Gaztransport & Technigaz: Recent Developments Strenghtens Our Investment Thesis

Core Insights - Gaztransport & Technigaz (GTT) has significantly outperformed European equity markets, achieving a total shareholder return of +57% in euros compared to +17% for the EuroStoxx 600 index [1] - GTT is the global leader in cryogenic membrane technology for LNG transport and storage, with a strong order backlog in a monopoly market, positioning the company for robust financial results through the end of the decade [1] - The growth of GTT is supported by increasing LNG demand, an aging vessel fleet, and stricter environmental regulations, along with the cost-effectiveness and availability of LNG as a fuel [1] Financial Performance and Taxation - The stock presents a compelling investment opportunity despite a lackluster projected performance of ~13% for 2024, influenced by political uncertainties in France [2] - GTT's revenue structure is largely insulated from potential tax increases, as approximately 90% of its revenue comes from royalties taxed at a preferential rate of 10% under the patent box regulation [2] - Any changes to the patent box regulation could pose a risk, but the current tax structure provides a significant buffer against potential increases in the statutory tax rate [2]