ATLANTA - ExxonMobil (NYSE:XOM), on behalf of the Mozambique Rovuma Venture (MRV), has chosen Chart Industries (NYSE:GTLS)' IPSMR® liquefaction technology for the Rovuma LNG project in Mozambique. This project is set to produce and market natural gas from the Area 4 block in the Rovuma Basin, aiming for an annual capacity of 18 million tonnes of liquefied natural gas (LNG) with the construction of 12 modules, each with a 1.5 MTA capacity.
The decision to implement Chart's technology is anticipated to enhance the project's competitiveness, operational reliability, and reduce greenhouse gas emissions. Jill Evanko, CEO and President of Chart Industries, expressed enthusiasm about the partnership, acknowledging the efforts of ExxonMobil's engineering and project teams in advancing IPSMR® technology in the global LNG industry.
The Rovuma LNG project involves a joint venture where ExxonMobil, Eni, and CNPC hold a 70% interest. The remaining participants include ENH with 10%, KOGAS with 10%, and Galp with 10%. The project is part of ExxonMobil's broader strategy to manage greenhouse gas emissions, with the company aiming to achieve net-zero Scope 1 and 2 emissions from its operated assets by 2050.
Chart Industries is a global leader in the design and manufacturing of technologies and equipment for various clean energy applications, including LNG, hydrogen, and CO2 capture. The company emphasizes its commitment to environmental, social, and corporate governance (ESG) principles.
This strategic partnership aligns with ExxonMobil's 2030 emission-reduction plans, which include significant reductions in greenhouse gas intensity across its operations. The integration of Chart's IPSMR® technology into the Rovuma LNG project represents a step forward in ExxonMobil's commitment to providing energy solutions with lower emissions.
The information for this article is based on a press release statement.
In other recent news, Chart Industries has seen a series of adjustments in its financial outlook by various analyst firms. Wells Fargo trimmed its price target for Chart Industries to $146 from $151, maintaining an Overweight rating. The revision was due to tempered revenue growth expectations for the third quarter of 2024, but the firm anticipates a stronger Q4. Chart Industries' earnings per share (EPS) forecasts for 2024 and 2025 remain only 3% below consensus, according to Wells Fargo.
JPMorgan also revised its price target for Chart Industries to $145.00, citing moderated expectations for the second half of 2024. The firm expects Chart Industries' third-quarter revenue to reach $1.09 billion, lower than previous estimates. Morgan Stanley upgraded Chart Industries from Equalweight to Overweight and set a price target of $175, recognizing the company's focus on less oil-dependent sectors and its merger with Howden.
Stifel maintained a Buy rating on Chart Industries, despite a drop in guidance due to revenue recognition delays. The firm expects the commencement of the Venture Global's CP2 LNG project to enhance Chart Industries' cash flows. Simultaneously, Citi lowered its price target for Chart Industries from $210 to $190 due to backlog conversion challenges, while maintaining a Buy rating. These adjustments followed Chart Industries' second-quarter earnings, which fell short of expectations, leading to a reduction in the full-year 2024 EBITDA guidance.
InvestingPro Insights
Chart Industries' selection for the Rovuma LNG project underscores its strong position in the clean energy technology sector. According to InvestingPro data, the company has shown impressive revenue growth of 70.25% over the last twelve months as of Q2 2024, reflecting its expanding market presence in LNG and other clean energy applications.
An InvestingPro Tip indicates that Chart Industries' net income is expected to grow this year, which aligns with the potential impact of significant projects like the Rovuma LNG partnership. This growth expectation is further supported by analysts anticipating sales growth in the current year, as noted in another InvestingPro Tip.
Despite these positive indicators, investors should be aware that Chart Industries operates with a significant debt burden, according to an InvestingPro Tip. This factor may be worth considering in light of the capital-intensive nature of large-scale LNG projects.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Chart Industries, providing a comprehensive view of the company's financial health and market position.
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