Chart Industries Inc., the liquefied natural gas equipment-maker and industrial gas technology company, reported first-quarter 2022 all-time record orders of $636.8 million, its fourth record-order quarter out of the past five quarters.
Chart said the latest orders contributed to the Atlanta, Georgia-based company’s sixth consecutive record backlog quarter of $1.47 billion.
The company’s first-quarter orders included $228.4M of “Big LNG” export terminal releases.
“First quarter 2022 sales of $354.1 million were our highest first quarter sales in our history and increased 22.7 percent when compared to the first quarter of 2021, an increase of 27.0 percent excluding Big LNG in both periods,” explained Chart.
Chart’s quarterly net income came to $10.2M versus $25.6M in the first three months of 2021 and $12.1M in the final quarter of 2021.
“First quarter reported gross margin as a percent of sales of 23.6 percent was the highest in a year and in-line with the expected trend of increasing sequential gross margin and operating income as a percent of sales improvement for the remainder of 2022,” Chart added.
It explained that “energy independence, resiliency, security and sustainability” are the key drivers of record orders amid accelerating activity in both LNG and Specialty Products.
Chart said that in addition to the broad-based demand exiting 2021 and to start 2022, demand for its products, in particular LNG and other energy alternative solutions and equipment, accelerated as the result of the Russia-Ukraine conflict that began February 24, 2022.
Chart explained that specific examples of new orders received reflecting the acceleration of energy activity following the initiation of the Ukraine-Russia conflict include Chart’s “three pillars” of its LNG business: Big LNG export terminals; small-scale LNG (ssLNG) and LNG infrastructure.
Chart’s three “Big LNG” project orders in the first quarter included a $135.5M order with Full Notice to Proceed (FNTP) brazed aluminum heat-exchanger assemblies and corresponding cold boxes for Venture Global Plaquemines Phase 1 with 10 million tonnes per annum of capacity.
Another $47.5M order came in the Limited Notice to Proceed (LNTP) for Houston, Texas-based Cheniere Energy’s Corpus Christi expansion. “We anticipate this project moves to FNTP in 2022,” added Chart.
The third order amounted to $45.4M for six of the 18 BAHX assemblies and cold boxes for Venture Global’s Plaquemines Phase II export terminal project.