CHATSWORTH, Calif., March 28, 2016 (GLOBE NEWSWIRE) -- Capstone Turbine Corporation (www.capstoneturbine.com) (Nasdaq:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that BPC Engineering, the company's largest Russian distributor, secured an order for a Kazakhstan pipeline project. The order, consisting of seven C30 microturbines, is the second order to be shipped to BPC Engineering since March 2015.
"This pipeline project was delayed since the beginning of 2015 and is now just starting to move forward," said Alexander Skorokhodov, BPC Engineering's Chief Executive Officer. "The project consists of seven C30s that will provide cathodic protection along the pipeline in addition to lighting and other small critical loads in Kazakhstan," added Mr. Skorokhodov.
BPC Engineering is one of Capstone's largest distribution partners, with over 1,400 microturbines in operation in Russia, Belarus, Kazakhstan and Ukraine. The company is a leading supplier of energy efficient solutions and state-of-the-art equipment for distributed power generation. The Beyneu-Shimkent pipeline project originated approximately two years ago and had been removed from Capstone's backlog last year due to the uncertainties surrounding the project timing in light of the Russian economy. Currently, the pipeline has over fifty microturbines ranging in size from C30s to C200s, powering everything from shut off valves, telecom operations, gas metering and service campuses.
"We continue to work closely with BPC and this order shows that there is still life in the global oil and gas sector," said Jim Crouse, Executive Vice President of Sales and Marketing at Capstone Turbine. "Despite geopolitical constraints, BPC continues to sell and support Capstone products and I am optimistic about BPC's strategy to grow its Capstone business this upcoming year," added Mr. Crouse.
"I am pleased to see that BPC Engineering is beginning to demonstrate signs of a potential recovery within their market by securing product orders and resuming product installations. As product shipments play a critical role in Capstone's cash planning process, BPC Engineering has agreed to pay cash prior to shipment for all future product releases from backlog, and to pay an additional 15 percent of the total value for each shipment in order to lower their past-due accounts receivable balance," said Darren Jamison, Capstone's President and Chief Executive Officer.
This press release contains "forward-looking statements," as that term is used in the federal securities laws, about the advantages of our microturbine products, the health of the oil and gas market sector, the potential for increased sales to BPC, cash payments for orders from BPC, and estimates on sales of products and product installations. 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.