GTT’s Q1 2023 Revenues Surge by 17.2% with Strong Order Momentum!

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Credit: Alexander Bobrov/Pexels

April 20, 2023. GTT, a leader in membrane containment technology for liquefied gas storage and transportation, reports its financial results for the first quarter of 2023, as reported by Xinde Marine.

Strong commercial performance 

Commenting on the results, Philippe Berterottière, Chairman and Chief Executive Officer of GTT, reported a strong commercial performance in Q1 2023 with 25 LNG carrier orders and one floating liquefied natural gas unit order. The demand for LNG is strong, with two new liquefaction plant investments made. The company continues its efforts in R&D and innovation to become a major technological player in decarbonizing maritime transport. GTT obtained new approvals in the field of alternative fuels. The company joined the United Nations Global Compact, demonstrating its commitment to a sustainable and responsible economy.

2023 goals

Revenues for the first quarter of 2023 indicate a significant rise of 17.2% when compared to the first quarter of 2022 from a financial perspective. The second half of 2023 will see a noticeable increase in activity, helped by the rising number of ships being built. The Group reaffirms its 2023 goals in this context.

Group business activity in Q1 2023

– Continued momentum in LNG carrier orders

Following a record year in 2022 in terms of orders, GTT booked 25 orders for LNG carriers in the first quarter of 2023. Their delivery is scheduled between the first quarter of 2026 and the fourth quarter of 2027. 

GTT also received an order for an FLNG unit, which will be delivered in the first quarter of 2027.

– Digital: signing of new contracts and launch of a new brand

A significant Mexican ship owner chose Ascenz on January 16, 2023, to install its Electronic Fuel Monitoring System (EFMS) on a tanker.

With an option to add another 30 in 2024, Marorka signed a significant deal in March 2023 with a significant European maritime transport firm to install sophisticated software and automatic data collecting systems to control and optimise energy and environmental performance on 30 container ships in 2023. Additionally, GTT has been picked by two significant European LNG ship owners to outfit three vessels with its “Sloshing Virtual Sensor” predictive maintenance technology.

Last but not least, GTT revealed the launch of a new company called Ascenz Marorka2, whose goal is to offer ship owners and charterers the most cutting-edge, creative, and dependable solutions.

– Further development of Elogen

Elogen and Crosswind, a joint venture between Shell and Eneco, agreed to design and produce a 2.5 MW electrolyser as part of an offshore wind farm project in February 2023.

Elogen also keeps up its research and development efforts with the goal of enhancing the competitiveness and energy efficiency of its solutions.

– Innovation: Development of new technologies – GTT is once again the leader in the number of patents filed

In terms of the number of patents submitted in 2022, GTT topped the INPI ranking of ETIs for the fourth consecutive year. This ranking highlights the robust innovation dynamic at GTT.

Early in the first quarter of 2023, GTT reported that Lloyd’s Register has given their maintenance optimisation solution for LNG membrane tanks approval in principle. This will enable shipowners and charterers to increase operational flexibility and realise significant cost savings.

Additionally, as part of the MerVent project, the Group received a €4.66 million subsidy from Bpifrance for the design of an onboard CO2 collecting system for ships and the creation of intelligent operational performance solutions by OSE Engineering4 (GTT Group). 

Finally, OSE Engineering announced its participation in the HyMot5 project, supported by ADEME as part of the Programme d’investissements d’avenir (PIA), which aims to intensify research on the development of a hydrogen engine for lightweight utility vehicles.

More recently, GTT received 4 approvals in principle from the Japanese classification society ClassNK for its latest alternative fuel development projects, namely:

  • a 12,500 m3 dual-fuel VLCC6, equipped with the GTT Mark III Flex system;
  • an LNG tank rated “NH3 Ready”7, which includes NH3-compatible materials, risk assessment and gas boil-off rate management;
  • an 8,000 CEU8 dual-fuel PCTC9 rated “NH3 Ready”;
  • The RecycoolTM system applied to LNG-powered vessels, reliquefies excess boil-off gas to reduce greenhouse gas emissions and improve economic performance.

CSR strategy

On March 13, 2023, GTT announced that it had joined the United Nations Global Compact, thereby committing itself to promote the “Ten Principles” on human rights, labour standards, the environment and anti-corruption, and to implementing the 17 Sustainable Development Goals (SDGs)10 in its environmental, social and governance policy.

Order book on March 31, 2023

On January 1, 2023, GTT’s order book excluding LNG as fuel comprised 274 units. It has since changed as follows:

  • Deliveries completed: 8 LNG carriers, 2 ethane carriers, 1 FSU;
  • Orders received: 25 LNG carriers, 1 FLNG

On March 31, 2023, the order book excluding LNG as fuel stood at 289 units, breaking down as follows:

  • 273 LNG carriers;
  • 2 ethane carriers;
  • 1 FSRU;
  • 1 FSU;
  • 1 FLNG;
  • 11 onshore storage tanks.

Regarding LNG as fuel, with the delivery of one vessel, there were 69 vessels in the order book on March 31, 2023.

Consolidated revenues for the first quarter of 2023 amounted to €79.9 million, up 17.2% compared to the first quarter of 2022.

  • Newbuild revenues amounted to €73.5 million, up 19.0% compared to the first quarter of 2022.
  • Royalties from LNG and ethane carriers amounted to €66.2 million, up 23.0%. It should be noted that the number of LNG carriers under construction will increase significantly from the second quarter of 2023, thus generating additional revenue notably in the second half of 2023. Royalties from FSUs amounted to €1.2 million, down 65.6%, the first FSU having been delivered during the quarter, and those from onshore tanks to €1.1 million (+44.4%).
  • Royalties generated by the LNG as fuel business (€4.9 million) are starting to benefit from the large number of orders received in 2021 and 2022.

Elogen’s electrolyser revenues amounted to €1.5 million in the first quarter of 2023, compared to €0.9 million in the first quarter of 2022. The Group anticipates an acceleration during the year.

  • Revenues from services decreased by -11.1% to €4.9 million in the first quarter of 2023, due to the decrease in pre-project studies, for which demand is fluctuating in nature, and revenues generated by assistance services for vessels in operation.

KFTC

The Group is reminded that the Supreme Court of Korea rejected GTT’s appeal of the Seoul High Court’s ruling on April 13, 2023, upholding the Company’s duty to completely or partially separate the technical assistance from the technology licence agreement at the Korean shipyards’ request.

The company believes that engineering services and technical support are crucial to the security and effectiveness of its solutions.

2023 outlook confirmed

The Group estimates that activity will pick up notably in the second half of 2023, benefiting from the growing number of ships under construction.

In this context and in the absence of any significant order delays or cancellations, GTT confirms its targets for the 2023 financial year, namely:

  • 2023 consolidated revenues of between 385 million euros and 430 million euros,
  • 2023 consolidated EBITDA of between 190 million euros and 235 million euros,

the distribution of a dividend for the 2023 financial year corresponding to a minimum payout ratio of 80% of consolidated net income15.

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Source: Xinde Marine