Chart Industries has today reported its second quarter 2020 results with orders totalling $267.6m, $125.1m of which were made in June, marking the highest order month of 2020 to date.
Medical oxygen-related orders, generally for use with coronavirus patients, increased 23.9% in the second quarter compared to quarter one. The company experienced peak medical oxygen demand in April, with related orders tapering to more typical levels in May and June.
Reflecting on current efforts surrounding a clean energy transition, Chart confirmed that June was a record month for HLNG vehicle tanks for over the road trucking, a significant rebound after nearly two months of customer shutdowns due to the pandemic.
The US-based company believes such increase is due to the June 2020 German Government three-year extension of the natural gas vehicle toll exemption and the corresponding expected near-team increase from its sole source customers for the application.
Reflecting on 2020’s total orders, Chart said it received orders with 128 new customers in the first quarter of 2020 and 132 in the second quarter of 2020, with 54% of the new customers being outside of North America, further demonstrating the long-term fundamental global clean energy transition.
Hydrogen also stood as a key offering for the company in the second quarter as it begun to work on projects and equipment for China, Europe, India and the US. The quarter also saw the company receive a $1.3m order for a new liquid hydrogen trailer design and another order for a liquid hydrogen and LOX pump skid for a space launch customer.
Chart said it is also working with eight different customers under non-disclosure agreements for hydrogen applications, compared to being under non-disclosure agreements at the end of the first quarter.
“The clean energy transition is well underway, kickstarted by multiple countries issuing new regulations and stimulus packages to move toward LNG, hydrogen, biogas and energy storage amongst other renewables,” said Jill Evanko, CEO and President of Chart Industries.
“We are well positioned with our existing production and engineering offerings, global geographic manufacturing locations and cost structure to be an early leader in many of these market applications.”
“LNG is certainly the most mature of the fuels in the transition, and coupling that with the accelerating hydrogen demand, we see a distinct, conscious mover toward alternative power sources globally that will contribute to our ongoing mid-single digit organic, profitable growth.”
Second quarter 2020 reported diluted earnings per share was $0.57, a sequential increase of $0.33 compared to the first quarter of 2020. When adjusted for one-time costs, EPS was $0.63.
Based on increased clarity in its markets and economy after the disruption earlier in the year from the onset of the coronavirus pandemic, Chart is reinstating guidance for 2020. Full year 2020 sales are expected to be $1.3bn to $1.4bm and increased $46m of Venture Global’s Calcasieu Pass revenue in the second half of the year.
Chart said it anticipates full year diluted adjusted earnings per share to be in the range of $3.00 to $3.50 on 35.3 million weighted average shares outstanding. Chart also said its assumed effective tax rate is 19% for the full year 2020.