Trading Update

RNS Number : 0693J

Gas Turbine Efficiency PLC

24 March 2010

 



24 March, 2010

GTE experiences improving energy aftermarket and strengthening demand for core products

Gas Turbine Efficiency plc (AIM: GTE), a leader in energy and aviation products and services, is pleased to report an increase in expected revenue for Q1 2010.     This improved performance is across several operating units.

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 the following:

ENERGY SERVICES BUSINESS:

·      Compressor cleaning systems:   Performance improvements have recently been validated and published by leading customers, demonstrating paybacks of 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.     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, installations have been finalized and more operators have implemented the solution.

·      Combustion:  Several product lines are expected to be up over 100% compared to Q1 2009 ($1.1m).    This growth reflects newly launched aftermarket solutions and rapidly growing acceptance by end customers in the Energy market.

·      Turbine services: Since the addition of the service 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:

·      The recently announced $1.6m order from Pratt & Whitney demonstrates strengthening demand for this service, which provides energy efficiency and life cycle cost benefits, with 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.     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.   GTE continues to invest in the solutions that customers require. These short term results are an early validation of that strategy."

.       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 2010 as continuing to be 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.

As announced on 12 January 2010, all resolutions put to shareholders at the General Meeting held on 11 January 2010 were duly passed. Accordingly, all conditions relating to the fund raising were satisfied and the Company successfully raised a total of US$10 million (gross). This comprised the US$4 million received by the Company following the first closing in December 2009 and US$6 million received following the second closing and the passing of the resolutions at the General Meeting  The Company also announces that its full year results to 31 December 2009 are expected to be announced on 23 April 2010.

 About GTE

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.

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. There, 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% and motivating an average increase in energy efficiency of 0.42% 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.

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                                                       [phone]

Megan Thomas, Director of Marketing and Communications                   [phone]

[e-mail]

Matrix Corporate Capital LLP

Louis Castro / Nick Ellis                                                                                     [phone]

Financial Dynamics

Jon Simmons                                                                                                        [phone]

Susanne Yule                                                                                                                                                                  

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