Chart Industries Clinches IPSMR & Liquefaction Equipment Order

Chart Industries, Inc. GTLS recently secured a contract from Exxon Mobil Corporation XOM to provide its IPSMR (Integrated Pre-Cooled Single Mixed Refrigerant) liquefaction technology and proprietary equipment. GTLS' advanced liquefaction technology will be used for the Rovuma LNG (liquefied natural gas) project on the Afungi peninsula in Mozambique.

The Rovuma LNG Project is operated by Mozambique Rovuma Venture ("MRV"), a joint venture between ExxonMobil, Eni and China National Petroleum Corporation ("CNPC"). MRV owns a 70% interest in Area 4 concession of the Rovuma Basin while the remaining stake is held by ENH (10%), Galp (10%) and KOGAS (10%).

The Rovuma LNG project will be responsible for producing, liquefying and selling natural gas from reservoirs of the Area 4 block of the offshore Rovuma Basin. The project will carry a total LNG capacity of 18 million tons per annum (MTA), consisting of 12 modules with a 1.5 MTA capacity each.

Chart Industries' IPSMR technology helps to enhance efficiency and performance in liquefaction systems. Its modular design facilitates customization, thereby improving adaptability to various site conditions and gas turbine power specifications. It will help the Rovuma LNG Project to optimize resource utilization, reduce operational costs and minimize greenhouse gas emissions.

Other Notable Deals

In May 2024, Chart Industries secured an order from Repsol to provide its advanced Howden hydrogen compression solutions for the expansion project of Repsol's Sines industrial complex in Portugal.

Also, in March 2024, the company secured an order from Element Resources for its California-based green hydrogen production facility, Lancaster Clean Energy Center. Per the deal, Chart Industries will supply hydrogen liquefaction systems, liquid hydrogen storage tanks, trailer loadout bays, transport, ISO containers and hydrogen compression for storage, distribution and heavy-duty fueling to the facility.

Price Performance of GTLS Stock

Image Source: Zacks Investment Research

In the past three months, the Zacks Rank #5 (Strong Sell) company's shares have lost 11.1% against the industry's 10.4% growth. It has been witnessing lower orders in the Heat Transfer Systems unit, which declined 9.4% year over year in second-quarter 2024. Headwinds from supply-chain constraints and increasing raw materials costs also remain concerning. GTLS anticipates generating sales in the range of $4.45-$4.60 billion in 2024, lower than $4.7-$5.0 billion projected earlier.

The Zacks Consensus Estimate for earnings is pegged at $10.46 per share for 2024, indicating a decrease of 4% from the 60-day-ago figure.

Stocks to Consider

Some better-ranked companies from the same space are discussed below.

Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy).

GHM delivered a trailing four-quarter average earnings surprise of 133.3%. In the past 60 days, the Zacks Consensus Estimate for Graham's fiscal 2025 earnings has increased 17.3%.

Crane Company CR presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the Zacks Consensus Estimate for CR's 2024 earnings has increased 0.6%.

Parker-Hannifin Corporation PH currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the consensus estimate for Parker-Hannifin's fiscal 2025 earnings has increased 1.4%.

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