BATAVIA, N.Y.--(BUSINESS WIRE)--Graham Corporation (NYSE:GHM), a global business that designs, manufactures and sells critical equipment for the oil refining, petrochemical, power and defense industries, today announced that it received three orders totaling approximately $17.5 million.
The first order is for a new petrochemical facility to be built in the U.S. Gulf Coast, for which Graham will provide vacuum condensers and ejector systems. For the second order, Graham will provide ejector systems for capacity expansion at a Mideast crude oil refinery. The third order involves replacing a Graham surface condenser that was installed in a U.S. crude oil refinery more than 40 years ago. Equipment delivery for all three orders is planned for Graham’s fiscal year ending March 31, 2020. No revenue contribution associated with these orders is expected in the current fiscal year ending March 31, 2019, which we refer to as fiscal 2019.
James R. Lines, Graham’s President and Chief Executive Officer commented, “We are pleased to secure these hard fought orders and add to our existing backlog for fiscal 2020. The order for a new U.S. Gulf Coast petrochemical facility adds to our successful record of orders for North American petrochemical capacity investment. The investment is predicated on the U.S. now having one of the lowest feedstock costs globally, due to an abundant supply of natural gas from shale fracking.
“The order for a Mideast refinery that is expanding its capacity results both from a number of successful Graham installations at that refinery as well as our in-country support over the past two decades. Our technical services personnel have provided performance improvement and reliability assessments over many years that led to strong relations between Graham and the refiner. The third order comes from our large installed base, where a refiner needs to replace our equipment due to its age.”
He concluded, “As we look forward to fiscal 2020, we continue to project growth compared with our current guidance for fiscal 2019. This expectation is based on our growing backlog of work for the U.S. Navy and our traditional oil refining and chemical industries, along with a positive outlook for our key end markets.”
ABOUT GRAHAM CORPORATION
Graham is a global business that designs, manufactures and sells critical equipment for the energy, defense and chemical/petrochemical industries. Energy markets include oil refining, cogeneration, nuclear and alternative power. For the defense industry, the Company’s equipment is used in nuclear propulsion power systems for the U.S. Navy. Graham’s global brand is built upon world-renowned engineering expertise in vacuum and heat transfer technology, responsive and flexible service and unsurpassed quality. Graham designs and manufactures custom-engineered ejectors, vacuum pumping systems, surface condensers and vacuum systems. Graham is also a leading nuclear code accredited fabrication and specialty machining company. Graham supplies components used inside reactor vessels and outside containment vessels of nuclear power facilities. Graham’s equipment can also be found in other diverse applications such as metal refining, pulp and paper processing, water heating, refrigeration, desalination, food processing, pharmaceutical, heating, ventilating and air conditioning. Graham’s reach spans the globe and its equipment is installed in facilities from North and South America to Europe, Asia, Africa and the Middle East.
Graham routinely posts news and other important information on its website, www.graham-mfg.com, where additional comprehensive information on Graham Corporation and its subsidiaries can be found.
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This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
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Should one or more of these risks or uncertainties materialize, or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.