- Oil refinery order to provide a new Graham ejector
system in China
- Two orders to replace ejector system components in
Canadian Oil Sands and in U.S.
Graham Corporation (NYSE:GHM), a global business that designs,
manufactures, and sells critical equipment for the oil refining,
petrochemical and power industries, including the supply of
components and raw materials to nuclear energy facilities,
announced that it has been awarded three refinery orders for
projects valued at approximately $8 million in total. One of the
orders relates to the upgrade of a refinery in China and the other
two orders are for replacement components at North American
refineries. Shipments are expected to occur within the next 9 to 12
months.
The China refinery upgrade order calls for a new Graham ejector
system engineered to improve conversion of crude oil to
transportation fuels. The other two orders, one of which is for the
Canadian Oil Sands and the other for the U.S., are for ejector
system components that must be replaced due to corrosion resulting
from their harsh operating environments. Demand for upgraded,
revamped and replacement equipment to the oil refining market has
been strong, especially given the industry's desire to extend
intervals between planned shutdowns for inspection and
maintenance. The operating environments for equipment used in
such facilities can be harsh and corrosive, which in turn drives
refineries to make investments to improve throughput and
performance.
James R. Lines, Graham's President and Chief Executive Officer,
commented, "Winning these refinery orders in China, the Canadian
Oil Sands and the U.S. demonstrates the geographic breadth of our
presence in global refining markets. These markets present
various opportunities to us, including new capacity, revamps to
existing refineries to allow for the processing of new feedstocks
or differing end products, and new process units designed to reduce
pollution from transportation fuels. The aftermarket segment
of the refining markets is different from other portions of the
refining markets we serve in that order execution is typically less
complicated and lead times are generally shorter than they are for
new capacity or feedstock flexibility investments. This allows for
a quicker project turnaround."
Mr. Lines concluded, "Our bidding pipeline continues to be very
full and active. This, and our recent order activity, supports
our confidence in our guidance for fiscal 2015. Our long-term
growth objective is to double our revenue to exceed $200 million in
the current cycle."
ABOUT GRAHAM CORPORATION
With world-renowned engineering expertise in vacuum and heat
transfer technology, Graham Corporation is a global designer,
manufacturer and supplier of custom-engineered ejectors, pumps,
condensers, vacuum systems and heat exchangers. For more than
77 years, Graham has built a reputation for top quality, reliable
products and high-standards of customer service. Sold either
as components or complete system solutions, the principal markets
for Graham's equipment are energy, including oil and gas refining
and nuclear and other power generation, chemical/petrochemical and
other process industries. In addition, Graham's equipment can
be found in diverse applications, such as metal refining, pulp and
paper processing, shipbuilding, water heating, refrigeration,
desalination, food processing, pharmaceutical, heating, ventilating
and air conditioning, and in nuclear power installations, both
inside the reactor vessel and outside the containment
vessel.
Graham Corporation's subsidiary Energy Steel & Supply Co. is
a leading code fabrication and specialty machining company
dedicated exclusively to the nuclear power industry.
Graham Corporation's reach spans the globe. 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.
Safe Harbor Regarding Forward Looking
Statements
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.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as "expects,"
"estimates," "projects," "objective," "typically," "anticipates,"
"believes," "appears," "could," "plan," and other similar
words. All statements addressing operating performance,
events, or developments that Graham Corporation expects or
anticipates will occur in the future, including but not limited to,
the expected performance of Energy Steel & Supply Co, expected
expansion and growth opportunities within the domestic and
international nuclear power generation markets, anticipated
revenue, the timing of conversion of backlog to sales, market
presence, profit margins, tax rates, foreign sales operations, its
ability to improve cost competitiveness, customer preferences,
changes in market conditions in the industries in which it
operates, changes in general economic conditions and customer
behavior, forecasts regarding the timing and scope of the economic
recovery in its markets, and its acquisition strategy are
forward-looking statements. Because they are forward-looking,
they should be evaluated in light of important risk factors and
uncertainties. These risk factors and uncertainties are more fully
described in Graham Corporation's most recent Annual Report filed
with the Securities and Exchange Commission, included under the
heading entitled "Risk Factors."
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.
CONTACT: For more information contact:
Jeffrey F. Glajch
Vice President - Finance and CFO
Phone: (585) 343-2216
Email: jglajch@graham-mfg.com
Deborah K. Pawlowski / Karen L. Howard
Kei Advisors LLC
Phone: (716) 843-3908 / (716) 843-3942
Email: dpawlowski@keiadvisors.com / khoward@keiadvisors.com
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