LNG equipment maker Chart authorizes share buyback program amid more overseas plans

Thursday, 12 March 2020
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Chart Industries, the US liquefied natural gas and industrial gases equipment supplier with a widening international presence in Europe and Asia, has authorized the repurchase of up to $75 million of its common stock over the next 12 months. 

Under the stock repurchase program, Chart may purchase shares of its common stock through various means, including open market transactions, block purchases and privately negotiated transactions in accordance with  federal securities laws.

“This stock buyback program reflects our confidence in our business going forward, and we believe our shares are an attractive investment opportunity,” said Chart’s Chief Executive Jill Evanko.

“Our strong cash flow simultaneously enables us to return value to shareholders, pay down debt, and deploy capital for productivity and growth opportunities,” explained the CEO.

Analysts say that companies usually buy back their shares because management considers them undervalued. 

The company buys shares directly from the market or can offer its shareholders the option of tendering their shares.

A share buyback reduces the number of outstanding shares, which can increase both the demand for the shares and the price.

Chart said that the timing and amount of any repurchases under this program will be determined by Chart’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price.

The company, whose headquarters are in the suburbs of Atlantic in Georgia, was been building its business in North America during the LNG plant buildout as well as in Europe with trucking fuel equipment and in Asia with proposed joint ventures.

Chart signed a letter of cooperation in February 2020 with ExxonMobil India LNG Ltd, an affiliate of the US  major, and Indian Oil Corp. to focus on delivering LNG by Indian roads, railroads and waterways to spread gas use in the absence of physical pipelines.

The accord upgrades a previous Memorandum of Understanding between Chart in Indian Oil to promote the development of the LNG market in India.

It stated that the companies would focus on modular liquefaction, regasification applications, LNG bunkering, fueling stations and alternative LNG mobile transportation including ISO containers.  

Chart said the new Letter of Cooperation expanded the reach and potential scale within a significantly growing country that has committed to clean energy options.

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