2018 first-half
results
Many orders received, new success in LNG fuel and
solid financial performance
Key figures for
the first half of 2018
-
21 orders received during the first six months
of the year
-
12% growth in revenues linked to royalties
-
Interim dividend payment of 1.33 euro per
share
Highlights
-
LNG market strong
-
Growth in LNG fuel[1]
-
New partnerships
Outlook
Paris - July 26, 2018. Gaztransport &
Technigaz (GTT), an engineering company specialised in the design
of membrane containment systems for maritime transportation and
storage of liquefied gas, hereby presents its results for the first
half of 2018.
Summarised
consolidated income statement for H1 2018
(in €
thousands, except earnings per share) |
Proforma[2]
H1 2017 |
H1 2018 |
Revenue |
113,745 |
127,245 |
Operating
profit before allocations for depreciation of fixed assets
(EBITDA[3]) |
77,348 |
84,152 |
EBITDA
margin (on revenue, %) |
68.0% |
66.1% |
Operating
income (EBIT[4]) |
75,402 |
82,407 |
EBIT margin
(on revenue, %) |
66.3% |
64.8% |
Net
income |
63,087 |
75,725 |
Net margin
(on revenue, %) |
55.5% |
59.5% |
Basic net
earnings per share[5] in
euros |
1.70 |
2.04 |
Commenting on these results,
Philippe Berterottière, Chairman and CEO of GTT, declared:
"The first half of 2018 was characterised by the
growth in the LNG market, with a very satisfying number of orders
for LNG carriers, which confirms the trends that began last year.
In the field of LNG fuel, the success recorded by GTT confirmed the
attraction of ship-owners for its membrane technologies. After the
order for nine giant container carriers from CMA CGM at the end of
last year, in January the Group obtained one order for a bunker
ship to be operated by TOTAL to supply the LNG to these container
carriers. In early July, GTT obtained a major success with the
order of LNG tanks intended for the future Ponant icebreaker
cruiser. In this particular case, GTT will be responsible for the
construction of these tanks, thereby offering its partners a true
turnkey solution.
From a financial perspective, the cost reductions
implemented in 2017 place us in a favourable position to manage
closely the effects of the increase in activity. These elements
lead us to confirm our revenues, EBITDA and dividend objectives for
FY 2018 as a whole."
Business activity
During the first half of 2018,
GTT's sales activity was marked by a number of successes, in
particular in the field of LNG carriers:
-
18 orders for LNG carrier tank design. These
vessels are most often intended for liquefaction projects in
construction, in particular in the USA. They will all be equipped
with recent GTT technologies (NO 96 GW, Mark III Flex and Mark III
Flex+);
To
that can be added three orders for LNG carriers recorded from
1st to 26 July
2018 from SHI and HSHI.
Order book
Since January 1, 2018, GTT's order
book - which comprised 89 units at the time - has changed as
follows:
-
25 deliveries:
-
20 orders received:
At June 30, 2018, the order book stood at 84 units:
-
66 LNG carriers
-
13 FSRUs
-
2 FLNGs
-
2 onshore storage tanks
-
1 barge
In addition, as part of its LNG
fuel activity, GTT received, in the first half of 2018, an order to
equip a bunker ship, in addition to the 9 container carriers signed
in 2017.
Change in
consolidated revenues during H1 2018
(in
thousands of euros) |
|
Proforma
H1 2017 |
H1 2018 |
Revenue |
|
113,745 |
127,245 |
|
|
|
|
Of which
royalties (new buildings) |
|
107,384 |
120,433 |
From
services |
|
6,361 |
6,812 |
Revenues totalled 127.2 million
euros at June 30, 2018, compared with 113.7 million euros
at
June 30, 2017, i.e. an 11.9% increase over the period.
-
Revenues linked to royalties for the first half
of 2018 were 120.4 million euros, up by 12.2% from the first half
of 2017. LNG carriers were up by 12.4%, totalling 104.9 million
euros, and FSRU royalties were grew by 37.9% to 14.3 million euros.
Other royalties amounting to 1.2 million euros were derived from
FLNGs and the bunker barge.
-
Revenues linked to services grew by 7.1% over
the first six months. In the second quarter, the Services activity
benefited from the growth in engineering studies and the
contribution from Ascenz business, thereby compensating the delay
recorded in the 1st
quarter.
Analysis of the
consolidated income statement
Earnings Before Interest, Tax,
Depreciation and Amortisation (EBITDA) reached 84.2 million euros
during the first half of 2018, up 8.8% compared to the first half
of 2017. The EBITDA margin on revenues went from 68.0% in the first
half of 2017 to 66.1% in the first half of 2018, mainly due to the
decrease in the research tax credit (CIR); the Group had in fact
benefited in the first half of 2017 from a non-recurring CIR profit
for claims on prior years.
Operating income amounted to 82.4
million euros for the first half of 2018 versus 75.4 million euros
for the first half of 2017, a 9.3% increase.
Net income increased from 63.1
million euros for the first half of 2017 to 75.7 million euros for
the first half of 2018 and the net margin grew from 55.5% to
59.5%.
The growth in net income is
explained by a good management of operating expenses, particularly
out-sourcing, transport and fee items, as well by as a one-off
decrease in income tax following the favourable outcome of the
claim filed by GTT S.A. in relation to the cancellation of the 3%
tax on dividends.
Other
consolidated financial data
(in
thousands of euros) |
Proforma
H1 2017 |
H1 2018 |
Capital
expenditure
(acquisitions of fixed assets) |
(1,532) |
(1,380) |
Dividends
paid |
(49,291) |
(49,270) |
Cash position |
77,712 |
125,273 |
As at June 30, 2018, the Group had
a positive cash position of 125.3 million euros.
Outlook
The Group has visibility
concerning its royalties revenues up to 2022 based on its order
book at the end of June 2018. In the absence of any significant
order delays or cancellations, this corresponds to a revenue of 554
million euros[6] for the
2018-2022[7] period (228
million euros6 in 2018, 201
million euros in 2019, 102 million euros in 2020, 22 million euros
in 2021 and 1 million euros in 2022).
Based on these items, the Group
confirms its objectives for the 2018 financial year,
i.e.:
· 2018 consolidated revenues of
235 to 250 million euros;
· 2018 consolidated
EBITDA[8] for 2018
within a range of 145 to 155 million euros;
· a 2018 dividend[9] amount at
least equivalent to the ones paid in 2015, 2016 and 2017 and, for
2019, a minimum payout rate of at least 80% of distributable net
income.
Interim dividend
payment
The Board of Directors of July 26,
2018 decided the distribution of an interim dividend of 1.33 euro
per share for the 2018 financial year, to be paid in cash according
to the following schedule:
-
September 26, 2018: Ex-dividend date;
-
September 28, 2018: Payment date.
Presentation of H1 2018
results
Philippe Berterottière, Chairman
and Chief Executive Officer, and Marc Haestier, Chief Financial
Officer, will comment on GTT's annual results, and answer questions
from the financial community during a conference call in English on
Friday, July 27, 2018, at 8:30 a.m. Paris Time.
To participate in the conference call, please dial one of the
following numbers five to ten minutes before the start of the
conference:
-
France: + 33 1 70 72 25 50
-
United Kingdom: + 44 330 336 9125
-
United States: + 1 929 477 0448
Confirmation code: 8710082
This conference call will also be
broadcast live on GTT's website (www.gtt.fr) in listen-only mode
(webcast). The presentation document will be available on the
website.
Financial
agenda
-
Payment of an interim dividend of 1.33 euro per
share for the 2018 financial year: September 28, 2018
-
Publication of the Q3 2018 revenues: October 26,
2018 (after closing)
About GTT
GTT (Gaztransport & Technigaz) is an engineering company expert
in containment systems with cryogenic membranes used to transport
and store liquefied gas, in particular LNG (Liquefied Natural Gas).
For over 50 years, GTT has been maintaining reliable relationships
with all stakeholders of the gas industry (shipyards, ship-owners,
gas companies, terminal operators, classification societies). The
Company designs and provides technologies which combine operational
efficiency and safety, to equip LNG carriers, floating terminals,
and multi-gas carriers. GTT also develops solutions dedicated to
land storage and to the use of LNG as fuel for vessel propulsion,
as well as a full range of services.
GTT is listed on Euronext Paris,
Compartment A (ISIN FR0011726835, Euronext Paris: GTT) and is
notably included in the SBF 120 and MSCI Small Cap indexes.
Investor
Relations Contact
information-financiere@gtt.fr /
+33 1 30 23 20 87
Press
Contact
press@gtt.fr / +33 1 30 23 42 26 /
+ 33 1 30 23 47 31
For further information, please
consult www.gtt.fr/en, and, in particular, the
presentation to be uploaded online for the conference call of July
27, 2018.
Important notice
The figures presented here are those customarily used and
communicated to the markets by GTT. This message includes
forward-looking information and statements. Such statements include
financial projections and estimates, the assumptions on which they
are based, as well as statements about projects, objectives and
expectations regarding future operations, profits, or services, or
future performance. Although GTT management believes that these
forward-looking statements are reasonable, investors and GTT
shareholders should be aware that such forward-looking information
and statements are subject to many risks and uncertainties that are
generally difficult to predict and beyond the control of GTT, and
may cause results and developments to differ significantly from
those expressed, implied or predicted in the forward-looking
statements or information. Such risks include those explained or
identified in the public documents filed by GTT with the French
Financial Markets Authority (AMF - Autorité des
Marchés Financiers), including those listed in the "Risk
Factors" section of the GTT Registration Document (in French)
registered with the AMF on April 27, 2017 under number R.17-030,
and the half-yearly financial report released on July 20, 2017.
Investors and GTT shareholders should note that if some or all of
these risks are realised they may have a significant unfavourable
impact on GTT.
Appendices (Consolidated IFRS
financial statements)
Appendix 1: Consolidated balance
sheet
In
thousands of euros |
|
Proforma
December 31, 2017 |
June 30, 2018 |
Intangible assets |
|
1,097 |
2,151 |
Goodwill |
|
|
9,627 |
Property, plant and
equipment |
|
17,483 |
17,345 |
Non-current financial
assets |
|
3,240 |
3,239 |
Deferred tax
assets |
|
1,784 |
2,139 |
Non-current assets |
|
23,605 |
34,501 |
Inventories |
|
6,682 |
6,852 |
Customers |
|
110,461 |
102,951 |
Income tax assets |
|
18,975 |
29,145 |
Other current
assets |
|
5,098 |
6,968 |
Financial current
assets |
|
- |
11 |
Total cash and cash
equivalent |
|
99,890 |
125,273 |
Current assets |
|
241,105 |
271,200 |
TOTAL ASSETS |
|
264,710 |
305,701 |
|
|
|
|
|
|
|
|
In
thousands of euros |
|
Proforma
December 31, 2017 |
June 30, 2018 |
Share capital |
|
371 |
371 |
Share premium |
|
2,932 |
2,932 |
Treasury shares |
|
(3,728) |
(1,389) |
Reserves |
|
11,301 |
83,968 |
Net income |
|
124,034 |
75,725 |
Total equity, Group share |
|
134,910 |
161,607 |
Total
equity - share attributable to non-controlling interests |
|
- |
(153) |
Total equity |
|
134,910 |
161,454 |
Non-current
provisions |
|
3,967 |
4,148 |
Financial liabilities
- non-current part |
|
244 |
2,172 |
Deferred tax
liabilities |
|
222 |
216 |
Non-current liabilities |
|
4,433 |
6,536 |
Current
provision |
|
15,604 |
15,249 |
Suppliers |
|
10,574 |
9,324 |
Current tax debts |
|
6,194 |
6,848 |
Current financial
liabilities |
|
379 |
762 |
Other current
liabilities |
|
92,617 |
105,528 |
Current liabilities |
|
125,367 |
137,711 |
TOTAL EQUITY AND LIABILITIES |
|
264,710 |
305,701 |
Appendix 2: Consolidated income
statement
In thousands of
euros |
|
Proforma H1 2017 |
H1 2018 |
Revenue from operating activities |
|
113,745 |
127,245 |
Costs of sales |
|
(741) |
(1,321) |
External expenses |
|
(17,914) |
(18,193) |
Personnel
expenses |
|
(21,471) |
(23,732) |
Taxes |
|
(2,262) |
(2,460) |
Depreciations,
amortisations and provisions |
|
(1,127) |
(1,366) |
Other operating income
and expenses |
|
5,443 |
2,380 |
Impairment following
value tests |
|
(271) |
(145) |
Operating profit |
|
75,402 |
82,407 |
Financial income |
|
219 |
131 |
Profit before tax |
|
75,620 |
82,537 |
Income tax |
|
(12,534) |
(6,812) |
Net income |
|
63,087 |
75,725 |
Basic
earnings per share (in euros) |
|
1.70 |
2.04 |
Diluted
earnings per share (in euros) |
|
1.70 |
2.04 |
|
|
|
|
In thousands of
euros |
|
Proforma H1 2017 |
H1 2018 |
Net income |
|
63,087 |
75,725 |
|
|
|
|
Items that will not be reclassified to profit or
loss |
|
|
|
Actuarial Gains and
Losses |
|
|
|
Gross amount |
|
347 |
70 |
Deferred tax |
|
(52) |
(10) |
Total
amount, net of tax |
|
295 |
60 |
Items that may be reclassified subsequently to profit or
loss |
|
, |
, |
Conversion
differences |
|
(37) |
105 |
Other comprehensive income for the year, net of
tax |
|
258 |
165 |
|
|
|
|
Income statement |
|
63,444 |
75,889 |
Appendix 3: Consolidated cash
flow statement
(in
thousands of euros) |
|
Proforma
H1 2017 |
H1 2018 |
|
Group profit for the year |
|
63,087 |
75,725 |
|
Removal of
income and expenses with no cash impact |
|
|
|
Allocation (Reversal) of
amortisation, depreciation, provisions and impairment |
|
1,475 |
1,610 |
Proceeds on disposal of
assets |
|
|
|
|
Financial expense
(income) |
|
(219) |
(131) |
|
Tax expense (income) for the
financial year |
|
12,534 |
6,812 |
|
Free shares |
|
440 |
172 |
|
Cash-flow |
|
77,317 |
84,189 |
|
Tax paid out in the financial
year |
|
(13,727) |
(16,722) |
|
Change in working capital
requirement: |
|
|
|
|
- Inventories |
|
(76) |
75 |
|
-Trade and other
receivables |
|
(125) |
8,177 |
|
-Trade and other
payables |
|
(844) |
(2,009) |
|
-Other operating assets
and liabilities |
|
(9,958) |
11,431 |
|
Net cash-flow generated by the business (Total I) |
|
52,586 |
85,142 |
|
Investment operations |
|
|
|
|
Acquisition of non-current
assets |
|
(1,532) |
(1,380) |
|
Disposal of non-current
assets |
|
- |
- |
|
Control acquired on
subsidiaries net of cash and cash equivalents acquired |
|
- |
(8,929) |
|
Financial investments |
|
(1,200) |
(2,853) |
|
Disposal of financial
assets |
|
1,245 |
2,842 |
|
Treasury shares |
|
(222) |
10 |
|
Net cash-flow from investment operations (Total
II) |
|
(1,708) |
(10,310) |
|
Financing operations |
|
|
|
|
Dividends paid to
shareholders |
|
(49,291) |
(49,270) |
|
Repayment of financial
liabilities |
|
(239) |
(224) |
|
Increase of financial
liabilities |
|
- |
28 |
|
Interest paid |
|
(23) |
(26) |
|
Interest received |
|
227 |
68 |
|
Change in bank lending |
|
- |
(261) |
|
Net cash-flow from finance operations (Total
III) |
|
(49,326) |
(49,686) |
|
Effect of changes in currency
prices (Total IV) |
|
(48) |
237 |
|
Change in cash (I+II+III+IV) |
|
1,504 |
25,383 |
|
Opening cash |
|
78,209 |
99,890 |
|
Closing cash |
|
79,712 |
125,273 |
|
Cash change |
|
1,504 |
25,383 |
|
Appendix 4: Consolidated revenues
breakdown
In thousands of
euros |
|
Proforma H1 2017 |
H1 2018 |
Revenue |
|
113,745 |
127,245 |
Royalties (newbuilt) |
|
107,384 |
120,433 |
LNG
carriers/VLEC |
|
93,384 |
104,939 |
FSRU |
|
10,340 |
14,254 |
FLNG |
|
2,398 |
1,001 |
Onshore storage |
|
1,189 |
- |
Barges |
|
73 |
239 |
LNG
Fuel |
|
0 |
0 |
Services |
|
6,361 |
6,812 |
Appendix 5: 10 year order
estimates
In units |
|
Order estimates (1) |
LNG carriers/VLEC |
|
225-240 |
FSRU |
|
30-40 |
FLNG |
|
5-10 |
Onshore storage |
|
5-10 |
(1) Over
2018-2027. The Company points out that the number of new orders may
see large-scale variations from one quarter to another and even one
year to another without the fundamentals on which its business
model is based being called into question.
[1] Solutions
for using LNG as fuel for vessel propulsion
[2] Proforma
accounts include adjustments related to the consolidation of the
subsidiaries owned in 2017 and to the application of IFRS 15
and IFRS 9.
[3] EBITDA
defined as EBIT before amortisations and impairments of fixed
assets.
[4] EBIT means
"Earnings Before Interest and Tax".
[5] For the
first half of 2018, earnings per share were calculated based on the
weighted average number of shares outstanding (excluding treasury
shares), i.e. 37,035,724 shares.
[6] Of which
120 million euros recognised for the first half of 2018.
[7] Royalties
from the main business line, i.e. excluding LNG fuel and
services.
[8] EBITDA
defined as EBIT before amortisations and impairments of fixed
assets.
[9] Subject to
approval by the Shareholders' Meeting
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information contained therein.
Source: GTT via Globenewswire
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