Linde plc (LIN - Free Report) recently commenced operations at the hydrogen and carbon monoxide unit in Clear Lake, TX. In the same state, it also started a new air separation facility in LaPorte.
These facilities are expected to supply oxygen, nitrogen and carbon monoxide to global technology and specialty materials company, Celanese Corporation (CE - Free Report) . The recent development is in line with a long-term deal struck by these two companies earlier. This strengthens the relationship between the two companies. Last year, Linde divested a 365 kilo tons per annum synthesis gas production unit to Celanese.
The facilities that started operations will enable Linde to provide hydrogen to other clients using the U.S. Gulf Coast pipeline system. The air separation facility is connected to the company’s nitrogen and oxygen pipeline network. This helps the leading global industrial gases and engineering company to provide safe and reliable gas supply to clients. The commencement of the facilities in early-July will help the company to boost profit levels in the third quarter.
Notably, the company is scheduled to release second-quarter results on Jul 30. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.65 per share, indicating a 9.8% decline from the year-ago quarter. In the past 60 days, the company has witnessed one upward movement and two downward revisions.
It earns massive profits by serving end markets like chemicals and refining, electronics, manufacturing, and primary metals. It also provides services to food and beverage, healthcare, as well as other industries. Its shares have gained 18.5% in the past three months compared with 20% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) and Centennial Resource Development, Inc. (CDEV - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ bottom line for second-quarter 2020 is expected to rise 33.3% year over year.
Centennial Resource’s second-quarter earnings estimates have improved over the past 30 days, with three upward estimate revisions and no downward movement.
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