GTT is aiming for the bottom of its 2022 forecast range after a difficult first half, Company News

PARIS (Agefi-Dow Jones). Manufacturer of cryogenic membranes used to transport liquefied natural gas, Gaztransport & Technigaz (GTT) warned on Thursday that it expects turnover and gross operating profit (Ebitda) in the lower half of its forecast. ranges, due to “shifts recorded in the first half of the construction schedules of some ships.”

GTT also posted lower half-year results and reiterated that its contracts in Russia are at risk of being delayed or cancelled.

Construction schedules for several ships have been delayed due to supply constraints associated with the application of Western sanctions against Russia, as well as restrictions and social unrest observed in Asia. This situation has led to a “lag in turnover recognition,” GTT explains in a press release.

As a result, the group expects its full-year results to reach “the lower half of the range we reported last February.” The group then announced that it expects a profit of 140 to 170 million euros in 2022, as well as a turnover of 290 to 320 million euros.

Revenue growth between the first and second quarters

For the first half of the year, GTT posted an Ebitda of EUR 79.7 million compared to EUR 96.5 million a year earlier and a turnover of EUR 144.2 million compared to EUR 165.3 million in the corresponding period of 2021. Thus, the Ebitda margin fell to 55.3%. , against 58.4%.

The group’s net income fell to 63.7 million euros in the first six months of 2022 from 76.6 million euros a year earlier.

“Financially, revenue for the first half of 2022 is, as expected, lower compared to the first half of 2021. This decline is a result of the base effect, with the first half of 2021 still benefiting from the very strong momentum of 2020, while the first half of 2022 is yet to fully benefit from the strong orders of 2021 and 2022.” said GTT CEO Philippe Berterottierre, quoted in the group’s press release.

Leader noted that turnover nevertheless increased by 11.5% between the first and second quarters of 2022.

Improvement in results is expected from 2023.

In addition, GTT indicated that its projects in Russia are “ongoing”.[vait] in accordance with the applicable sanctions regimes.” “However, given the increasing impact of current international sanctions on liquefied natural gas (LNG) projects in Russia, the continuation and proper execution of these contracts is at risk of being delayed or cancelled,” the group warned.

Beyond 2022, the group believes it “should benefit from very strong current order dynamics and expects turnover and results from 2023 to be significantly higher than in 2022.” The current crisis underscores “the importance of global gas demand, the energy independence of European countries vis-à-vis Russia and, in particular, the strategic importance of maritime LNG transportation, which forms the backbone of GTT’s business.” he stressed.

GTT plans to pay an interim dividend of €1.55 per share in December for the 2022 financial year.

-Valerie Wenk, Agefi-Dow Jones; +33 (0)1 41 27 48 25; [email protected] Editor: LBO

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July 28, 2022 1:42 pm ET (5:42 pm GMT)