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Air Products (APD) Inks Joint Development Deal With VPI

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Air Products and Chemicals, Inc.  (APD - Free Report) inked a joint development agreement to drive forward the Humber Hydrogen Hub or H3, aimed toward developing a flagship 800MW low-carbon hydrogen production plant in Immingham, U.K. The majority of manufactured hydrogen is expected to be utilized to decarbonize VPI Immingham's current power production.

The Humber has the highest industrial carbon dioxide emissions levels as the UK's largest industrial cluster. H3 will manufacture low-carbon hydrogen at a large scale, merging market-leading hydrogen production, carbon capture technology and offshore CO2 storage currently under development for the Humber region.

The project will contribute toward the U.K. government's goal of realizing 10GW of low-carbon hydrogen production by 2030.

This marks a significant step, which would likely bring many new jobs to the region during construction and operation as both companies move towards an investment decision.

Both companies look forward to constructive engagement with the Government on how the H3 project can become a reality.

Shares of Air Products have declined 17.4% in the past year compared with a 14.8% fall of the industry.

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Air Products is well-positioned to gain from its project investments, new business deals, acquisitions and cost and productivity initiatives. It remains committed to its gasification strategy and is executing its growth projects.The company also has also been benefiting from higher pricing. Higher merchant demand is also driving its volumes.

In its fiscal second-quarter earnings call, the company stated that it expects full-year fiscal 2022 adjusted earnings per share (EPS) of $10.20-$10.40, indicating 13-15% growth from the prior year’s adjusted EPS. For the third quarter of fiscal 2022, the company expects EPS in the range of $2.55-$2.65, suggesting a rise of 10-15% from third-quarter fiscal 2021 adjusted EPS.

 

Zacks Rank & Key Picks

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Nutrien Ltd. (NTR - Free Report) .

Nucor has a projected earnings growth rate of 28.5% for the current year. The Zacks Consensus Estimate for NUE's current-year earnings has been revised 41.9% upward in the past 60 days.

Nucor’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 2.2%, on average. NUE has gained around 13.1% in a year and currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 12% over a year.

Nutrien has a projected earnings growth rate of 174.6% for the current year. The Zacks Consensus Estimate for NTR’s current-year earnings has been revised 30.7% upward in the past 60 days.

Nutrien’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 5.8%. NTR has gained 24.4% in a year. The company carries a Zacks Rank #2.
 

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