One order is for an upgrade to an existing Graham ejector system at a US refinery that is being reengineered to expand the refiner’s capability to process a wider variety of crude feedstock. The order is expected to ship in the second quarter of Graham’s fiscal year 2011, which begins on April 1, 2010.
The second order is for custom-engineered steam surface condensers to be installed at an oil refinery currently under construction in the Middle East that is Graham’s third order related to this project. The two previous orders are currently in backlog. The shipment of the condensers is scheduled for the fourth quarter of fiscal year 2011.
With this most-recent order, Graham has now received approximately $23m in bookings from refinery projects that are currently moving forward in the region, although the company does not expect that the additional orders will be released for the major refinery projects in that region for the next nine to 18 months.
Graham’s total order activity for the third quarter of fiscal year 2010, which ended December 31, 2009, was approximately $51.6m. Such amount represents orders received from a variety of markets, including refining, chemical processing, power generation and fertilizer for projects in China, Indonesia, Thailand, India, Mexico, Saudi Arabia and the US.
Graham continues to expect that revenue for fiscal year 2010, which ends March 31, 2010, will be in the range of $60m to $65m and gross margin will be in the 33% to 35% range.
