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GTT: Revenues of €58.9 million in the first quarter of 2019

GTT (Gaztransport & Technigaz), an engineering company specialising in the design of membrane containment systems for the transport and storage of liquefied gas, has announced its revenues for the first quarter of the 2019 financial year.

Consolidated key figures for the first quarter of 2019

(in thousands of euros) Q1 2018 Q1 2019 Change
Revenue 64,169 58,909 -8.2%
From newbuilds 61,530 55,354 -10.0%
LNG carriers 54,567 46,215 -15.3%
FSRU 6,244 5,234 -16.2%
FLNG 496 1,257 +153.3%
Onshore storage 858 ns
Barges 223 172 -22.9%
LNG as fuel 1,618 ns
From services 2,639 3,555 +34.7%

Philippe Berterottière, Chairman and Chief Executive Officer of GTT, commented: “The level of new orders held firm in the first quarter of 2019, in line with the good steady performance of the LNG market. We have already booked 14 orders for LNG carriers. With regard to LNG as fuel, we are registering increasing interest from ship-owners, which in the 1st quarter led to an order for a bunker vessel and more recently an order for the conversion of a container vessel to LNG. In financial terms, revenue has not yet fully benefited from the flow of orders in 2018 and decreased in the 1st quarter of 2019 compared with the same period last year, which was based on older orders. Given the good level of our order book and schedule for vessel construction, we confirm our targets for the whole of the year”.

Performance of activity segments

Consolidated revenue for the first quarter of 2019 were €58.9 million, down by 8.2% compared to the first quarter of 2018.

  • Revenue linked to new constructions came to €55.4 million, down by 10.0%.
    • Royalties from LNG carriers decreased by 15.3%, totalling €46.2 million, and FSRU royalties by 16.2% to €5.2 million. Revenue in the first quarter of 2019 did not fully benefit from the flow of orders in 2018 (14 LNG carriers under construction out of 48 ordered), whilst the same period in 2018 was essentially based on orders prior to 2016.
    • Other royalties are increasing. This includes royalties from FLNGs for €1.3 million (+153.3%) and from LNG as fuel for €1.6 million.
  • Revenue linked to services was €3.6 million, strong growth (+34.7%) compared with the first quarter of 2018, notably due to the rise of maintenance services and, to a lesser extent, the contribution of Ascenz.

Highlights

– Progression in orders for LNG carriers

With 14 orders for LNG carriers booked in the first quarter of 2019, GTT’s main business activity is at an all-time high. The LNG carriers will all be equipped with recent GTT technologies (Mark III Flex+, Mark III Flex and NO96 GW). They will be delivered between the end of 2020 and the end of 2021.

– LNG as fuel: new business successes

In March 2019, GTT received an order from the Sembcorp Marine shipyard for the design of the tanks of an LNG bunker vessel for ship-owner Indah Singa Maritime Pte Ltd, a subsidiary of Mitsui OSK Lines (MOL). GTT will design the tanks for these vessels, which will include the Mark III Flex membrane containment solution developed by GTT. The vessel will have a capacity of 12,000 m3. Delivery is scheduled for the first half of 2021.
In April 2019, GTT received an order from Chinese shipyard Hudong-Zhonghua for the design of an LNG tank as part of the conversion of a very large capacity container vessel for German ship-owner Hapag Lloyd. The 6,500 m3 LNG tank will provide optimal space usage for the storage of fuel.

Changes to the order book

Since 1st January 2019, the GTT’s order book, excluding LNG as fuel, which then comprised 97 units, has evolved as follows:

9 LNG carrier deliveries;
1 FSRU delivery;
14 LNG carrier orders.

At 31 March 2019, the order book, excluding LNG as fuel, stood at 101 units, of which:

88 LNG carriers;
8 FSRUs;
2 FLNGs;
3 onshore storage tanks.

With regard to LNG as fuel, the number of vessels on order at 31 March 2019 was 12 units, plus the order for the Hapag-Lloyd container vessel received in April.

Outlook for 2019

In the absence of significant cancellations or delays to orders, the Company has confirmed its targets for FY2019, namely:

2019 consolidated revenues between €255 million and €270 million,
2019 consolidated EBITDA within a range of €150 million to €160 million,
a dividend target, in respect of FY2019 and FY2020, corresponding to a payout rate of at least 80% of consolidated net income.
Source: GTT

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