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Thursday, 20 July 2017

GTT: 2017 First-Half results / Strong financial performance, recovery in the order intake and confirmation of annual objectives

GTT    

Published: 17:45 CEST 20-07-2017 /GlobeNewswire /Source: GTT / : GTT /ISIN: FR0011726835


2017 First-Half results

Strong financial performance, recovery in the order intake and confirmation of annual objectives

 

Key figures for the first half of 2017

  • 13 orders received during the first six months of the year
  • Growth in revenues from services partially offsets the slowdown in revenues from royalties
  • Interim dividend payment of 1.33 euro per share

 

Highlights

  • Rapid FSRU[1] growth
  • New technologies
  • New services offered

 

Outlook

  • Confirmation of revenue, net margin and dividend objectives

 

 

Paris - July 20, 2017. Gaztransport & Technigaz (GTT), an engineering company specialised in the design of membrane containment systems for maritime transportation and storage of liquefied gas, hereby presents its results for the first half of 2017.

Condensed income statement for H1 2017

 

 (in thousands of euros, except for EPS)

H1 2016

H1 2017

Revenues

116,880

111,346

Operating profit before allocations for depreciation of fixed assets (EBITDA[2])

73,746

74,614

EBITDA margin (on revenues, %)

63.1%

67.0%

Operating income (EBIT)[3])

72,123

73,013

EBIT margin (on revenues, %)

61.7%

65.6%

Net income

60,514

61,226

Net margin (on revenues, %)

51.8%

55.0%

Net earnings per share[4] (in euros)

1.63

1.65

 

 

While commenting on these results, Philippe Berterottière, Chairman and Chief Executive Officer of GTT, stated that: "In a challenging market, GTT experienced very robust commercial activity during the first half of the year with 13 vessel orders, thereby contributing to the reconstruction of our order book. The services business has grown significantly in its various elements. Operationally, we continued our development efforts by providing the market with new technologies intended for related segments, such as LPG transportation and marine gravity based storage. The margin levels achieved during H1 2017 demonstrate a good control of expenses at all levels of the income statement. These performances have enabled us to confirm our revenues, net margin and dividend outlook for the whole of the 2017 financial year."

 

 

Business development

 

  • "Vessel" business

 

During the first half of 2017, GTT's commercial activity was marked by numerous successes:

 

  • Eight orders for LNG carriers, including four from two South Korean shipyards (Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering) and four others from Chinese shipyard Hudong Zhonghua. These vessels will be equipped with recent GTT technologies (NO 96 GW, NO96-L03+ and Mark III Flex).
     
  • Four orders for the design of FSRU tanks to be built by the South Korean naval shipyards (Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering). These orders demonstrate the very high interest in these regasification vessels, which is a very quick and economic solution, particularly for the new LNG importing countries.
     
  • One FLNG[5] order. This vessel, with a total capacity of 238,700 m3, will be built in the Samsung Heavy Industries shipyard in South Korea on behalf of the gas company ENI and will be equipped with Mark III technology. Following the recent delivery of the two first FLNGs, including Prelude, the largest floating structure ever built, this new order demonstrates that GTT's technologies represent the ideal solution for offshore LNG production units.
     
  • "Services" business
     
    • GTT henceforth provides an overall service offering for ship-owners that reduces vessel dry-dock time, assists crews during operations and optimises costs. Accordingly, in February 2017, GTT signed a comprehensive technical support contract with Teekay for its entire fleet (i.e. 23 vessels), which incorporates support and intervention services, as well as the HEARS advisory and optimisation service. GTT pursues its efforts in developing new innovative services.
       
  • Technology
     
    • During the Gastech Exhibition & Conference in early April 2017, GTT launched its new technology dedicated to LPG transportation: GTT MARSTM. This technology is derived from GTT's proven membrane systems.
       
    • During this event, GTT also presented a gravity based subsea storage solution. Dubbed GBS (for "Gravity Based System"), this bunkering station consists of a concrete chamber and a membrane containment tank designed by GTT. It sits on the seabed and can be installed in a port or isolated area and requires no additional infrastructure. This reduces installation costs while limiting the environmental impact.

 


 

Order book

 

Since January 1, 2017, GTT's order book, which then numbered 96 units, has evolved, with:

 

  • 21 deliveries:
    • 18 LNG/Ethane carriers
    • 2 FSRUs
    • 1 FLNG
       
  • 13 orders received:
    • 8 LNG carriers
    • 4 FSRUs
    • 1 FLNG

 

At June 30, 2017, the order book stood at 88 units:

  • 73 LNG/Ethane carriers
  • 10 FSRUs
  • 2 FLNGs
  • 2 onshore storage tanks
  • 1 LNG bunker barge

 

 

Change in revenues during H1 2017

 

(in thousands of euros)

H1 2016

H1 2017

Change

Revenues

116,880

111,346

-4.7%

 

 

 

 

From royalties

111,093

103,451

-6.9%

From services

5,787

7,895

+36.4%

 

Revenues totalled 111.3 million euros at June 30, 2017, compared to 116.9 million euros at June 30, 2016, i.e. a decrease of 4.7% over the period.

  • Revenues from royalties for the first half of 2017 were 103.5 million euros, slightly down from the first half of 2016. LNG and ethane carrier royalties totalled 89.6 million euros and FSRU royalties were up by 47.6% at 12.8 million euros. Other royalties amounting to 1.1 million euros were derived from FLNGs and the bunker barge.
  • Revenues from services achieved strong growth, mainly resulting from the completion of studies, maintenance assistance services and the approval of suppliers.

 

Income statement analysis

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reached 74.6 million euros during the first half of 2017, up 1.2% compared to the first half of 2016. The EBITDA margin on revenues therefore increased from 63.1% during the first half of 2016 to 67.0% for the first half of 2017.

 

Operating income totalled 73.0 million euros for the first half of 2017 versus 72.1 million euros for the first half of 2016, equivalent to a 1.2% increase.

 

Net income increased from 60.5 million euros for the first half of 2016 to 61.2 million euros for the first half of 2017 and the net margin grew from 51.8% to 55%.

 

The growth in net income is the result of the efficient control of operating expenses, particularly expenses for subcontracting, personnel and fees. In addition, the Company received a Research tax credit (CIR) granted in respect of claims relating to previous financial years for an amount of 2.8 million euros.

 

 

Other financial data

 

(in thousands of euros)

H1 2016

H1 2017

Capital expenditure
(acquisition of fixed assets)

(1,211)

(1,332)

Dividend paid

(50,385)

(49,291)

Cash and cash equivalent

59,590

77,325

 

As at June 30, 2017, the Company had a positive cash and cash equivalent position of 77.3 million euros. To this amount may be added €12.6 million of cash investments classified as financial assets.

 

 

Outlook

Based on the revenue from royalties recorded for the first half of the year and the value of the current order book, and in the absence of any significant postponements or cancellations in orders, the cumulative revenue for the 2017-2021 period would amount to 529 million euros (223 million euros in 2017[6], 208 million euros in 2018, 80 million euros in 2019, 15 million euros in 2020 and 3 million euros in 2021).

Subject to any significant order postponements or cancellations, the Company confirms its objectives for the 2017 financial year, namely: 

·             2017 revenues of 225-240 million euros. This objective is supported by the H1 level of orders;

·             a net margin above 50%[7];

·             a 2017 dividend amount at least equivalent to that paid in 2015 and 2016 and, in the following two years, a payout ratio of at least 80% of net income available for distribution.[8].

 

Interim dividend payment

 

The Board of Directors of July 20, 2017 decided the distribution of an interim dividend of 1.33 euro per share for the 2017 financial year, to be paid in cash according to the following schedule:

  • September 27, 2017: Ex-dividend date
  • September 29, 2017: Payment date

 

 


 

Presentation of H1 2017 results

 

Philippe Berterottière, Chairman and Chief Executive Officer, Julien Burdeau, Chief Operating Officer, and Marc Haestier, Chief Financial Officer, will provide comments on GTT's results and will answer questions from the financial community during a conference call that will be held in English on Friday July 21, 2017, at 8:30 a.m. Paris time.

 

To participate in the conference call, you will need to dial one of the following numbers approximately five to ten minutes prior to the beginning of the conference:

  • France: +33 1 76 77 22 28
  • United Kingdom: +44 20 3427 1919
  • United States: +1 212 444 0895

 

Confirmation code: 3864585

 

This conference call will also be broadcast live on GTT's website (www.gtt.fr/en) in listening mode only (webcast). The presentation document will be available on the website.

 

 

Financial agenda

 

  • Payment of an interim dividend of 1.33 euros per share for the 2017 financial year: September 29, 2017
  • Publication of the Q3 2017 revenues: October 18, 2017 (after closing)
  • 2018 Shareholders' Meeting: May 17, 2018

 

 

 

About GTT

GTT (Gaztransport & Technigaz) is an engineering company expert in containment systems with cryogenic membranes used to transport and store liquefied gas, in particular LNG (Liquefied Natural Gas). For over 50 years, GTT has been maintaining reliable relationships with all stakeholders of the gas industry (shipyards, ship-owners, gas companies, terminal operators, classification societies). The Company designs and provides technologies which combine operational efficiency and safety, to equip LNG carriers, floating terminals, and multi-gas carriers. GTT also develops solutions dedicated to land storage and to the use of LNG as fuel for vessel propulsion, as well as a full range of services.

 

GTT is listed on Euronext Paris, Compartment A (ISIN FR0011726835 Euronext Paris: GTT) and is notably included in the SBF 120 and MSCI Small Cap indexes.

 

Further information is available at www.gtt.fr.

 

Press contact: 
press@gtt.fr / +Fax: +33 (0)1 30 23 42 24

Investor Relations contact: 
information-financiere@gtt.fr / +33 (0)1 30 23 42 26 - +33 (0)1 30 23 20 87

For further information, please consult www.gtt.fr/en and, in particular, the presentation to be uploaded online for the conference call of July 21, 2017

 

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 forward-looking 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 (in French) registered with the AMF on April 27, 2017 under number R.17-030, and the half-yearly financial report released on July 20, 2017. 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.

 

 


 

Appendices (IFRS financial statements)

 

Appendix 1: Balance sheet

(in thousands of euros)

June 30, 2017

December 31, 2016

Intangible assets

536

610

Property, plant and equipment

17,319

17,575

Non-current financial assets

8,335

7,937

Deferred tax assets

860

739

Non-current assets

27,050

26,863

Customers

73,682

81,530

Other current assets

28,099

30,357

Financial current assets

7,680

7,669

Cash and cash equivalents

77,325

74,355

Current assets

186,786

193,911

TOTAL ASSETS

213,836

220,774

   
   

(in thousands of euros)

June 30, 2017

December 31, 2016

Share capital

371

371

Share premium

2,932

2,932

Reserves

67,826

(1,714)

Net income

61,226

119,745

Other items of comprehensive income

1,072

(1,130)

Total Equity

133,427

120,204

Non-current provision

3,803

4,044

Financial liabilities - non-current part

378

626

Other non-current financial liabilities

511

582

Non-current liabilities

4,692

5,252

Current provisions

Suppliers

1,209

8,176

1,864

9,320

Current liabilities

497

488

Other current liabilities

65,835

83,647

Current liabilities

75,717

95,318

TOTAL EQUITY AND LIABILITIES

213,836

220,774

 


 

Appendix 2: Income statement

(in thousands of euros)

H1 2017

H1 2016

Revenues from operating activities

111,346

116,880

Costs of sales

(935)

(1,414)

External charges

(18,534)

(20,702)

Personnel expenses

(20,638)

(21,019)

Taxes

(2,252)

(2,391)

Depreciations, amortisations and provisions

(1,415)

(2,946)

Other operating income and expenses

5,440

3,714

Current operating income

73,013

72,123

Other non-current income and expenses

-

-

Operating profit

73,013

72,123

Financial income

231

360

Profit before tax

73,244

72,482

Income tax

(12,018)

(11,969)

Net income

61,226

60,514

Basic earnings per share (in euros)

1.65

1.63

Diluted earnings per share (in euros)

1.65

1.63

   

(in thousands of euros)

H1 2017

H1 2016

Net income

61,226

60,514

 

 

 

Items that will not be reclassified to profit or loss

 

 

Actuarial gains and losses

 

 

Gross amount

346

(306)

Deferred tax

(52)

46

Total amount, net of tax

294

(260)

 

 

 

Items that may be reclassified subsequently to profit or loss

 

 

Fair value changes on equity investments

 

 

Gross amount

596

(245)

Deferred tax

181

-

Total amount, net of tax

777

(244)

 

 

 

Other comprehensive income for the year, net of tax

1,072

(505)

 

 

 

Total comprehensive income

62,298

60,009

Basic comprehensive income per share (in euros)

1.68

1.62

Diluted comprehensive income per share (in euros)

1.68

1.61


 

Appendix 3: Cash flow statement

(in thousands of euros)

H1 2017

H1 2016

Company profit for the year

61,226

60,514

 

 

 

Cancellation of income and expenses with no effect on cash-flow:

 

 

Allocation (Reversal) of amortisation, depreciation, provisions and impairment

705

454

Net book value of fixed assets disposed of

Tax expense (income) for the financial year

62

12,018

-

11,969

Free shares

440

(1,563)

Other income and expenses

225

(462)

Internally generated funds from operations

74,676

70,911

Tax paid out in the financial year

(12,012)

(11,956)

 

 

 

Change in working capital requirement:

 

 

  - Trade and other receivables

7,848

(1,915)

  - Trade and other payables

(1,144)

(2,487)

  - Other operating assets and liabilities

(15,551)

(26,112)

Net cash-flow generated by the business (Total I)

53,816

28,441

 

 

 

Investment operations

 

 

Acquisition of non-current assets

(1,332)

(1,211)

Disposal of non-current assets

-

249

Financial investments

(1,026)

-

Disposal of financial assets

1,262

5,457

Treasury shares

(224)

3,880

Change in other fixed financial assets

-

-

Net cash-flow from investment operations (Total II)

(1,319)

8,375

 

 

 

Financing operations

 

 

Dividends paid to shareholders

(49,291)

(50,385)

Change in FSH advances

(237)

(286)

Net cash-flow from finance operations (Total III)

(49,528)

(50,670)

 

 

 

Change in cash (I+II+III)

2,969

(13,854)

Opening cash

74,355

73,444

Closing cash

77,325

59,590

Cash change

2,969

(13,854)

 


 

Appendix 4: Revenues breakdown

 

 

(in thousands of euros)

H1 2017

H1 2016

Change

Revenue

111,346

116,880

-4.7%

 

 

 

 

From royalties

103,451

111,093

-6.9%

  LNG/Ethane carriers

89,589

100,954

-11.3%

FSRU

12,788

8,667

+47.6%

FLNG

989

1,070

-7.6%

Onshore storage

-

164

nm

Barges

85

239

-64.5%

From services

7,895

5,787

+36.4%

 

 

 

Appendix 5: 10-year order estimates

In units

 

Order estimates (1)

LNG/Ethane carriers

 

235-255

FSRU

 

30-40

FLNG

 

5-10

Onshore storage

 

5-10

 

(1) Over 2017-2026. The Company points out that the number of new orders may see large-scale variations from one quarter to another and even one year to another without the fundamentals on which its business model is based being called into question.

 



[1] Floating Storage Regasification Unit

[2] EBITDA corresponds to EBIT plus depreciation on fixed assets under IFRS.

[3] EBIT means "Earnings Before Interest and Tax"

[4] For the first half of 2017, earnings per share were calculated based on the weighted average number of shares outstanding (excluding treasury shares), i.e. 37,051,563 shares.

[5] Floating Liquefied Natural Gas vessel

[6] Of which 103.5 million euros recognised for the first half of 2017

[7] Excluding potential acquisitions effect and at constant scope

[8] Subject to approval by the Shareholders' Meeting



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This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: GTT, 1 route de Versailles, ST-REMY-LES-CHEVREUSE 78470, FRANCE
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