GTT posts record order intake in H1 2019
Gaztransport & Technigaz (GTT), an engineering company specialised in the design of membrane containment systems for maritime transportation and storage of liquefied gas, presented its results for the first half of the year, ended June 30, 2019
Commenting on these 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 5 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.
Consolidated revenues for the first quarter of 2019 were €122.6 million, down 3.6% compared to the first quarter of 2018. It should be noted, however, that, between the first quarter and the second quarter of 2019, revenues rose by 8.2%.
Revenues from new construction were €115.7 million, down by 3.9%. Revenues linked to services grew by 1.6% over the first six months. Services business in the first halfyear was boosted by fairly good performance from our maintenance and engagements activities on vessels in operation and, to a lesser extent, by the contribution from Ascenz.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reached €70.9 million during the first half of 2019, down 15.8% compared to the first half of 2018. The EBITDA margin on sales decreased from 66.1% in the first half of 2018 to 57.8% in the first half of 2019, mainly due to the increase in external expenses (€5.7 million), and in particular to the increase in R&D and subcontracting costs linked to the increase in business.
Personnel expenses also increased by 4.7%, mainly due to the growth in the number of employees, as announced previously by the Group Operating income amounted to €68.9 million in the first half of 2019 compared with €82.4 million in the first half of 2018, down 16.4%.
Net income fell from €75.7 million in the first half of 2018 to €56.6 million in the first half of 2019, and the net margin from 59.5% to 46.2%. The drop in net income is explained, in particular, by a base effect in the first half of 2018. A claim lodged by GTT S.A. for the cancellation of the 3% tax on dividends effectively resulted in an exceptional reduction in income tax last year.
The Group had a positive cash position of €155.6 million as of June 30, 2019.
