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12 Jan 2009 07:00
12 January 2009
Gas Turbine Efficiency plc
Trading Update
Gas Turbine Efficiency plc, a leading provider of proprietary cleantech systems for enhancing the performance of aviation and industrial gas turbines, is pleased to announce a near doubling of revenues in 2008 and a strong order book for 2009.
Financial Overview
For the year ended 31 December 2008, group revenue is expected to increase by 96%, ahead of market expectations, to around $35 million (2007: $17.8 million). This significant growth is driven by strong performance across GTE's key markets of aviation, power generation and oil and gas and buoyed by strong Q4 industrial and combustion performance.
Total order intake in 2008 is expected to increase by approximately 189% to $45.9 million (2007: $15.9 million). Order backlog at the start of this new financial year is up some 173% to $17.5 million (2007: $6.4 million).
Aviation
The Aviation division, where GTE is the exclusive supplier of engine wash systems to Pratt & Whitney, had an excellent year. Orders in 2008 grew 228%, buoyed by an $8 million order in the second half from Pratt & Whitney EcoPowerTM for further global infrastructure expansion. Contracts were also secured with Singapore Airlines, Southwest Airlines, United Airlines as well as military organisations.
GTE's technology delivers significant fuel, operational and environmental benefits. Airline customers have stated that GTE's technology delivers benefits of around 1% fuel efficiency savings during flight and around 1.3% fuel efficiency at take-off, while increasing engine time on wing by approximately 18 months (substantially reducing maintenance costs) and significantly lowering CO2 emissions.
Industrial
The Industrial division, which serves the power generation and oil and gas markets, performed very well, with a significant contribution from the new fuels and combustion product lines which are providing GTE's customers with solutions to higher fuel prices, tightening emissions standards, and movement to alternative fuels. Direct sales to end users, such as utilities and oil and gas companies, also increased significantly, demonstrating the strong acceptance of GTE as a credible supplier for high end solutions by major end users.
GTE continued to demonstrate its ability to rapidly integrate and grow acquisitions, with Control Center, ARES and Advanced Combustion Team all delivering strong performances in 2008.
Geographic Expansion
GTE's global footprint expanded in 2008 with its first order in Kazakhstan in the oil and gas industry. In the Middle East, distribution and technical support activities increased substantially and GTE's patented compressor cleaning solution was approved by Abu Dhabi NOC. A major Russian OEM also approved GTE's compressor cleaning solution for use on their turbine.
New technology
Investment in innovative technology has been key to GTE's success in 2008 and is expected to drive future growth. Product lines significantly upgraded during the year included GTE's aviation cleaning solution, combustion dynamics monitoring systems and combustion repair solutions. Brand new product lines included combustion optimization, emissions reduction systems and fuel treatment systems. New and enhanced product lines contributed significantly to revenue growth in 2008.
LTIP
The Board of GTE is proposing to implement a new Long Term Incentive Plan for key executives. A further announcement is expected to be made shortly.
Steven Zwolinski, Chief Executive Officer of GTE, says:
"Our strong 2008 performance demonstrates the success of the Group's strategy of offering innovative solutions which increase customer's fuel and operating efficiency while providing environmental benefits.
"GTE serves the $10 billion gas turbine aftermarket and aviation turbine cleaning market, which has proved its resilience in these very difficult economic conditions. The benefits our services offer to owners of the global installed base of gas turbines are even more relevant in these challenging times. These factors, coupled with our strong order book, underpins our confidence for 2009 and beyond."
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For further information, please contact:
Gas Turbine Efficiency plc Steven Zwolinski, CEO +46 (0)8 546 10 528
Financial Dynamics Jon Simmons Susanne Yule +44 (0) 20 7831 3113
Collins Stewart Europe Limited (Nomad & Joint Broker) Hugh Field Michael O'Brien +44 (0) 20 7523 8350
Mirabaud Securities Ltd (Joint Broker) Rory Scott +44 (0)20 7321 2508
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About GTE
Gas Turbine Efficiency plc designs, manufactures and supplies proprietary cleantech energy saving and performance enhancing systems to the power generation, oil & gas and aviation industries. GTE's extensive portfolio of patented cleantech solutions save fuel, reduce emissions, increase availability, and extend turbine and parts life.
The Group also provides solutions for burning a wider variety and quality of fuels such as liquefied natural gas, clean coal, and alternative fuel blends. Specific product and services developed by our world-class technology team include compressor cleaning and power augmentation systems; fuels management systems; combustion design, repair, upgrade and monitoring; and fluid and control auxiliaries. The Group's systems and associated services are provided to turbine end users and OEMs including General Electric, Pratt & Whitney, Rolls Royce, Caterpillar-Solar and Siemens from operation centres in Europe and the USA. Gas Turbine Efficiency plc shares are traded on London Stock Exchange's AIM (Ticker: GTE).
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