Capstone Receives Substantial Follow-On Order for Recovering Russian Market
March 05 2018 - 8:30AM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, announced today a follow-on order for
thirteen C65 microturbines to be deployed in western Russia.
Electrosystems LLC, Capstone’s distributor for the Northwest and
Central Federal Districts of Russia, secured the substantial
follow-on order.
In 2017, Electrosystems secured an initial eleven unit order for
an industrial park in western Russia for a combined heat and power
(CHP) application. As the industrial park grew, additional power
capacity was needed. Due to the demonstrated reliability, rugged
performance and low maintenance of the Capstone microturbines, the
customer decided to expand their microturbine-based power
plant.
“The Russian market represented almost $30 million in annual
revenue for Capstone back in fiscal 2012 when the Russian
government instituted regulations limiting the flaring of
associated gas and Brent crude oil prices were above $100 per
barrel,” said Darren Jamison, President and Chief Executive Officer
of Capstone. “This order is a good indicator that our efforts to
reestablish the Russian market are beginning to pay dividends and
should lead to continued year-over-year revenue growth,” added Mr.
Jamison.
The natural-gas fueled microturbines generate electricity and
thermal energy for the industrial park with the higher priced and
less reliable local utility providing back-up power to the
microturbines. With the modular building block design of the
microturbines, expanding the microturbine array is simple, saving
the customer time and money.
The Russian and Commonwealth of Independent States (CIS) markets
continue to recover from the financial crisis and the collapse of
crude oil prices, which both began in 2014. Capstone’s strategy to
overcome this challenging period in this region was to expand its
distribution network by adding new partners, like Electrosystems.
Although both the ruble and the price per barrel have begun to
recover, they are not at the same levels as before the
collapse.
“The Russian market represents a significant growth opportunity
for Capstone,” said Jim Crouse, Executive Vice President of Sales
and Marketing of Capstone. “Diversifying the distribution network
in all of the districts of Russia was a difficult change to make
but is already paying dividends and positioning us well for future
growth in Russia and the CIS states.”
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems and was the first to market commercially
viable microturbine energy products. Capstone has shipped over
9,000 Capstone Microturbine systems to customers worldwide. These
award-winning systems have logged millions of documented runtime
operating hours. Capstone is a member of the U.S.
Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2015 and ISO
14001:2015 certified company, Capstone is headquartered in
the Los Angeles area with sales and/or service centers in
the United States, Latin America, Europe, Middle East and
Asia.
Forward-Looking Statements
This press release contains "forward-looking statements," as
that term is used in the federal securities laws. Forward-looking
statements may be identified by words such as "expects,"
"objective," "intend," "targeted," "plan" and similar phrases.
These forward-looking statements are subject to numerous
assumptions, risks and uncertainties described in Capstone's
filings with the Securities and Exchange Commission that may cause
Capstone's actual results to be materially different from any
future results expressed or implied in such statements. Capstone
cautions readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Capstone undertakes no obligation, and specifically
disclaims any obligation, to release any revisions to any
forward-looking statements to reflect events or circumstances after
the date of this release or to reflect the occurrence of
unanticipated events.
"Capstone" and "Capstone Microturbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks
mentioned are the property of their respective owners.
CONTACT: |
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Capstone Turbine
Corporation |
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Investor and investment
media inquiries: |
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818-407-3628 |
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