GTT reports record results for first half 2019

Malcolm Latarche
Malcolm Latarche
ShipInsight

29 July 2019


French LNG engineering specialist Gaztransport & Technigaz (GTT) has chalked up record results as both demand for LNG carriers and more ships are ordered using LNG as fuel.

Commenting on the results, Philippe Berterottière, GTT Chairman and CEO of GTT, said, "The first half of 2019 was characterised by intense business activity and LNG carrier orders still at record levels. In the field of LNG as fuel, the attractiveness of GTT membrane technologies to ship-owners is increasingly evident, with recent orders from ship-owner Hapag Lloyd for the conversion of one of its container ships, and five new very large container ships from a European ship-owner.

From a financial perspective, revenues were down slightly in the 1st half of 2019. However, the intake of orders from the last 24 months is beginning to bear fruit and revenues have risen 8.2% between the first quarter and the second quarter of 2019. In terms of results, while the first half of 2019 is down on last year on account of the technical and human resources deployed, GTT will feel the wider benefit of the increase in activity as from the second half of 2019. As a result, considering the backlog in our order book along with busy shipbuilding schedules, we are upgrading our projections for revenues and EBITDA for the full 2019 financial year. We are also proposing an interim dividend of 1.50 euro, up 12.8% compared to last year."

During the first half of 2019, GTT's business activity was marked by multiple successes, particularly in the field of LNG carriers. With 26 orders for LNG carriers booked during the first half of 2019, GTT's core business activity now stands at a particularly high level. All of the carriers will be equipped with GTT's recent technologies (Mark III Flex+, Mark III Flex and NO96 GW). Delivery is scheduled between end-2020 and end-2022.

In addition, two orders for LNG carriers were recorded between July 1 to 25, 2019 from HHI and HSHI shipyards.