Air Products and Chemicals Inc.’s (APD Quick QuoteAPD - Free Report) and Huntsman Corporation (HUN Quick QuoteHUN - Free Report) 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. (LYB Quick QuoteLYB - Free Report) and Kronos Worldwide Inc. (KRO Quick QuoteKRO - Free Report) , 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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