Energy Recovery Gets Purchase Order For Maximum Of $11 Million for Middle East Gas Processing Project

Energy Recovery, Inc.

revealed the finalization of a purchase order in connection with the previously announced letter of award totaling a maximum of $11 million. The contract is to offer its IsoBoost technology for integration into a major gas processing plant to be constructed in the Middle East. Energy Recovery said that the contract is for about $7 million worth of equipment, as well as, services, with an option for $4 million more to be determined at a later date. The company added that the optional supply might not be confirmed until the latter part of the next year and the company expects part recognition of revenue from this project towards the current year end. The company's President and CEO, Joel Gay, commented, "Today, our Company has executed a deal that marks significant progress in our gas processing segment, making good on our commitment to ensure 2016 is a year of execution and delivery. A project of this size validates the IsoBoost value proposition of arbitraging wasted pressure energy, increasing plant availability and reducing the carbon footprint of what is projected to be one of the world's largest gas processing plants." He added, "The continued development of this business segment also demonstrates real progress in applying our technologies to new industries and applications, strengthening the omni-cyclical nature of our business and ultimately delivering value to all of our stakeholders." The company stated that it would supply and install several IsoBoost systems for the new-build plant, each designed with a flow capacity of about 6,000 gallons per minute. The company added that a shipment could happen as early as the second quarter of the next year. Following this, the stock advanced 4.9 percent on Monday.