French storage technology firm GTT reports lower profit and revenue as shipyards pause

Friday, 26 July 2019
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Gaztransport and Technigaz (GTT), the French storage tank technology company, reported a more than 25 percent fall in first-half net profits as revenues and royalties from selling its designs also declined.

First-half revenues came to 122.63 million euros ($136.8M) compared with 127.24M euros in the same six months a year ago.

Of this total, royalties for newbuild LNG carriers came to 114.71M euros versus 120.43M euros in the first half of 2018.

The order book at the end of the first half, excluding LNG as fuel, stood at 107 units,  including 95 LNG carriers, seven floating storage and regasification units (FSRUs), two LNG production hulls and three onshore storage tanks.

GTT’s net income tumbled 25.2 percent to 56.60 euros from 75.72M euros in the same six months of 2018.

Regarding LNG as fuel, GTT said there were seven additional orders in the six months and the number of vessels in the order book stood at 18 at the end of June.

GTT said that recent highlights in its activities included the June 2019 order from the Chinese Jiangnan Shipyard for the design of LNG tanks for five new giant container ships on behalf of a European shipowner.

Each of these tanks will have a capacity of 14,000 cubic metres and the design will be the Mark III Flex technology.

The ships will be built on behalf of France’s global container line CMA CGM, based in the French Mediterranean port of Marseilles.

GTT also received an order in the earnings period from the Sembcorp Marine shipyard in Singapore for the design of tanks for an LNG bunker vessel on behalf of the shipowner, Indah Singa Maritime, a subsidiary of Japan’s Mitsui OSK Lines.

GTT said it would design the tanks for that vessel based on the Mark III Flex membrane containment solution with a capacity of 12,000 cubic metres.

“The first half of 2019 was characterized by intense business activity and LNG carrier orders still at record levels,” said Philippe Berterottière, GTT Chairman and Chief Executive.

“In the field of LNG as fuel, the attractiveness of GTT membrane technologies to shipowners is increasingly evident with recent orders, including for five new very large container ships,” added the CEO.

“From a financial perspective, revenues were down slightly. However, the intake of orders from the last 24 months is beginning to bear fruit and revenues have risen 8.2 percent 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,” he stated.

“We are also proposing an interim dividend of 1.50 euros, up 12.8 percent compared to last year,” Berterottière told shareholders.

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