Industrial gas producer and supplier, Praxair Inc (PX - Free Report) announced to have signed a gas supply contract with North West Redwater Partnership (NWR). Financial terms of the contract were undisclosed.
As per the contract, Praxair’s Canadian subsidiary, Praxair Canada Inc. will build and operate an air separation plant near Edmonton, Alberta. The plant will have a production capacity of 2,000 tons of oxygen daily and will begin its operation in 2016. Oxygen along with nitrogen and merchant argon will be supplied to NWR’s Sturgeon Refinery.
Prior to this contract, the company’s Middle-East subsidiary, Praxair Bahrain announced commencement of operations at its first air separation plant in Bahrain and will be supplying oxygen, nitrogen and argon to United Steel Company (SULB) B.S.C. Daily production capacity of the plant is 350 tons of oxygen.
A series of plant start-ups and contract wins signify the growing preferences among customers for Praxair’s world class technology, high quality products and gas supply services. Also, its products are being increasingly used for various purposes across diverse industries, including hydrogen for refining; oxygen for healthcare; and nitrogen and carbon dioxide for oil and gas production.
Praxair is slated to release its first quarter 2013 financial results on Apr 24. The current Zacks Consensus Estimate for the first quarter 2013 is $1.38, representing a year-over-year decline of 0.1%. Estimates for 2013 and 2014 are $6.00 and $6.82, reflecting annual growth of 7.8% and 13.6%, respectively.
Praxair has a market capitalization of roughly $33 billion. The stock currently bears a Zacks Rank #3 (Hold). Other stocks to watch out for in the industry are Olin Corp. (OLN - Free Report) , Compass Minerals International Inc. (CMP - Free Report) and Eastman Chemical Co. (EMN - Free Report) ; each holds a Zacks Rank #2 (Buy).