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Graham Corporation (NYSE Amex: GHM), a designer and manufacturer of critical equipment for the oil refining, petrochemical and power industries, today announced that it has been awarded three orders totaling approximately $4.8 million for specialized condensers, liquid ring pump packages and ejector systems to be installed at facilities in North America and Asia.
The first order is for a custom-engineered surface condenser and liquid ring pump package which will be installed at an oil sands processing facility in the province of Alberta, Canada, and will serve as a vapor recovery unit for bitumen storage tanks. The second order is also for a surface condenser and liquid ring pump package destined for a U.S. refinery revamp intended to reduce the sulfur content in transportation fuel produced at the refinery. The third order is for ejector systems to be installed in India at a new ammonia/urea fertilizer producing facility, which when completed, will be one of the largest in the world.
Production and shipment for the three orders is expected to begin during Graham’s second quarter of fiscal 2012, ending March 31, 2012. As a result, revenue will be recognized in the second through fourth quarters of fiscal 2012.
James R. Lines, Graham’s President and Chief Executive Officer, commented, “We were encouraged to see several large orders break loose during the quarter, particularly our win for the oil sands project. I believe that the oil sands order is important because it is Graham’s first in the extraction/production process. Investment in new oil sands production is expected to ultimately lead to increases in capacity for the upgrade process where Graham has historically had a strong presence. Moreover, the Indian fertilizer order is representative of Graham’s strong market presence in this growing industry. Graham also continues to benefit from sulfur reduction initiatives in North America.”
“The large projects in our pipeline, like the ones announced today, continue to progress slowly, while a number of smaller projects appear to be advancing more quickly toward the procurement phase. We remain optimistic about the overall outlook for the energy and petrochemical markets we serve, although our customers remain cautious given the continued global economic uncertainty,” Mr. Lines concluded.