GTT announces latest revenue figures

Business activity:

• LNG carrier orders at record highs
  • GTT’s business activity was marked by a number of successes during the first nine months of 2019, particularly in the field of LNG carriers. In addition to the 26 orders for LNG carriers booked during the first half of the year, there were an additional 14 bookings in 3Q19, i.e. a total of 40 LNG carrier orders during the first nine months of 2019. All of the carriers will be equipped with GTT’s recent technologies (Mark III Flex+, Mark III Flex and NO96 GW). Deliveries are scheduled between end-2020 and end-2022.

• Six orders for latest generation ethane carriers
  • In September 2019, GTT’s membrane technology was selected for the design of six very large ethane carriers (VLEC) built by the Korean Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) shipyards, on behalf of the Chinese company Zhejiang Satellite Petrochemical. These second generation ethane carriers will be the largest ever built in the world (98 000 m³).
  • Designed for multi-gas use – i.e. to transport ethane as well as several types of gas such as propylene, LPG and ethylene – these six vessels will also be ‘LNG ready’, offering the possibility of containing LNG in the future without the need to convert the ship’s tanks.

• Order of three gravity based structures (GBS’): a first for GTT
  • At the end of September, GTT announced the signing of a contract with Saren BV (a joint venture between Renaissance Heavy Industries Russia and Saipem) for the design and construction of three GBS terminals dedicated to the Arctic LNG 2 project. The contract concerns the design, construction studies and technical assistance for the membrane containment systems of the LNG and ethane tanks which will be installed inside the three GBS terminals.
  • The first two GBS terminals will be equipped with two LNG tanks, each with a capacity of 114 500 m³, and an ethane tank of 980 m³. The third GBS terminal will be equipped with two LNG tanks with a capacity of 114 500 m³ each. The GBS terminals, which will lie on the seabed, will consist of concrete caissons with membrane containment tanks using GTT’s GST® technology. The units will be built in a dry dock at Novatek-Murmansk LLC. They will then be towed and installed in their final location in the Gydan peninsula in the Russian Arctic.

• LNG as fuel
• During 1H19, GTT received three orders for the design of tanks for six merchant vessels and one barge:
  • In March 2019, GTT received an order from the Sembcorp Marine shipyard for the design of tanks for an LNG bunker vessel (12 000 m³ capacity) on behalf of the ship-owner Indah Singa Maritime Pte Ltd, a subsidiary of Mitsui OSK Lines (MOL).
  • In April 2019, GTT received an order from the Chinese shipyard Hudong-Zhonghua for the design of an LNG tank of 6 500 m³ as part of the conversion of a very large capacity container ship for the German ship owner Hapag Lloyd.
  • In June 2019, GTT received an order from the Chinese shipyard Jiangnan Shipyard (Group) Co., Ltd. for the design of LNG tanks, each with a capacity of 14 000 m³, for five new giant container ships, on behalf of a European ship owner.

Revenue:

Revenues for the first nine months of 2019 were €199.7 million, up 8.7% compared with the first nine months of 2018. It should be noted that, from the second to the third quarter of 2019, revenues rose by over 20%.

• Revenues from new construction were €188.9 million, up by 9.2%. Royalties from LNG carriers increased by 5.1% to €157.6 million, while royalties from FSRUs were virtually stable at €19.3 million. The other royalties stemmed from vessels fuelled by LNG in the amount of €5.8 million, FLNGs for €3.8 million, onshore storage tanks for €2.0 million and barges for €0.5 million.
• Revenues from services were €10.8 million, up slightly (+1.2%) compared with the first nine months of 2018. The services business benefited from the relatively good performance of maintenance and assistance on vessels in operation and, to a lesser extent, from the accreditation of suppliers. On the other hand, pre-project engineering studies were much less significant than during the same period the previous year.

Philippe Berterottière, Chairman and CEO of GTT, comments:

“With 40 orders for LNG carriers during the first nine months, of which 14 in the third quarter, business activity has been particularly strong. In addition, there were significant orders for GBS’ and ethane carriers’ equipment. This demonstrates GTT’s ability to participate in the entire liquefied gas value chain from large gas projects to importation and bunkering terminals.

As announced previously, the inflow of orders over the last two years is beginning to bear fruit and revenue has increased substantially from one quarter to the next. Consequently, given our strong order book and ship construction schedules, we confirm our revenue and EBITDA outlooks for the full 2019 financial year, as well as a minimum distribution rate of 80% for the 2019 and 2020 financial years.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18102019/gtt-announces-latest-revenue-figures/