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Air Products & Chemicals Inc. Message Board

  • rajoilprasad rajoilprasad Nov 8, 2012 1:31 PM Flag

    does apd benefit from low nat gas price

    being a chemical company i would assume they use lots of nat gas; does anybody have an idea how much savings they are having due to low nat gas price?

    Sentiment: Buy

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    • I wouldn't make the mistake of thinking about APD as a "chemical company". It's often placed in the category of basic materials, a much better classification. Dow is most certainly a chemical company, DuPont is (although less than it once was), and BASF goes so far as to bill themselves as "The" Chemical Company. APD sold off the vast majority of their "chemical" businesses..... keeping the word in their name seems a bit of a confusing misnomer now.
      What APD uses alot of is electricity, a fraction of which is generated from natural gas. If they're "saving" from lower gas costs it doesn't seem to be showing up in their margins and on the bottom line. Why that is is a complicated story.

 
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