GTT: €306 million in revenue for the first nine months of 2020
€306 million in revenue for the first
nine months of 2020
-
Order book at 30 September 2020 of 135 units for the core
business and 17 units for the LNG as fuel business
-
Consolidated revenues up 53%
-
2020 targets confirmed
Paris
– 28 October 2020. 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 revenues for the first nine
months of 2020.
Commenting on the results, Philippe
Berterottière, Chairman and CEO of GTT, said: "With a total of 38
orders booked since the start of the year for all segments taken
together, GTT's commercial activity continue to progress at a firm
pace, and LNG demand is maintaining its upward trend, driven by
Asia.Revenues for the first 9 months of 2020 fully benefited from
the flow of orders over the last two years and are sharply
up. As a result, considering the strong level of our backlog and
shipbuilding schedules, we confirm our revenue and EBITDA targets
for the full year 2020.I should also like to point out our recent
acquisition of Areva H2Gen, French PEM electrolysis market leader.
This company operates at the core of the energy transition, and
matches perfectly our strategy and mission statement. »
Business activity
- LNG carrier orders at high
level
GTT’s business activity was marked by a number
of successes during the first nine months of 2020, particularly in
to the field of LNG carriers. In addition to the 12 LNG carriers
booked during the first half of the year, a further 6 orders were
booked in the third quarter of 2020. Including an order for 10
ice-breaker LNG carriers announced today, the Group has taken in a
total of 28 orders for LNG carriers since the start of 2020. GTT’s
core business activity is, therefore, at a sustained level.
Note that the Technical Assistance and Licensing
Agreement (TALA) signed at the end of June with Russian shipyard
Zvezda Shipbuilding Complex (Zvezda), for the construction of LNG
carriers incorporating GTT membrane tank systems, led already to
orders for 15 ice-breaker LNG carriers.
- Orders for 4 latest-generation
VLECs
In September 2020, GTT's membrane technology was
selected to design six very large ethane carriers (VLEC – 98,000
m3) built by Korean shipbuilders Hyundai Heavy Industries (HHI) and
Samsung Heavy Industries (SHI). This follows on from an order for 6
ethane carriers a year earlier.
- Numerous diversified
orders
Note, in June 2020 GTT was awarded several
orders, including 1 FSRU, 2 FSUs, and 3 onshore storage tanks. This
underlines GTT’s ability to cover the entire LNG supply chain.
- Contract with the US Department of
Defense
In September 2020, the United States Department
of Defense awarded GTT North America a contract for the Red Hill
bulk fuel storage facility. Red Hill is a military fuel-storage
facility near Honolulu, Hawaii, featuring 20 steel-lined
underground storage tanks with a total capacity of 250 million
gallon (945 million litre) fuel capacity and supply lines to
bunkering wharfs at Pearl Harbor. This agreement aims at developing
a solution to upgrade the existing tanks to double wall
containment.
- Service contracts
Following signature of two service contracts,
one in February with CMA CGM, and the other in March with
Excelerate Energy (United States), in July GTT announced two
further new contracts:
- A Global Technical Services Agreement with Norwegian shipowner
Knutsen OAS Shipping AS. This new contract covers a 17-vessel fleet
by 2022 (12 currently in operation and 5 under construction). All
vessels incorporate Mark III Flex or NO96 technologies, both
developed by GTT. GTT will support Knutsen with vessel maintenance
and operation. Knutsen will also benefit from access to the Hears®
emergency hotline.
- A Global Technical Services Agreement with the
Hong-Kong-based Fleet Management company, to provide support for
shipbuilding, maintenance and operation of vessels managed by said
company. Fleet Management is currently supervising the construction
of latest-generation, high-capacity VLECs in Korea.
Acquisition of Areva
H2Gen
Note, since the start of the year GTT has
announced 3 acquisitions:
- In February 2020, acquisition of Marorka. This company, based
in Iceland, designs operational reporting and energy-performance
improvement systems aimed at reducing vessels’ environmental
footprint.
- Late July 2020, GTT acquired French company OSE Engineering,
specialising in artificial intelligence applied to transport. This
acquisition complements the Group's expertise in modelling complex
systems, optimising engineering processes.
- On October 19, 2020, the Group acquired Areva H2Gen, France’s
PEM electrolysis market leader.
Specialised in the conception and assembly of
electrolysis units for the production of green hydrogen, Areva
H2Gen is using Proton Exchange Membrane technology (PEM). It is the
only company to manufacture electrolysis units in France.
The green-hydrogen market today is fast
expanding, notably driven by major energy companies who seek to
make their energy production greener, and by numerous national
government development plans, as well as a European plan announced
in July 2020.
This acquisition enables GTT to enrich its
technological portfolio with an expertise in green hydrogen, an
crucial component of the energy mix for the next decades.
The Areva H2Gen acquisition confirms GTT's
commitment to continue to develop advanced technologies for better
energy efficiency. It fully matches GTT's development strategy,
which is based on growth drivers allowing it to leverage its
technological expertise and its knowledge of energy production and
transportation players.
Funded in cash, these acquisitions have no
significant impact on the Group's financial structure.
Order book
Since January 1, 2020, GTT’s order book
excluding LNG as fuel numbered 133 units at that date, and it
changed as follows:
- 18 LNG carrier orders
- 4 VLEC orders
- 1 FSRU order
- 2 FSU orders
- 3 onshore storage tank orders
- 23 deliveries of LNG carriers;
- 2 FSRU deliveries
- 1 FLNG delivery
Thus, at September 30, 2020, the order book
excluding LNG as fuel stood at 135 units, breaking down as
follows:
- 108 LNG carriers
- 10 VLECs
- 5 FSRUs
- 2 FSUs
- 1 FLNG
- 3 GBSs
- 6 onshore storage tanks
Regarding LNG as fuel, including the 2
deliveries of a bunker vessel and of the first ultra large
containership for CMA CGM, at September 30, 2020, the number of
vessels in the order book stood at 17 units.
Consolidated revenue
(in thousands of euros) |
9M 2019 |
9M 2020 |
Change |
Revenue |
199,687 |
305,649 |
+53.1% |
|
|
|
|
Of which new builds |
188,936 |
295,433 |
+56.4% |
LNG carriers/VLEC |
157,579 |
263,462 |
+67.2% |
FSRU1 |
19,270 |
19,717 |
+2.3% |
FLNG2 |
3,788 |
3,272 |
-13.6% |
Onshore storage |
1,955 |
599 |
-69.4% |
GBS3 |
- |
1,862 |
nm |
Barges |
529 |
- |
nm |
LNG as fuel |
5,815 |
6,521 |
+12.1% |
From services |
10,751 |
10,216 |
-5.0% |
Revenues in the first 9 months of 2020 benefit
fully from the flow of orders over the last two years. Revenues for
the first nine months of 2019 were €305.6 million, up 53.1% year on
year.
- Revenues from new builds were €295.4 million, up 56.4%.
Royalties from LNG carriers increased by 67.2% to €263.5 million,
while royalties from FSRUs increased by 2.3% to €19.7 million.
Other royalty income stemmed from LNG as fuel segment standing at
€6.5 million (up 12.1%), FLNGs at €3.3 million, GBSs at €1.9
million, and onshore storage tanks at €0.6 million.
- Revenue from services decreased 5% compared to the first nine
months of 2019, reflecting a strong decrease in maintenance and
work on vessels in operation during the Covid crisis. Note however
the growth in supplier approval services and engineering
studies.
Outlook for 2020
Given the size of the backlog, and assuming
there are no major delays or cancellations of orders, GTT confirms
its 2020 full year revenue and EBITDA targets, i.e.:
- 2020 consolidated revenues of between €375 and €405
million;
- 2020 consolidated EBITDA of between €235 million and €255
million.
Additionally, the Group maintains its dividend
distribution policy, i.e. for the 2020 and 2021 financial years, a
minimum dividend payout of 80% of consolidated net income.
Information about the KFTC investigation
As announced by the Korea Fair Trade Commission,
a hearing related to the investigation concerning GTT’s commercial
practices with the Korean shipyards was held on October 21, 20204.
This followed the issuance from the Korea Fair Trade Commission of
a confidential Examiner Report.
GTT and its counsels participated in this
hearing and previously responded in writing to the preliminary
conclusions set out by the Examiner Report. GTT will keep the
market informed about the KFTC decision when released.
***
Presentation of revenues for the first nine months of
2020
Marc Haestier, Chief Financial Officer, will
comment on GTT's revenues and answer questions from the financial
community during a telephone conference in English on Wednesday 28
October 2020, 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: 9944528
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
- 2020 full year results release: 18 February 2021 (after the
close of trading)
- General Meeting of Shareholders: 27 May 2021
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 28
October 2020.
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
2 Floating Liquefied Natural Gas unit
3 Gravity Base Structure
4 See the Press Release from GTT on October 19, 2020
- IR-PR-Q3 2020-28 10 2020 EN
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