Air Products (APD) Selected to Enhance Qatargas' LNG Production
Air Products and Chemicals, Inc. APD has been chosen by Qatargas to supply its AP-X LNG Process technology and equipment for the North Field South (NFS) Project in Ras Laffan, Qatar. This involves the supply of two new LNG process trains that will contribute to the existing four trains for the North Field East (NFE) LNG project.
The AP-X liquefaction technology provided by Air Products is known for its efficiency and capability to facilitate higher LNG production. With the addition of these two new LNG process trains, each with a production capacity of eight million tons per annum, the overall production capacity of the NFS Project will be significantly enhanced.
Air Products has been a significant contributor to the development of Qatar's LNG industry in Ras Laffan. It has supplied crucial equipment and technology for each of Qatar's existing LNG trains. Starting from the initial units that began production in 1996, which utilized Air Products' AP-C3MR LNG Process technology, the company has been playing a key role in the expansion and advancement of Qatar's LNG facilities. The introduction of six AP-X LNG Process trains between 2009 and 2011 further showcased Air Products' expertise in LNG technology.
Air Products will provide Qatargas with main cryogenic heat exchangers, subcooling heat exchangers, Rotoflow turbomachinery companders, and nitrogen economizer cold boxes. The engineering and design for the project will be carried out at Air Products' global corporate headquarters in Allentown, PA. The main cryogenic heat exchangers and subcooling heat exchangers will be manufactured at Air Products' LNG equipment manufacturing facility on the west coast of Florida.
Air Products has gained 19% in the past year, compared with the industry's 2.5% rise in the same period.
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Air Products established its Port Manatee facility in 2014 to cater to the growing LNG industry, and it underwent a 60% expansion in 2019. In 2018, the company dedicated a new LNG equipment test facility to enhance equipment reliability and yield while enabling the design of new equipment.
Air Products' proprietary LNG process technology and equipment play a crucial role in meeting global energy demands and the growing interest in clean energy. Its technology effectively processes and cryogenically liquefies natural gas for various consumer and industrial applications. With more than 50 years of experience, Air Products has been manufacturing LNG heat exchangers that are currently operational in more than 100 LNG trains across 20 countries worldwide.
Air Products expects full-year fiscal 2023 adjusted earnings per share in the range of $11.30-$11.50, indicating 10-12% year-over-year growth. For the third quarter of fiscal 2023, the company expects adjusted earnings per share in the range of $2.85-$2.95, suggesting a rise of 10-14% from the year-ago quarter reported figure.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Key Picks
The company currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Franco-Nevada Corp FNV, carrying a Zacks Rank #1 (Strong Buy), and Koppers Holding Inc. KOP and Innospec Inc. IOSP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Franco-Nevada’s current-year earnings has been revised 3.4% upward in the past 60 days. It delivered a trailing four-quarter earnings surprise of roughly 2.8%, on average. Shares of FNV have gained 4.6% in a year.
The Zacks Consensus Estimate for Koppers’ current-year earnings is currently pegged at $4.40, implying year-over-year growth of 6.3%. It delivered a trailing four-quarter earnings surprise of roughly 13.64%, on average. Shares of KOP have gained 34.6% in a year.
The Zacks Consensus Estimate for Innospec’s current-year earnings has been revised 3.1% upward in the past 60 days. IOSP beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 11.9%. The company’s shares have gained 5.8% in the past year.
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