Generation Ess. Regulatory News (TGE)

23 Jul 2008 07:00



TGE Marine AG

("TGE", "the Company" or "the Group")

Pre-Close Trading Update

TGE Marine AG (AIM: TGE), a world leader in engineering services for the design and construction of gas carriers and offshore units, is pleased to provide the following pre-close trading update ahead of announcing its preliminary results for the year ended 30 June 2008 on 26 September 2008. 

Operational

The Group's preliminary results for the year ended 30 June 2008 are anticipated to be in line with expectations.

Since its admission to AIM in May 2008, TGE has continued to win new orders, with nine new gas carrier contracts signed during the quarter ended 30 June 2008. TGE currently has 35 contracts in place for new gas carrier ships at different stages of construction.

Enquiries continue to be strong for both ethylene and smaller LPG carriers and the Board expects that additional contracts will be awarded in these sectors during the current quarter. The Board is also pleased to report growing market interest in designs for smaller LNG carriers and floating storage.

In addition, in June 2008, the full purchase consideration of Euros 11 million was received from the sale of the discontinued onshore operations.

On 1 July 2008, the shareholder loan from Caledonia Investments Plc was repaid in full, leaving the Group ungeared. 

Corporate

As stated at the time of its admission to AIM, the Group intends to carry out a bonus issue of ordinary shares to all shareholders using its share premium account. The effect of such an issue would be to reduce the trading price per TGE share to a level more commonly associated with an AIM company, while having no effect on the proportionate interest held by any shareholder in the Company.

Accordingly the Directors intend to propose a 30-for-1 bonus issue at TGE's forthcoming AGM, to be held at the Company's offices in Bonn, Germany (as required under German law) at 14.00 CET on 25 November 2008. Further details of the proposed bonus issue will be set out in the Company's preliminary results announcement and notice of AGM.

Following the announcement of the results, an analyst briefing will be held at 09.30 BST on 26 September at the offices of Caledonia Investments, 30 Buckingham Gate, London SW1E 6NN.

TGE will also offer investors an opportunity to meet with the Board and management team in London on 30 October 2008, further details of which will be provided in the preliminary results announcement.

Manfred Küver, Chief Executive of TGE, said: 

"Having restructured our business significantly during the past year and completed our admission to AIM, we are now in a good position to maximise the opportunities available to us across our core markets of ethylene and LPG, as well as in the nascent market for smaller LNG carriers and floating storage units.

The main drivers for TGE, particularly ship replacement cycles, longer shipping routes for ethylene and LPG, and the growing demand for LNG, continue to have a positive outlook.

The nature of our business is that the life cycle of orders provides us with good visibility looking into 2009. With the projects we are currently working on together with expectations of orders in ethylene, LPG and LNG vessels, the board is confident that TGE will continue to perform"

- Ends -

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COMPANY BACKGROUND

TGE is a leading provider of engineering services for the design and construction of gas carriers and offshore units. The Group provides a turnkey solution for the engineering design, procurement and construction supervision of marine gas handling and storage systems as well as vessel designs. 

The Group specialises in the containment and handling of cryogenically stored gases (often these are both highly toxic and flammable), and has a market leading position in the ethylene carrier segment. 

The majority of TGE's customers are commercial shipyards building gas carrier ships. To date, the Group has supplied gas handling and storage systems for in excess of 100 gas carriers in more than 20 shipyards in Europe, Asia and South America. In particular, the Group has been active in China since 1989 and, to the Directors' knowledge, acted as the engineering provider to every Chinese-built IGC compliant gas carrier delivered. 

The Group is headquartered in Bonn, Germany with a representative office in Shanghai, China. 

For further information on the Group, please visit the Company's website (www.tge-marine.com)