GTT bags new LNG tank order, Q1 revenue declines

France’s GTT has secured a new order to design tanks for three LNG carriers, while the firm also reported a 15 percent decline in its quarterly revenue.

The new order comes from South Korean shipbuilder Hyundai Heavy Industries.

GTT said the three 174,000-cbm LNG carriers would feature the company’s Mark III Flex membrane containment system.

In addition, HHI will deliver the LNG carriers to an owner based in Asia between the second and third quarter of 2024.

The French engineer did not reveal any additional information regarding the contract.

To remind, HHI’s parent firm Korea Shipbuilding & Offshore Engineering said last week the yard would build three carriers for about $571 million.

KSOE also did not disclose the owner but shipbuilding sources told LNG Prime last week that Hyundai LNG Shipping has ordered the three carriers.

Petronas would charter the trio to ship volumes from the Shell-led LNG Canada development, according to the sources.

GTT’s Q1 revenue drops

GTT said in a separate statement on Monday it logged a 15 percent decline in revenue in the first quarter as it secured orders for two LNG carriers. The firm also won four contracts for LNG tankers and two orders for ethane carriers in April.

Moreover, GTT’s unit Elogen has also recently signed a contract with German energy company E.ON. Elogen will supply the German firm with a 1MW containerized electrolyser with a production capacity of 200 cbm of hydrogen per hour.

Revenue dropped to 87.5 million euros ($105.3 million) in the January-March period, compared to 102.4 million euros in the first quarter of 2020.

GTT’s chief Philippe Berterottière said, “revenues for the first quarter of 2021 are in line with our expectations.”

According to the CEO, revenue in the first quarter last year recorded an “exceptionally high level” following particularly strong order intake. However, when compared to the same period of 2019, revenue increased 49 percent, he said.

Big potential in giant Qatari LNG carrier plan

Looking forward, Berterottière sees big order potential for GTT, especially related to the giant Qatari LNG tender for new ships issued last month.

The market still requires nearly 100 more LNG carriers for the contracted supply of liquefaction plants under construction, he said.

“Qatar’s decision in February this year to invest in a new gas liquefaction plant, as well as the various other liquefaction projects under construction, represent significant order potential for our core business,” Berterottière said.

GTT’s order book as of March 31 stood at 125 units out of which 105 included LNG carriers. This excludes LNG as fuel where GTT had 12 units on order.

The firm also confirmed its 2021 revenue target within a range of 285 million to 315 million euros.

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