French LNG storage firm GTT reports Asia growth but lacks new fuel tank orders for LNG-fuelled ships

Monday, 22 February 2021
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Gaztransport & Technigaz, the French technology and engineering company for LNG storage, said demand continued on an upward trend led by Asia with orders to equip 41 LNG carriers, though GTT did not receive any orders in 2020 for LNG fuel tanks for shipping.

GTT said annual net income from licensing and royalties for its technology rose by 38.7 percent to €198.86 million ($241M) from €143.35M in 2019.

Annual revenues increased by more than 37 percent to €396.37M from €288.22M in the previous year.

At year-end, GTT said its outstanding order book comprised designs for 147 units, comprising 122 LNG carriers, nine ethane carriers, six onshore storage tanks, four floating storage and regasification units (FSRUs), two floating storage units (FSUs), one floating production hull and three gravity-based structures for Novatek’s Arctic LNG II project.

GTT said that regarding LNG as fuel, including the deliveries of a bunker vessel and four ultra-large container ships for French containers shipping line CMA CGM, the number of vessels in the order book stood at 14 units.

“With regard to LNG as fuel, GTT did not receive orders in 2020, due mainly to the low number of new ships being built,” explained GTT Chairman and Chief Executive, Philippe Berterottière.

“However, CMA CGM’s first LNG-powered ships have been delivered; they will be the new flagships of the merchant navy,” added Berterottière.

“I would point out that the adoption of LNG as fuel by merchant ships is of crucial importance from the perspective of reducing CO2 emissions, since this fuel makes it possible to immediately reduce them by 20 to 25 percent and eliminate most other polluting emissions,” stated the CEO.

GTT noted in its highlights of 2020 orders that one came from Russian State Transport Leasing Company (GTLK) through South Korean shipyard Daewoo Shipbuilding & Marine Engineering.

The scope is to design tanks for two floating LNG storage units (FSUs), the largest units ever built with 361,600 cubic metres capacity.

“These two FSUs will contribute to the Yamal and Arctic LNG 2 projects of Russian LNG producer Novatek,” added GTT.

The French firm is also building its services business and received two key orders, one from Excelerate Energy of the US to assist Excelerate Technical Management with the maintenance and operation of nine FSRUs equipped with GTT’s No. 96 tanks.

A similar deal was signed with Norwegian LNG carrier fleet owner Knutsen OAS Shipping AS. This contract will cover a fleet of 17 vessels by 2022, 12 currently in service and five under construction, all equipped with Mark III Flex or No. 96 tanks.

GTT was confident about market development for 20121 and beyond.

“After three years marked by numerous commercial successes, the order book for the main activity is at a high level,” said GTT.

“In contrast to the two previous years, most of the orders for 2020 are for an extended time horizon that gives GTT visibility through 2025,” it added.

“These orders will not generate significant additional revenue in 2021. The order book corresponds to revenue of €640M over the period 2021 to 2025,” it added.

In addition, GTT continues its research and development efforts, including, more patent registration and IT developments.

On the basis of these items and their extra costs, the company is forecasting 2021 consolidated revenues within a range of €285M to €315M.

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