DALLAS - Flowserve Corporation (NYSE: NYSE:FLS), a global provider of flow control products and services, announced the acquisition of intellectual property and in-process research and development from NexGen Cryogenic Solutions, Inc., an Arizona-based engineering firm specializing in LNG pumps and turbines. This strategic move, completed in the third quarter of 2024, aims to enhance Flowserve's LNG product portfolio and support its growth strategy focused on diversification, decarbonization, and digitization.
The acquired technology includes submerged pump technology for cryogenic Liquefied Natural Gas (OTC:LNGLF) (LNG), which is expected to augment Flowserve's existing offerings in pumps, valves, and mechanical seals. This addition is seen as a significant step in strengthening the company's decarbonization solutions throughout the LNG value chain.
Flowserve's President and CEO, Scott Rowe, expressed enthusiasm for the integration of the new technology with Flowserve's state-of-the-art LNG pump facility and its network of over 150 quick response centers, which he believes will benefit the commercialization of this offering to customers.
Dennis Chalmers, President and CEO of NexGen Cryo, also commented on the acquisition, highlighting the potential of the technology to deliver improved efficiency, reliability, and reduced operating expenses to LNG customers worldwide.
Financially, the technology acquisition is expected to have a short-term impact, with a projected $0.05 reduction in Flowserve's adjusted earnings per share for the 2024 third quarter. The technology is now part of Flowserve's Pumps Division, marking a strategic expansion of its capabilities in the LNG market.
Flowserve operates in over 50 countries and is recognized for its engineered and industrial pumps, seals, valves, and related services. The company's commitment to the LNG sector aligns with the growing global focus on energy transition and the role of LNG as a resilient energy source.
This news is based on a press release statement and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations. Flowserve has not provided specific future financial guidance or projections beyond the immediate impact on its third quarter earnings.
InvestingPro Insights
Flowserve Corporation's strategic acquisition of NexGen Cryogenic Solutions' intellectual property reflects its commitment to innovation and growth within the LNG sector. The company's financial health and market performance provide additional context to this move. Here are some key metrics and tips from InvestingPro:
InvestingPro Data:
- Market Capitalization: $6.69 billion USD, indicating a significant presence in the industry.
- P/E Ratio: 28.65, suggesting that investors are expecting higher earnings in the future.
- Revenue Growth (last twelve months as of Q1 2024): 17.31%, showing a strong upward trajectory in the company's sales.
InvestingPro Tips:
1. Flowserve has maintained dividend payments for 18 consecutive years, demonstrating a consistent return to shareholders.
2. The company's stock is trading near its 52-week high, reflecting investor confidence and a potentially bullish outlook.
For investors interested in a deeper analysis, InvestingPro offers additional tips on Flowserve Corporation, which can be found at https://www.investing.com/pro/FLS. There are 6 more InvestingPro Tips available, providing a comprehensive view of the company's financial health and stock performance. Readers looking to take advantage of these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.