France's GTT ceases its activities in Russia (updated)

BCM Resources

02/01/2023 18:06

(Add details, background)
       Jan 2 (Reuters) - French engineering group Gaztransport
& Technigaz (GTT)  GTT.PA  said on Monday it was stopping its
activities in Russia after analysing the latest European
sanction packages which include a ban on engineering services
with Russian firms.
    The group said its contract with Russian shipbuilding
company Zvezda for 15 ice-breaking liquefied natural gas (LNG)
carriers would be suspended as of Jan. 8 and activities limited
on the two most advanced ones.
    Meanwhile, terms of GTT's exit from the Gravity Based
Structure (GBS) projects with Saren B.V - a joint-venture
between Renaissance Heavy Industries Russia and Saipem's
 SPMI.MI  Russian subsidiary - are being finalised.
    "These elements will have a financial impact mainly from
2023," GTT said in a statement, adding that its order book would
no longer include projects in Russia.
    GTT added that annual targets will exclude revenue and
earnings before interest, taxes, depreciation and amortisation
(EBITDA) generated by the last services in progress in Russia
from 2023 onwards.
    As of October 2022, revenues of Zvezda's LNG carriers
accounting for 74 million euros ($78.86 million) remained to be
recognised by 2025 and 12 million euros from GBSs by 2027, a
total order book exposure of less than 6%, said GTT.
($1 = 0.9384 euros)
 (Reporting by Dina Kartit, edited by Tomasz Janowski and Louise
Heavens)
 ((Dina.Kartit@thomsonreuters.com))