LNG

Chart Industries Inc., the US equipment-maker for the liquefied natural gas and other clean energy and industrial gas markets, said it and recently received a series of LNG orders from the US and overseas.

The orders include one for Chart’s Integrated Pre-Cooled Single Mixed Refrigerant (IPSMR)® liquefaction technology for two modular Trains of a multi-Train international project not previously mentioned in the order list of the Atlanta-based company.

A second order was awarded for IPSMR liquefaction technology for a mid-scale plant in the Asia-Pacific region and a third was for a North American small-scale LNG venture including nitrogen-cycle technology and associated equipment.

Fuel stations

“There were various other LNG infrastructure-related orders, including tanks, fuelling stations in Europe and for Morocco’s first LNG regasification units,” Chart explained.

The company was additionally awarded repair and service work at a Middle East LNG project.

“As anticipated, we continue to see strong market and award activity across the four pillars of our LNG strategy, including ‘Big LNG’, small-scale and floating LNG, infrastructure and service & repair,” stated Jill Evanko, Chart’s Chief Executive and President.

“Not only do our recent orders cover all four LNG categories, but they include commercial synergy wins with both Chart and Howden content,” said the Chart CEO in reference to its UK acquisition completed in 2022.

“Further, our LNG commercial pipeline remains strong as we see a clear shift in customers’ preference for our modular solution which drives multiple awards across many years as projects are developed,” Evanko added.

Chart recently posted solid third-quarter results including record operating income and backlog of orders.

The company’s earnings performance was also helped by its acquisition of UK engineering group Howden for cash and shares at a purchase price of $4.4 billion a year ago.

After buying Howden there were complementary additions to the offering including highly engineered fans, compressors, rotary heat exchangers, steam turbines and other air and gas-handling products.

Chart’s LNG processing technology is a market leader and adds to its highly engineered equipment for small to industrial-scale LNG and other plants such as air-cooled heat exchangers, brazed aluminum heat exchangers and ethylene storage tanks.

Chart Industries Inc., the liquefied natural gas equipment-maker and industrial gas technology company, has sold a low-pressure compression and vacuum technologies company for $300 million in cash to the US group Ingersoll Rand.

Chart said the transaction, which is subject to customary closing conditions, was expected to be completed in the third quarter.

As part of the transaction, Ingersoll Rand will assume ownership of the Roots manufacturing facility in Connersville, Indiana, which is dedicated to Roots products and will retain the 300 employees at Roots.

“We are excited to have executed a definitive agreement in the second quarter 2023 to sell Roots, which is another key step in accelerating our deleveraging plan while simultaneously allowing us to focus on our core strategic solution offering and integration efforts,” stated Jill Evanko, Chart’s Chief Executive and President.

“We also are thrilled that the business will be owned by Ingersoll Rand, a proven strategic partner and a company that will care for the Roots’ team members,” added Evanko.

Vicente Reynal, Chairman and Chief Executive of Ingersoll Rand, said he was pleased with the acquisition.

Benefits

“We have long admired Roots and are thrilled to add this iconic brand to our portfolio. This complementary acquisition expands our low-pressure compression and vacuum product offerings and is a great example of our partnership with Chart, where the acquisition was a win-win for both companies,” added Reynal.

Chart is also reiterating its full year 2023 anticipated outlook for revenue, adjusted gross earnings, adjusted earnings per share, free cash flow and operational cash flow available for debt paydown.

The company reported in May that first-quarter results were helped by LNG orders and additions from Chart’s acquisition of UK group Howden.

Chart’s first-quarter included strong starts for Chart and Howden with orders amounting to $747.7m, contributing to a record $3.9 billion backlog.

Additionally, Chart booked a “Big LNG” order from leading global liquefaction plant builder Bechtel for air-cooled heat exchangers, brazed aluminum heat exchangers and ethylene storage tanks for Sempra Infrastructure’s Port Arthur LNG project.

The company also listed an order for $115M for the IPSMR® liquefaction systems from the Chinese shipyard Wison Heavy Industry Co. for small-scale LNG projects all driven by Chart’s IPSMR® technology, including one for Italian oil and gas major and LNG project developer ENI.

A separate order was also made for brazed aluminum heat exchangers for a floating LNG application for $19.5M.

Chart said quarterly small-scale and floating LNG orders totalled $139M, which was a 263 percent increase for these types of orders when compared to the first quarter of 2022. 

Chart Industries, the US LNG equipment and industrial gases company, reported record first quarter orders, contributing to the highest backlog of $934.1M and including orders with 105 new customers with LNG at front and centre.

Orders in the first three months of 2021 amounted to $417.2M and were the highest in the history of the Atlantic, Georgia-based company when excluding Big LNG.

Chart reported net income of $26.1M in the quarter to the end of March, a three-fold increase on the $8.5M posted in the first three months of 2020.

The company said 2021 orders were driven by broad based demand, including a recovery in certain end markets, continued demand for clean products and a combination of larger liquefaction orders for LNG and hydrogen or numerous smaller orders.

Chart posted quarterly sales of $288.5M, in line expectations when considering typical seasonality as well as the timing shift from the first quarter 2021 to the second quarter 2021 of approximately $10M of shipments.

ISO containers

These were primarily ISO container orders from China that were shipped in March 2021, though the revenue is recognized in April 2021, as well as $5M of revenue from the Venture Global Calcasieu Pass LNG project in Louisiana based on the delivery schedule.

The quarterly sales were 4.5 percent lower than the $301.9M achieved in the prior-year quarter.

“Record orders (excluding Big LNG) across the broader business in the first quarter 2021, coupled with continued execution on profitability set us up early (and often) for a very strong second half of 2021,” stated Jill Evanko, Chart’s Chief Executive and President.

“We are seeing immediate benefit from our strategic inorganic investments in the order book as reflected in our record backlog, and the momentum in the clean revolution - clean energy, clean water, clean food and clean industrial - is just getting started,” added Evanko.

Chart noted among the earnings highlights the $47M order from New Fortress Energy, the LNG-for-power company based in New York, for its “Fast LNG” project, a 1.4 million tonnes per annum liquefier vessel.

Chart additionally commented on the expansion of LNG fuel for trucking in Europe and Asia and the subsequent demand for Chart equipment.

LNG for trucks

“Since January 2021, night-time transit for diesel Euro IV trucks on the Inntal motorway in Austria is not allowed, so LNG trucks allow business owners to continue to transport goods overnight,” explained Chart.

“For example, OMV Turkey is using LNG trucks (with Chart fuel tanks) and there is increasing activity for LNG trucks and buses in locations such as Japan and India,” added the company.

Chart said full-year 2021 sales were expected to be around $1.36 billion to $1.41Bln, inclusive of $21M of Venture Global’s Calcasieu Pass revenue ($5M of equipment remaining to ship) as well as $30M of expected 2021 revenue from the acquisition of Cryo Technologies.

This is an increase over the prior full year 2021 sales guidance of $1.32Bln to $1.38Bln as a result  of the strong first-quarter order book.

This includes specific liquefaction projects for Plug Power (hydrogen) and New Fortress Energy (FastLNG) and commercial opportunities increasing from investments and acquisitions completed in the past six months.

“There is no additional Big LNG revenue included in our outlook although we believe at least one new order will be received during the year,” added Chart. 

Chart Industries, the US LNG and industrial gases equipment provider, has received commitments for $1.1 billion in financing to help fund the acquisition and integration of Harsco Corp.’s industrial Air-X-Changers business, Harsco AXC.