Air Products and Chemicals, Inc. APD announced that its new steam methane reformer (SMR) and cold box in Geismar, LA, are onstream and supplying neighboring industrial operations of Huntsman Corporation HUN.
Per the deal, Air Products builts, owns, and operates the facility in Geismar, supplying hydrogen, carbon monoxide (CO) and steam produced from it to Huntsman. Notably, Air Products' SMR is also connected to its Gulf Coast hydrogen pipeline and network system (“GCP”).
Air Products' new Geismar facility meets the desired schedule and product requirements of customers. Per the company, the new state-of-the-art facility delivers high sustainability and reliability, with increased energy efficiency and reduced emissions.
The new facility is situated on land leased from Huntsman. Notably, the facility produces 6.5 million standard cubic feet per day (“MMSCFD”) of CO, 50 MMSCFD of hydrogen and up to 50,000 pounds per hour of steam. Moreover, there is scope of expansion of the facility to increase the CO supply in the future to support additional growth.
The company’s shares have gained 8.4% in the past year against the industry’s 12.3% decline.
In April, Air Products withdrew its earnings guidance for 2020 due to the unknown duration and impacts of the coronavirus pandemic. The company also did not provide earnings guidance for the fiscal third quarter due to uncertainties. Air Products expects declines in the Americas and EMEA merchant volumes to sustain in the fiscal third quarter.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the basic materials space are AngloGold Ashanti Limited AU and Harmony Gold Mining Company Limited HMY.
AngloGold has a projected earnings growth rate of 109.9% for the current year. The company’s shares have surged around 58% in a year. It currently has a Zacks Rank #2.
Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have gained 90.3% in the past year. It is presently a Zacks #2 Ranked player.
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