Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Air Products (APD) Inks Deal With Bharat Petroleum In India

ByZacks Investment Research
Published 01/30/2018, 08:41 PM
Updated 07/09/2023, 06:31 AM
Air Products and Chemicals Inc. (NYSE:APD) has landed a long-term agreement with Bharat Petroleum Corporation Limited (BPCL) to build, own and operate a new syngas production facility at the BPCL Kochi Refinery in India.
Per the deal, the company will supply syngas to BPCL's new Propylene Derivatives Petrochemical Project (PDPP). This marks Air Products second supply contract with BPCL in Kochi. Air Products has been operating a world-scale industrial gas complex at the same location to support the BPCL Integrated Refinery Expansion Project (IREP).
The latest facility will utilize Air Products' proprietary cryogenic gas separation technologies to produce a hydrogen/carbon monoxide syngas, which will feed the new PDPP. Through this, BPCL will be able to serve the growing domestic market in India. In fact, the syngas unit will complement Air Products' on-going operations of industrial gas complex that now supplies hydrogen, nitrogen, oxygen and steam to BPCL's Kochi Refinery.
Air Products’ shares have moved up 21.4% in a year, underperforming the industry’s 26.4% gain.
In first-quarter fiscal 2018, the company reported adjusted earnings of $1.79 per share, up 22% from the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.66. Also, revenues were $2,216.6 million, up around 18% year over year. The figure outpaced the consensus mark of $2,159.2 million.
For fiscal 2018, the company anticipates adjusted earnings in the range of $7.15-$7.35 per share, up 13-16% from the prior year. The guidance includes an expected benefit of 20-25 cents per share from the U.S. Tax Cuts and Jobs Act. For the fiscal second quarter, Air Products expects the same in the band of $1.65-$1.70 per share. Also, it projects capital expenditure of $1.2-$1.4 billion for the current year.
Moreover, Air Products has built a strong project backlog. These projects are anticipated to be accretive to earnings and cash flow over the next few years. In addition, strategic investments in high-return projects, new business deals and acquisitions are expected to drive results in fiscal 2018. The company also remains on track with delivering on cost-reduction programs, which is likely to support margins.
Air Products and Chemicals, Inc. Price and Consensus

Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote

Zacks Rank & Stocks to Consider

Air Products carries a Zacks Rank #2 (Buy).

Some other stocks worth considering from the chemical space are Kronos Worldwide Inc. (NYSE:KRO) , Huntsman Corporation (NYSE:HUN) and BASF SE (OTC:BASFY) .

Kronos has an expected long-term earnings growth of 5% and a Zacks Rank #1 (Strong Buy). Its shares have skyrocketed 107.9% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman has an expected long-term earnings growth of 8% and a Zacks Rank #1. Its shares have rallied 68% in a year.

BASF has an expected long-term earnings growth of 8.7% and a Zacks Rank #2. Its shares have gained 21.9% over a year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



BASF SE (BASFY): Free Stock Analysis Report

Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report

Kronos Worldwide Inc (KRO): Free Stock Analysis Report

Huntsman Corporation (HUN): Free Stock Analysis Report

Original post

Zacks Investment Research
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.