First quarter 2018 orders in Energy & Chemicals (E&C) segment were $93.7 million, inclusive of $37.0 million from Hudson Products, and sequentially an increase of 24.6% compared to the fourth quarter of 2017. This is the fourth quarter in a row with E&C order levels above $60 million. The natural gas and petrochemical markets continue to be strong, and LNG FEED and engineering activities continue to strengthen.
“The first quarter of 2018 continued to reflect the strong demand seen in 2017 for natural gas projects in both petrochemical and LNG export, with equipment orders received primarily for the West Texas Permian Basin,” Chart said in a statement.
Bill Johnson, Chart’s President and CEO, commenting on the results, said: “We are pleased with the start to 2018, both from a market and order perspective as well as the productivity results reflected in the margin in each of the segments.
“The strategic review of our oxygen-related product lines further supports our continued focus on analyzing our capital allocation and executing on our organic and inorganic key growth areas in core cryogenic equipment,“ he added.
Orders in the company’s E&C segment came in 24.6% higher over the fourth quarter of 2017 and included four orders greater than $2 million each. E&C segment sales of $89.9 million ($46.6 million excluding Hudson) were down 1.5% compared to the fourth quarter of 2017 and up 16.7% versus the first quarter of 2017. “The year-over-year sales increase is driven by gas demand, in particular in the air-cooled heat exchanger product line,” Chart said.
First quarter 2018 orders in D&S of $170.4 million reflected an 11.2% order growth over previous quarter, driven by continued strength in packaged gas and LNG vehicle tanks. D&S sales decreased $14.1 million to $136.1 million compared to the fourth quarter of 2017, and increased $22.9 million compared to the first quarter of 2017.
“Year-over-year increases are driven by strength in United States packaged gas, China LNG trailers and vaporization stations, and European standard tanks,” Chart said.