GTT warns of risks to its LNG projects in Russia
French LNG tank supplier GTT said March 9 there was a potential risk to the "continuation and proper execution" of its projects from the fallout from Russia's invasion of Ukraine.
GTT is designing LNG storage tanks for LNG carriers and gravity based structures (GBS) that will be used for LNG projects in north Russia. These include Novatek's Arctic LNG-2 project, where GTT was hired in 2019 to provide tanks for the terminal's three GBSs.
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The company said 12% of its order book, or around €100mn ($111mn) in revenue, related to units under construction at Russian facilities as of December 31, 2021, and these orders are due to be realised between 2022 and 2026. Another €57mn in orders over 2022-2024 relate to work underway in Asian shipyards, and there are other orders for LNG carriers intended for Arctic projects, but the latter are not expected to be affected.
GTT's order book for 2022 to 2025 reached a record €795mn, the company said in its 2021 financial update, with €263mn to be delivered this year. GTT is projecting consolidated earnings for 2022 of between €140-170mn and a shareholder dividend on par with 2021, which was a "bumper year" that saw 27 new orders.
"Beyond those events, this crisis highlights the importance of gas demand worldwide and more specifically the strategic importance of maritime transport of LNG, which is the core business of the group", GTT said.