TGE Tge Marine

 

TIDMTGE 
 
RNS Number : 1246W 
TGE Marine AG 
23 July 2009 
 

 
 
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, provides the following 
pre-close trading update ahead of announcing its preliminary results for the 
year ended 30 June 2009 on 23 September 2009. 
 
 
As announced in its trading update of November 2008, since the second half of 
2008 the Company has experienced challenging conditions in its core LPG and 
Ethylene carrier markets. The continued instability in the global macro-economic 
environment, together with the dramatic tightening of credit markets, has to the 
Company's knowledge, resulted in no major contracts for small / medium 
semi-refrigerated gas carriers being placed during the 12 months ending June 
2009. 
 
 
Nevertheless, given the continued need to replace aging ships, the Group is now 
seeing increased levels of new build enquiries from clients and expects the 
market to start to recover during the forthcoming year. The increase in new 
build interest, combined with the Group's leading position in these core markets 
and its strong cash reserves, leads the Board to believe that the company is 
well placed to benefit from a market recovery. 
 
 
Operational highlights 
 
 
  *  The Group's preliminary results for the year ended 30 June 2009 are anticipated 
  to be in line with expectations. 
 
 
 
  *  TGE is currently working on 21 contracts for smaller and middle-sized ethylene 
  and LPG ships, which are expected to be completed in FY 2010 and 2011. 
 
 
 
  *  As announced in the Group's interim results for the 6 months ended 31 December 
  2008, with the reduction in TGE's order book, the Company has successfully 
  implemented a programme of cost cutting measures, including the short labor 
  scheme funded by the German Government. 
 
 
 
  *  These cost cutting measures managed to offset the lower than expected levels of 
  interest received (due to weaker interest rates) during FY 2009. The Company 
  expects that such initiatives to reduce the Group's cost base will lead to 
  overhead reductions of more than 20% for FY 2010 vs. FY 2009. 
 
 
 
  *  Management is pleased to announce that on 15 May 2009, TGE delivered the world's 
  first combined small LNG / Ethylene / LPG Carrier. 
 
 
 
  *  The Group continues to be well capitalized with substantial free cash reserves 
  and no debt. 
 
 
 
Outlook 
 
 
  *  The economic turmoil of recent months interrupted orders for new build gas 
  carriers, however the renewal process will have to restart and indeed make up 
  for the period of inactivity. With TGE's leading market position, the Board 
  expects to benefit from significant new orders when the market returns. 
 
 
 
  *  The strategic drivers for investment in TGE's new markets of small scale LNG and 
  CO2 storage and transportation remain valid in the current economic climate. 
  While projects may be delayed, TGE's diversification into these markets is 
  expected to provide strong new growth opportunities for TGE's longer term 
  business. 
 
 
 
  *  The combination of reduced costs, a well capitalized balance sheet, revitalized 
  core markets and diversification into new products gives the Board confidence in 
  the future prospects for the Group. 
 
 
 
Results presentation 
 
 
  *  Following the announcement of the results, an analyst briefing will be held at 
  09.30 BST on 23 September at the offices of Caledonia Investments, 30 Buckingham 
  Gate, London SW1E 6NN. 
 
 
 
Manfred Küver, Chief Executive of TGE, commented: 
 
 
"The Company remains in robust financial health, despite the effects of the 
economic environment. The Group has taken timely action to reduce its cost base 
and is ready to take advantage of the expected up turn in its core markets. We 
are currently seeing good evidence of improvement in sentiment amongst ship 
builders and owners". 
 
 
 
 
Enquiries: 
 
 
+------------------------------------+----------------------+-----------------------+ 
| TGE Marine AG                      |                      | +49 (0)228 604 480    | 
+------------------------------------+----------------------+-----------------------+ 
| Dr Manfred Küver                   | Chief Executive      |                       | 
|                                    | Officer              |                       | 
+------------------------------------+----------------------+-----------------------+ 
| Steffen Schober                    | Chief Financial      |                       | 
|                                    | Officer              |                       | 
|                                    |                      |                       | 
+------------------------------------+----------------------+-----------------------+ 
| Singer Capital Markets Limited                            | +44 (0)20 3205 7500   | 
+-----------------------------------------------------------+-----------------------+ 
| Jos Trusted                        |                      |                       | 
+------------------------------------+----------------------+-----------------------+ 
| Richard Savage                     |                      |                       | 
+------------------------------------+----------------------+-----------------------+ 
|                                    |                      |                       | 
+------------------------------------+----------------------+-----------------------+ 
| Pelham Public Relations            |                      | +44(0)20 7337 1500    | 
+------------------------------------+----------------------+-----------------------+ 
| Mark Antelme                       |                      |                       | 
| Henry Lerwill                      |                      |                       | 
|                                    |                      |                       | 
+------------------------------------+----------------------+-----------------------+ 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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