Air Products and Chemicals, Inc. APD and N.V. Nederlandse Gasunie held a groundbreaking ceremony to construct three modern nitrogen plants near Zuidbroek, Groningen.
Notably, the companies held the ceremony on Mar 9 after the project was approved by the Economic Affairs and Climate Minister of the Netherlands. The construction of the plants is an integral part of the cabinet’s plan to stop the extraction of gas at its Groningen Field, replacing it with higher heat-content imported natural gas that will require conditioning.
The three plants that will be built by Air Products will produce nitrogen required to meet the specifications of commercial and consumer applications across the country. Expected to become operational by mid-2022, the plants will cover an area of around 12 hectares and will have a capacity of 180,000m3 of nitrogen per hour, which is more than ten times larger than the current nitrogen plant at Zuidbroek.
Air Products’ management believes that its world-class expertise allows it to supply Gasunie with plant geared to meet its rigorous safety, reliability and efficiency requirements.
Air Products has extensive expertise in the supply chain of natural gas worldwide, with its world-leading liquefied natural gas (LNG) technology. Also, the majority of LNG across the world is produced using the company's technology.
Air Products’ shares have gained 0.9% in the past year against the industry’s decline of 49.3%.
For fiscal 2020, the company expects adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the year-ago reported figure.
It also expects adjusted earnings of $2.10-$2.20 per share for second-quarter fiscal 2020, implying a 9-15% year-over-year rise.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Stocks to Consider
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Franco-Nevada Corporation FNV, NovaGold Resources Inc. NG and Barrick Gold Corporation GOLD.
Franco-Nevada has a projected earnings growth rate of 24.7% for 2020. The company’s shares have rallied 34.8% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NovaGold has a projected earnings growth rate of 11.1% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have surged 91.1% in a year.
Barrick Gold currently has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 43.1% for 2020. The company’s shares have gained 43.2% in a year.
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