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Flowserve Receives Contract in Malaysia

Zacks Equity Research

Flowserve Corporation (FLS) recently received a contract to supply tailor-made water injection and liquid transfer pumps to Sabah Shell Petroleum Company’s Malikai oilfield project. This project is based 110 kilometers (68 miles) off the coast of Sabah, Malaysia. This apart, Flowserve will also provide pumps for seawater lift, firewater, drain caisson, flare knockout drum, circulation and sump services. The financial details of the deal were not disclosed but the company has booked the order in 2013.

This contract will be included in the Flow Control Division (:FCD) of the company. The flow control products are primarily used by companies operating in the chemical, power generation, oil and gas, water management and general industries.

The scope of the order requires Flowserve to provide four highly engineered, variable speed drive barrel pumps of super duplex stainless steel construction. Further, two WIK (BB5) multistage double case diffuser pumps will supply high-pressure deoxygenated water for well injection and a pair of HSO (BB5) multistage, double case volute pumps will enable transportation of the crude from the field to the KBB processing facility. 

All the Flowserve pumps will be fixed with Flowserve seals and sealing systems to ensure complete reliability and integrity of the pumping systems.

In the fourth quarter, this segment’s reported revenues were $1,615.7 million, up 3.8% year over year. Bookings for the segment also increased 8.8% to $1661.9 million. In fiscal 2013, the segment had a backlog of $769.6 million as of Dec 31, 2013, compared with $723.9 million in fiscal 2012. The company expects to ship 87% of 2013 backlog during 2014.

Flowserve is one of the world’s leading providers of fluid motion and control products and services. Currently, Flowserve holds a Zacks Rank #3 (Hold). Better-ranked players in the same industry include Altra Holdings Inc. (AIMC), DXP Enterprises (DXPE) and Graco Inc. (GGG), all three carrying a Zacks Rank # 2 (Buy).

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