GTT : Half Year 2019 Results - Record order intake and revenue and
EBITDA targets raised
H1 2019 resultsRecord
order intake and revenue and EBITDA targets raised
Key figures for the first half of
2019
- Revenues of €122.6 million; EBITDA of €70.9 million
- Core business: 26 LNG carrier orders
- LNG as fuel: 7 new orders
- Interim dividend payment of €1.50 per share
Highlights
- Excellent performance of the LNG market
- Continued growth for LNG as fuel1
- Sustained R&D effort
Outlook for 2019
- Revenue and EBITDA targets upgraded
Paris – 25 July 2019.
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 2019.
Commenting on these results, Philippe
Berterottière, GTT Chairman and CEO of GTT, said: "The first half
of 2019 was characterised by intense business activity and LNG
carrier orders still at record levels. In the field of LNG as fuel,
the attractiveness of GTT membrane technologies to ship-owners is
increasingly evident, with recent orders from ship-owner Hapag
Lloyd for the conversion of one of its container ships, and 5 new
very large container ships from a European ship-owner.From a
financial perspective, revenues were down slightly in the 1st half
of 2019. However, the intake of orders from the last 24 months is
beginning to bear fruit and revenues have risen 8.2% between the
first quarter and the second quarter of 2019. In terms of results,
while the first half of 2019 is down on last year on account of the
technical and human resources deployed, GTT will feel the wider
benefit of the increase in activity as from the second half of
2019. As a result, considering the backlog in our order book along
with busy shipbuilding schedules, we are upgrading our projections
for revenues and EBITDA for the full 2019 financial year. We are
also proposing an interim dividend of 1.50 euro, up 12.8% compared
to last year."
Business activity
- Record orders for LNG
carriers
During the first half of 2019, GTT's business
activity was marked by multiple successes, particularly in the
field of LNG carriers. With 26 orders for LNG carriers booked
during the first half of 2019, GTT's core business activity now
stands at a particularly high level. All of the carriers will be
equipped with GTT's recent technologies (Mark III Flex+, Mark III
Flex and NO96 GW). Delivery is scheduled between end-2020 and
end-2022.
In addition, two orders for LNG carriers were
recorded between July 1 to 25, 2019 from HHI and HSHI
shipyards.
- LNG as fuel: many commercial
successes
- In March 2019, GTT received an order from the Sembcorp Marine
shipyard for the design of tanks for an LNG bunker vessel on behalf
of the ship-owner Indah Singa Maritime Pte Ltd, a subsidiary of
Mitsui OSK Lines (MOL). GTT will design the tanks for the vessel,
which will use the Mark III Flex membrane containment solution. The
vessel will have a capacity of 12,000m3.
- In April 2019, GTT received an order from the Chinese shipyard
Hudong-Zhonghua to design an LNG tank as part of the conversion of
a very large capacity container ship for the German ship owner
Hapag Lloyd. The LNG tank of 6,500m3 will allow optimal use of
space.
- In June 2019, GTT received an order from the Chinese shipyard
Jiangnan Shipyard (Group) Co., Ltd. for the design of LNG tanks for
five new giant container ships on behalf of a European ship owner.
Each with a capacity of 14,000m3, the LNG tanks will be equipped
with Mark III Flex technology developed by GTT.
Order
book
Since 1 January 2019, GTT's order book excluding
LNG as fuel, which at the time stood at 97 units, has evolved as
follows:
- 14 deliveries of LNG carriers;
- 2 FSRU deliveries;
- 26 LNG carrier orders.
At June 30, 2019, the order book excluding LNG
as fuel, stood at 107 units, split as follows:
- 95 LNG carriers;
- 7 FSRUs;
- 2 FLNGs;
- 3 onshore storage tanks.
Regarding LNG as fuel, with 7 additional orders
in the 1st half, the number of vessels in the order book stood at
18 units as at June 30, 2019.
Change in consolidated revenues during
H1 2019
(in
thousands of euros) |
|
H1 2018 |
H1 2019 |
Revenue |
|
127,245 |
122,637 |
|
|
|
|
Of
which royalties (new buildings) |
|
120,433 |
115,715 |
From
services |
|
6,812 |
6,922 |
Consolidated revenues for the first quarter of
2019 were €122.6 million, down 3.6% compared to the first quarter
of 2018. It should be noted, however, that, between the first
quarter and the second quarter of 2019, revenues rose by 8.2%.
- Revenues from new construction were €115.7 million, down by
3.9%.
- Royalties from LNG carriers declined by 8.9% to €95.6
million, and royalties from FSRU by 10.8% to €12.7 million.
Revenues for the first half of 2019 have not yet felt the full
benefit of the inflow of orders that began in the second half of
2017, while the figure for the first half of 2018 relied
essentially on orders taken prior to 2016. However, as shown in the
table below, we can see significant growth in royalties from LNG
carriers and FSRU quarter-on-quarter:
(in
thousands of euros) |
Q1 2019 |
Q2 2019 |
Change % |
LNG
carriers |
46,215 |
49,410 |
+6.9% |
FSRU |
5,234 |
7,475 |
+42.8% |
- Other royalties are increasing. They are primarily from FLNGs
for €2.5 million (+154.4%) and from LNG as fuel for €3.1
million.
- Revenues linked to services grew by 1.6% over the first six
months. Services business in the first half-year was boosted by
fairly good performance from our maintenance and engagements
activities on vessels in operation and, to a lesser extent, by the
contribution from Ascenz.
Analysis of the consolidated income
statement for the first half of 2019
Summary consolidated income
statement
(in € thousands, except earnings per share) |
H1 2018 |
H1 2019 |
Revenue |
127,245 |
122,637 |
Operating profit before allocations for depreciation of fixed
assets (EBITDA2) |
84,152 |
70,855 |
EBITDA
margin (on revenue, %) |
66.1% |
57.8% |
Operating income (EBIT3) |
82,407 |
68,871 |
EBIT
margin (on revenue, %) |
64.8% |
56.2% |
Net
income |
75,725 |
56,603 |
Net
margin (on revenue, %) |
59.5% |
46.2% |
Basic
net earnings per4 share (in euros) |
2.04 |
1.53 |
Earnings Before Interest, Tax, Depreciation and
Amortisation (EBITDA) reached €70.9 million during the first half
of 2019, down 15.8% compared to the first half of 2018. The EBITDA
margin on sales decreased from 66.1% in the first half of 2018 to
57.8% in the first half of 2019, mainly due to the increase in
external expenses (€5.7 million), and in particular to the increase
in R&D and subcontracting costs linked to the increase in
business. Personnel expenses also increased by 4.7%, mainly
due to the growth in the number of employees, as announced
previously by the Group
Operating income amounted to €68.9 million in
the first half of 2019 compared with €82.4 million in the first
half of 2018, down 16.4%.
Net income fell from €75.7 million in the first
half of 2018 to €56.6 million in the first half of 2019, and the
net margin from 59.5% to 46.2%. The drop in net income is
explained, in particular, by a base effect in the first half of
2018. A claim lodged by GTT S.A. for the cancellation of the 3% tax
on dividends effectively resulted in an exceptional reduction in
income tax last year.
Other consolidated financial
data
(in
thousands of euros) |
H1 2018 |
H1 2019 |
Investment expenditures Acquisition of non-current assets |
(1,380) |
(3,108) |
Dividends paid |
(49,270) |
(66,275) |
Cash position |
125,273 |
155,616 |
As at June 30, 2019, the Group had a positive
cash position of €155.6 million.
Outlook for 2019
The Group has good visibility on its royalty
revenues5 from now to 2022 thanks in particular to a full order
book for its core business as at end June 2019. This corresponds to
revenues of €713 million over the 2019-2022 period6 (€257 million
in 20196, €333 million in 2020, €114 million in 2021 and €9 million
in 2022).
Given the size of the backlog in our order book
and assuming there are no major delays or cancellations of orders,
GTT is raising its targets for revenues and EBITDA for the 2019
financial year, i.e.:
- consolidated revenues in 2019 of between €260 and €280 million
(versus the earlier figure of €255 to €270 million);
- consolidated EBITDA in 2019 of between €160 and €170 million
(versus the earlier figure of €150 to €160 million).
Additionally, the Group is confirming its
dividend distribution policy, i.e. for 2019 and 2020 financial
years, a minimum distribution rate of 80% of consolidated net
income.
Interim dividend payment
The Board of Directors of 25 July 2019 decided
the distribution of an interim dividend of €1.50 per share for the
2019 financial year, to be paid in cash according to the following
schedule:
- 25 September 2019: Ex-dividend date;
- 27 September 2019: Payment date.
Presentation of H1 2019 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,
26 July 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: + 44 207 192 8000;
- United States of America: + 1 631 510 7495.
Confirmation code: 6485755
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 €1.50 per share for the 2019
financial year: 27 September 2019
- Publication of the Q3 2019 revenues: 17 October 2019 (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
For further information, please consult
www.gtt.fr/en, and, in particular, the
presentation to be uploaded online for the conference call of 26
July 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 30 April
2019, and the half-year financial report released on 25 July
2019. 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 |
|
31 December 2018 |
30 June 2019 |
Intangible assets |
|
2,457 |
2,641 |
Goodwill |
|
4,291 |
4,291 |
Property, plant and equipment |
|
16,634 |
17,568 |
Non-current financial assets |
|
3,158 |
5,006 |
Deferred tax assets |
|
3,049 |
1,832 |
Non-current assets |
|
29,590 |
31,338 |
Inventories |
|
7,394 |
9,164 |
Customers |
|
96,006 |
97,590 |
Income tax assets |
|
34,079 |
28,734 |
Other current assets |
|
6,556 |
10,903 |
Financial current assets |
|
16 |
9 |
Total cash and cash equivalent |
|
173,179 |
155,616 |
Current assets |
|
317,229 |
302,016 |
TOTAL ASSETS |
|
346,819 |
333,354 |
|
|
|
|
|
|
|
|
In
thousands of euros |
|
31 December 2018 |
30 June 2019 |
Share capital |
|
371 |
371 |
Share premium |
|
2,932 |
2,932 |
Treasury shares |
|
-1,529 |
(244) |
Reserves |
|
34,852 |
110,983 |
Net income |
|
142,798 |
56,603 |
Total equity, Group share |
|
179,424 |
170,645 |
Total equity - share attributable to
non-controlling interests |
|
17 |
18 |
Total equity |
|
179,441 |
170,663 |
Non-current provisions |
|
4,075 |
3,942 |
Financial liabilities - non-current
part |
|
2,100 |
2,101 |
Deferred tax liabilities |
|
210 |
124 |
Non-current liabilities |
|
6,385 |
6,167 |
Current provisions |
|
3,372 |
1,426 |
Suppliers |
|
11,483 |
13,210 |
Current tax debts |
|
6,988 |
2,522 |
Current financial liabilities |
|
337 |
124 |
Other current liabilities |
|
138,813 |
139,242 |
Current liabilities |
|
160,993 |
156,524 |
TOTAL EQUITY AND LIABILITIES |
|
346,819 |
333,354 |
Appendix 2: Consolidated income statement
In thousands of euros |
|
H1 2018 |
H1 2019 |
Revenue from operating activities |
|
127,245 |
122,637 |
Costs of sales |
|
(1,321) |
(2,627) |
External expenses |
|
(18,193) |
(23,932) |
Personnel expenses |
|
(23,732) |
(24,859) |
Taxes |
|
(2,460) |
(2,575) |
Depreciations, amortisations and
provisions |
|
(1,366) |
(1,943) |
Other operating income and expenses |
|
2,380 |
2,281 |
Impairment following value tests |
|
(145) |
(111) |
Operating profit |
|
82,407 |
68,870 |
Financial income |
|
131 |
1 |
Profit before tax |
|
82,537 |
68,871 |
Income tax |
|
(6,812) |
(12,267) |
Net income |
|
75,725 |
56,603 |
Basic
earnings per share (in euros) |
|
2.04 |
1.53 |
Diluted
earnings per share (in euros) |
|
2.04 |
1.52 |
|
|
|
|
In thousands of euros |
|
H1 2018 |
H1 2019 |
Net income |
|
75,725 |
56,603 |
|
|
|
|
Items that will not be reclassified to profit or
loss |
|
|
|
Actuarial Gains and Losses |
|
|
|
Gross amount |
|
70 |
(624) |
Deferred tax |
|
(10) |
92 |
Total amount, net of tax |
|
60 |
(532) |
Items that may be reclassified subsequently to profit or
loss |
|
|
|
Conversion differences |
|
105 |
27 |
Other comprehensive income for the year, net of
tax |
|
165 |
(505) |
|
|
|
|
Income statement |
|
75,889 |
56,098 |
Appendix 3: Consolidated cash flow
statement
(in thousands of euros) |
|
H1 2018 |
H1 2019 |
|
Group profit for the year |
|
75,725 |
56,603 |
|
Removal of income and expenses with no cash
impact: |
|
|
|
Allocation
(Reversal) of amortisation, depreciation, provisions and
impairment |
|
1,610 |
(723) |
|
Proceeds on
disposal of assets |
|
- |
- |
|
Financial expense (income) |
|
(131) |
(1) |
|
Tax expense (income) for the financial year |
|
6,812 |
12,267 |
|
Free shares |
|
172 |
822 |
|
Cash-flow |
|
84,189 |
68,969 |
|
Tax paid out in the financial year |
|
(16,722) |
(10,170) |
|
Change in working capital requirement: |
|
|
|
|
- inventories; |
|
75 |
(1,770) |
|
- trade and other receivables; |
|
8,177 |
(1,585) |
|
- trade and other payables; |
|
(2,009) |
1,719 |
|
- other operating assets and liabilities. |
|
11,431 |
(3,911) |
|
Net cash-flow generated by the business (Total
I) |
|
85,142 |
53,252 |
|
Investment operations |
|
|
|
|
Acquisition of non-current assets |
|
(1,380) |
(3,108) |
|
Disposal of non-current assets |
|
- |
- |
|
Control acquired on subsidiaries net of cash and cash equivalents
acquired |
|
(8,929) |
(0) |
|
Financial investments |
|
(2,853) |
(1,839) |
|
Disposal of financial assets |
|
2,842 |
28 |
|
Treasury shares |
|
10 |
582 |
|
Net cash-flow from investment operations (Total
II) |
|
(10,310) |
(4,338) |
|
Financing operations |
|
|
|
|
Dividends paid to shareholders |
|
(49,270) |
(66,275) |
|
Repayment of financial liabilities |
|
(224) |
(46) |
|
Increase of financial liabilities |
|
28 |
3 |
|
Interest paid |
|
(26) |
(25) |
|
Interest received |
|
68 |
124 |
|
Change in bank lending |
|
(261) |
(172) |
|
Net cash-flow from finance operations (Total
III) |
|
(49,686) |
(66,390) |
|
Effect
of changes in currency prices (Total IV) |
|
237 |
(88) |
|
Change in cash (I+II+III+IV) |
|
25,383 |
(17,564) |
|
Opening cash |
|
99,890 |
173,179 |
|
Closing cash |
|
125,273 |
155,616 |
|
Cash change |
|
25,383 |
(17,564) |
|
Appendix 4: Consolidated revenue breakdown
In thousands of euros |
|
H1 2018 |
H1 2019 |
Revenue |
|
127,245 |
122,637 |
Royalties (newbuilt) |
|
120,433 |
115,715 |
LNG carriers/VLEC |
|
104,939 |
95,625 |
FSRU |
|
14,254 |
12,709 |
FLNG |
|
1,001 |
2,546 |
Onshore storage |
|
- |
1,355 |
Barges |
|
239 |
349 |
LNG Fuel |
|
0 |
3,131 |
Services |
|
6,812 |
6,922 |
Appendix 5: 10 year order estimates
In units |
|
Order estimates* |
LNG carriers/VLEC |
|
280-310** |
FSRU |
|
30-40 |
FLNG |
|
>5 |
Onshore storage tanks and GBSs |
|
10-15 |
*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.**Includes the replacement market
1 Solutions for using LNG as fuel for vessel propulsion
2 EBITDA defined as EBIT before amortisations and impairments of
fixed assets.
3EBIT means "Earnings Before Interest and Tax”.
4 For the first half of 2019, earnings per share were calculated
based on the weighted average number of shares outstanding
(excluding treasury shares), i.e. 37,061,663 shares.
5 Royalties from core business, i.e. excluding LNG fuel and
services. Of which 111 million euros recognised for the first half
of 2019.
6 Of which 111 million euros recognised for the first half of
2019.
- IR-PR-H12019-25 07 2019 EN
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