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Air Products JV Starts Work on Industrial Gases Hub in Jubail

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Air Products and Chemicals, Inc. APD announced that Air Products Qudra, in partnership with the Royal Commission for Jubail and Yanbu, held a ceremonial groundbreaking to start the construction of a world-class, fully-integrated industrial gases hub in the Jubail Industrial City. Notably, Air Products Qudra is a joint venture between Air Products and Qudra Energy.

Air Products Qudra’s substantial investments include the construction, ownership and operation of a world-scale steam methane reformer (SMR), hydrogen pressure swing adsorption (PSA), an air separation unit (ASU) and the installation of comprehensive pipeline networks. Notably, SMR will serve the petrochemical and refinery industries to meet the increasing demand in Saudi Arabia’s eastern region. ASU and PSAs will serve as the hub for industrial gas pipelines to be supplied to individual customer connections in the region.

Per management, the investment in Jubail showcases the full suite of Air Products’ capabilities in support of sustainable energy and chemicals production to the Kingdom of Saudi Arabia. Notably, the investment is a continuation of Air Products Qudra’s mission to bring world-class technology, leading project execution, on-site solutions, and operational leadership for large-scale environmental and energy projects across the Middle East.

The investment in Jubail also demonstrates the key strengths and capabilities that Air Products Qudra brings to support the creation of a world-leading downstream sector in Saudi Arabia.

The industrial gases hub is expected to be completed in 2023, and will reliably serve Jubail Industrial City’s continued growth and support the Kingdom of Saudi Arabia’s increasing prosperity. It will also allow Jubail to achieve higher off-gas values and launch the latest technologies for converting low-value feedstocks into high-value products.

Air Products’ shares have rallied 35.3% in the past year against the industry’s decline of 29.4%.

For fiscal 2020, the company continues to expect adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the prior-year quarter’s reported figure.

It also expects adjusted earnings of $2.10 to $2.20 per share for second-quarter fiscal 2020, up 9-15% year over year.

Air Products and Chemicals, Inc. Price and Consensus



Zacks Rank & Stocks to Consider

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. DQ, NovaGold Resources Inc. NG and Commercial Metals Company CMC.

Daqo New Energy has a projected earnings growth rate of 353.7% for 2020. The company’s shares have rallied 97.6% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NovaGold has a projected earnings growth rate of 11.1% for 2020. It currently sports a Zacks Rank #1. The company’s shares have surged 140.2% year over year.

Commercial Metals currently has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 20.7% for 2020. The company’s shares have rallied 21.9% in a year.

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