GTT full year 2014 results

Gaztransport & Technigaz (GTT) has announced its results for the full-year 2014.

The company’s revenues grew 4.2% in 2014 to reach €226.8 million, up from €217.6 million in 2013. The increase has been attributed to a €6.1 million increase in royalties revenue and a €3 million increase in revenue from other services. The year-over-year revenue growth reflects the expansion in the company's order book and its strategy to extend its services line-up.

GTT’s operating income stood at €138.8 million, down 1.2% from €140.5 million in 2013. Its net financial income was €1.4 million, largely unchanged from the prior year, while its net income fell from €118.7 million in 2013 to €115.4 million in 2014, resulting in a 50.9% net margin for 2014.

Business review

GTT received 47 new orders in 2014, the highest number in ten years, consisting of 36 LNG carriers (including 10 ice-breaking LNG carriers), six very large ethane carriers, three FSRUs, an FLNG , and an onshore storage unit.

In March 2014, GTT introduced the NO 96 Max system (an upgrade of the NO 96 design) and the extension of the Mark V system to LNG carriers. These technologies reduce the LNG boil-off rate, thereby generating significant cost savings for ship-owners. GTT also unveiled a new LNG propulsion system for vessels, including its most recent developments for small-scale LNG carriers (for the LNG-as-a-fuel supply chain).

At the end of 2014, GTT had 690 active and pending patents. GTT technologies that have been on the market for less than three years represent around two-thirds of the order book at 31 December 2014.

GTT also rolled out several new services last year. GTT and its Cryovision subsidiary now offer an innovative monitoring system called SloShieldTM, which helps ship-owners mitigate the effects of sloshing in LNG carrier tanks. Meanwhile, GTT Training Ltd offer courses that use simulation software to train gas officers working on LNG carriers.

GTT also signed a license agreement with Gabadi in 2014, making Gabadi the company's first licensed outfitter to provide installation services to shipyards. In early 2015, GTT North America signed a Technical Assistance and License Agreement (TALA) with Conrad Shipyard for the design and construction of LNG barges and LNG-fuelled vessel bunker tanks using GTT's membrane containment systems. These new license agreements illustrate GTT's commitment to expanding into new markets and forging new types of partnerships.

Changes in shareholding

Temasek acquired all of Total's remaining 10.4% stake in GTT in December 2014. Hellman & Friedman also sold its remaining investment in January 2015 under a private placement to institutional investors.

As a result, GDF SUEZ holds approximately 40.4% of GTT's share capital; Temasek holds approximately 10.4%;

management and employees hold approximately 0.2%; and the public free float represents approximately 49% of GTT's share capital.

Outlook

GTT has confirmed the following targets for 2015 (subject to events that could affect the markets in which it operates):

• Revenue equivalent to that in 2014 (which is around €10 million more than the forecast provided during the IPO).
• A net margin of c. 50%.
• A dividend payout ratio of at least 80% of net income available for distribution. 

Increases to the 2016 target are as follows:

• At least 10% revenue growth relative to 2015, which corresponds to revenue of over €250 million (some €30 million higher than the forecast provided during the IPO).

Comments

Philippe Berterottière, Chairman and Chief Executive Officer of GTT, said: "On top of achieving the 2014 targets we announced during our IPO, we also booked a record 47 new orders during the year. That gives us increased revenue visibility through to 2020. And 2015 has gotten off to a great start, with 19 new orders already confirmed. I would also like to underline the important efforts we have undertaken in innovation and R&D. Thanks to years of hard work, GTT's breakthrough technologies are quickly finding their place in the market. They generate substantial cost savings for our customers while offering the highest safety standards. The services we offer are not only highly appreciated by our customers, but they also provide us with a significant additional revenue stream. Finally, the diversification of our order book in 2014 reflects our ability to expand into other markets besides LNG carriers, reach new types of customers, and provide solutions for other types of applications."

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/lng-shipping/13022015/gtt-full-year-2014-results-244/