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Honeywell's UOP Technologies to be Used in New Refinery Build

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Honeywell International Inc.(HON - Free Report) recently announced that Jizzakh Petroleum JV LLC will be using its state-of-the-art UOP technologies for building a new refinery in the Jizzakh region of Eastern Uzbekistan. The refinery will possess the potential of processing about 5 million tons of crude oil to produce diesel, clean-burning gasoline and jet fuel, and will likely aid in sufficing the rising energy demand in Uzbekistan.

Jizzakh Petroleum is a joint venture of Gas Project Development Central Asia and JSC Uzbekneftegaz. Gas Project Development Central Asia is a subsidiary concern of Gazprom International, while JSC Uzbekneftegaz is a state-owned company in Uzbekistan.

Honeywell UOP is a division of Honeywell's Performance Materials and Technologies strategic business group which also comprises Honeywell Process Solutions. In sync with the aforementioned deal, Honeywell UOP will also provide preliminary engineering design and licensing services to Jizzakh Petroleum for its Unicracking, Distillate Unionfining, CCR Platforming, Merox and Par-Isom services. On completion, the refinery will produce around 3.7 million tons of Euro V-quality motor fuels, 700,000 tons aviation fuel and around 500,000 tons of other products like bitumen and LPG, on an annualized basis.

Honeywell secured the above contract on grounds of the reputed technological expertise and experience to work in the Central Asian region. On Jul 30, the company stated that Fuji Oil Co., Ltd. will be using its premium Honeywell UOP's latest R-364 Platforming catalyst for producing more aromatics. This will be required for the chemical production at its Fuji Oil’s Sodegaura Refinery, in Japan. On the same day, Honeywell stated that Gulf Air will use its GoDirect Flight Efficiency analytics software, for slashing fuel costs across its Boeing and Airbus fleet.

Over the past three months, Honeywell’s shares have rallied 11.7%, outperforming 4.3% growth recorded by the industry.

This Zacks Rank #2 (Buy) stock is currently poised to grow on the back of an aggressive capital-deployment strategy, non-imitable technological proficiency and increased free cash flow generation.

Other Stocks to Consider

Some other top-ranked stocks in the same space are listed below:

Hitachi Ltd. (HTHIY - Free Report) sports a Zacks Rank of 1 (Strong Buy). The company’s earnings per share (EPS) are predicted to be up 13% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carlisle Companies Incorporated (CSL - Free Report) carries a Zacks Rank of 2. The company’s EPS will likely rise 15% over the next three to five years.

Crane Company (CR - Free Report) also has a Zacks Rank of 2. The company’s EPS is estimated to be up 9.6% during the same time frame.

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