24 September 2008

John Crane seals over £100 Million in potential energy contracts

John Crane today announced it has sealed over £100 million in potential and secure business for the provision of aftermarket services and ‘first fit’ products on a range of major global projects.

Two thirds of John Crane’s revenue is generated by aftermarket – maintenance and support - services, which are driven by the installation of products in the original equipment.

The potential aftermarket contracts, which have a combined value of £69.5 million, comprise:

• £9.5 million (€12 million) for services on the world’s largest Liquefied Natural Gas (LNG) project in Qatar, following completion of John Crane’s initial [€6 million] ‘first fit’ contract with GE Oil & Gas for mechanical gas seals.
• £20 million across Europe, Thailand, Korea and Australia for Performance Plus reliability improvement services
• £4.5 million for the supply of oil and water chemistry analytic services in the Middle East and North Africa awarded to its Oil Plus business
• £35.5 million in preferred supplier agreements covering the provision of mechanical seals, systems and reliability service to a number of major global oil and gas and chemical companies

John Crane, a division of the global technology business Smiths Group, has also won more than £37 million in first fit contracts in the petrochemical and oil and gas industry for the provision of:
• Seals, systems and project management for an integrated petrochemical complex and two ethylene crackers in China
• The supply of filtration systems in Japan, Central Europe and USA
• Expanded technology products including CDI artificial lift services into the upstream oil extraction industry

Paul Cox, President, John Crane said: “First fit orders for our products provide ideal opportunities for John Crane to gain value from all products in the aftermarket through our extensive global sales and service footprint.”