GTT celebrates best year in decade

Thursday, 07 March 2019

Tank containment system designer, GTT has reported record orders for 2018 with sales reaching a 10-year high. 

GTT won orders to supply its technology to 48 new LNGCs, two FSRUs, one onshore storage tank, one bunkering vessel and one icebreaking cruise ship last year. 

In addition, the company had received 11 new LNGC orders this year up to the end of February.

Consolidated revenue for 2018 amounted to €246 mill, compared to €240.8 mill in 2017, an increase of 2.2%.

Revenue from newbuildings totalled €231.5 mill last year, up by 1.7% compared to the previous year, which was impacted by lower order levels in 2016.

Royalties on LNGCs and FSRUs amounted to €198.8 mill (-2.1% compared to 2017) and €25.1 mill (+30.6%), respectively.

Revenue from services also increased (+9.6%), mainly due to the consolidation of Ascenz.

EBTIDA for 2018 was €168.7 mill, compared with €151.3 mill for the previous year. Net income reached €142.8 mill, up 15.1% compared to 2017.

Philippe Berterottière, GTT Chairman & CEO, said: "With 50 orders for LNG carriers and FSRUs, 2018 stands out as the best year of the decade for our core business, thus confirming our vision of market needs.

“The strong growth in LNG demand throughout the past two years, in particular in Asia, shows the current ongoing dynamics of the LNG market. The pace of future orders will notably depend on FIDs in new liquefaction trains.

“On the promising market of LNG fuel, we achieved further successes, which once again confirmed our ability to meet the needs of shipowners in this area. Less than a year away from the global sulfur cap, and in an increasingly stringent regulatory environment, especially in the main trading ports, the interest of shipowners for our LNG propulsion solutions is becoming clear.

“In conjunction with our partners, we are continuing our efforts to become a long-term player in this new ecosystem. I wish to reiterate that, beyond the benefits for GTT, the adoption of LNG as a fuel for merchant vessels is a major step forward for the planet in terms of reducing polluting emissions.

“For our new activities, as well as for our core activities, we are continuing to prepare the future by developing new variants of our flagship technologies, such as NO96 Flex, and by creating new ones, such as LNG Brick®. The Group anticipates, for 2019, an increase of around 25% of its R&D expenses. Consequently, 2019 will be a year of innovation for GTT.

“Concerning our outlook for the year in progress, given our healthy order book in 2018 and for the beginning of 2019, as well as the efforts made by the Group to prepare the future, we expect our 2019 consolidated revenue to be between €255 mill and €270 mill, with consolidated EBITDA between €150 mill and €160 mill. Furthermore, we maintain our commitment to pay out dividends amounting to at least 80% of our net income for FY2019 and FY2020," he concluded.

New order

This week, GTT received an order notification from Hyundai Heavy Industries (HHI), to undertake the design of a new 174,000 cu m LNGC, on behalf of Greek shipowner, Capital Gas Carriers.

The vessel will be fitted with the Mark III Flex membrane containment system. Her delivery is planned during the third quarter of 2021.