Flowserve to Supply Dry Gas Seals for Groundbreaking Carbon Capture Initiative

DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) (“Flowserve” or the “Company”), a leading provider of flow control products and services for the global infrastructure markets, has been awarded a contract to supply Dry Gas Seals and Dry Gas Seal Systems to support a groundbreaking initiative for Abu Dhabi National Oil Company (“ADNOC”), the state-owned oil and gas company of the United Arab Emirates. The initiative will be accomplished through Flowserve’s collaboration with Celeros Flow Technology (“Celeros”), a major force in the flow control technology space providing solutions that deliver outstanding performance while minimizing environmental impacts. In 2023, ADNOC announced the development of one of the largest carbon capture projects in the Middle East and North Africa region that will enable the capture and storage of 1.5 million tons of carbon dioxide (CO₂) annually, which is the equivalent to the emission of more than 326,000 vehicles. The project is a part of ADNOC’s wider decarbonization strategy and involves the installation of two high-pressure injection packages in ADNOC’s Habshan gas plant. Flowserve will provide Dry Gas Seals and Dry Gas Seal Systems that will be integrated into the high-pressure injection packages supplied by Celeros. This will pioneer the first-ever continuous supercritical CO₂ (sCO₂) pump injection services for enhanced oil recovery in the market. “Undertaking a project like this requires ingenuity and close collaboration to navigate complex technical challenges and ensure this system will be efficient, functional and reliable,” said Lamar Duhon, President, Flowserve Pumps Division. “We are thrilled that through our team’s expertise, along with our joint efforts with Celeros, we have developed a revolutionary solution that exemplifies the dynamic capabilities of our sealing solutions. Guided by our 3D strategy to diversify, decarbonize and digitize, we are excited to be a part of ADNOC’s ambitious decarbonization journey, furthering both Flowserve’s and Celeros’ commitment to helping the world reduce carbon emissions." Once the initiative is fully operational, the injection packages, which feature Celeros’ advanced high-pressure BB5 pump technology, will handle the captured sCO₂ and transport it from ADNOC’s Habshan facility to its Bab Far North Field Development CO₂ Storage Hub via a dedicated pipeline. By 2030, ADNOC aims to increase its carbon capture capacity to five million tons annually. With the innovative application of pumps for sCO₂ applications, the use of Flowserve’s sealing solutions in this capacity marks a significant technological achievement in the field of Carbon Capture and Storage (CCS), signifying the company’s growing leadership in the decarbonization market as demand for innovative CCS solutions grows. To read more about Flowserve’s seals and systems that are helping customers achieve their business targets, visit: https://www.flowserve.com/en/products/products-catalog/seals/ About Flowserve: Flowserve Corporation is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company’s website at www.flowserve.com. Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; any continued volatile regional and global economic conditions resulting from the COVID-19 pandemic on our business and operations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company’s reported results prepared in accordance with GAAP.

Flowserve to Supply Dry Gas Seals for Groundbreaking Carbon Capture Initiative

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