Burckhardt reports strong earnings in first half of ‘24

LNG projects one key segment

Burckhardt Compression reported strong financial results for the first half of fiscal year 2024 (H1 FY24), fueled by robust demand across the energy and industrial sectors. The Swiss company demonstrated impressive revenue growth and maintained solid profitability, positioning itself for continued success in a dynamic market.

For the first six months of fiscal year 2024, Burckhardt Compression recorded a 12% year-over-year increase in revenue, reaching CHF 507.1 million, up from CHF 453.4 million in H1 FY23. The growth was largely attributed to higher sales in both its core compressor systems and service business segments. The company’s strong performance reflects its ability to capitalize on the increasing global demand for energy infrastructure, including natural gas, petrochemicals, and industrial applications.

Burckhardt Compression said it delivered strong growth in order intake, sales, and operating income in the first half of fiscal year 2024. (Image: Burckhardt Compression)

In terms of profitability, the company saw a healthy increase in operating profit (EBIT), which rose by 8% to CHF 70.4 million compared to CHF 65.2 million in the prior-year period. This was despite challenges in the broader global supply chain and inflationary pressures affecting costs. Burckhardt Compression’s continued focus on operational efficiency and its ability to secure high-margin projects helped offset these challenges and improve its profit margins.

Burckhardt Compression’s success in the first half of FY24 was underpinned by strong order intake across key regions, particularly in Europe, the Middle East, and Asia. Demand for its compressor solutions in the natural gas and energy sectors remained robust, driven by the global transition to cleaner energy sources and heightened investments in LNG infrastructure. The company also benefited from increased demand in industrial markets such as chemicals and petrochemicals, where Burckhardt’s compressors are essential for high-pressure gas transport and industrial processing.

The Middle East and Asia Pacific regions saw significant order activity, with major projects in the liquefied natural gas (LNG) and oil & gas sectors, particularly in regions like Qatar, Saudi Arabia, and China. These markets remain critical for Burckhardt’s growth as countries focus on building up their energy infrastructure.

One of the standout features of the company’s earnings was the growth in its service business, which saw a 15% increase in revenue. This reflects the ongoing trend of customers seeking long-term, high-quality maintenance and support services for their compressor systems. As industrial operators continue to extend the operational lives of their existing equipment, Burckhardt’s service offerings, including maintenance contracts, upgrades, and spare parts, have been in high demand.

The company’s proactive approach to service, combined with its global network of service centers, has helped it build long-lasting relationships with customers across different industries. This segment continues to be a key pillar for Burckhardt Compression’s profitability, contributing significantly to its bottom line.

Looking forward, Burckhardt Compression remains optimistic about the second half of fiscal 2024 and beyond. Despite facing challenges such as material cost inflation and geopolitical uncertainties, the company is confident in its ability to sustain its growth trajectory. CEO David M. Smith highlighted the firm’s strategic focus on expanding its footprint in high-growth markets, particularly in Asia and the Middle East, and its commitment to innovation in energy-efficient compressor technologies.

Smith also pointed to the growing trend toward sustainability and the decarbonization of the energy sector, which presents new opportunities for the company. Burckhardt Compression is working on advanced compressor solutions for hydrogen applications and carbon capture technologies, positioning itself to benefit from the global push toward greener energy solutions.

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Ollie Hodges Publisher Tel: +44 (0)1892 786253 E-mail: [email protected]
Lewis Tyler
Lewis Tyler Editor Tel: 44 (0)1892 786285 E-mail: [email protected]