Chart Industries has today (22nd July) reported its third consecutive quarter of record orders, contributing to a record backlog, orders with 133 new customers and 16 first-of-a-kind applications.
In its quarter two (Q2) 2021 results the US-based company reported orders of $447.9m for the quarter, contributing to a backlog of $1.08bn and sales of £332m, a 11.6% increase over Q1 2021.
Orders increased sequentially 7.4% when compared to Q1 2021 and 83.2% compared to Q2 2020. The company said that demand for Chart products and technologies continues to be broad based and is flowing through to sales and earnings.
Q2 results also showed record order and sales activity in EMEA and India, 60 new orders that were individually greater than $1m, record HLNG vehicle tank orders and record water treatment orders of $7.3m.
Reported gross margin as a percent of sales of 25.8% reflected one-time restructuring and start-up costs. Chart said these one-time costs were primarily related to start-up activities in its manufacturing locations where the company is added capacity, opening greenfield facilities or creating flexible manufacturing.
“We expect this broad-based demand for our molecule agnostic products and solutions to continue with both public and private sector funding and decision making moving toward practical and cleaner energy activities,” said Jill Evanko, CEO and President of Chart.
“The progress has continued this past week, with the Department of Energy’s ‘Long Duration Storage Shot’, the European Commissions’ ‘Fit of 55’ package and associated Carbon Border Adjustment Mechanism all contributing significant momentum toward the nexus of clean energy, clean water, clean food and clean industrials that we expect to explode this decade.”
Increasing full year 2021 guidance
Chart has said that its full year 2021 sales are expected to be approximately $1.3bn to $1.4bn, inclusive of $21m of Venture Global’s Calcasieu Pass revenue as well as expected 2021 revenue from the 2021 acquisitions of Cryo Technologies and L.A. Turbine and actual order activity results from the company’s inorganic minority investments.
This is an increase over the prior full year 2021 sales guidance of $1.36bn to $1.41bn, resulting from the strong first half 2021 order book, including specific hydrogen and helium liquefaction projects.
Chart said it anticipates its full year non-diluted adjusted earnings per share to be approximately $3.80 to $4.25 on 35.5 million weighted average shares outstanding, up from its previous estimate of $2.65 to $4.15 per share.
2022: Set to be a record year
“Given our record backlog as of 30th June (2021), as well as visibility to anticipated broad-based demand, we are sharing our first look for revenue for 2022,” Chart said as it looks forward to next year and what it may hold.
“Our 2022 sales outlook is expected to be in the range of $1.60bn to $1.70bn, and does not include any additional or new big LNG projects, although we bullishly expect between one and four of these big LNG projects that already have FERC approval to move to FID in the first half of 2022.”