Back to top

Image: Bigstock

Air Products to Support China's Hydrogen Fueling Station

Read MoreHide Full Article

Air Products and Chemicals, Inc. (APD - Free Report) has landed cooperation and equipment supply agreements with Beijing Sinoscience Fullcryo Technology Co., Ltd. (Fullcryo). The agreement will accelerate hydrogen infrastructure development and will support China and Fullcryo's first commercial-scale liquid hydrogen-based fueling station.

Under the equipment supply deal, the company will provide Fullcryo with two state-of-the-art integrated Smartfuel technology fueling stations for constructing the first-of-its-kind station in South China. The agreement will allow the companies to collaborate in operation, construction, maintenance and gas supply for liquid hydrogen-based fueling stations.

The station will consist of major components such as high-pressure gasifier, liquid hydrogen storage tank, gaseous storage tank, high-efficiency booster pump, dispenser, and control system.
 
Liquid hydrogen-based fueling stations, which involve fueling technology and advanced gas storage can bring additional benefits of increased throughput and reduced energy consumption. Air Products has been involved in more than 250 hydrogen fueling projects across more than 20 countries and, the company has wide range of patent portfolio with over 50 patents in hydrogen dispensing technology.

Air Products provides comprehensive solutions from hydrogen production, delivery and storage facility to fueling technology systems and associated infrastructure. With these offerings and the company’s proven safety performance and supply capabilities, Air Products strives to drive continuous revolution and commercialization of the environmental-friendly fuel for a greener planet.
 
Air Products’ shares have moved up 13.8% in a year, outperforming the industry’s 6% rise.



Air Products, in July, raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings per share in the range of $7.40 to $7.45 (a 17-18% increase from the prior year), up from its earlier view of $7.25 to $7.40 per share. The company expects adjusted earnings in the band of $1.95 to $2.00 for the fiscal fourth quarter, up 11-14% year over year.
 
Revenues from the company’s Industrial Gases America segment increased year over year in the fiscal-third quarter supported by strong hydrogen demand and favorable merchant gases volumes.
 
Air Products remains focused on growing its core industrial gases business. Moreover, the company’s strong balance sheet and cash flows will allow it to make strong investments in 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 results in fiscal 2018.

Zacks Rank and Other Stocks to Consider

Air Products currently carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the basic materials space are Huntsman Corporation (HUN - Free Report) , 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.

Huntsman has an expected long-term earnings growth rate of 8.5%. Its shares have returned 15.2% in a year.

Ingevity has an expected long-term earnings growth rate of 12%. Its shares have surged 61.4% in the past year.

Celanese has an expected long-term earnings growth rate of 10%. Its shares have gained 18.1% in the past year.

Looking for Stocks with Skyrocketing Upside?
 
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
 
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
 
See the pot trades we're targeting>>