(News Bulletin 247) – The gross operating profit forecast is lower than analysts’ expectations. But the group’s order book gives it strong visibility in the years to come.

The manufacturer of cryogenic membranes for the transport of natural gas GTT had a year 2022 of all records in terms of order intake.

“With 162 orders for LNG carriers, two orders for large-capacity LNG carriers and one order for a floating storage and regasification unit, GTT is achieving an exceptional commercial performance in 2022. Continued strong demand for LNG, in particular in Europe, indeed generates additional needs for LNG carriers”, explained its CEO, Philippe Berterottière, quoted in the group’s press release.

“Furthermore, the replacement market is expected to grow over the next few years, particularly with the entry into force of new environmental regulations,” he added. The group also set a record for equipment for ships powered by LNG fuel, with a total of 42 units.

Results down slightly

These orders, of course, do not immediately translate into group revenue. For example, deliveries of the 162 LNG carriers ordered this year will be spread out between the third quarter of 2024 and the end of 2028.

As a result, its financial results are down slightly compared to 2021. Turnover fell by 2.4% to 307.3 million euros, due in particular to an unfavorable basis for comparison.

Operating profit contracted by 7.5% to 152.22 million euros, while net profit fell by 4.3% to 129 million euros. “The results are good and even better than expected”, comments however Nicolas Royot, analyst at Portzamparc.

Towards record revenues in 2024 then 2025

Nevertheless, the GTT title fell by 5.4% this Friday at 3 p.m., accusing one of the largest drops in the SBF 120.

“There is a disappointment at the level of Ebitda [résultat brut d’exploitation, NDLR] 2023, which is lower than the consensus forecast which may have been too high. Not all design offices had integrated the warning from the start of the year on the group’s shortfall in Russia [pays dans lequel GTT a décidé d’arrêter ses activités, NDLR] which subtracts 35 million euros from EBITDA”, explains Nicolas Royot.

“In addition, there is a negative mix effect in 2023 with lower revenues from the construction of LNG carriers, and more from new businesses (Services, Hydrogen, LNG fuel) structurally less well-margined”, he continues.

For 2023, GTT anticipates revenue of 385 million to 430 million euros and an Ebitda of between 190 million and 235 million euros.

“After the disappointment remains very sporadic. The flow of the order book gives them very good visibility, with a turnover forecast for 2024 and 2025 of more than 500 million euros, which will constitute a historic high”, relativizes Nicolas Royot.