Reuters, 12 January 2009
Gas Turbine Efficiency 2008
revenue near doubles
London-listed Gas Turbine Efficiency Plc (GAST.L) said revenue almost doubled in 2008 and it expected business in 2009 to be "robust", prompting its shares to jump 24 percent.
The company, which designs and produces systems for optimising performance in the gas turbine industry, said on Monday that it expected to report revenues of $35 million compared with $17.8 million in 2007.
The market had expected 2008 revenues of 19.28 million pounds ($29.05 million), according to Reuters data.
The increase was due in part to strong performances in the industrial and aviation sectors, GTE said, including an $8 million contract with aircraft engine maker Pratt & Whitney, part of United Technologies Corp (UTX.N).
"We are looking at a robust 2009," Chief Executive Steven Zwolinski told Reuters.
The firm, which trades on London's junior AIM index, said total order intake for 2008 was expected to increase by 189 percent to $45.9 million, while the order backlog at the start of the new year was up by 173 percent to $17.5 million.
Zwolinski said business in 2009 would probably be "very resilient" despite looming recessions in the United States and Europe because Gas Turbine's services helped companies lower maintenance costs and extended the lives of parts.
Zwolinski said GTE was funded chiefly out of its client's operational cash flow, making it less vulnerable to the economic downturn.
"We'd be attractive in any economy," he said in a telephone interview, adding that Gas Turbine had yet to see any impact from oil and gas companies reducing their capital expenditure.
As crude oil CLc1 continues to trade below $40 per barrel, down from its peak above $140 in July, oil and gas companies have slashed costs to offset shrinking revenues, as the global downturn erodes demand.
Gas Turbine would continue its policy of hiring selectively, Zwolinski also said.
The firm said in 2008 it had obtained its first order from the oil and gas industry in Kazakhstan, and that it had also increased operations in the Middle East.
Zwolinski said for 2009 the company would continue to focus on major developed markets, but that it might also consider expansion in South America.
At 1033 GMT, the firm's shares were trading up 24 percent at 21 pence, having risen as high as 23.50 in early trade.
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