Chart notes growing interest in LNG as fuel
Chart Industries, Inc. has reported results for Q3 2014, noting the growing interest in LNG as a fuel.
- Net income for the third quarter of 2014 was US$ 22.9 million.
- Net sales for the third quarter of 2014 decreased 3% to US$ 293.8 million from US$ 301.8 million in the comparable period a year ago.
- Gross profit for the third quarter of 2014 was US$ 91.2 million, or 31.0% of sales.
Comments
Commenting on the results, Chart’s President and CEO, Sam Thomas, said: "Strength in North American industrial gas demand improved results in both packaged and bulk applications during the quarter. The ethane cracker award we announced today, which is included in third quarter orders and backlog, is an indicator of rising interest in gas processing and petrochemical applications as US oil production delivers more natural gas liquids into the market.
“In addition, as evidenced by the LNG liquefaction orders previously announced, there is growing interest in LNG as a fuel for high-horsepower applications in such industries as rail, mining, marine, and oil and gas. This supports the long-term positive outlook for natural gas as a diesel replacement.
"At the same time, our most recent results speak to the current challenges we are managing in our […] China LNG businesses. […] Chinese regulatory and customer delays impacted our China LNG business. As we face these near-term headwinds, we remain focused on lean initiatives and cost reductions while we continue to pursue future growth opportunities."
Segments
Energy and chemicals
Energy and Chemicals (E&C) segment sales increased 23% to US$ 98.8 million for third quarter 2014. Additional project volume associated with small to mid-scale LNG liquefaction and petrochemical applications as well as project change orders led the improvement.
Distribution and storage
Distribution and Storage (D&S) segment sales declined 8% to US$ 140.2 million for the third quarter of 2014. Sales growth in North America and Europe were offset by lower LNG sales in China due to continued regulatory and customer delays.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/30102014/chart-reports-q3-2014-results-1701/
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