Chart Industries, the US supplier of equipment for the industrial gas, energy and liquefied natural gas sectors, also supplies medical oxygen for critical care and had to increase production by over 50 percent to meet continued demand for COVID-19 patients.
This was in addition to lining up LNG fuel products for Royal Dutch Shell and securing its biggest ever industrial gases sale in China.
“All Chart manufacturing locations globally have been deemed essential business by each local and federal government and therefore continue to operate under this status,” said the company in its first-quarter earnings report.
“During March 2020, we increased production on specific medical oxygen related products by over 65 percent in the US and 50 percent in the Czech Republic,” added the Atlanta, Georgia-based Chart.
Additionally, Chart stated that orders for its cryobiological product line used for storage and transport of vaccinations, cell therapy and biological inventory increased by 14 percent to $20.8 million in the first quarter of 2020 when compared to the first quarter of 2019.
“Typically, my quote would be about the financials and decisive, agile responsiveness during this unprecedented time,” said Chart Chief Executive Jill Evanko.
“The related facts in this release contain that information, but I would like to thank our team members who, as essential personnel, have worked tirelessly and safely to increase production on critical care products that are being used globally to save lives,” stated the CEO.
In its core LNG and industrial gases business Chart’s order backlog of $733M was flat compared with the first quarter of 2019, which included $135M of equipment for US developer Venture Global’s Calcasieu Pass LNG project.
Excluding Calcasieu Pass, backlog increased 6.8 percent year on year.
There was a first-quarter order backlog of $151M for the Distribution & Storage Western Hemisphere division, up 18.7 percent and its highest ever.
Overall, first-quarter orders amounted to $304.3M and were 34 percent less than the prior-year quarter.
The first quarter of 2019 had included the Venture Global Calcasieu Pass order ($135M), Golar’s floating “LNG Gimi” tanker conversion project ($20M) and Niche LNG’s small-scale LNG work ($7M).
In the second of its four divisions, Distribution & Storage Eastern Hemisphere, Chart booked 14 LNG fueling stations, which is the same level as the first quarter 2019.
“Additionally, in April we received verbal commitment from Shell for the supply of seven LNG fueling stations,” said Chart.
“Our teams are currently working toward a multiyear long-term contract whereby Shell will place the order for up to four stations in the second quarter of 2020 and three more in 2021,” the company added.
“The multiyear agreement will allow for expansion of these quantities with privileged support to Shell’s business plans and strategy for LNG in Europe,” stated Chart.
Chart said backlog in China was $68M at the end of the first quarter and subsequently the company received its largest industrial gas order in its history from China in early April, though gave no details.
Chart also received a letter of intent for process technology and associated equipment for Eagle LNG’s Jacksonville project in Florida.
Industrial plant orders of $4.7M were received by its Energy & Chemicals Cryogenics division for retrofitting a refinery with air cooled heat-exchangers.
Chart’s fourth division, called E&C FinFans, recorded its highest orders in the first quarter compared with the previous three quarters, including $23M in the month of March.
“This is specific to air coolers, and we expect fans products to continue to grow year-over-year,” said Chart.
