your own business? It is it is will represent a huge business in the in the communities for for the company.

Speaker #1: The second question concerned the margin of GTT Marine. You mentioned 7.9% EBITDA margin. You expect an improvement or do you expect yes potential improvement for this for this business to be more or less more than 20%?

Speaker #1: And the last question regarding the the guidance despite the pretty good first half with a flat EBITDA level why didn't you do you not improve the the guidance you expect a little bit decrease for the EBITDA for the full year despite the flat level for the first half?

Jean-François Granjon: You expect a little bit decrease for the EBITDA for the full year despite the flat level for the H1. Thank you.

Speaker #1: Thank you.

François Michel: Thank you. I'll answer you on the onshore tank dynamics. Today it's true that the majority. First, we have delivered about 50 onshore tanks in the world, in Asia Pacific historically, but also in Europe in a number of countries. This over 40 years, we have a long experience of onshore tanks. We have seen an acceleration for large onshore tank demands in China today, who is building up large onshore capabilities and storage capabilities. We know that the overall market for large tanks is about between 10 and 20 units every year.

Speaker #2: Thank you. I'll answer you on the onshore tank dynamics. So, today it’s true that the majority—I mean, first, we have delivered about 50 onshore tanks in the world, in Asia Pacific historically, but also in Europe in a number of countries.

Speaker #2: And over the past 40 years, we have a long experience with onshore tanks. We have seen an acceleration of large onshore tank demand in China today, with the building up of large onshore capabilities and storage capacities.

Speaker #2: We know that the overall market for large tanks is, of course, between 10 and 20 units every year. For the moment, for, I would say, industrial reasons and due to questions of how we structure our offers, it's not a market that we have pursued aggressively.

François Michel: For the moment, for industrial reasons and a question of how we structure our affairs, it's not a market that we have pursued aggressively because we have been just in the position of a licensor, and we have not marketed our, neither nor brought to the market our GST technology with the same level of activity as what we have done on the LNGC market. We expect that we will be taking a couple of tanks every year. I look forward to taking the first orders of tanks outside China, building of the very good track record that we have recently in China and over the long run in the rest of the world as well. Of course, how much it will impact the P&L will depend on how much responsibility we take for those onshore tanks. I will never enter into an EPC.

Speaker #2: Because we have been just in the position of a licensor and we have not marketed our not neither nor brought to the market our GST technology with the same level of activity as what we have we have done on the LNGC market.

Speaker #2: So we expect that we will be taking a couple of tanks every year. I look forward to taking the first orders of tanks outside China, building off the very good track record that we have recently in China and, over the long run, in the rest of the world as well.

Speaker #2: Of course, how much it will impact the P&L will depend on how much responsibility we take for these onshore tanks. I will never enter into an EPC.

Speaker #2: We're not in the world of an EPC, but we can take a little bit more responsibility than just licensing the technology on a case-by-case basis.

François Michel: We are not in the world of an EPC, but we can take a little bit more responsibility than just licensing the technology on a case-by-case basis. We will do it cautiously, and I'm very confident about our ability to build tanks outside China in the coming years.

Speaker #2: We will do it cautiously, and I'm very confident about our ability to build tanks outside China in the coming years.

Speaker #4: Jean-François, thank you for your question. I recognize that your question the question. First, regarding the GTT margin EBITDA Marine and the EBITDA margin at 18%.

Thierry Hochoa: Jean-François, thank you for your question. I recognize the question. First, regarding the GTT margin, EBITDA Marine and the EBITDA margin at 18% is definitely in line with our expectation, but we expect to improve this EBITDA margin. We have this level of EBITDA margin because you need to consider integration cost. Because we bought this company last year, last summer in August, and we have a significant program of integration to create only one-based solution, platform solution, sorry. That's why we need to spend energies and time, and cost, and cash on it. That's why we have this level of EBITDA margin, and we expect to increase definitely. That's the first element. Regarding your second question and the guidance, we have very best figures that you mentioned at the end of June.

Speaker #4: It's definitely in line with our expectation but we expect to improve you know this EBITDA margin. We have this level of EBITDA margin because we you need to consider integration cost because we bought this company last year.

Speaker #4: Last summer in August. And we have a significant program of integration to create only one base solution and the platform solution, sorry. So, that's why we need to spend energies and time and cost and cash on it.

Speaker #4: So that's why we have this level of EBITDA margin, and we expect to increase definitely. That's the first element. Regarding your second question and the guidance, we have very robust figures that you mentioned at the end of June.

Speaker #4: You know that we're very cautious regarding our approach of the our guidance because when you have delays in ship construction schedules definitely we can have an impact on our figures and EBITDA.

Thierry Hochoa: You know that we are very cautious regarding our approach of our guidance because when you have delays in ship constructions schedules, definitely, we can have an impact on our figures and EBITDA. Until the last minute, we don't know the situation and the evolution of the situation. That's why we are very cautious. If we need to revise this guidance, it will be in October. Since I arrived in GTT three years ago, we have always revised this guidance in October and not before. To consider the evolution of the situation and because we are very cautious.

Speaker #4: And until you know the the last minute we don't know the situation and the evolution of the situation and so that's why we are very cautious.

Speaker #4: If we need to revise this guidance, it will be in October. Since I arrived in GTT three years ago, we have always revised this guidance in October, and not before.

Speaker #4: To consider you know the evolution of the situation and because we are very cautious.

Guillaume Delaby: Yes. Guillaume Delaby, Bernstein. Two housekeeping questions, if I may. The first one, could you shed some light about how many EUR million your initiatives to drive up services could represent? Second question is on Elogen. Could you share with us what has been the loss in Elogen in H1? Maybe can you share with us how many people are currently working on Elogen? Thank you.

Speaker #1: Yes. Guillaume Delaby, Bernstein. Two housekeeping questions, if I may. The first one, could you shed some light about how many million euros your initiatives to drive up services could represent?

Speaker #1: And the second question is on Elogen. Could you share with us what has been the loss in Elogen in H1, or maybe can you share with us how many people are currently working at Elogen?

Speaker #1: Thank you.

François Michel: On services, I will answer your question in two ways. One is that, of course, we want to increase our sale of services in a material manner, so in a way that will impact the P&L of the company. I'm not talking about just small money. It will take some time, we have to be reasonable regarding the timing, but we are talking about something that will impact the P&L of the company, I hope in a material manner. Second, how much money we are investing right now in developing new services, I would say in between EUR 5 and EUR 10 million for the full year. A sizable investment at our scale.

Speaker #2: On services—so, we are investing. Now, I will answer your question in two ways. One is that, of course, we want to increase our sale of services in a material manner, so in a way that will impact the P&L of the company.

Speaker #2: So I'm not talking about just small money. It will take it will take some time. So we have to be reasonable regarding the timing but we are talking about something that will impact the P&L of the of the company.

Speaker #2: I hope in a material manner. Second how much money we are investing right now in developing new services I would say in between 5 and 10 million euro.

Speaker #2: For the full year. So sizable investment at our scale.

Speaker #4: Regarding Elogen, Guillaume, we do not guide. You know the figures per EU, and we make a lot of efforts regarding GTT Energy and GTT Marine, and you can recognize that, I guess.

Thierry Hochoa: Regarding Elogen, Guillaume Delaby, we do not guide the figures per view, we make a lot of efforts regarding GTT Energy and GTT Marine, you can recognize that, I guess. For Elogen, in 2024, I remind you the losses, for EBITDA level, were EUR 33 million. Last year, EUR 16 million, we expect to have less for 2026. Regarding the people, this company counts 110 people last year, this year, at the end of June, it remains 45 people.

Thierry Hochoa: Regarding Elogen, Guillaume, we do not guide the figures per view, we make a lot of efforts regarding GTT Energy and GTT Marine, you can recognize that, I guess. For Elogen, in 2024, I remind you the losses, for EBITDA level, were EUR 33 million. Last year, EUR 16 million, we expect to have less for 2026. Regarding the people, this company counts 110 people last year, this year, at the end of June, it remains 45 people.

Speaker #4: And for Elogen in 2024, I remind you the losses at the EBITDA level were €33 million. Last year, €16 million, and we expect to have less for 2026.

Speaker #4: Regarding the people, this company counted 100 people, 110 people last year, and this year, at the end of June, it remains 45 people.

Speaker #1: If we don't have any more questions in the room, just another question on Elogen. I think the press release mentions the subvention that was received. Could you tell us how much it was, and what are actually your R&D ambitions for Elogen? And what are your aims in the future for this R&D—what should it bring about in terms of revenue?

[Company Representative] (GTT): If we don't have any more question in the room.

Jean Romain: Just another question on Elogen. I think the press release mentions the subvention that was received. Could you tell us how much it was? What are actually your R&D ambitions for Elogen, and what are your aims in the future for this R&D? What should it bring about in terms of revenue?

Jean-Luc Romain: Just another question on Elogen. I think the press release mentions the subvention that was received. Could you tell us how much it was? What are actually your R&D ambitions for Elogen, and what are your aims in the future for this R&D? What should it bring about in terms of revenue?

Speaker #2: Thank you. Thank you for your question. Regarding the subsidies, we received €12 million at the beginning of this year, based on 2024 eligible costs.

Thierry Hochoa: Thank you for your question. Regarding the subsidies, we received EUR 12 million at the beginning of this year based on 2024 eligible costs. We do not require additional subsidies for Elogen. It means not because we are continuing definitely our R&D program, but we have a clause regarding the hiring of people to continue our program. That's why we decided to accept this EUR 12 million, but to stop requiring or requesting subsidies due to the fact that we do not have the criteria of headcount for the future.

Speaker #2: And we do not require additional subsidies for means not because we are continuing definitely our R&D program but we we have a close regarding hiring of people to continue a program.

Speaker #2: So that's why we decided, you know, to accept this €12 million, but to stop requesting subsidies due to the fact that we do not have the criteria of headcount for the future.

Speaker #2: Regarding your question on the on the technology Elogen has a very good technology the hydrogen market is a market that I know well from my experience what is so we keep investing in small scale I would say containerized or stack which have which have a very good potential for industrial applications not large scale applications for hydrogen generation units for let's say at the at at the unit you know at the power site but more for industrial size projects it's true that this market is uncertain and volatile in a very short run but so so we are cautious when it comes to forecast commercial forecast but this technology works well we are expecting to take a couple of handful of projects in the coming quarters or years and that's enough to sustain the activity in developing this technology and we know that hydrogen is a marathon it's not it's not a short term short term project.

François Michel: Regarding your question on the technology, Elogen has a very good technology. The Elogen market is a market that I know well from my experience. We keep investing in small scale, I would say, containerized or stack, which have a very good potential for industrial applications, not large scale applications for hydrogen generation units for, let's say, at the unit, at the power side, but more for industrial size projects. It's true that this market is uncertain and volatile in the very short run, but we are cautious when it comes to forecast commercial forecast. This technology works well. We are expecting to take a handful of projects in the coming quarters or years, and that's enough to sustain the activity in developing this technology. We know that hydrogen is a marathon. It's not a short-term project.

Speaker #1: Thank you. Okay, we still have a couple of questions coming from online, unless someone in the room wants to ask a question. Yeah. Who?

[Company Representative] (GTT): Thank you. Okay, we still have a couple of questions coming from online, unless someone in the room wants to ask a question. Yeah. Who?

Speaker #5: I got my answer on subsidies, so it's okay.

Jean-François Granjon: I got my answer on subsidies, so it's okay.

François Michel: Okay. Thank you.

Speaker #2: Thank you.

Speaker #1: So, question from online it is.

[Company Representative] (GTT): Question from online it is.

Speaker #6: So, the first question from the conference call is from Guilherme Levy of Morgan Stanley.

Operator: The first question from the conference call is from Guilherme Levy of Morgan Stanley.

Guilherme Levy: Hi. Good morning. Thank you for taking my questions. Firstly, of course we were given more color on the expectations for new orders over the next 10 years. I was wondering if you also have new thoughts on the balance sheet, with incremental confidence on the next decade and being a very stable business. Does GTT still need to operate with a net cash position over the coming years? What prevents the company from increasing further its dividend payout policy, in the remainder of the decade? Secondly, going to LNG as a fuel. Any updates on the revamping process of this business line? In H1, there were no new orders of LNG as a fuel. Is that part of the strategy, deliberately not getting new orders into the business line strategies fully revisited? Those were my questions today. Thank you so much.

Speaker #7: Hi, good morning. Thank you for taking my questions. Firstly, of course, we were given more color on the expectations for new orders over the next 10 years.

Speaker #7: I was wondering if you also have new thoughts on the balance sheet. With incremental confidence in the next decade, and being a very stable business, does GTT still need to operate with a net cash position over the coming years?

Speaker #7: What prevents the company from increasing further its dividend payout policy in the remainder of the decade? And then secondly, going to LNG as a fuel, any updates on the revamping process of this business line? In the first half, there were no new orders of LNG as a fuel.

Speaker #7: Is that part of the strategy—deliberately not getting new orders into the business line strategies fully revisited? Those were my questions. Thank you so much.

Speaker #2: Okay regarding the cash position and and and the impact of new orders definitely regarding the level of new orders that we receive this year and in the coming years we expect you know to increase this cash position and and to receive cash in advance because you have a model to to recognize revenue after after receiving the cash.

François Michel: Okay. Regarding the cash position and the impact of new orders. Definitely, regarding the level of new orders that we receive this year and in the coming years, we expect to increase this cash position, and to receive cash in advance because you have a model to recognize revenue after receiving the cash. It means that we are going to improve our working capital first and our cash position at the end definitely regarding the level of orders that we expect in the coming years. Regarding your question on the LNG as a fuel. I mentioned earlier that we had a strategy to totally revamp our offer for LNG as a fuel systems, which in fact will come in steps. We'll first work on LNG as a fuel, say turnkey offer to be able to bring tanks in a very easy manner to shipyards.

Thierry Hochoa: Okay. Regarding the cash position and the impact of new orders. Definitely, regarding the level of new orders that we receive this year and in the coming years, we expect to increase this cash position, and to receive cash in advance because you have a model to recognize revenue after receiving the cash. It means that we are going to improve our working capital first and our cash position at the end definitely regarding the level of orders that we expect in the coming years.

Speaker #2: It means that we are going to improve our working capital first, and our cash position at the end, definitely regarding the level of orders that we expect in the coming years.

Speaker #3: Regarding your question on the LNG as a fuel so I mentioned earlier that we had a strategy to totally revamp our offer for LNG as a fuel systems which in fact will come in in steps.

François Michel: Regarding your question on the LNG as a fuel. I mentioned earlier that we had a strategy to totally revamp our offer for LNG as a fuel systems, which in fact will come in steps. We'll first work on LNG as a fuel, say turnkey offer to be able to bring tanks in a very easy manner to shipyards.

Speaker #3: So we'll first work on LNG as a fuel. I would say turnkey, turnkey offer to be able to bring tanks in a very easy manner to shipyards. But we are also working on the core technology of our systems to make them easier to install and cheaper.

François Michel: We are also working on the core technology of our systems to make them easier to install and cheaper. In the short run, I don't want the teams to run around and to push things on a highly, let's say, in a very aggressive manner in terms of price. That's not our business. Our business is to deliver good solutions with very good value for the shipyards. I am very confident about our ability to take a better position on this market gradually from 2027 onwards.

Speaker #3: So in the short run I don't want the teams to run around and push things on a highly let's say in a very aggressive manner in terms of price.

Speaker #3: That's not at our business. Our business is to deliver a good solutions with very good value for the for the for the shipyards and so I am very confident about our ability to take a better position on this market gradually from 2027 onwards.

Guilherme Levy: That makes sense. Thank you so much. If I could just squeeze in one more, just for housekeeping purposes. There was a slight mismatch between the amount of taxes expensed and taxes effectively paid this H1. Should we expect a catch-up too, in the H2 of this year?

Speaker #7: That makes sense. Thank you so much. If I could just squeeze in one more, just for housekeeping purposes. There was a slight mismatch between the amount of taxes expensed and taxes effectively paid this quarter—this half.

Speaker #7: Should we expect catch-up in the second half of this year?

Thierry Hochoa: Regarding the level of tax, you know that we have a specific regime influence because based on our innovation and R&D program, it means that the consequence is we have a tax credit for this innovation cost. That's the first element. We pay taxes in China, in South Korea as well because we have a withholding tax based on our revenues. It means at the end, we have a balance between the withholding tax paid, so in China, in South Korea, and balance with the tax credit that we receive in France regarding our R&D and innovation program.

Speaker #2: Regarding the level of tax, you know that we have a specific regime in France because, based on our innovation and R&D program, it means that the consequence is we have a tax credit for this innovation cost.

Speaker #2: That's the first element. But we pay, you know, taxes in China and in South Korea as well because we have a withholding tax based on our revenues, and it means at the end we have a balance between the withholding tax paid in China and South Korea, and balance with the tax credit that we receive in France regarding our R&D and innovation program.

Speaker #7: Understood. Thank you so much.

Guilherme Levy: Understood. Thank you so much.

Speaker #2: Welcome.

François Michel: Welcome.

Speaker #6: The last question from the phone is from Richard Dawson of Barenberg.

Operator: The last question from the phone is from Richard Dawson of Berenberg.

Speaker #7: Hi, good morning, and thank you for taking my questions. Two from me. Firstly, on the replacement market: when do you expect there to be material orders coming from the replacement markets?

Richard Dawson: Hi, good morning, and thank you for taking my questions. Two from me. Firstly, on the replacement market, when do you expect there to be material orders coming from the replacement markets? I assume most of the sort of near-term orders are coming from those LNG volumes under construction, but replacement market is still a large volume. Then secondly, on the GTT Marine business, as you look to grow that, are there further inorganic opportunities that you're currently evaluating or will most of that growth be organic if we assume Danelec is now starting to become organic? Thank you.

Speaker #7: I assume most of the sort of near-term orders are coming from those LNG volumes under construction, but the replacement market is still a large volume.

Speaker #7: And then, secondly, on the GTT Marine business: as you look to grow that, are there further inorganic opportunities that you're currently evaluating, or will most of that growth be organic if we assume Danelec is now starting to become organic?

Speaker #7: Thank you.

Speaker #3: Thank you. Of course, the replacement market will increase gradually as the fleet is aging. So we know very well that, let's say, 200 ships will have very old engines and be more than 25 years old by 2030.

François Michel: Thank you. Of course, the replacement market will increase gradually as the fleet is aging. We know very well that, let's say 200 ships will be with very old engines and more than 25 years old by 2030. That is a very strong factor for the forecast. However, what we see is that we already saw 15 scraps last year, plus 4 conversion, and we saw this year already, I would say between 8 and 9 ships being scrapped already this year. We know that with the scrapping, the replacement cycle starts today. I expect a handful of ships being replaced in the coming year, perhaps starting in 2027, then it will gradually increase. That's for the sequence of the replacement market. We are cautious on this.

Speaker #3: So so that is that is a very strong factor for the for the for for the forecast. However what we see is that we already saw 15 scraps last year plus 4 conversion and we saw this year already I would say between 8 and 9 ships been been scrapped already this year.

Speaker #3: So we know that with the scrapping, the replacement cycle starts today. So I expect a handful of ships being replaced in the coming years, perhaps starting in 2027, and then it will gradually increase.

Speaker #3: That's for the sequence of the replacement market. We are cautious on this. It's after careful thought and modeling that we released our estimate of 150 to 200 ships to be replaced over the coming decade.

François Michel: It's after our careful thoughts and modeling that we released our estimate of 150 to 200 ships to be replaced over the coming decade. It's not an aggressive forecast. Regarding your question on the inorganic growth for the digital business. First, what I said before is that what we have already as assets in the company, GTT Energy on the one hand, all the know-how on gas, thermodynamics, and containments, and second, with the base that we have acquired with GTT Marine, is enough for us to deliver good growth in the coming years, solid growth in the coming years, and a lot of synergies by developing a service offer. That I don't need anything more in terms of skill set. I don't need any addition to this business. Is the company completely closed to non-organic operations to M&A activities?

Speaker #3: It's not it's not an aggressive forecast. Regarding your question on the inorganic growth for the digital business. So first what what I said before is that what we have already as assets in the company GTT energy on the one hand all the know-how on gas thermodynamics and containment and second with a base that we have acquired with GTT marine is enough for us to deliver good growth in the coming years.

Speaker #3: Solid growth in the coming years, and a lot of synergies by developing a service offer, so that I don't need anything more in terms of skill set.

Speaker #3: I don't need any additional addition to this business. So, is the company completely closed to non-organic operations or to M&A activities? In general, I prefer partnerships rather than outright purchases.

François Michel: In general, I prefer partnerships than just outright purchases, because they can create value in the very near term, with people who are experts in their domains. If we saw files which had compelling reasons, of course, we would look at them in a very cautious and careful manner, I can tell you. We have no plans whatsoever in the short run. I can also share that.

Speaker #3: So because they can create value in the very near term with the people who are experts in their domains. But if we saw files which had, you know, compelling reasons, of course we would look at them in a very cautious and careful manner, I can tell you.

Speaker #3: So, we have no plans whatsoever in the short run. I can also share that.

Speaker #7: That's clear. And maybe if I just have a quick follow up on the synergies because you spoke in the release about achieving some synergies already with Danelec.

Richard Dawson: That's clear. Maybe if I just have a quick follow-up on the synergies, because you spoke in the release about achieving some synergies already with Danelec. Some of the cross-selling. I think you identified EUR 25 to 30 million of synergies by 2030. Are you able to provide an update on the progress towards those?

Speaker #7: So, some of the cross-selling—I think you identified €25 to €30 million of synergies by 2030. Are you able to provide an update on the progress towards those?

Speaker #2: Okay. Regarding synergies, we have two kinds of synergies for Danelec. The first one is the synergy that you mentioned—€25–30 million—and we are on track regarding these synergies today.

Thierry Hochoa: Okay. Regarding synergies, we have two kinds of synergies for Danelec. The first one, that synergy that you mentioned, EUR 25, 30 million. We are on track regarding these synergies today. No doubt that we will achieve this target, because we have a solid basics for Danelec and Ascenz Marorka legacies. That's the first element. The second synergy that you need to pay attention is the fact that we are going to have synergies with GTT Energy because we will develop services based on the LNG digital that we found in Danelec, regarding the data collection. They will be key elements for our strategy for GTT Energy and services. That's why we have not yet measured this part of synergies, but we need to consider these two kinds of synergies regarding these Danelec acquisitions.

Speaker #2: And no doubt that we will achieve this target, because we have solid basics from Danelec and ASENSE Maroc legacies. That's the first element.

Speaker #2: And the second synergy that you need to pay attention to is the fact that we are going to have synergies with GTT Energy because we will develop services based on the LNG digital that we found in Danelec regarding the data collection.

Speaker #2: It's very key elements for our strategy for GTT energy and services. So that's why we have not yet measure this part of synergies but we need to consider these two kinds of synergies regarding this Danelec acquisitions.

Speaker #7: That's clear. Thank you for the clarification.

Richard Dawson: That's clear. Thank you for the color.

François Michel: Okay. If you want to conclude.

Speaker #6: Gentlemen, there are more questions from the room and from the conference call. Thank you.

Operator: Gentlemen, there are no more questions from the room, from the conference call. Thank you.

Speaker #5: Well, unless there are any more questions, I would like to thank you for your various questions and your attention, and wish you all a very good summer.

François Michel: Well, unless there are any more questions, I would like to thank you for the various questions, your attention, and wish you all a very good summer and safe summer. Thank you.

Speaker #5: And safe summer.

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