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Air Products (APD) AP-DMR LNG Process Passes Performance Test

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Air Products and Chemicals Inc. (APD - Free Report) recently announced that its dual mixed refrigerant LNG Process technology (AP-DMR) and equipment, which has been deployed at the Coral South floating liquefied natural gas (FLNG) plant in Mozambique, Africa, has successfully passed its performance test. It achieved LNG production of more than 3.4 million tons annually.

Air Products' proprietary AP-DMR LNG Process was chosen for its high efficiency, dependable operation and small footprint. AP-DMR's improved process efficiency, along with the utilization of aeroderivative machinery, results in a lower carbon intensity than any other LNG process in floating operation.

The first deep-water FLNG project in Africa and the first LNG project in operation in Mozambique is Coral South FLNG. It is the world's second-largest FLNG facility. Air Products first became involved in this project in 2013 with conceptual work that led to the selection of the AP-DMR LNG process technology and equipment. Two proprietary coil-wound main cryogenic heat exchangers (CWHEs) were supplied by Air Products, one of which was used for precooling and the other for liquefaction inside the facility.

Air Products' LNG equipment manufacturing facility located in Port Manatee, FL, is where the CWHEs for the Coral South project were fabricated. In addition, Air Products offered professional, technical advising services for commissioning, start-up, performance testing, and installation. The AP-DMR LNG Process from Air Products has also been chosen for the Energía Costa Azul LNG land-based project in Mexico, which is presently under construction.

Shares of Air Products have lost 10.8% over the past year against a 1.3% rise of its industry.

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Air Products, on its fiscal second quarter call, said that it continues to expect fiscal 2024 adjusted earnings per share (EPS) of $12.20-$12.50, indicating 6-9% growth from the prior year’s adjusted EPS. For the third quarter of fiscal 2024, the company expects adjusted EPS in the range of $3-$3.05.

Air Products expects capital expenditures in the range of $5-$5.5 billion for fiscal 2024.

Zacks Rank & Key Picks

APD currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include ATI Inc. (ATI - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ecolab Inc. (ECL - Free Report) .

ATI carrying a Zacks Rank #1 (Strong Buy). ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company’s shares have soared 62.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company’s shares have soared 110.9%% in the past year.

The Zacks Consensus Estimate for Ecolab’s current-year earnings is pegged at $6.56 per share, indicating a year-over-year rise of 25.9%. ECL, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company’s shares have rallied roughly 33.5% in the past year.


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