Pall Corporation (PLL) in consortium with Babcock Borsig Service (BBS), the project leader, has received a contract for hydrocarbon condensate dewatering in the Middle East. The contract is valued at €19.6 million ($26.508 million). At an Abu Dhabi Gas Industries Ltd. (GASCO) gas complex in the U.A.E, BBS/Pall consortium will carry out detailed engineering, procurement, construction and commissioning activities (EPC).
The project aims at reducing the chance of downstream deterioration at the GASCO complex near Abu Dhabi City through removal of water and contaminants from hydrocarbon condensate. Shipments and construction is scheduled to be started in March 2012, with the completion of the project together with commissioning is aimed to be done by December 2012.
Pall is expanding its presence in the developing Middle East market, with the opening its first office in the Middle East region last year and bagging this latest contract. The company is now in a position to provide strategic support and enhanced service for local customers and multinational companies through its new office.
With well laid off growth plans and increasing demand for its technologies, Pall Corporation is well positioned to derive significant benefits as the economic conditions continues to strengthen. The company enjoys above-average financial returns and reasonable growth prospects as it leverages its highly engineered technology, reliable global distribution, high share in market niches, long and close working histories with customers, few competitors and solid product quality supplemented by technical service.
However, changes in product mix and product pricing may impact the company’s operating results, particularly with the expansion of the systems business. The company experiences significantly longer sales cycles in systems business with less predictable revenue and no certainty of future revenue streams from related consumable product offerings and services.
Based in New York, Pall Corporation was incorporated in July 1946. Along with its subsidiaries, Pall Corporation is a leading supplier of filtration, separation and purification technologies, and utilizes its engineering capability and fluid management expertise.
We currently maintain our Neutral rating on Pall Corporation for the long term, with a Zacks #3 Rank (short-term Hold recommendation) over the next one-to-three months.
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