Graham Corporation has announced that it has been awarded a $4.5 million ejector system contract to be installed in an oil refinery located in Rabigh, Saudi Arabia. The oil refinery in which Graham's equipment will be installed is being upgraded to produce clean transportation fuels and expand its capacity. "We were successful in winning this contract after intense international bidding, as a result of our proven capabilities to engineer and deliver equipment solutions for plants of this magnitude," comments William C. Johnson, Graham's President and CEO. "Over the last year, we have announced numerous projects located in the Middle East and continue to see significant capital spending for the addition of, or improvements to, petrochemical plants and oil refineries in this region."
In addition to enabling the refinery to produce clean fuels which meet environmental regulations, the project will improve the refinery's production capacity to 480,000 barrels per day. The refinery improvements are part of an overall plan to upgrade the facility into a world-scale integrated refining and petrochemicals complex. Graham previously announced in July 2005, that it had won a contract to supply four surface condensers for an ethylene plant located in the same complex. With this new contract, Graham will have over $8 million in equipment installed in this complex once it completes this and the July 2005 contracts.
Shipment of the ejector system is presently scheduled for the 2007 fourth fiscal quarter ending March 31, 2007. Revenue for the project will be recognized on a percentage of completion basis. Graham's previously announced fiscal year 2007 anticipated revenue of $72 million is inclusive of this contract.
