03-12-2014

Graham Corporation awarded $9M in orders

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 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."