GTT Shares Soar as Orders Are Signed for Arctic LNG Carriers

July 25 (Bloomberg) — Gaztransport & Technigaz SA expects to win more orders for technology used in liquefied natural-gas ships from Russia’s $26.9 billion Arctic Yamal LNG project.

The French maker of membranes for tankers rose as much as 7.5 percent, the most since it began Paris trading in February.

“There is a need for five more vessels,” Chief Executive Officer Philippe Berterottiere said at a conference on the first-half results after the market closed yesterday.

GTT announced one contract yesterday to provide cryogenic liners for nine ships for Yamal built by Daewoo Shipbuilding & Marine Engineering. It also won a deal from OAO Sovcomflot, a Russian shipping company, for the same carrier type in March. The company rose 6 percent to 46.25 euros by 2:10 p.m. in Paris.

GTT isn’t concerned that sanctions against Russia after the downing of Malaysia Airlines Flight 17 over Ukraine last week will hurt the company’s work on the Yamal vessels, the CEO said. Technip SA, an oil-services provider, yesterday said margins may be affected by sanctions against Russia over the Ukraine crisis.

GTT, whose biggest shareholders include GDF Suez SA and Total SA, reported net income increased 18 percent to 59 million euros ($79 million) in the first half, when it won 19 orders.

“We are very confident about the development of LNG,” Berterottiere said. Between 2008 and 2013, GTT has won 90 percent of orders to equip new LNG carriers and has membranes in 70 percent of the global fleet, it told analysts today.

Demand for LNG transportation and storage has grown as Asian countries use more of the fuel to replace shuttered nuclear generation. In addition to orders for LNG carriers related to Yamal, Saint-Remy-les-Chevreuse-based GTT expects to benefit from Australian and East African gas projects and plans to export shale gas from the U.S., it said.

Copyright 2014 Bloomberg.

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