GTT: Nine-month 2022 revenues stand at €222 million, in line with
expectations; strong order momentum continues
Nine-month 2022
revenues stand
at €222 million, in line with
expectations; strong order momentum
continues
- Record
orders: 134 LNG carriers during
the first nine months
- 2022 targets
confirmed
Paris – October 27, 2022. GTT,
the technological expert in membrane containment systems used to
transport and store liquefied gases, today announces its revenues
for the first nine months of 2022.
Commenting on the results, Philippe
Berterottière, Chairman and CEO of GTT, said: “With 134
LNG carrier orders, our core business during the first nine months
of 2022 has broken all previous sales records, highlighting the
continuation of particularly strong momentum. The surge in demand
for LNG, particularly in Europe, is fuelling further demand for LNG
carriers, underpinned by investment in liquefaction plants and
increased construction capacity at shipyards.
In the LNG as fuel business, GTT booked 42
orders during the first nine months of 2022. While the high price
of LNG in Europe could slow order intake in the short term, GTT is
convinced of the relevance of its solutions and the potential of
this activity over the medium and long term.
GTT maintains a tireless focus on R&D to
meet its customers’ energy transition needs and the tightening
requirements they face. Over the first nine months, we obtained
numerous approvals from classification societies to develop new
technologies in a wide range of fields, particularly in LNG as
fuel, but also for the design of a hydrogen carrier and an
innovative design for a three-tank LNG carrier.
From a financial perspective, Q3 2022 revenues
were up 4.1% versus Q3 2021. As expected, nine-month 2022 revenues
were down compared to the same period in 2021 due to an
unfavourable base effect, which is gradually disappearing thanks to
the strong order momentum.
In addition, the Group confirms its 2022 targets
with results expected to reach the lower half of the initial target
range, as announced in the first half results release.”
Business activity during the first nine
months
- Continued momentum in LNG carrier
orders
In the first nine months of 2022, GTT booked 134
orders for LNG carriers, including 46 in the third quarter, in line
with the excellent sales momentum achieved in the first half of the
year. Delivery is scheduled between Q3 2024 and Q2 2027. In
particular, 58 orders for projects in Qatar were received during
the first nine months.
- Dynamic order intake
of LNG-powered
vessels
In addition to the 38 orders for LNG-powered
vessels received in the first half of 2022, four new orders were
received in the third quarter of 2022, bringing the total to 42
orders for the first nine months. While the high price of LNG in
Europe could slow order intake in the short term, GTT is convinced
of the relevance of its solutions and the potential of this
business over the medium and long term.
- New licensing agreements with Chinese
shipyards
In the third quarter of 2022, GTT signed two new
Technical Assistance and Licensing Agreements (TALA), with the
Yangzijiang Shipbuilding and China Merchants Heavy Industries
shipyards for the construction of GTT membrane containment systems.
This brings to five the number of construction sites now operating
in China and contributes to increasing vessel construction
capacity.
- Smart Shipping: new
contract
In July, GTT signed a contract with
Antarctica21, the world’s leading operator of fly and cruise
expeditions to Antarctica, to install “GTT Digital” smart shipping
solutions in its cutting-edge expedition vessel Magellan
Explorer.
- €86
million State support for Hydrogen IPCEI1
project confirms the relevance of
Elogen positioning
Following the selection by the European
Commission of Elogen’s “gigafactory” project and the strengthening
of its R&D division as part of the Hydrogen IPCEI, Elogen has
been awarded a maximum of €86 million in subsidies by the French
government. An agreement regarding this subsidy will shortly be
signed with Bpifrance. For the record, the Elogen gigafactory will
start production in 2025 with a production capacity of over 1
GW.
Furthermore, in July 2022, Elogen was selected
by Symbio to supply an electrolyser with an initial capacity of 2.5
MW for Symbio’s new fuel cell plant. This new contract represents
an important milestone for Elogen, as it highlights the company’s
ability to deploy its technologies on multi-megawatt capacities for
large industrial projects.
Finally, as previously announced, in the first
half of 2022 Elogen entered into several international partnerships
for the manufacture and sale of electrolysers for producing green
hydrogen:
- with HiFraser
Group in Australia and New Zealand;
- with Valmax
Technology Corporation in South Korea;
- with Charbone
Hydrogène in North America.
Innovation: development of new
technologies in a wide range of fields
In the first half of 2022, GTT received several
approvals in principle from classification societies,
including:
- Bureau Veritas for a new LNG
conversion concept for large-capacity container ships;
- ClassNK for a new design of LNG
fuel tank with 2 bar gauge pressure applicable to PCTC2 vessels as
well as LNG-powered cruise ships;
- DNV for an innovative LNG-powered
PCTC vessel design;
- Lloyd’s Register for GTT’s future
NEXT1 containment system;
- Bureau Veritas for Shear-Water, a
ballast-free vessel concept for LNG bunkering and refuelling
vessels.
In the third quarter of 2022, GTT obtained five
new approvals in principle from:
- DNV for a
containment system enabling the transport of liquid hydrogen, as
well as the concept for a hydrogen carrier vessel. Both approvals
in principle were obtained in the framework of the cooperation
agreement with Shell announced early 2022 and reflect the progress
of this project;
- Lloyd’s
Register for a new digital solution named “POWER” designed to
optimise transhipment operations between LNG carriers and floating
units;
- Bureau Veritas
for the design of a LNG-powered and “NH3-ready” Very Large Crude
Carrier;
- Bureau Veritas
and DNV for an innovative three-tank LNG carrier concept.
Order book at September 30, 2022
On January 1, 2022, GTT’s order book excluding
LNG as fuel comprised 161 units, and subsequently changed as
follows:
- Deliveries completed: 21 LNG
carriers, 4 ethane carriers, 1 FLNG;
- Orders received: 134 LNG
carriers.
At September 30, 2022, the order book excluding LNG as fuel
stood at 269 units, breaking down as follows:
- 250 LNG carriers;
- 2 ethane carriers;
- 2 FSUs;
- 3 GBSs;
- 12 onshore
storage tanks.
Regarding LNG as fuel, following the delivery of
four vessels, and orders for 42 container ship tanks, the number of
vessels in the order book stood at 70 units at September 30, 2022.
Evolution of
consolidated revenues for the
first nine months of 2022
(in thousands of euros) |
9M 2021 |
9M 2022 |
Change |
Revenues |
240,025 |
222,037 |
-7.5% |
|
|
|
|
Newbuilds |
224,281 |
200,385 |
-10.7% |
LNG carriers/VLEC |
194,767 |
174,749 |
-10.3% |
FSUs3 |
9,660 |
13,578 |
+40.6% |
FSRUs4 |
8,054 |
- |
nm |
FLNGs5 |
2,202 |
1,218 |
-44.7% |
Onshore storage tanks |
1,468 |
4,680 |
+218.8% |
GBSs6 |
2,521 |
3,303 |
+31.1% |
LNG-powered vessels |
5,610 |
2,857 |
-49.1% |
Electrolysers |
3,316 |
2,980 |
-10.1% |
Services |
12,428 |
18,672 |
+50.2% |
Consolidated revenues for the first nine months
of 2022 were €222.0 million, down 7.5% compared to the first nine
months of 2021. The third quarter 2022 revenues amounted to €77.8
million, up 4.1% compared to the third quarter 2021.
- Newbuild
revenues totalled €200.4 million, down 10.7% compared with the
first nine months of 2021, when the cycle was still at its peak.
- Royalties
amounted to €174.7 million from LNG and ethane carriers, €13.6
million from FSUs, €1.2 million from FLNGs, €4.7 million from
onshore storage tanks and €3.3 million from GBSs.
- LNG as fuel
royalties (€2.9 million) were not yet impacted by the high order
intake in 2021 and 2022.
- Nine-month
revenues from the Elogen electrolyser business amounted to €3.0
million, in a context of increasing commercial dynamic.
- Revenues from
services rose sharply, up 50.2% to €18.7 million, driven by growth
in digital services and engineering studies mainly related to the
conversion of LNG carriers into FSRUs.
Update on exposure to Russia
Work on projects in which the Group is involved
in Russia is currently continuing, in compliance with the
applicable sanction regimes.
In Russia, the Group is involved in tank design
for 15 ice-breaking LNG carriers currently being built at the
Zvezda Shipbuilding Complex (Zvezda), as well as in the design of 3
GBSs7 currently under construction at Saren B.V.8 At October 1,
2022, revenues of €74 million have yet to be recognised by 2025 for
ice-breaking LNG carriers, including €4 million in Q4 2022.
Revenues of €12 million have yet to be recognised for 2027 for
GBSs, including €1 million in Q4 2022.
Given the impact of international sanctions on
LNG liquefaction projects in Russia, the continuation and
successful execution of these contracts are still exposed to risks
of postponement or cancellation. In particular, sanctions are still
affecting Russian imports of certain products and equipment used in
current projects, including the Zvezda project. Furthermore, as
previously announced, in July Saren B.V. notified GTT of its
intention to terminate the contract between them. The termination
date has not yet been finally set. In this context, GTT continues
to investigate solutions to ensure the proper implementation and
integrity of its technology, in strict compliance with
international sanctions.
As a reminder, other orders in progress in Asian
shipyards for six ice-breaking LNG carriers and two FSUs9 are
specifically intended for Russian Arctic projects. These projects
are currently proceeding according to plan. At October 1, 2022,
these orders represented total revenues of €31 million for GTT, to
be recognized by 2024, including €7 million in Q4 2022.
Finally, eight conventional LNG carriers ordered
by international shipowners, under construction in Asian shipyards,
are intended for the Arctic LNG 2 project, but can operate in all
types of conditions.
2022 outlook confirmed
In its 2021 annual results press release dated
February 17, 2022, the Group issued the following targets for 2022,
assuming no significant order deferrals or cancellations:
- consolidated revenues of between
€290 million and €320 million,
- consolidated EBITDA of between €140
million and €170 million,
- a dividend amount for the 2022
financial year at least equivalent to the 2021 dividend.
Given delays in shipbuilding schedules for
certain vessels during the first nine months of 2022, the Group
confirms its forecast that revenues and EBITDA will reach the lower
half of the ranges announced in February.
In the longer term, the Group should benefit
from the current strong order momentum and expects to achieve
significantly higher revenues and earnings from 2023 onwards versus
2022.
***
First nine months of 2022 activity
update presentation
Philippe Berterottière, Chairman and Chief
Executive Officer, and Virginie Aubagnac, Chief Financial Officer,
will comment on GTT’s business during the first nine months of 2022
and answer questions from the financial community during a
conference call to be held, in English, on Thursday, October 27,
2022 at 6:15 p.m. Paris time.
This conference will also be broadcast live on
GTT’s website (www.gtt.fr/finance). To participate in the
conference call, please dial one of the following numbers five to
ten minutes before the start of the conference:
- France: +33 1 70 91 87 04
- UK: +44 1 212 818 004
- USA: +1 718 705 87 96
Confirmation code: 130114
The presentation document will be available on
the website on October 27, 2022 from 17:45 p.m.
Financial agenda
- Payment of an interim dividend of
€1.55 per share for the 2022 financial year: December 15, 2022
- 2022 full year results release:
February 16, 2023 (after close of trading)
- Shareholders’ Meeting: June 7,
2023
About GTTGTT
is a technological expert in containment systems with cryogenic
membranes used to transport and store liquefied gases. For over 50
years, GTT has been designing and providing cutting-edge
technologies for a better energy performance, which combine
operational efficiency and safety, to equip LNG carriers, floating
terminals, land storage, and multi-gas carriers. GTT also develops
systems dedicated to the use of LNG as fuel, as well as a full
range of services, including digital services in the field of Smart
Shipping. The Group is also active in hydrogen through its
subsidiary Elogen, which designs and assembles electrolysers
notably for the production of green hydrogen.
GTT is listed on Euronext Paris, Compartment A (ISIN
FR0011726835 Euronext Paris: GTT) and is notably included in SBF
120, Stoxx Europe 600 and MSCI Small Cap indices
Investor relations contact:
information-financiere@gtt.fr / +33 1 30 23 20 87Media
contact:press@gtt.fr / +33 1 30 23 48 45 For
more information, visit
www.gtt.fr.
Important notice
The figures presented here are those customarily
used and communicated to the markets by GTT. This message includes
forward-looking information and statements. Such statements include
financial projections and estimates, the assumptions on which they
are based, as well as statements about projects, objectives and
expectations regarding future operations, profits, or services, or
future performance. Although GTT management believes that these
forward-looking statements are reasonable, investors and GTT
shareholders should be aware that such forward-looking information
and statements are subject to many risks and uncertainties that are
generally difficult to predict and beyond the control of GTT, and
may cause results and developments to differ significantly from
those expressed, implied or predicted in the forwardlooking
statements or information. Such risks include those explained or
identified in the public documents filed by GTT with the French
Financial Markets Authority (AMF – Autorité des Marchés
Financiers), including those listed in the “Risk Factors” section
of the GTT Registration Document filed with the AMF on 27 April
2021, and the half-year financial report released on 28 July 2021.
Investors and GTT shareholders should note that if some or all of
these risks are realised they may have a significant unfavourable
impact on GTT
1 Important Project of Common European Interest2 PCTC (Pure Car
and Truck Carriers): carriers of light vehicles, trucks and rolling
stock3 Floating Storage Unit4 Floating Storage Regasification Unit5
Floating Liquefied Natural Gas vessel6 Gravity Based Structures:
underwater tanks7 Gravity Based Structure - underwater tanks8 Saren
B.V. is a joint venture between Saipem and Rönesans.9 Floating
Storage Unit
- IR-CP-9M 2022-27 10 2022_EN
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