Kewaunee Scientific Corporation Announces Continued Backlog Growth with Dangote Refinery Contract

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Mar 09, 2022, 18:40 ET

STATESVILLE, N.C., March 9, 2022 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU), a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, today announces that the Company's Indian subsidiary has been awarded a $17.3 million contract for laboratory furniture and equipment, by the Dangote Oil Refinery Company Limited (hereinafter "Dangote Oil"), located in Lagos, Nigeria (https://www.dangote.com//).

The Dangote Oil Refinery is a 650,000 barrels per day integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa's largest oil refinery and the world's largest single-train facility when completed. The refinery is intended to meet 100% of the Nigerian requirement for all refined products and have a surplus for export. Dangote Petroleum Refinery is a multi-billion-dollar project that Dangote Oil believes will create a market for $11 Billion per year of Nigerian crude oil.

As mentioned in Kewaunee's third quarter earnings release, the Company's order backlog was $138.1 million on January 31, 2022, increasing from $103.0 million on January 31, 2021, and $114.5 million on April 30, 2021. The Dangote Oil award was not included in these reported amounts and will be reflected in the Company's order backlog when it reports earnings for the fourth quarter of the Company's 2022 fiscal year. Kewaunee expects that the inclusion of this award will result in the Company reporting another record order backlog. The Dangote Oil project will be reported within the Company's International Segment and is expected to be delivered over the next eighteen months.

"The African market has always been a market that we expected to begin generating laboratory opportunities as the continent continues to develop and invest in infrastructure requiring these types of spaces," said Mr. B. Sathya Murthy, Managing Director & Vice President – International Operations, Kewaunee Scientific Corporation. "The Kewaunee International team possesses market leading design, manufacturing, and installation capabilities which make possible the delivery of large, complex projects like Dangote Oil on a turnkey basis. We are excited for this opportunity to showcase Kewaunee's capabilities on such a high-profile petroleum project at Africa's largest oil refinery facility."

"I am extremely proud of our international team and their relentless focus on serving our customers, regardless of the geographic market," said Thomas D. Hull III, President and Chief Executive Officer of Kewaunee Scientific Corporation. "Kewaunee brings over one hundred years of experience in designing, manufacturing, and installing the highest quality laboratory furniture and equipment for world class environments, like the Dangote Oil Refinery. Kewaunee's future is bright and the demand for our products continues to grow, as evidenced by this announcement and other recently reported significant awards."

About Kewaunee Scientific

Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. The Company's products include steel, wood, and laminate casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks.

The Company's corporate headquarters are located in Statesville, North Carolina. Sales offices are located in the United States, India, Saudi Arabia, and Singapore. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local Asian and African markets. Kewaunee Scientific's website is located at https://www.kewaunee.com.

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward- looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive and general economic conditions and the ongoing impact of the COVID-19 pandemic, including disruptions from government mandates, both domestically and internationally; changes in customer demands; technological changes in our operations or in our industry; dependence on customers' required delivery schedules; risks related to fluctuations in the Company's operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; and acts of terrorism, war, governmental action, natural disasters and other Force Majeure events; and the ultimate impact on the Company of the cyber attack suffered on November 5, 2021. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such a difference are described under the caption "Risk Factors," in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 30, 2020, which you should review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. These reports are available on our investor relations website at www.kewaunee.com and on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.