Industrial Strategy Update
Gas Turbine Efficiency PLC
16 July 2007
16 July 2007
GTE Industrial Strategy Update
GTE Diversification Efforts Pay Off -- Industrial Revenues expected to be Up
600%
Gas Turbine Efficiency plc ('GTE' or 'the Group'), a leading designer and
manufacturer of advanced cleaning, performance monitoring and fluid and control
systems for gas turbines, is pleased to announce a significant increase in
Industrial based revenues and backlog for 2007.
After successfully establishing the business in the aviation segment with our
exclusive partner, Pratt & Whitney, GTE is now seeing similar success in the
industrial segment. This is evident in the tremendous growth seen in the first
half of 2007. Industrial revenues are expected to increase over 600% to $5.7m
(H1 2006: $0.8m).
As a result, the Group expects its total revenue in the first half 2007 to over
300% to $9.3m compared with the corresponding period last year (H1 2006: $2.1m).
On 30 June 2007, the backlog for the full year 2007 was $13.9m, approximately,
450% ahead of corresponding period last year (H1 2006: $2.5m).
GTE has achieved this success by following a bold strategy to extend the
business model with four OEM qualifications in parallel. The Group has also
expanded its solutions portfolio with the acquisition of Control Center, LLC and
ARES Technology, LLC this year. The combined strategy of acquisitions alongside
organic Research & Development has significantly expanded GTE's core product
lines as seen below:
2006 2007
Compressor Cleaning Systems Compressor Cleaning Systems
Compressor Power Augmentation
Fuel Systems And Metering
Control Systems and Panels
Combustion Monitoring Systems
Aftermarket Parts / Supply Chain
On-Site Installation Services
Outage Repairs
GTE's enhanced capabilities will help the Group develop in three key ways.
Firstly, it moves GTE up the 'value chain' and closer to integrated solutions,
positioning the Group for long term growth in the Gas Turbine aftermarket
segment which is valued at up to $10 billion. Secondly, it opens up additional
high value products to sell through existing channels and customer relationships
and finally, it creates a broader technology team and patent portfolio.
Discussions with several major OEMs to sign long term commercial contracts have
progressed well and in some cases have been expanded to include several new
product lines. The five year agreement with Solar, a Caterpillar company along
with the three year extension of our exclusive agreement with Siemens, AB and
the recent contract extension with Rolls Royce are a validation of our long term
strategy.
The Industrial segment includes Power Generation as well as Oil & Gas industries
which tend to have large, global OEMs and end users which highlight the
importance of GTE's solutions being executed globally. To better align with
these customers, GTE successfully expanded its global footprint. During 2006, we
opened up an office in St. Petersburg, Russia and added a strong presence in Abu
Dhabi through our agent relationship with NAMA. Future expansion is also
expected in established legal entities in Singapore, Norway, and the Middle
East.
Looking forward, GTE plans to continue this successful strategy. The Group will
look to bolster its technology breadth and development through organic R&D and
opportunistic acquisitions. The Group will continue to focus on high value
solutions in the Gas Turbine aftermarket segment and move to higher value
integrated product and service solutions.
The demanding qualification negotiations with key industrial global OEMs are
progressing well and we will update the market later in the year.
Steven Zwolinski, Chief Executive Officer of GTE, commented: 'The benefits of
GTE's long term strategy for the industrial segment of the business has resulted
in tremendous progress in the first half of 2007 positioning the business for
long term growth. The integration of Control Center, LLC 2007 and Ares
Technology, LLC has exceeded expectations, significantly enhancing the Group's
capabilities.'
Enquiries:
Gas Turbine Efficiency plc
Steven Zwolinski, CEO +46 8 546 10 528
Libertas Capital
Aamir Quraishi, Charles Goodfellow +44 20 7569 9650
Corfin Communications
Neil Thapar, Harry Chathli +44 20 7929 8989
About GTE
Gas Turbine Efficiency plc, whose shares are traded on London Stock Exchange's
AIM market (Ticker: GTE), designs, manufactures and markets advanced integrated
solutions for environmental, process and asset optimisation of gas turbines
primarily in the aerospace, industrial and oil & gas sectors. These solutions
include cleaning systems, performance monitoring, fluid and control sub-systems
that improve turbine performance and availability, fuel efficiency and parts
life, resulting in increased profits for our clients and a cleaner environment.
The Group sells its products to blue chip customers worldwide from operational
centres in Europe and the USA.
This information is provided by RNS
The company news service from the London Stock Exchange