2018 Annual
Results
Record level of new orders and increase in
earnings
Highlights
Key figures for
2018
Outlook for
2019
-
Consolidated revenue target: between €255
million and €270 million
-
Consolidated EBITDA[2] target:
between €150 million and €160 million
-
Dividend target, in respect of FY2019 and
FY2020, amounting to a payout rate of at least 80% of consolidated
net income[3].
Paris, 26
February 2019 - GTT (Gaztransport & Technigaz) - an
engineering company specialised in the design of membrane
containment systems for maritime transportation and storage of
liquefied gas - hereby presents its results for FY2018.
Philippe
Berterottière, Chairman & CEO of GTT, made the following
statement: "With 50 orders for LNG carriers
and FSRUs, 2018 stands out as the best year of the decade for our
core business, thus confirming our vision of market needs. The
strong growth in LNG demand throughout the past two years, in
particular in Asia, shows the current ongoing dynamics of the LNG
market. The pace of future orders will notably depend on FIDs in
new liquefaction trains.
On the promising
market of LNG fuel, we achieved further successes, which once again
confirmed our ability to meet the needs of ship-owners in this
area. Less than a year away from the Global Sulphur Cap, and in an
increasingly stringent regulatory environment, especially in the
main trading ports, the interest of ship-owners for our LNG
propulsion solutions is becoming clear. In conjunction with our
partners, we are continuing our efforts to become a long-term
player in this new ecosystem. I wish to reiterate that, beyond the
benefits for GTT, the adoption of LNG as a
fuel for merchant vessels is a major step forward for the planet in
terms of reducing polluting emissions.
For our new
activities, as well as for our core activities, we are continuing
to prepare the future by developing new variants of our flagship
technologies, such as NO96 Flex, and by creating new ones, such as
LNG Brick®. The Group anticipates, for 2019, an increase of around
25% of its R&D expenses. Consequently, 2019 will be a year of
innovation for GTT.
We will also
continue to develop our service offering, particularly in the field
of Smart Shipping.
Concerning our
outlook for the year in progress, given our healthy order book in
2018 and for the beginning of 2019, as well as the efforts made by
the Group to prepare the future, we expect our 2019 consolidated
revenue to be between €255 million and €270 million, with
consolidated EBITDA between €150 million and
€160 million. Furthermore, we maintain our
commitment to pay out dividends amounting to at least 80% of our
net income[4] for FY2019
and FY2020."
Business
activity
With 50 ship orders in 2018, GTT
sales hit a ten-year high.
-
48 orders for LNG carriers.
Most of these orders are intended for natural gas liquefaction
units under construction, in particular in the United States. All
of the vessels will be equipped with GTT's recent technologies
(NO96 GW,
NO96-L03+, Mark III Flex and Mark III Flex+).
-
Two orders for FSRUs.
Announced in early 2018, these orders reflect the great interest
for these regasification vessels which represent a highly flexible
and very economical solution, in particular for new LNG-importing
countries.
-
Onshore storage
activity
-
In September 2018, GTT received an order from
CERN (the European Organization for Nuclear Research) for the
design of the containment system of a 12,500 m3 onshore
storage tank for liquid argon intended for experimental
purposes.
-
LNG fuel
activity
-
An order for a bunker ship with a capacity of
18,600 m3 was recorded
at the beginning of the year. Operated by ship-owner Mitsui OSK
Lines Ltd. and chartered by Total Marine Fuels Global Solutions
(TMFGS), this ship will be dedicated to supplying LNG to the future
container ships of CMA CGM.
-
In July 2018, GTT also recorded an order from
the Vard shipyard to build LNG tanks for the Commandant Charcot,
the first LNG-powered cruiser icebreaker.
-
Services business
-
In January 2018, GTT completed the acquisition
of Ascenz, a Singapore-based company specialised in Smart Shipping.
This is an emerging activity notably in the field of the management
of merchant vessels' fuel consumption.
-
Among its various service activities, in the
first half of 2018, GTT was commissioned to conduct preliminary
engineering studies for new GBS (Gravity-Based System) underwater
tanks projects.
New Technical Assistance and
License Agreements (TALAs)
-
In April 2018, with Sembcorp Marine, a company
based in Singapore, to design and build FSRUs, medium-capacity LNG
carriers and Sembcorp Marine's Gravifloat platforms using GTT's
membrane containment systems.
-
In September 2018, GTT signed a TALA with Keppel
Offshore & Marine to equip LNG carriers, bunker ships,
LNG-powered ships and floating storage regasification unit (FSRUs),
with a special focus on vessels with a capacity of 30,000 to 80,000
m3.
-
In September 2018, with South Korea company
Hyundai Mipo Dockyard to equip gas tankers, particularly small and
medium capacity ships (up to around 50,000 m3), as
well as LNG tanks dedicated to ship propulsion.
Technologies
-
In the third quarter, GTT obtained an approval
in principle from the Bureau Veritas certification agency for the
development of a new NO96-type cargo containment system. Called
NO96 Flex, this new system has the benefits of the proven NO96
technology, as well as benefiting from the use of foam panels,
which reduce the boil-off gas rate to 0.07%V per day, i.e. a level
in line with that of GTT's most efficient technologies.
CSR
performance
-
GTT won a GAIA award for its CSR performance.
GAIA is an organisation specialised in the non-financial rating
(based on environmental, social and governance criteria) of listed
mid-caps and SMEs. GTT was ranked 21st out of the
230 companies rated, and 3rd out of the
78 in its revenue bracket. GAIA has also created an ESG index of
the top 70 best-rated companies, including GTT.
-
Moreover, following an audit by the Ethic
Intelligence agency, GTT obtained a certification for its
anti-corruption management system, based on ISO 37001
requirements.
Order book
Since 1 January 2018, GTT's order
book[5] - which
comprised 89 units at the time - has changed as follows:
-
51 orders received: 48 LNG carriers, 2 FSRUs and
one onshore storage tank
-
42 deliveries: 36 LNG carriers, 5 FSRUs and one
barge
-
In Q4 2018, cancellation of an LNG carrier order
(dating back to 2015)
At 31 December 2018, the order
book comprised 97 units, of which:
-
83 LNG carriers[6]
-
9 FSRUs6
-
2 FLNGs
-
3 onshore storage tanks
-
Moreover, in 2018, in the field of
LNG Fuel, GTT received an order to equip a bunker ship and an order
to equip the Commandant Charcot Icebreaker cruise ship, bringing to
11 the number of units recorded in its LNG order book to 31
December 2018.
Financial
performance
GTT has been publishing
consolidated financial statements since FY2017. The consolidated
subsidiaries are the following: Cryovision, Cryometrics, GTT
Training, GTT North America, GTT South East Asia and Ascenz. The
first five are wholly owned by GTT, while Ascenz is 75% held. All
of the subsidiaries are fully consolidated. Moreover, following the
adoption of IFRS 15 on 1 January, 2018 and to make the 2018 IFRS
consolidated financial statements easier to read, the Group's 2017
data is presented proforma in accordance with IFRS 15.
Change in
consolidated revenue in 2018
(in
thousands of euros) |
Proforma 2017 |
2018 |
Change |
Revenue |
240,801 |
245,987 |
+2.2% |
Of which newbuilds |
227,590 |
231,505 |
+1.7% |
From services |
13,211 |
14,481 |
+9.6% |
Consolidated revenue amounted to
€246.0 million in 2018, compared to €240.8 million in 2017,
representing an increase of 2.2% over the period.
-
Revenue from newbuilts amounted to €231.5
million in 2018, up 1.7% compared to the previous year, which had
been impacted by the low level of orders in 2016. Royalties on LNG
carriers amounted to €198.8 million (-2.1% compared to 2017), while
royalties on FSRUs totalled €25.1 million (+30.6%). The other
royalties, which totalled €7.6 million (+43.7%), stemmed from
FLNGs, onshore storage tanks, the barge and LNG fuel.
-
Revenue from services also increased (+9.6%),
mainly due to the consolidation of Ascenz.
Analysis of 2018
consolidated income statement
(in €
thousands, except earnings per share) |
Proforma
2017 |
2018 |
Change |
Revenue |
240,801 |
245,987 |
+2.2% |
EBITDA |
151,259 |
168,699 |
11.5% |
EBITDA[7] margin (on
revenue, %) |
62.8% |
68.6% |
|
Operating
income (EBIT) |
147,516 |
159,901 |
+8.4% |
EBIT margin
(on revenue, %) |
61.3% |
65.0% |
|
Net
income |
124,034 |
142,800 |
+15.1% |
Net margin
(on revenue, %) |
51.5% |
58.1% |
|
Basic net
earnings per [8]share in
euros |
3.35 |
3.85 |
|
Net income reached €142.8 million
in FY2018, up 15.1% compared to the previous year. The net margin
amounted to 58.1%.
The change in net income compared
to 2017 is mainly attributable to non-recurring items, in
particular the 2018 reversal of a tax risk provision of €15.2
million booked in 2017, and tax income of €5.7 million following a
claim relating to the tax on dividends during 2015 and 2016.
Excluding these non-recurring
items, net income would amount to €127.2 million in 2018, and the
net margin would reduce from 58.1% to 51.7%.
Operating expenses increased by
€9.9 million, of which €3.7 million due to the change in scope
following the acquisition of Ascenz, €2.1 million from the rise in
sub-contracting expenses on a like-for-like basis, and €1 million
from an increased in fees, particularly for patent filings.
Other 2018
consolidated financial data
(in
thousands of euros) |
Proforma 2017 |
2018 |
Change |
Capital
expenditure
(including the acquisition of Ascenz in 2018) |
(3,434) |
(11,819) |
ns |
Dividends
paid |
(98,592) |
(98,549) |
-1.0% |
Cash
position |
99,890 |
173,179 |
+73.4% |
At 31 December 2018, the Company's
net cash position amounted to €173.2 million. This increase is
mainly due to the change in working capital.
Dividend in
respect of 2018
On 26 February 2019, after
approving the financial statements, the Board of Directors decided
to propose the payout of a dividend of €3.12 per share in respect
of FY2018. This dividend, payable in cash, is subject to approval
by the Shareholders' Meeting of May 23, 2019. As an interim
dividend of €1.33 per share was paid on 28 September 2018 (in
accordance with the Board decision of 26 July 2018), the payment of
the outstanding balance, i.e. €1.79 per share, will take place on
29 May 2019 (ex- dividend date for the remainder of the dividend:
27 May 2019). The proposed dividend corresponds to a payout ratio
of 80% of distributable profits.
Moreover, in accordance with the
indications given by the Company upon its IPO, an interim dividend
should be paid out in September 2019 in respect of FY2019.
Outlook
The Company has visibility as
regards its revenue from royalties out to 2021 based on its order
book at the end of 2018. In the absence of any significant order
delays or cancellations, this corresponds to a revenue of €524
million for the 2019-2021[9] period
(€251 million in 2019, €224 million in 2020, €49 million in 2021
and €49 million in 2021).
In a highly favourable environment
for the LNG market, GTT is confirming its innovation strategy aimed
at optimising its technologies marketed within the scope of its
core business, and its growth strategy for LNG fuel and services.
To this effect, the Group has decided to step up its efforts,
particularly in 2019, in innovation and research &
development.
On that basis, the
Group:
-
Announces a target of between €255 million and
€270 million in consolidated revenue for 2019,
-
Announces a target of €150 million to €160
million in consolidated EBITDA[10] for
2019,
-
Targets the payment of dividends amounting to a
payout rate of at least 80% of consolidated net income for FY2019
and FY2020[11].
***
Presentation of
results for FY2018
Philippe Berterottière, Chairman
& CEO, and Marc Haestier, CFO, will comment on GTT's annual
results, and will answer questions from the financial community
during a conference call in English on Wednesday 27 February 2019,
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 76 70 07 94
·
United Kingdom: + 44 20 7192 8000
·
United States of America: + 1 631 510 7495
Confirmation code: 8382024
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
-
2019 first-quarter results: 16 April 2019 (after
the close of trading)
-
General Meeting of Shareholders: 23 May
2019
-
Payout of the remainder of the dividend (€1.79
per share) for FY2018: 29 May 2019
-
Publication of the 2019 half-year results: 25
July 2019 (after the close of trading)
-
2019 third-quarter results: 17 October 2019
(after the close of trading)
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 27 February
2019.
NOTE
GTT's full-year IFRS financial statements have been audited, The
auditor's report will be issued before the company's registration
document is filed with the AMF scheduled for end-April 2019.
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 filed with the
AMF on 25 April 2018, and the half-year financial report released
on 26 July 26 2018. 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 |
December 31, 2018 |
Intangible assets |
|
1,097 |
2,457 |
Goodwill |
|
- |
4,291 |
Property, plant and
equipment |
|
17,483 |
16,634 |
Non-current financial
assets |
|
3,240 |
3,158 |
Deferred tax
assets |
|
1,784 |
3,049 |
Non-current assets |
|
23,605 |
29,590 |
Inventories |
|
6,682 |
7,394 |
Customers |
|
110,461 |
96,006 |
Income tax assets |
|
18,975 |
34,079 |
Other current
assets |
|
5,098 |
6,556 |
Financial current
assets |
|
- |
16 |
Total cash and cash
equivalent |
|
99,890 |
173,179 |
Current assets |
|
241,105 |
317,229 |
TOTAL ASSETS |
|
264,710 |
346,819 |
|
|
|
|
|
|
|
|
In
thousands of euros |
|
Proforma
December 31, 2017 |
December 31, 2018 |
Share capital |
|
371 |
371 |
Share premium |
|
2,932 |
2,932 |
Treasury shares |
|
-3,728 |
-1,529 |
Reserves |
|
11,301 |
34,852 |
Net income |
|
124,034 |
142,798 |
Total equity - Group share |
|
134,910 |
179,424 |
Total equity - share
attributable to non-controlling interests |
|
- |
17 |
Total equity |
|
134,910 |
179,441 |
Non-current
provisions |
|
3,967 |
4,075 |
Financial liabilities
- non-current part |
|
244 |
2,100 |
Deferred tax
liabilities |
|
222 |
210 |
Non-current liabilities |
|
4,433 |
6,385 |
Current
provision |
|
15,604 |
3,372 |
Suppliers |
|
10,574 |
11,483 |
Current tax debts |
|
6,194 |
6,988 |
Current financial
liabilities |
|
379 |
337 |
Other current
liabilities |
|
92,617 |
138,813 |
Current liabilities |
|
125,367 |
160,993 |
TOTAL EQUITY AND LIABILITIES |
|
264,710 |
346,819 |
Appendix 2: Consolidated income
statement
In thousands of
euros |
|
Proforma 2017 |
2018 |
Revenue from operating activities |
|
240,801 |
245,987 |
Costs of sales |
|
-1,830 |
-2,998 |
External expenses |
|
-36,806 |
-40,951 |
Personnel
expenses |
|
-41,191 |
-45,817 |
Taxes |
|
-4,183 |
-4,325 |
Depreciations,
amortisations and provisions |
|
-16,807 |
8,874 |
Other operating income
and expenses |
|
7,927 |
4,632 |
Impairment following
value tests |
|
-394 |
-5,502 |
Operating profit |
|
147,516 |
159,901 |
Financial income |
|
423 |
55 |
Profit before tax |
|
147,939 |
159,956 |
Income tax |
|
-23,906 |
-17,156 |
Net income |
|
124,034 |
142,800 |
Net income, Group
share |
|
124,034 |
142,798 |
Net income
attributable to non-controlling interests |
|
- |
2 |
Basic
earnings per share (in euros) |
|
3.35 |
3.85 |
Diluted
earnings per share (in euros) |
|
3.34 |
3.84 |
|
|
|
|
In thousands of
euros |
|
Proforma 2017 |
2018 |
Net income |
|
124,034 |
142,800 |
Items that will not be reclassified to profit or
loss |
|
|
|
Actuarial Gains and
Losses |
|
|
|
Gross amount |
|
300 |
126 |
Deferred tax |
|
-45 |
-19 |
Total
amount, net of tax |
|
255 |
107 |
Items that may be reclassified subsequently to profit or
loss |
|
|
|
Conversion
differences |
|
-59 |
139 |
Other comprehensive income for the year, net of
tax |
|
196 |
246 |
Income statement |
|
124,230 |
143,046 |
Appendix 3: Consolidated cash
flow statement
(In
thousands of euros) |
|
Proforma 2017 |
2018 |
|
Group profit for the year |
|
124,034 |
142,800 |
|
Removal of
income and expenses with no cash impact |
|
|
|
Allocation (Reversal) of
amortisation, depreciation, provisions and impairment |
|
17,368 |
-3,180 |
Proceeds on disposal of
assets |
|
- |
191 |
|
Financial expense
(income) |
|
-423 |
-55 |
|
Tax expense (income) for the
financial year |
|
23,906 |
17,156 |
|
Free shares |
|
830 |
266 |
|
Cash-flow |
|
165,714 |
157,177 |
|
Tax paid out in the financial
year |
|
-18,274 |
-33,199 |
|
Change in working capital
requirement: |
|
|
|
|
-Inventories and works
in progress |
|
47 |
-466 |
|
-Trade and other
receivables |
|
-23,357 |
15,122 |
|
-Trade and other
payables |
|
1,997 |
545 |
|
-Other operating assets
and liabilities |
|
-9,601 |
45,076 |
|
Net cash-flow generated by the business (Total I) |
|
116,526 |
184,255 |
|
Investment operations |
|
|
|
|
Acquisition of non-current
assets |
|
-3,434 |
-2,890 |
|
Disposal of non-current
assets |
|
- |
- |
|
Control acquired on subsidiaries net of cash and
cash equivalents acquired |
|
- |
-8,929 |
|
Financial investments |
|
-2,821 |
-6,637 |
|
Disposal of financial
assets |
|
13,257 |
6,645 |
|
Treasury shares |
|
-3,005 |
-6 |
|
Change in other fixed
financial assets |
|
- |
15 |
|
Net cash-flow from investment operations (Total
II) |
|
3,957 |
-11,802 |
|
Financing operations |
|
|
|
|
Dividends paid to
shareholders |
|
-98,592 |
-98,549 |
|
Repayment of financial
liabilities |
|
-488 |
-919 |
|
Increase of financial
liabilities |
|
13 |
40 |
|
Interest paid |
|
-34 |
-31 |
|
Interest received |
|
366 |
178 |
|
Change in bank lending |
|
- |
-57 |
|
Net cash-flow from finance operations
(Total III) |
|
-98,736 |
-99,338 |
|
Effect of
changes in currency prices (Total IV) |
|
-65 |
174 |
|
Change in cash
(I+II+III+IV) |
|
21,681 |
73,290 |
|
Opening cash |
|
78,209 |
99,890 |
|
Closing cash |
|
99,890 |
173,179 |
|
Cash change |
|
21,681 |
73,290 |
|
Appendix 4: Consolidated revenue
breakdown
In thousands of
euros |
|
Proforma 2017 |
2018 |
Revenue |
|
240,801 |
245,987 |
of which new builts (royalties) |
|
227,590 |
231,505 |
LNG
carriers/VLEC |
|
203,060 |
198,778 |
FSRU |
|
19,212 |
25,087 |
FLNG |
|
3,397 |
3,605 |
Onshore storage |
|
1,535 |
1,433 |
Barges |
|
386 |
962 |
LNG
Fuel |
|
0 |
1,640 |
Services |
|
13,211 |
14,481 |
Appendix 5: 10 year order
estimates
In units |
|
Order estimates (1) |
LNGC Carriers/VLEC |
|
280-310 |
FSRU |
|
30-40 |
FLNG |
|
5 |
Onshore storage tanks and GBSs |
|
10-15 |
(1) 2019-2028
period. 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] Subject to
approval by the Shareholders' Meeting of 23 May 2019.
[2] EBITDA:
earnings before interest, taxes, depreciation and amortisation, in
accordance with IFRS.
[3] Subject to
approval by the Shareholders' Meeting of 23 May 2019 and the amount
of distributable profits in the corporate financial statements of
GTT SA.
[4]
Consolidated net income, subject to the amount of distributable
profits in the corporate financial statements GTT SA, and subject
to approval by the next Shareholders' Meeting
[6] Including
the conversion of a LNGC order in FSRU
[7] EBITDA:
earnings before interest, taxes, depreciation and amortization, in
accordance with IFRS.
[8] The
calculation of net earnings per share is based on the weighted
average number of shares outstanding, i.e. 37,052,681 shares at 31
December 2017 and 37,043,099 shares at 31 December 2018.
[9] Royalties
from the main business line, i.e. excluding LNG fuel and services ,
in accordance with IFRS 15.
[10] EBITDA:
earnings before interest, taxes, depreciation and amortization, in
accordance with IFRS.
[11] Subject to
approval by the Shareholders' Meeting and the distributable profits
in the corporate financial statements of GTT SA.
PDF version
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: GTT via Globenewswire
Gaztransport Et Technigaz (EU:GTT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gaztransport Et Technigaz (EU:GTT)
Historical Stock Chart
From Jul 2023 to Jul 2024