GTE continues to invest in the solutions that customers require. These short term results are an early validation of that strategy.
Orlando, FL (Vocus) March 24, 2010
Gas Turbine Efficiency plc (AIM: GTE), a leader in energy and aviation products and services, is reporting an increase in expected revenue for the first quarter of 2010, an improvement supported by several operating units. GTE revenue for Q1 2010 is expected to be in the range of $9.5-10.0M—up 20-25% over a strong Q1 2009 ($7.4M). This performance is supported by order increases in the company’s Energy Services and Aviation products.
Performance improvements have recently been validated and published by leading customers, demonstrating a return on their investment in as little as four months. Compressor water wash systems are a major product line in the GTE portfolio of patented solutions for both power generation and aviation turbines—and have experienced increased recognition, acceptance and sales in these industries.
Four major original equipment manufacturers (OEMs) of gas turbines had previously approved and signed agreements for further development and sales of GTE’s patented technology for use on their engines. Most recently, compressor cleaning system installations have been finalized and more operators have implemented the solution.
Several products are expected to be up over 100% compared to Q1 2009 ($1.1M) for GTE’s Combustion services, reflecting its newly launched aftermarket solutions and rapidly growing acceptance by end customers in the Energy market. Furthermore, since the addition of the Turbine Services platform in July 2009, customer acceptance has been very high, as demonstrated by the recent announcement of a three-year agreement with Entegra Power Group.
Aviation products have also enjoyed success with a recently announced $1.6M order from Pratt & Whitney, which demonstrates strengthening demand for this service, supported by energy efficiency and life cycle cost benefits and expectations to see further benefit from higher fuel prices.
“We are pleased to report generally stronger market conditions across several aftermarket sectors,” said Steven Zwolinski, Chief Executive Officer at GTE. “We are now in a much stronger position with our core product lines, with validated performance data in compressor cleaning as well as rapidly expanding customer acceptance of recently launched combustion products and turbine services platforms."
The Q1 2010 expected revenue increase is on top of the strong first half 2009 performance reported in September. Overall, 2009 was a very challenging global energy market, in which GTE had top line growth in line with market expectations.
As the energy industry continues to conserve cash and investment spend and adjusts to demand profiles, GTE views continues to see 2010 as challenging. That said, GTE is better positioned to grow in such an environment with newly launched product and service offerings targeted at the more ‘recession resistant’ energy aftermarket segment.
GTE has been featured in several prominent power generation publications and conferences generating interest and additional proposals for new sales. Notably, in February 2010, GTE was featured at the 501F Gas Turbine Users Group Annual Conference in Orlando, FL, where Louisiana-based power producer Cleco Evangeline presented a case study on GTE’s compressor water wash systems as an optimal solution for operational improvements. The data presented offered an average percent power benefit of 1.18 percent and motivating an average increase in energy efficiency of 0.42 percent which translates to rapid return on investment.
A case study on the compressor water wash system is available for download from GTE’s website at http://www.gtefficiency.com/case_studies.asp.
“Long term economic and environmental factors appear to be strengthening across all sectors as customers place more value on fuel efficiency, asset output/performance and life cycle costs,” Zwolinski added. “GTE continues to invest in the solutions that customers require. These short term results are an early validation of that strategy.”
Full year 2009 results are expected to be announced on April 23, 2010 and will be available on the company’s website at http://www.gtefficiency.com.
Gas Turbine Efficiency designs, manufactures and supplies proprietary cleantech energy saving and performance enhancing solutions to the power generation, oil and gas, and aviation industries. The company’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. Products 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; fluid and control auxiliaries; and outage management services.
For more information about Gas Turbine Efficiency plc and its products and services, please visit http://www.gtefficiency.com.
For further information, please contact:
Gas Turbine Efficiency plc
Steven Zwolinski, Chief Executive Officer
+46 8546 10 528
Megan Thomas, Director of Marketing and Communications
+1 407 304 5236
Matrix Corporate Capital LLP
Nick Ellis +44 3206 7365
+44 20 7269 7291