Switzerland-based equipment specialist Burckhardt Compression (Burckhardt) has reported ‘significantly’ higher order intake in its 2021 financial report.

Driven by the energy transition in Asia, USA, and Europe, the company reported a consolidated order intake of CHF 976.6m (€931m), a 44.3% increase year-on-year. 

Sales at the Systems Division were ‘markedly’ higher, with an order intake for the full year reaching CHF 651.1m (€621.2), up 60.9% compared with the previous year. 

This increase is due to an exceptionally high number of large orders received for LDPE, EVA, and polysilicon applications, resulting in a total amount of around CHF 150m (€143.9m) order intake. 

The Services division also saw a significantly higher order intake and sales. Orders received rose by 19.6% to CHF 325.5m (€310m), compared to the previous year. 

This increase was boosted by a long-term marine service contract over a period of ten years in the low double-digit million range. 

Gross profit for the Group increased by 14.9% to CHF 190.8m (€181.9m), a significantly higher gross profit margin of 29.3%. 

With the gross profit in the Systems Division up 20.7% to CHF 71.3m (€67.9m), the gross margin was 19.1%, up 4.7% compared to the previous year mainly due to a favourable product mix and a higher capacity utilisation. 

The Services Division saw its gross profit growing by CHF 12.5m (€11.9m) to CHF 119.6 (€114m), resulting in a gross profit margin of 43%, unchanged from the previous year. 

Outlook 

As the energy transition continues to accelerate, Burckhardt has stated that it expects to continue to benefit from applications related to sustainable and secure energy sources. 

Based on the order intake of the past two fiscal years and on the challenges in the supply chains (exacerbated by the Covid-19 pandemic), the company expects sales to grow to between CHF 720m (€686.5m) and CHF 760m (€724.7m) at Group level for the fiscal year 2022. 

The company has stated that its operating margin is expected to be similar to the prior year due to one-off costs related to the tightening of sanctions towards Russia after the year-end closing, in addition to a change in business mix towards the Systems Business.