Air Products Inks Another Oxy-Fuel Contract With Techpack

For the supply of its integrated oxy-fuel combustion solution, Air Products and Chemicals, Inc. (NYSE:APD) inked a deal with Techpack Solutions.

This is the third project of Air Products, wherein it will supply solutions to Techpack to help it convert its furnace from air-fuel to oxy-fuel for enhanced sustainability and competitiveness. Notably, Air Products will supply the oxygen and combustion systems needed by Techpack at its manufacturing complex, when the project comes onstream.

The integrated solution contains Air Products' advanced oxy-fuel combustion system. Notably, the company's oxy-fuel combustion system includes Cleanfire HRi and latest Cleanfire HRx oxy-fuel burners, and an automatic flow control skid. It also includes a PRISM vacuum swing adsorption oxygen generator for supplying reliable and cost-effective on-site oxygen needed to power oxy-fuel burners for melting glass.

With improved functionality and flexibility, the patent-pending Cleanfire HRx oxy-fuel burner allows glass producers to monitor the amount and position of oxygen staging up to 95% of the combustion oxygen. This results in ultra-low emissions of nitrogen oxides (NOx), higher fuel performance, improved production, and better product quality. Notably, the latest model is anticipated to minimize NOx emissions further by 40%.

The oxy-fuel combustion technology of Air Products is proven to offer numerous benefits such as reducing more than 80% of nitrogen oxide emissions, generating 10-35% energy savings and bringing around 25% increase in productivity along with improvement in efficiency and glass quality.

Per management, the company will continue to leverage its vast expertise, advanced technology and deep local understanding to support Korean glass producers to improve their furnace efficiency to minimize environmental footprint and enhance competitiveness.

Air Products’ shares have gained 3.9% in the past year against the industry’s decline of 56.8%.

For fiscal 2020, the company expects adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the year-ago reported figure.

It also expects adjusted earnings of $2.10-$2.20 per share for second-quarter fiscal 2020, implying a 9-15% year-over-year rise.

Air Products and Chemicals, Inc. Price and Consensus

Zacks Rank & Stocks to Consider

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Franco-Nevada Corporation (TSX:FNV) , NovaGold Resources Inc. (NYSE:NG) and Barrick Gold Corporation (NYSE:GOLD) .

Franco-Nevada has a projected earnings growth rate of 24.2% for 2020. The company’s shares have rallied 43.8% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NovaGold has a projected earnings growth rate of 11.1% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have surged 83.9% in a year.

Barrick Gold currently has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 34.5% for 2020. The company’s shares have gained 18.7% in a year.

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