Chart releases 2Q15 results

Chart Industries has announced a fall in net income to US$17.2 million for 2Q15, compared to US$20.1 million in the corresponding period of last year.

Net sales for the second quarter of 2015 decreased 12% to US$270.3 million from US$306.8 million in 2Q14, while gross profit was  US$74.9 million compared to US$92.2 million in the comparable quarter of 2014.

“Low and uncertain global oil pricing continues to cause customers to delay investment decisions, especially in China, and impacts our ability to predict future order timing.  Despite these headwinds, we delivered solid second quarter performance in most businesses through a focus on core demand as well as disciplined execution and cost control,” said Sam Thomas, Chart’s Chairman, President and Chief Executive Officer. 

Mr Thomas added: “We remain confident in the long-term fundamental global drivers of our business. This is evidenced by the pending award for the four-train Magnolia LNG export project being developed by LNG Limited at Lake Charles, Louisiana, and the related global alliance agreement under which Chart and LNG Limited will collaborate on future LNG projects. We expect a staged release of the Magnolia LNG order commencing in the third quarter with a commitment for all four trains by the end of 2015. The total order value is expected to be in excess of US$80 million. We continue to be encouraged by the interest for North American multi-train LNG export facilities. In addition, we are pleased to have successfully completed the acquisition of vaporiser manufacturer Thermax. We remain steadfast in our pursuit of additional strategic growth opportunities.”

The company’s Energy and Chemicals segment sales decreased 1.7% to US$91.3 million for the second quarter of 2015 compared with US$93.0 million for the same quarter in the prior year. The decline was due to lower sales volume in brazed aluminium heat exchangers within industrial gas applications.

The company’s D&S segment sales decreased 18.3% to US$121.8 million for the 2Q 15 compared with US$149.1 million for the same quarter in the prior year. Lower LNG sales volume, driven by low oil prices, reduced China industrial activity and the strength of the US dollar contributed to the decline.  

Outlook

Chart announced that it is is lowering its previously announced 2015 guidance range, due to year to date results, first half order trends (including backlog reductions in China), the overall economic environment, particularly in China, and the recent decline in oil prices. Sales are now expected to be in a range of US$1.0 to US$1.1 billion, compared to the previous sales guidance of US$1.05 billion to US$1.2 billion.

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30072015/chart-releases-2q15-results-1084/