LNG Containment Company GTT Cuts Outlook On Ship Construction Delays

A GTT LNG containment tank. Photo credit: Chevron

July 21 (Reuters) – French supplier of systems for marine transportation of liquefied natural gas (LNG) Gaztransport & Technigaz (GTT) reported strong growth in its first-half results on Thursday but cut its 2016 revenue outlook, blaming delays in the construction of some ships.

The company, which supplies technologies used to store LNG at very low temperatures during shipping, said it now expected full-year revenue of around 240 million euros ($264.14 million), down from its previous guidance of over 250 million euros.

“Given the time lag in the construction milestones of some vessels and the current level of new orders, we now anticipate that a portion of the expected revenues will be carried over from 2016 to subsequent years,” Chairman and Chief Executive Officer Philippe Berterottiere said in a statement.

GTT confirmed the other elements of its guidance, namely a 2016 net margin above 50 pct and a dividend amount, for 2016 and 2017, at least equivalent to that paid for 2015.

Commenting on the LNG market during a call with journalists, Chief Financial Officer Cecile Arson said, “We observe a bit of a ‘wait and see’ attitude among a variety of players in the LNG chain, at the same time among gas companies who will be at the origin of LNG projects …and, further down stream, shipowners.”

The company reported an 11.4 percent growth in revenue and an 11.8 percent growth in core profit (EBITDA) for the first half of 2016. ($1 = 0.9086 euros) (Reporting by Alan Charlish in Gdynia. Editing by Jane Merriman and David Evans)

(c) Copyright Thomson Reuters 2016.

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