Air Products and Chemicals, Inc. APD said that its PRISM Membranes division in Saint Louis, MO, has secured an order to deliver a large number of membrane separators to the Ningdong Energy and Chemical Industry Base in Ningxia, China, for the Shenhua Ningxia Coal-to-Liquids Project. The separators are sold throughout Asia by Permea China Limited.
The separators will be part of the hydrogen purification and recycling operation that is expected to start operation in late 2016. The project represents China's advanced capabilities in the energy industry. The membrane system can process up to 280,000 standard cubic meters per hour of gas flow, which is a key factor for the efficiency of the overall project.
The hydrogen that is made by processing the coal passes through the membrane system to separate the impurities. The PRISM Membrane Separators contain polymeric hollow fibers that utilize selective permeation to produce hydrogen that can be used again.
In first-quarter fiscal 2016 (ended Dec 31, 2015), Air Products surpassed earnings expectations and recorded higher profits, helped by cost-management initiatives and improved pricing. However, sales fell year over year and missed expectations.
Fiscal first-quarter adjusted earnings were $1.78 per share, up 15% from $1.55 recorded a year ago. Adjusted earnings exclude charges associated with business separation and project suspension costs.
Air Products currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical space are Koninklijke DSM N.V. RDSMY, Daqo New Energy Corp. DQ and American Vanguard Corp. AVD. While Koninklijke DSM and Daqo New Energy sport a Zacks Rank #1 (Strong Buy), American Vanguard carries a Zacks Rank #2 (Buy).
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