Laser Photonics Wins Dual Order From Phillips 66

Rhea-AI Summary

Laser Photonics (NASDAQ: LASE) has secured a dual order from Phillips 66, a Fortune 500 oil refiner, for its CleanTech IR-3040 and MarkStar PM-2010 laser systems. The CleanTech IR-3040, a handheld laser cleaning system, will be used for scale removal during pipe and vessel maintenance and surface preparation. The MarkStar PM-2010, a desktop laser marking system, will mark data plates for refinery pressure vessels. Phillips 66 plans to test these technologies at its pioneer site to potentially replace traditional sandblasting processes, aiming to optimize operations, improve safety, and reduce environmental impact.

Positive

• Secured new client relationship with major Fortune 500 company Phillips 66
• Potential for expanded orders after testing phase if sandblasting replacement is successful
• Entry into oil refinery market demonstrates product versatility and market expansion

Negative

• None.

Insights

Industrial Technology Analyst

The dual order from Phillips 66 represents a strategic milestone for Laser Photonics, marking their entry into the Fortune 500 oil and gas sector. The CleanTech IR-3040 and MarkStar PM-2010 systems could serve as a proof-of-concept for broader adoption across Phillips 66's extensive network of refineries. The potential replacement of traditional sandblasting with laser ablation technology at scale would create a significant recurring revenue opportunity.

The technical specifications of these systems align perfectly with Phillips 66's maintenance requirements. The CTIR-3040's non-contact cleaning method eliminates the need for chemical agents and abrasives, reducing both operational costs and environmental impact. The MSPM-2010's ability to create permanent markings on pressure vessels addresses a critical compliance requirement in refinery operations.

For investors, this pilot implementation at Phillips 66's pioneer site could be a catalyst for industry-wide adoption. Success here could lead to multiple follow-on orders not only from Phillips 66's other facilities but also from competing refiners seeking to modernize their maintenance operations. Given LASE's modest market cap of $74.5M, securing a foothold in the oil and gas sector could significantly impact their revenue trajectory.

Energy Sector Analyst

This procurement decision by Phillips 66 signals a broader industry shift toward modernizing refinery maintenance operations. The testing of laser cleaning technology at their pioneer site indicates a strategic focus on operational efficiency and environmental compliance. Traditional sandblasting methods, while effective, create significant waste and require extensive safety protocols. The adoption of laser cleaning technology could reduce maintenance downtime and lower operating costs across Phillips 66's refinery network.

The timing is particularly relevant given increasing environmental regulations and rising labor costs in the refining sector. If the pilot proves successful, this could establish a new industry standard for maintenance procedures, potentially leading to widespread adoption across Phillips 66's 14 refineries with a combined capacity of 1.9 million barrels per day. The environmental and safety benefits align with the industry's ESG initiatives, making this technology particularly attractive to major refiners under pressure to reduce their environmental footprint.

Fortune 500 Oil Refinery To Use CleanTech & MarkStar Systems

ORLANDO, Fla.--(BUSINESS WIRE)-- Laser Photonics Corporation (LPC) (NASDAQ: LASE), a leading global developer of industrial laser systems for cleaning and other material processing, announced today that it has received a dual order from global oil refiner Phillips 66 for a CleanTech and a MarkStar laser systems.

“We are honored to welcome Phillips 66 as our new client and deliver our industrial-grade laser technologies to a major U.S. oil refinery,” said Wayne Tupuola, CEO of LPC. “The company’s commitment to safety, sustainability, and innovation aligns with our mission to provide cleaner and safer solutions for material processing. This order underscores the value of our environmentally friendly technologies in meeting the energy needs of millions.”

Phillips 66 has acquired LPC’s CleanTech IR-3040, an industrial-grade handheld laser cleaning system, and the MarkStar PM-2010, a compact desktop laser marking system. These will be shipped to its pioneer site, focusing on testing out innovative technologies that have the potential to optimize existing processes, improve the bottom line, enhance personnel safety, and reduce environmental impact.

The CTIR-3040 is powered by laser ablation technology, which offers a non-contact method to clean and profile surfaces without abrasives or chemicals. Phillips 66 plans to use the CTIR-3040 to remove scale formation during pipe and pressure vessel maintenance, as well as to prepare surfaces for re-painting ahead of regular facility inspections. Following a testing interval, the company is considering implementing laser solutions to replace sandblasting processes.

The MSPM-2010 laser marking system will be used to mark data plates for refinery pressure vessels, which are periodically re-rated. This technology provides a high-speed, consumable-free solution for creating permanent, legible markings on a wide variety of materials.

For more information about CleanTech and MarkStar product lines, visit Laser Photonics at https://laserphotonics.com/

About Laser Photonics Corporation

Laser Photonics is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. Laser Photonics seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. Laser Photonics’ new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental and regulatory issues associated with old methods. As a result, Laser Photonics quickly gained a reputation as an industry leader in industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 500 manufacturers in the aerospace, automotive, defense, energy, maritime, nuclear and space industries are using Laser Photonics’ “unique-to-industry” systems. For more information, visit https://www.laserphotonics.com.

About Phillips 66

Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com

Cautionary Note Concerning Forward-Looking Statements

This press 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), including statements regarding the Company’s plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption “Risk Factors” in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241219424740/en/

Investor Relations:

laser@haydenir.com



LPC:

Karla Kizzort

Laser Photonics Corporation

kkizzort@laserphotonics.com

Source: Laser Photonics Corporation

FAQ

What products did Phillips 66 order from Laser Photonics (LASE)?

Phillips 66 ordered two products from Laser Photonics: the CleanTech IR-3040 handheld laser cleaning system and the MarkStar PM-2010 desktop laser marking system.

How will Phillips 66 use Laser Photonics' (LASE) CleanTech system?

Phillips 66 will use the CleanTech IR-3040 to remove scale formation during pipe and pressure vessel maintenance and prepare surfaces for re-painting before facility inspections.

What is the potential market impact of the Phillips 66 deal for LASE?

The deal could lead to larger implementations if Phillips 66 decides to replace their traditional sandblasting processes with laser solutions after the testing phase.

What advantages does LASE's technology offer Phillips 66 over traditional methods?

LASE's technology offers non-contact cleaning without abrasives or chemicals, improving safety, sustainability, and environmental impact while providing high-speed, consumable-free marking solutions.