Chart turns to profit as LNG orders rise
US LNG engineer, Chart Industries reported a net income of $2.8 million for the second quarter in 2017, compared to a net loss of $2.9 million during the previous quarter.
However, the company’s second quarter in 2016 saw it report a net income of $21.2 million as it included several short lead-time replacement equipment sales and contract expiration fees related to projects in the energy & chemicals segment.
Sales for the second quarter of 2017 increased to $238.2 million from $204.1 million in the first quarter of the year.
Chart’s backlog increased to $367.2 million from $348.6 million at the end of the first quarter as orders in the second quarter hit $252.6 million.
Energy & chemicals segment saw a 70 percent rise in orders compared to the first quarter, mostly driven by natural gas demand in both petrochemical and LNG export projects.
Distribution & storage orders increased 12 percent over the first quarter of 2017, driven by strength in Asia LNG applications for on-site power generation and LNG distribution, as well as the U.S. packaged gas for use in the industrial gas, medical supply, LNG vehicle tank and beverage CO2 applications.
According to the company’s quarterly report, although the LNG activity for fuel applications continues to be moderated by low oil prices, FEED and engineering activities are active.
For the D&S sector, orders for packaged gas and LNG vehicle tanks drove the increases in sales.