GTT suffers revenue fall

Thursday, 18 April 2019
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GTT (Gaztransport & Technigaz) reported a drop in consolidated revenue of 8.2% for the first quarter of this year. 

The consolidated revenue was €58.9 mill, compared with €64.2 mill in 1Q18. 

Revenue linked to new construction came to €55.4 mill, down by 10%. Royalties from LNGCs decreased by 15.3%, to total €46.2 mill, and FSRU royalties by 16.2% to €5.2 mill.

GTT said that the 1Q19 revenue did not fully benefit from the flow of orders in 2018 (14 LNGCs under construction out of 48 ordered), whilst the figures for the same period in 2018 was essentially based on orders prior to 2016.

Other royalties increased, including royalties from FLNGs at €1.3 mill (+153.3%) and from LNG as fuel at €1.6 mill.

Revenue linked to services was €3.6 mill, strong growth (+34.7%) compared with 1Q18, notably due to the rise of maintenance services and, to a lesser extent, the contribution of Ascenz.

Philippe Berterottière, GTT Chairman and CEO, 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 shipowners, which in the first 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 first 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," he concluded.

All time high

With 14 orders for LNG carriers booked in 1Q19, GTT's main business activity is at an all-time high, the company claimed. The LNGCs 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.

Since 1st January, 2019, the GTT’s order book, excluding LNG as fuel, which then comprised 97 units, has evolved as follows:
• Nine LNGC deliveries;
• One FSRU delivery;
• 14 LNGC orders.

As at 31st March, 2019, the order book, excluding LNG as fuel, stood at 101 units, of which:
• 88 LNGCs;
• Eight FSRUs;
• Two FLNGs;
• Three onshore storage tanks.

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

In the absence of significant cancellations or delays to orders, GTT confirmed its targets for FY2019 as consolidated revenues of between €255 mill and €270 mill, 2019 consolidated EBITDA within a range of €150 mill to €160 mill, plus a dividend target, in respect of FY2019 and FY2020, corresponding to a payout rate of at least 80% of consolidated net income. 

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