Graham Corporation Receives $17 Million of Orders to Support Energy and Petrochemical Expansion Projects in North America and the Middle East
Graham (NYSE: GHM), a leading provider of fluid, power, heat transfer, and vacuum technologies, has secured $17 million in orders for energy and petrochemical expansion projects in North America and the Middle East. The North American project involves creating the world's first net-zero carbon emissions ethylene cracker and derivatives site, utilizing Graham's advanced surface condensers. This order was received in April 2024, with revenue expected in fiscal 2025 and 2026. The Middle Eastern project includes a vacuum system for a crude to chemical vacuum distillation tower, enhancing Group II and III Base Oils production. This order was received in March 2024, with revenue to be recognized in fiscal 2025.
- Secured $17 million in new orders.
- North American project aims for net-zero carbon emissions.
- Middle Eastern project enhances production of high-quality Base Oils.
- Approximately 50% of North American project revenue expected in fiscal 2025.
- Middle Eastern project revenue to be recognized in fiscal 2025.
- Strong customer relationships highlighted.
- Remaining 50% of North American project revenue delayed to fiscal 2026.
- Dependence on project-specific revenues.
Insights
Graham Corporation's recent securing of $17 million in orders for significant energy and petrochemical projects highlights robust demand in these industries. This development is likely to have both short-term and long-term financial implications for the company.
Short-term, the revenue recognition from these orders will largely occur in fiscal 2025 and 2026, which will positively impact GHM’s financials, contributing to a predictable revenue stream for the upcoming financial periods. This helps in smoothing out revenue cycles and provides better visibility for future earnings.
Long-term, these contracts enhance the company's reputation and showcase its technological leadership in critical fluid, power, heat transfer and vacuum technologies. This could lead to more opportunities and increased order volumes, further stabilizing and growing the business.
However, investors should monitor the execution of these projects closely. Delays, cost overruns, or technical issues could challenge the company's ability to meet financial projections. Given the nature of expansion projects, such risks, although manageable, are inherent.
Overall, securing such orders underscores the company's market position and growth potential.
From an energy market perspective, GHM’s involvement in the world's first net-zero carbon emissions ethylene cracker project is particularly noteworthy. This aligns with the global push towards sustainable and eco-friendly industrial practices. The focus on minimizing carbon emissions in natural gas refining showcases Graham's commitment to environmental sustainability and positions it favorably within the energy transition movement.
The success of this project could pave the way for similar future projects, as companies and governments worldwide are increasingly committed to reducing carbon footprints. Graham's ability to deliver state-of-the-art surface condensers and high-performance steam jet ejectors will be crucial.
Furthermore, the contract in the Middle East reinforces GHM's strong foothold and relationships in the region, a key market for energy and petrochemical industries. Such strategic regional presence is vital for long-term growth and competitiveness.
Overall, these orders reflect positively on GHM’s strategic positioning in the evolving energy market and its adaptability to global sustainability trends.
Daniel J. Thoren, President and CEO, commented, “We are excited to work with our North American customer as they aim to create the world's first net-zero carbon emissions integrated ethylene cracker and derivatives site. Graham’s surface condensers with custom venting package allow the turbine drives to operate at peak efficiency and are considered state of the art in our industry. Additionally, we received a notable order to support an expansion project in the
The North American order includes three surface condenser systems for critical service in both a main process unit and utility unit. This project aims to advance the eco-friendliness of natural gas refining, with the collective goal to minimize carbon emissions throughout the production process. The order was received in April 2024 and approximately
For the
About Graham Corporation
GHM is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy and process industries. The Graham Manufacturing and Barber-Nichols’ global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems.
Graham Corporation routinely posts news and other important information on its website, www.grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “aims,” “expects,” “anticipates,” “potential,” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, winning potential future or multi-year orders, potential revenues and timing of such revenues, capacity, demand growth, and delivering timely or otherwise on schedule are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors,” its quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240603810626/en/
Christopher J. Thome
Vice President - Finance and CFO
Phone: (585) 343-2216
Deborah K. Pawlowski
Kei Advisors LLC
Phone: (716) 843-3908
dpawlowski@keiadvisors.com
Source: Graham Corporation
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