Cryogenic Storage & LNG Equipment worked example

Cryogenic Project Margin with quoted price for the cryogenic project of 63 $: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop quoted price for the cryogenic project to 63 $, then walk the calculation through step by step. Calculate margin gap for a cryogenic storage, LNG equipment, or field installation project using expected revenue, required cost, and revenue basis.

The inputs for this scenario

  • Quoted price for the cryogenic project: 63 $ (the input this scenario stresses; the baseline uses 125)
  • Estimated cost to build and deliver the project: 100 $ (held at the documented default)
  • Revenue base used to express the margin: 100 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Project gross margin dollars = expected cryogenic project revenue − required project cost.
  • Cryogenic project margin works out to -37 % at these inputs, and this is the headline figure for the scenario.
  • Project gross margin dollars works out to -37 value at these inputs.
  • Expected project revenue works out to 63 value at these inputs.
  • Estimated project cost works out to 100 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where quoted price for the cryogenic project sits at 125 $ and the headline result is 25 %, this scenario comes in 248% below the baseline at -37 %.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to quoted price for the cryogenic project, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. It is a gross margin, not net: it excludes overhead, warranty reserves, and financing, so a healthy gross can still net to a loss on a long cryogenic project.

Results at a glance

  • Cryogenic project margin: -37 % (headline result)
  • Project gross margin dollars: -37 value
  • Expected project revenue: 63 value
  • Estimated project cost: 100 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Cryogenic Project Margin calculator, set quoted price for the cryogenic project to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.