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Large installed base leads to follow-on orders for replacement equipment
- Replacing surface condensers in a North America ethylene facility and South America refinery
- Providing newly engineered ejector system for revamp of a Middle East refinery for clean fuels production
- Wins first project opportunity on a crude oil floating production storage and offloading platform
BATAVIA, N.Y., Dec. 3, 2014 (GLOBE NEWSWIRE) -- 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 today that it received four orders totaling in excess of $9 million. Each project is scheduled for shipment in approximately 12 to 18 months.
Two of the orders are for surface condensers, replacing those which were originally supplied by the Company over 20 years ago. Of those two orders, one is for the upgrade of a North America ethylene production facility and the other is for the upgrade of a South America refining project. Graham was also awarded an ejector system project for a Middle East refinery revamp project. The ejector system will be engineered for clean fuels production, which results in improved fuel quality and reduced emissions from diesel and gasoline used as transportation fuels. The original ejector system for this third order was supplied by Graham nearly 40 years ago. The fourth order reflects the Company's first project win for a technically-complex surface condenser to be installed on a floating production storage and offloading ("FPSO") platform in the Gulf of Mexico.
James R. Lines, Graham's President and Chief Executive Officer, commented, "Our large global installed base continues to provide us with opportunities. The three replacement order wins resulted from the quality and reliability of the equipment we originally supplied as well from our engineering expertise required for the clean fuels project. Of note, we are making headway with our efforts to capture greater market share in our traditional markets. We believe we won this first FPSO order because of the depth of our engineering capabilities and technical expertise with specialty metallurgy. Moving upstream in the oil and gas industry, as we believe this order and other recent orders supporting oil sands extraction in Alberta demonstrates, broadens our market opportunity."
Mr. Lines concluded, "While lower oil prices have slowed investments in oil production processes, it has had a positive effect on the refining segment due to reduced feedstock costs. Notably, we continue to experience substantial bidding activity and a strong pipeline. We continuously monitor and assess the long-term implications of lower crude oil pricing, which will be dependent upon the duration and depth of depressed pricing. We continue to believe our strategy to grow market share, expand our addressable market and diversify into the naval and nuclear markets provides excellent prospects for growth."
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 nearly 80 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," "typically," "anticipates," "believes," "appears," "could," "opportunities," seeking," "plans," 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 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 and growth 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.