GTT reports excellent first half 2014: Net income up 18%
2014 targets confirmed
- Strong first half revenue growth reflects robust order intake during previous years
- 19 new orders in first half, revenue visibility extended from 2017 to 2019
- Net income margin of 51% in-line with expected full year performance
- Confirmation of 2014 targets
- Interim dividend payment
Paris - July 24, 2014 - GTT (Gaztransport & Technigaz) (ISIN FR0011726835 Euronext Paris : GTT) world leader in Liquefied Natural Gas (LNG) containment and storage systems announces its first half financial results for 2014 today after market close.
Key financial figures for first half 2014
| (in thousands of euros, except for EPS) | H1 2013 | H1 2014 | Change |
| Revenue from operating activities | 95,687 | 114,947 | 20% |
| EBITDA[1] | 60,529 | 72,819 | 20% |
| EBITDA margin (on revenues, %) | 63% | 63% | |
| Operating income (EBIT) | 58,915 | 71,088 | 21% |
| EBIT margin (on revenues, %) | 62% | 62% | |
| Net income | 49,922 | 58,895 | 18% |
| Net margin (on revenues, %) | 52% | 51% | |
| Basic earnings per share[2] (EPS, in euros) | 1.35 | 1.59 | 18% |
Philippe Berterottière, Chairman and Chief Executive Officer of GTT, commented: « GTT reported an excellent first half 2014 with a strong order intake, which offers an extended revenue visibility through 2019 compared to the 2017 horizon reported at the end of March 2014. During the first half, we announced significant evolutions for the Group with the launch of new technologies to reduce the boil-off rate of LNG cargo: NO 96 Max (an upgrade of the NO 96 design) and the availability of the Mark V system for LNGCs (Liquefied Natural Gas Carriers). The service portfolio continued to grow with the launch of SloShield(TM), an innovative real-time tool to monitor sloshing (liquid movements) in vessel tanks to improve LNGCs' operating efficiency. Furthermore, our new UK subsidiary, GTT Training began its activity.
During the first half, revenues grew 20% over the same period last year and net income increased by €8.8 million (+18%), for a net margin of 51%. For the year 2014, we confirm our targets: revenue of at least €223 million and a net margin of c. 50%."
First half 2014 highlights
- Robust order intake for LNGCs
The first half 2014 saw 16 new orders for LNGCs from five shipyards.
- New FPSO order for a Petronas project
With this order, GTT confirms its status as the preferred partner for the construction of FPSOs. This new FPSO will be built at the South Korean shipyard Samsung Heavy Industries.
- First orders related to the bunkering segment
GTT membrane fuel tank technology has been selected by STX France[3] to equip four ferries in the Brittany Ferries fleet, three existing and one new build in the PEGASIS project.
- Launching of Mark V and NO 96 Max, updated version of GTT systems
GTT announced the launch of NO 96 Max (an upgrade of the NO 96 design) and the availability of the Mark V system for LNGCs. These two systems are available for ships to be delivered in 2018.
- Development of new services offered by GTT
SloShield(TM), the real-time sloshing monitoring tool, was launched on the market. The new subsidiary GTT Training started its activity with courses available.
Revenues during 2014 First Half
| (In thousands of euros) | H1 2013 | H1 2014 | Change |
| Revenue from operating activities | 95,687 | 114,947 | 20% |
| Royalties | 92,233 | 110,162 | 19% |
| Other services | 3,454 | 4,785 | 39% |
Revenues grew from €95,687 thousand at June 30, 2013 to €114,947 thousand at June 30, 2014, representing a growth of 20 % for the period.
This increase is linked directly to the growth in revenues related to royalties which increased by 19% and to revenues related to other services which increased by 39%.
Order book [4]
The order book at June 30, 2014 stood at 102 (compared to 99 at December 31, 2013):
- 89 LNGCs
- 8 FSRUs
- 3 FPSOs
- 2 onshore storages
The new order book reflects:
- 15 deliveries: 11 LNGCs and 4 regazification vessels
- 19 new orders: 16 LNGCs, 2 FSRUs and 1 FPSO
- Cancellation of an LNGC order
Confirmation of full year 2014 targets
GTT management confirms its 2014 targets:
- revenues of at least €223 million
- net margin of c. 50%
- 2014 dividend payout of at least 80% of net income available for distribution
Interim dividend payment
On July 24, 2014, the GTT Board of Directors decided the payment of an interim dividend of €1.50 per share. This dividend will be paid exclusively in cash according to the following schedule:
- September 24, 2014: ex-dividend date
- September 29, 2014: payment date
This payment is in accordance with the dividend distribution policy indicated at the time of the IPO.
Results presentation
Tomorrow, Friday, July 25, 2014, Chairman and CEO Philippe Berterottière, along with CFO Cécile Arson, will comment on GTT's results and answer questions from the financial community during a conference call in English starting at 9:30 am CEST.
To participate in the conference call, you may call any of the following numbers approximately 5-10 minutes prior the scheduled start time:
· France: +331 76 77 22 31
· UK: + 4420 3427 1914
· USA: +1646 254 3388
Confirmation Code: 1682982#
The conference call will also be available via a simultaneous, listen-only web-cast on GTT's website.
The 2014 first half financial report, including the management report and the half year financial statements is available on the GTT corporate website: www.gtt.fr
Financial agenda
- Payment on September 29, 2014, of an interim dividend of €1.50 per share for the financial year 2014
- Release of the 2014 8Q3 revenues on October 14, 2014 (after market close)
- Release of 2014 Full Year results on February 12, 2015 (after market close)
Contacts
Lisa Finas - Head of Corporate Communication and Investor Relations
Lynda Khoudi - Investor Relations
Phones: +33 1 30 23 48 40 and +33 1 30 23 42 26
information-financiere@gtt.fr
About GTT
GTT (Gaztransport & Technigaz) is the world leader in cryogenic membrane containment systems used in the shipbuilding industry for the transport of LNG. For over 50 years, GTT has offered to its customers technologies which allow them to optimize storage space and reduce the construction and operation costs of ships or tanks equipped with these systems. GTT operates in five sectors: LNGCs (Liquefied Natural Gas Carriers), FPSOs (Floating Production Storage and Offloading units), FSRUs (Floating Storage and Regasification units), onshore storage tanks, and solutions for the LNG as a fuel chain.
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), including those listed in the "Risk Factors" section of the GTT base document (in French) registered with the AMF on December 13, 2013 (under number I. 13-052), of the Actualisation du document de base filed with the AMF on February 14, 2014 under number D.13-1062-A01. Investors and GTT shareholders should note that if some or all of these risks are realized they may have a significant unfavorable impact on GTT.
Appendices
Appendix 1: Balance sheet
| In thousands of euros | December 31, 2013 | June 30, 2014 |
| Intangible assets | 424 | 354 |
| Property, plant and equipment | 10,631 | 11,338 |
| Non current financial assets | 18,891 | 14,883 |
| Deferred tax assets | 2,125 | 395 |
| Non-current assets | 32,071 | 26,970 |
| Trade and other receivables | 77,956 | 72,761 |
| Other current assets | 24,621 | 23,771 |
| Cash and cash equivalents | 87,180 | 61,798 |
| Current assets | 189,757 | 158,330 |
| TOTAL ASSETS | 221,828 | 185,300 |
| In thousands of euros | December 31, 2013 | June 30, 2014 |
| Share capital | 370 | 371 |
| Share premium | 1,109 | 2,932 |
| Reserves | (34,620) | 11,318 |
| Profit for the period | 118,743 | 58,895 |
| Other comprehensive income | 1,155 | 400 |
| Total Equity | 86,757 | 73,916 |
| Non-current provision | 9,289 | 7,796 |
| Other non-current financial liabilities | 2,175 | 1,604 |
| Non-current liabilities | 11,464 | 9,400 |
| Current provision | - | - |
| Trade and other payables | 15,756 | 10,268 |
| Current financial liabilities | 464 | 603 |
| Other current liabilities | 107,387 | 91,113 |
| Current liabilities | 123,607 | 101,984 |
| TOTAL EQUITY AND LIABILITIES | 221,828 | 185,300 |
Appendix 2: Income statement
| In thousands of euros | June 30, 2013 | June 30, 2014 | |
| Revenue from operating activities | 95,687 | 114,947 | |
| Costs of sales | (1,171) | (1,009) | |
| External charges | (19,332) | (15,909) | |
| Personnel expenses | (15,854) | (25,670) | |
| Taxes | (1,738) | (3,517) | |
| Depreciations, amortisations and provisions | 214 | (364) | |
| Other current operating income and expense | 1,109 | 2,610 | |
| Current operating income | 58,915 | 71,088 | |
| Other non-current income and expenses | - | - | |
| Operating profit | 58,915 | 71,088 | |
| Net financial income | 763 | 794 | |
| Profit before tax | 59,678 | 71,882 | |
| Income tax | (9,756) | (12,987) | |
| Net profit | 49,922 | 58,895 | |
| Basic earnings per share | 1.35 | 1.59 | |
| Diluted earnings per share | 1.35 | 1.58 | |
| In thousands of euros | June 30, 2013 | June 30, 2014 | |
| Net profit | 49,922 | 58,895 | |
| Items not recycled to profit or loss: | |||
| Actuarial Gains and Losses | |||
| Gross amount | - | 236 | |
| Deferred tax | - | (35) | |
| Total amount, net of tax | - | 200 | |
| Items to be recycled to profit or loss: | |||
| Fair value changes on equity investments | |||
| Gross amount | - | 235 | |
| Deferred tax | - | (35) | |
| Total amount, net of tax | - | 200 | |
| Other comprehensive income for the period, net of tax | 400 | ||
| Total comprehensive income | 49,922 | 59,295 | |
| Basic comprehensive income per share (in euros) | 1.35 | 1.60 | |
| Diluted comprehensive income per share (in euros) | 1.35 | 1.59 | |
Appendix 3: Cash flow statement
| In thousands of euros | June 30, 2013 | June 30, 2014 |
| Profit for the period | 49,922 | 58,895 |
| Income and expenses with no cash effect resulting from operating activities: | ||
| Depreciations, amortisations and provisions | (214) | 364 |
| Income tax | 9,756 | 12,987 |
| Share-based payment | - | 1,371 |
| Other income and expenses | 29 | 44 |
| Internally generated funds from operations | 59,493 | 73,661 |
| Income tax paid | (8,545) | (11,328) |
| Movements in working capital: | ||
| - (Increase)/decrease in trade and other receivables | (18,231) | 5,196 |
| - Increase/(decrease) in trade and other payables | 1,976 | (5,488) |
| - Decrease/increase in other assets and liabilities | 24,977 | (15,425) |
| Cash flow from operating activities (Total I) | 59,670 | 46,616 |
| Investing activities | ||
| Acquisition of property, plant and equipment | (1,157) | (2,370) |
| Disposal of property, plant anf equipment | 55 | 69 |
| Financial investments | - | 4,000 |
| Decrease of other financial assets | - | 273 |
| Cash flow from investing activities (Total II) | (1,102) | 1,972 |
| Financing activities | ||
| Dividends paid to owners of the company | (40,153) | (75,330) |
| Capital increase | - | 1,824 |
| Hydrocarbon Support Fund cash advances change | - | (464) |
| Interest paid | (4) | - |
| Cash flow from financing activities (Total III) | (40,157) | (73,970) |
| Net increase/ (decrease) in cash and cash equivalents (I+II+III) | 18,411 | (25,382) |
| Cash and cash equivalents at the beginning of the year | 72,737 | 87,180 |
| Cash and cash equivalents at the end of the year | 91,148 | 61,798 |
| Net increase/(decrease) in cash and cash equivalents | 18,411 | (25,382) |
Appendix 4: Revenues breakdown
| (In thousands of euros) | S1 2013 | S1 2014 | Var. |
| Revenue from operating activities | 95,687 | 114,947 | 20% |
| Royalties | 92,233 | 110,162 | 19% |
| LNG carriers | 73,384 | 92,169 | 26% |
| FSRU | 14,998 | 12,967 | -14% |
| FPSO | 2,807 | 3,954 | 41% |
| Onshore storage | 1,044 | 1,072 | 3% |
| Other services | 3,454 | 4,785 | 39% |
[1] EBITDA corresponds to EBIT plus the depreciation charge on assets under IFRS.
[2] Earnings per share at the end of June 2013 were calculated on the basis of a share capital of 37,028,800 shares. The nominal value of the Company's shares was divided by 1,600 on December 11, 2013, resulting in share capital of 37,028,800 shares. At the end of June 2014, earnings per share were calculated on a share capital of 37,078,357 following the increase in capital reserved for employees which created 49,557 shares on April 11, 2014.
[3] Financing for these projects have advanced to different stages.
[4] Order book excludes bunkering orders.
