Orders for the quarter totalled $262.7m, resulting in a sequential increase of 7.4% over the second quarter 2020. Backlog of $684.9m also included record in both the Distribution & Storage Eastern Hemisphere and Distribution & Storage Western Hemisphere.
Looking back at the month, Chart said it has booked orders with 147 new customers and signed ten new long agreements including repair and service, hydrogen and LNG fuelling stations.
Hydrogen was a big focus for Chart in the month of October, as it completed the acquisition of Worthington Industries’ cryogenic and hydrogen trailer business and also invested in French hydrogen production company McPhy.
Read more: Chart forms strategic partnership with McPhy
Reflecting on the activities, Chart said that the addition of the trailer business to Chart’s hydrogen equipment and solution offering expands our mobile equipment to larger sized transports and brings another location already certified by significant hydrogen customers.
“Within our first week of ownership, we have received order commitments of $6.4m and $2.4m for hydrogen trailers from two different customers,” the company said in a statement.
As part of another hydrogen-focused movement, Chart also today confirmed its participation in the Department of Energy’s (DOE) Demonstration and Framework for H2@Scale in Texas and Beyond project.
Read more: Chart to participate in H2@Scale project
“Through these strategic activities, in particular the divestiture, we have been able to prioritize debt pay down but also continue to invest in the business,” Chart said.
Chart said that it is seeing continued strengthening demand across the business with the exception of its Energy & Chemicals FinFans segment, where third quarter orders were down $28.9m compared to the third quarter of 2019
Water treatment contributed to third quarter 2020 D&S specialty product orders of $55.7m, an increase of 30.5% over the third quarter of 2019. In addition to record water treatment orders, Chart also had a 64% increase in hydrogen orders and a 38% increase in HLNG vehicle tanks orders.
Commenting on the results, Jill Evanko, CEO and President and Chart, said, “The strength of our order activity in the third quarter 2020, including multiple records as well as the very strong start to October orders, even within all industrial gas customers fully back in the field due to continued Covid-19 restrictions, reflects the broad and diverse end markets that our unique product offering serves.”
“Coupling that with our recent steps to expand our hydrogen product offering, additional capacity to be as close to our customers as possible, and expanded long-term agreements sets the stage for strong 2021 results.”
Full year 2020 sales are expected to be approximately $1.18bn , inclusive of $23m of Venture Global’s Calcasieu Pass revenue in the fourth quarter of 2021.
Chart anticipates full year diluted adjusted earnings per share to be approximately $2.25 on 35.3 million weighted average shares outstanding.
“Our assumed effective tax rate is 19% for the full year 2020. We continue to anticipate capex spend will be in the $30m to $35m range. Year-to-date capital expenditures through September 30, 2020 are $26.9m,” the company said.
Full year 2021 sales are expected to be approximately $1.25bn to $1.325bn, inclusive of $23m of Venture Global’s Calcasieu Pass revenue in the first quarter of 2021.
No additional Big LNG revenue included in the company’s outlook.
“As we have indicated previously, there are many moving pieces that contribute to a range, and in an effort to avoid simply taking the midpoint, our approximate revenue outlook for 2021 is $1.28bn,” Chart said.
“We anticipate full year diluted adjusted earnings per share to be approximately $3.00 to $3.40 on 35.3 million weighted average shares outstanding, up from our previous estimate of $2.90 to $3.25 per share. Our assumed effective tax rate is 18% for the full year 2021. We expect capital expenditure spend to be in the $30m to $35m range.”