We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Air Products (APD) Enters into $8B JV at Jazan Economic City
Read MoreHide Full Article
Air Products and Chemicals Inc. (APD - Free Report) , Saudi Aramco and ACWA Power have joined forces to form a more than $8-billion Gasification/Power joint venture (JV) at Jazan Economic City (JEC), Saudi Arabia.
The gasification assets, power block and the associated utilities will be purchased by the JV from Saudi Aramco. The assets, which are presently under construction, will be transferred to the JV once it successfully commences operations per schedule in 2019.
Moreover, the JV will own and operate the facility for a fixed monthly fee under a 25-year contract. It will produce hydrogen, power and other utilities for Saudi Aramco, which will supply feedstock to the JV. Air Products will own minimum 55% of the JV and the balance will be owned by ACWA Power and Saudi Aramco.
The JV will supply to the Saudi Aramco's Jazan Refinery and terminal at JEC. It will process medium and heavy crude oil for creating liquefied petroleum gas, benzene, asphalt, sulfur and paraxylene along with adding refining capacity of roughly 400,000 barrels per day. Per Saudi Aramco, the JV will improve the overall value of the refinery and integrated gasification combined cycle power plant. It will help in transforming the province by positioning JEC for private sector involvement and additional foreign direct investment.
Air Products’ shares have gained 7.7% in the past year compared with about 7.2% rise of the industry.
In third-quarter fiscal 2018 earnings call, Air Products raised adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings in the range of $7.40-$7.45 per share (reflecting an increase of 17-18% from the prior-year level), up from the previous range of $7.25-$7.40. The company projects adjusted earnings in the band of $1.95-$2.00 for the fiscal fourth quarter, up 11-14% year over year. It also expects capital expenditure of $1.8-$2 billion for fiscal 2018.
Air Products’ strong balance sheet and cash flows will allow it to make strong investments over the next few years. The company has a capacity to deploy at least $15 billion in high-return investments over the next five years, which will boost shareholders’ value. In addition, strategic investments in high-return projects, new business deals and acquisitions are expected to drive its results in fiscal 2018.
Air Products and Chemicals, Inc. Price and Consensus
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have returned 37.2% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 75.1% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.4% in a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Air Products (APD) Enters into $8B JV at Jazan Economic City
Air Products and Chemicals Inc. (APD - Free Report) , Saudi Aramco and ACWA Power have joined forces to form a more than $8-billion Gasification/Power joint venture (JV) at Jazan Economic City (JEC), Saudi Arabia.
The gasification assets, power block and the associated utilities will be purchased by the JV from Saudi Aramco. The assets, which are presently under construction, will be transferred to the JV once it successfully commences operations per schedule in 2019.
Moreover, the JV will own and operate the facility for a fixed monthly fee under a 25-year contract. It will produce hydrogen, power and other utilities for Saudi Aramco, which will supply feedstock to the JV. Air Products will own minimum 55% of the JV and the balance will be owned by ACWA Power and Saudi Aramco.
The JV will supply to the Saudi Aramco's Jazan Refinery and terminal at JEC. It will process medium and heavy crude oil for creating liquefied petroleum gas, benzene, asphalt, sulfur and paraxylene along with adding refining capacity of roughly 400,000 barrels per day. Per Saudi Aramco, the JV will improve the overall value of the refinery and integrated gasification combined cycle power plant. It will help in transforming the province by positioning JEC for private sector involvement and additional foreign direct investment.
Air Products’ shares have gained 7.7% in the past year compared with about 7.2% rise of the industry.
In third-quarter fiscal 2018 earnings call, Air Products raised adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings in the range of $7.40-$7.45 per share (reflecting an increase of 17-18% from the prior-year level), up from the previous range of $7.25-$7.40. The company projects adjusted earnings in the band of $1.95-$2.00 for the fiscal fourth quarter, up 11-14% year over year. It also expects capital expenditure of $1.8-$2 billion for fiscal 2018.
Air Products’ strong balance sheet and cash flows will allow it to make strong investments over the next few years. The company has a capacity to deploy at least $15 billion in high-return investments over the next five years, which will boost shareholders’ value. In addition, strategic investments in high-return projects, new business deals and acquisitions are expected to drive its results in fiscal 2018.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote
Zacks Rank & Other Key Picks
Air Products currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the basic materials space are KMG Chemicals, Inc , Ingevity Corporation (NGVT - Free Report) and Celanese Corporation (CE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KMG Chemicals has an expected long-term earnings growth rate of 28.5%. Its shares have returned 37.2% in a year.
Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 75.1% in a year.
Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 19.4% in a year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>