10-06-2014

Graham corporation wins $8M of orders for global oil refining projects

Graham Corporation, 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."