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Air Products To Set Up Gas Supply Unit At Huntsman Site

Published 04/03/2018, 10:00 PM
Updated 07/09/2023, 06:31 AM
Air Products and Chemicals Inc.’s (NYSE:APD) and Huntsman Corporation (NYSE:HUN) gathered for a groundbreaking ceremony at Geismar, LA where the former will set up a new steam methane reformer and cold box.
Under a long-term agreement, this facility will be built, owned and operated by Air Products. The facility will produce industrial gases including carbon monoxide (CO), hydrogen and steam to be supplied to Huntsman's neighboring Geismar operations. It is expected to come online in early 2020.
Air Products have been supplying industrial gases to Huntsman and with this move, the company will expand its support to the company at Geismar.
The new facility will produce around 6.5 million standard cubic feet per day (MMSCFD) of CO, 50 MMSCFD of hydrogen, and up to 50,000 pounds per hour of steam. The facility can also expand its CO capacity in the future to support additional growth.
Air Products’ shares have moved up 17.8% over a year, outperforming the industry’s 6.5% gain.
For fiscal 2018, Air Products 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 to $1.70 per share. Also, it projects capital expenditure of $1.2-$1.4 billion for the current year.

Air Products and Chemicals, Inc. Price and Consensus
Air Products currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are LyondellBasell Industries N.V. (NYSE:LYB) and Kronos Worldwide Inc. (NYSE:KRO) , both sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LyondellBasell has an expected long-term earnings growth rate of 9%. The company’s shares have moved up 14.8% in a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained 35.7% over a year.
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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

LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report

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