PARIS (Agefi-Dow Jones)–The manufacturer of cryogenic membranes used for the transport of liquefied natural gas Gaztransport & Technigaz (GTT) warned Thursday that it anticipates a turnover and a gross operating surplus (Ebitda) in the lower half of its forecast ranges, due to “shifts recorded in the first half of the construction schedules for certain ships”.
GTT also published lower half-year results and repeated that its contracts in Russia were exposed to the risk of postponement or cancellation.
The construction schedules of several ships have suffered delays due to supply difficulties linked to the application of Western sanctions against Russia, as well as to the confinements and social unrest observed in Asia. This situation has led to “a lag in the recognition of turnover”, explained GTT in a press release.
As a result, the group expects its annual results to reach “the lower half of the range we indicated last February”. The group then announced that it was counting on an Ebitda of 140 million to 170 million euros in 2022, as well as on a turnover of 290 million to 320 million euros.
Rise in revenue between the first and second quarters
For the first half, GTT published an Ebitda of 79.7 million euros, against 96.5 million euros a year earlier, and a turnover of 144.2 million euros, compared to 165.3 million euros in the corresponding period of 2021. The Ebitda margin thus fell to 55.3%, against 58.4%.
The group’s net profit fell to 63.7 million euros in the first six months of 2022, against 76.6 million euros a year earlier.
“Financially, revenue for the first half of 2022 is, as expected, down compared to that of the first half of 2021. This decline is the consequence of a base effect, with the first half of 2021 still benefiting from the very strong momentum of 2020, while the first half of 2022 does not yet fully benefit from the strong orders of 2021 and 2022″, indicated the CEO of GTT, Philippe Berterottière, quoted in the group’s press release.
The leader pointed out that turnover had nevertheless increased by 11.5% between the first and second quarters of 2022.
Improvement in results expected from 2023
In addition, GTT indicated that the execution of its projects in Russia “continues[vait] in accordance with the applicable sanctions regimes”. “However, given the increasing impact of the international sanctions in force on the liquefied natural gas (LNG) liquefaction projects in Russia, the continuation and the proper execution of these contracts are exposed to the risk of postponement or cancellation”, warned the group.
Beyond 2022, the group believes that it “should benefit from the very strong momentum of current orders and anticipates, from 2023, a turnover and results at a significantly higher level than in 2022” . The current crisis highlights “the importance of gas needs at global level, of the energy independence of European countries vis-à-vis Russia, and more specifically the strategic importance of the maritime transport of LNG, which constitutes the heart of GTT’s business”, he underlined.
GTT plans to pay an interim dividend of €1.55 per share in December for the 2022 financial year.
-Valerie Venck, Agefi-Dow Jones; +33 (0)1 41 27 48 25; [email protected] ed: LBO
GTT FINANCIAL RELEASES:
http://www.gtt.fr/fr/media-center/actualites/
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July 28, 2022 13:42 ET (17:42 GMT)