French engineering concern, GTT has reported a solid start to the year with revenue of €191 mill for the first quarter, up 32%, compared to 1Q24.
During the quarter, the company received 16 new orders for its core business (LNGC tank designs) and 12 new orders for LNG as fuel.
In a conference call, acting CEO and Chairman, Philippe Berterottière said that for the global market environment, this quarter was a mixed bag.
On the one hand, there were positive regulatory developments with the end of the moratorium and the removal of the project construction deadline in the US. On the other, the current US tariff disputes added complexity to the market.
As at the end of March, GTT had 325 units on its core business orderbook. In 1Q25, the company won orders for nine LNGCs and seven ethane carriers. For LNG as fuel, the order book stood at 55 units.
“This solid backlog provides strong visibility for future activities,” Berterottière said.
He pointed to Shell’s 2025 outlook, in which the energy major revised its LNG forecast up by about 25 mill tonnes per annum for the 2030/2040 period, compared to its 2024 report.
Shell estimated that the gap between the projected supply and demand by 2040 was now between 165 mill to 210 mill tonnes per annum, which should trigger new liquefaction projects, Berterottière said.
This also bodes well for future ship orders, including replacements for ageing vessels. In addition, several projects could be sanctioned this year and next.
FIDs progressing
Following a relatively quiet 2024 in terms of FIDs, since February 2025, no additional projects have been sanctioned, but several are progressing well and have moved into the most likely FID category, he said.
GTT’s total 1Q25 revenue was driven by new orders valued at €181 mill, a rise of 36%, and benefiting from a higher number of LNGCs under construction in the first quarter.
Looking ahead, GTT confirmed its 2025 targets with consolidated revenues expected to range between €750 mill to €800 mill, while EBITDA should be between €490 mill and €540 mill.
In addition, the company will maintain its dividend policy with a payout of at least 80% of consolidated net income.
Berterottière stressed that despite the ongoing market uncertainty, there is a need for between 40 and 65 LNGCs for the projects under construction.
Some projects have been delayed and that is why some ships, which have been delivered on time, are idle for the time being. This gives the feeling to some people that the market is a little bit long, he said.
He predicted that these projects were going to be ready in 2028, or the beginning of 2029 and, as a result, the developers will soon look for LNGCs.
In total, as of 31st March, 2025, GTT’s orderbook, excluding LNG as fuel stood at 325 units - 292 LNGCs; 21 ethane carriers; three FSRUs; two FLNGs and five onshore storage tanks.
With 12 vessels ordered and seven delivered, the LNG as fuel orderbook was 55 units at the end of March.
