GTT reports 22% drop in Q1 revenue
French LNG tank supplier GTT on April 21 reported a 22.1% year/year drop in consolidated revenue for the three months to March 31 (Q1).
The revenue for the quarter came in at €68.2mn ($74mn) compared with €87.6mn in the same period of last year. New-build revenue totalled €61.7mn, down 25.5% yr/yr. “The first quarter of 2021 still benefited from the 2020’s strong dynamic, while the first quarter of 2022 did not fully benefit from the numerous orders taken in 2021,” it said.
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Revenue from services was €5.5mn, up 48.1% compared to the first quarter of 2021. Maintenance and assistance services for vessels in operation, as well as digital services, account for most of this growth, the company said.
GTT in March warned there was a potential risk to the "continuation and proper execution" of its projects from the fallout from Russia's invasion of Ukraine. The company said as of April 21, the execution of these contracts continues to perform normally, in compliance with the applicable sanction regimes.
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.
Other orders in progress in Asian shipyards and specifically dedicated to Russian Arctic projects include six ice-breaker LNG carriers and two FSUs. As of March 31, they represent an additional total of €48mn for GTT to be recognised by 2024, including €30mn in 2022.
Also, eight conventional LNG carriers ordered by international ship-owners, currently being built in Asian shipyards, are intended for Arctic LNG 2 projects.
“In view of the international sanctions currently in force, which are increasingly affecting LNG liquefaction projects in Russia, the continuation and proper performance of these contracts are subject to risks that the group is unable to assess at this time,” GTT said.