GTT: Revenue of €200 million for the first nine months of 2019
Revenue of €200 million for the first
nine months of 2019
- Order book at 30 September
2019 of 120 units for the core business and 18 units for the LNG as
fuel business
- 8.7% increase in
consolidated revenue
- Confirmation of 2019
targets
Paris – 17 October 2019.
Gaztransport & Technigaz (GTT), an engineering company
specialised in the design of membrane containment systems for
maritime transportation and storage of liquefied gas, has today
announced its revenue figures for the first nine months of
2019.
Commenting on the results, Philippe
Berterottière, Chairman and CEO of GTT, said: "With 40 orders for
LNG carriers during the first nine months, of which 14 in the third
quarter, business activity has been particularly strong. In
addition, there were significant orders for GBS and ethane
carriers’ equipment. This demonstrates GTT's ability to participate
in the entire liquefied gas value chain from large gas projects to
importation and bunkering terminals.As announced previously, the
inflow of orders over the last two years is beginning to bear fruit
and revenue has increased substantially from one quarter to the
next. Consequently, given our strong order book and ship
construction schedules, we confirm our revenue and EBITDA outlooks
for the full 2019 financial year, as well as a minimum distribution
rate of 80% for the 2019 and 2020 financial years."
Business activity
- LNG carrier orders at record
highs
GTT's business activity was marked by a number
of successes during the first nine months of 2019, particularly in
the field of LNG carriers. In addition to the 26 orders for LNG
carriers booked during the first half of the year, there were an
additional 14 bookings in the third quarter of 2019, i.e. a total
of 40 LNG carrier orders during the first nine months of 2019.
GTT's core business activity is, therefore, 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).
Deliveries are scheduled between end-2020 and end-2022.
- Six orders for latest generation
ethane carriers
In September 2019, GTT's membrane technology was
selected for the design of six very large ethane carriers (VLEC)
built by the Korean Hyundai Heavy Industries (HHI) and Samsung
Heavy Industries (SHI) shipyards on behalf of the Chinese company
Zhejiang Satellite Petrochemical. These second generation ethane
carriers will be the largest ever built in the world
(98,000m³).
Designed for multi-gas use, i.e. to transport
ethane as well as several types of gas such as propylene, LPG and
ethylene, these six vessels will also be "LNG ready", offering the
possibility of containing LNG in the future without the need to
convert the ship's tanks.
- Order of three GBS: a first for GTT
At the end of September, GTT announced the
signing of a contract with Saren BV (a joint venture between
Renaissance Heavy Industries Russia and Saipem) for the design and
construction of three GBS terminals (Gravity Based Structures)
dedicated to the Arctic LNG 2 project. The contract concerns the
design, construction studies and technical assistance for the
membrane containment systems of the LNG and ethane tanks which will
be installed inside the three GBS terminals.
The first two GBS terminals will be equipped
with two LNG tanks, each with a capacity of 114,500m³, and an
ethane tank of 980m³. The third GBS terminal will be equipped with
two LNG tanks of 114,500m³ each. The GBS terminals, which will lie
on the seabed, will consist of concrete caissons with membrane
containment tanks using GTT’s GST® technology. The units will be
built in a dry dock at Novatek-Murmansk LLC. They will then be
towed and installed in their final location in the Gydan peninsula
in Russian Arctic.
- LNG as fuel
During the first half of 2019, GTT received
three orders for the design of tanks for six merchant vessels and
one barge:
- In March 2019, GTT received an order from the Sembcorp Marine
shipyard for the design of tanks for an LNG bunker vessel of
12,000m³ on behalf of the ship-owner Indah Singa Maritime Pte Ltd,
a subsidiary of Mitsui OSK Lines (MOL).
- In April 2019, GTT received an order from the Chinese shipyard
Hudong-Zhonghua for the design of an LNG tank of 6,500m³ as part of
the conversion of a very large capacity container ship for the
German ship owner Hapag Lloyd.
- In June 2019, GTT received an order from the Chinese shipyard
Jiangnan Shipyard (Group) Co., Ltd. for the design of LNG tanks of
14,000m³ for five new giant container ships on behalf of a European
ship owner.
Technologies
During the Gastech trade show, which was held in
mid-September 2019, GTT announced several advances in its
technology development process.
The American Bureau of Shipping classification
society issued the "LNG Cargo Ready" rating to GTT for its latest
VLEC (Very Large Ethane Carrier) model, a first in the ethane
sector. The rating certifies that the ethane carriers can be used
to transport liquefied natural gas without having to convert the
ship's tanks.
GTT also received approval in principle from the
classification society Bureau Veritas for icebreaker vessels using
Mark III Flex and N096 L03+ technologies sailing in Arctic
waters.
In addition, GTT signed a joint agreement for
the design of a very large crude carrier (VLCC) using LNG as fuel
with Lloyd’s Register (classification society) and several
partners.
Last, GTT announced the new name of its latest
technology: GTT NEXT1 (formerly NO96 Flex). This system benefits
from both proven NO96 technologies and the advantages provided by
the polyurethane foam insulating panels used in Mark III
technology.
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:
- 40 LNG carrier orders;
- 6 LNG carrier orders;
- 3 GBS orders;
- 23 deliveries of LNG carriers;
- 3 FSRU deliveries.
At 30 September 2019, the order book, excluding
LNG as fuel, stood at 120 units, broken down as follows:
- 100 LNG carriers;
- 6 ethane carriers;
- 6 FSRUs;
- 2 FLNGs;
- 3 GBS;
- 3 onshore storage tanks.
With respect to LNG as fuel, given the seven
orders in the 1st half-year, the number of vessels in the order
book stood at 18 units as at 30 September 2019.
Evolution of consolidated
revenue
(in thousands of euros) |
9M 2018 |
9M 2019 |
Change |
Revenue |
183,653 |
199,687 |
+8.7% |
|
|
|
|
Of which newbuilds |
173,031 |
188,936 |
+9.2% |
LNG carriers/VLEC |
149,931 |
157,579 |
+5.1% |
FSRU1 |
19,621 |
19,270 |
-1.8% |
FLNG2 |
1,970 |
3,788 |
+92.3% |
Onshore storage |
678 |
1,955 |
ns |
Barges |
300 |
529 |
+76.0% |
LNG Fuel |
530 |
5,815 |
ns |
From services |
10,622 |
10,751 |
+1.2% |
Revenues for the first nine months of 2019 were
€199.7 million, up 8.7% compared with the first nine months of
2018. It should be noted that, from the second to the third quarter
of 2019, revenues rose by over 20%.
- Revenues from new construction were €188.9 million, up by 9.2%.
Royalties from LNG carriers increased by 5.1% to €157.6 million,
while royalties from FSRUs were virtually stable at €19.3 million.
The other royalties stemmed from vessels fuelled by LNG in the
amount of €5.8 million, FLNGs for €3.8 million, onshore
storage tanks for €2.0 million and barges for €0.5 million.
- Revenues from services were €10.8 million, up slightly (+1.2%)
compared with the first nine months of 2018. The services business
benefited from the relatively good performance of maintenance and
assistance on vessels in operation and, to a lesser extent, from
the accreditation of suppliers. On the other hand, pre-project
engineering studies were much less significant than during the same
period the previous year.
Outlook for 2019
Given the size of the backlog, and assuming
there are no major delays or cancellations of orders, GTT confirms
its targets for revenues and EBITDA for the 2019 financial year,
i.e.:
- 2019 consolidated revenues of between €260 and €280
million;
- 2019 consolidated EBITDA of between €160 million and €170
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.
***
Presentation of business activity for the first nine
months of 2019
Marc Haestier, Chief Financial Officer, will
comment on GTT's business activity and answer questions from the
financial community during a telephone conference in English on
Friday 17 October 2019, at 6:15 pm, 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: 1991048
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
- Extraordinary Shareholders’ Meeting: 14 November 2019
- Publication of the 2019 annual results: 27 February 2020 (after
the close of trading)
- General Meeting of Shareholders: 19 May 2020
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
Contact Presse:
press@gtt.fr / +33 1 30 23 42 26 / +33 1 30 23
80 80
For further information, please consult
www.gtt.fr/en, and, in particular, the presentation to be
uploaded online for the conference call of 17 October
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
1 Floating Storage and Regasification Unit: Floating LNG storage
and regasification unit
2 Floating Liquefied Natural Gas vessel: LNG liquefaction
unit
- IR-PR-Q32019-17 10 2019 EN
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