GTT was punished for exposure to Russia

GTT was down 3.7% to € 113.4. This was penalized by the decline in sales in the first quarter of 2021 and the outlook for downward revision of the 2022 target due to exposure to Russia. In the three months ended at the end of March, technical experts in membrane containment systems specializing in the transportation and storage of liquefied gas achieved sales of € 68.2 million, down 22.1%. The group expected a decline in its activity.

CEO Philippe Berterottière benefited from the very strong momentum of 2020 in the first quarter of 2021, but did not fully benefit from the strong orders of 2021 in the first quarter of 2022. I explained that the reduction is the result of the basic effect.

The order book (excluding LNG fuel) expanded from 161 units on January 1st to 189 units on March 31st in the first quarter of 2022.

For LNG fuel, orders received on March 31 were 50 units.

The group used this publication to evaluate their exposure to Russia. As of April 21, 2022, the performance of these contracts will continue as usual in accordance with the applicable sanctions system.

GTT is particularly involved in the Artic LNG2 project. As of March 31, 2022, € 97 million has been recognized for these projects by 2026, including € 21 million in 2022.

Other current orders from Asian shipyards are specifically for Russia’s Arctic project. As of March 31, 2022, these represent a total of € 48 million recognized by 2024 for the GTT, including € 30 million in 2022.

Finally, the eight conventional LNG carriers ordered by international shipowners are targeted at the Arctic LNG 2 project, but can operate under all types of conditions.

Given the increasingly influential international sanctions on Russia’s LNG liquefaction projects, the continuation and proper performance of these contracts is at risk that the Group cannot currently assess.

In particular, the GTT points out that sanctions could affect the export of certain products or equipment used in the context of the project the Group is working on to Russia, leading to postponement or cancellation. ..

If the risks associated with a project exposed to Russia become apparent, GTT should consider its targets for fiscal year 2022.

When the annual financial results were announced in February last year, GTT had sales ranging from 290 million euros to 320 million euros, Ebitda had dividends ranging from 140 million euros to 170 million euros, at least 2022 accounting. I was expecting a dividend for the year. Proposed in fiscal year 2021.

In the long run, the group should benefit from the current momentum of very strong orders. As such, GTT recalls that orders received after mid-2020 are primarily related to delivery times between 2023 and 2025. That’s why the Group forecasts sales from 2023 and is significantly higher than in 2022.

Finally, the GTT emphasizes that the crisis emphasizes the importance of global gas demand, the importance of European countries’ energy independence to Russia, and more specifically the strategic importance of LNG maritime transport. Emphasize that. That activity. Therefore, the Group expects the current very strong order momentum to continue.

Source: AOF

■■