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PPG Launches SOI Coating for Oil & Gas, Infrastructure Industries

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PPG Industries Inc. (PPG - Free Report) has announced the availability of PPG PITT-THERM 909 spray-on insulation (SOI) coating. This silicone-based coating is intended for use in high-temperature environments in the oil and gas, chemical, petrochemical and other critical infrastructure industries, where it improves safety, asset protection and operating efficiency compared with conventional thermal insulating materials.

Traditional waterborne acrylic or epoxy-based SOI coatings cannot be used on equipment operating beyond 350°F (177°C). The silicone-based PPG Pitt-Therm 909 coating is much more temperature resistant. Thermal testing shows that it can withstand continuous and cyclic temperatures as high as 500°F, G, and by reducing heat transfer, external surfaces can be touched at up to 310°F, significantly lowering the risk of burns.

Benefits of PPG PITT-THERM 909

Application testing of the PPG Pitt-Therm 909 coating has also revealed that fewer coats are required than with typical SOI coatings, providing clients with operational efficiency benefits. It can be applied in thicknesses of up to 250 mils (6.35 mm) per coat, and depending on the exact application requirements, only one or two coatings are required, significantly reducing the time and expense of insulation. Despite the lower number of layers, it may reach a total coating thickness of up to 500 mils and cure periods that are comparable to competitive products. Application to both hot and cold substrates is also possible, allowing assets to stay active during the process — a substantial benefit over conventional approaches that necessitate operational shutdowns.

PPG Pitt-Therm 909 coating also tackles major issues with conventional mechanical insulation systems, including moisture absorption and corrosion under insulation (CUI). In intensive testing, the water-repellent PPG Pitt-Therm 909 proved remarkable corrosion resistance. The results reveal that it is the best solution for CUI prevention in terms of reduced maintenance costs, operational shutdowns and safety issues.

Shares of PPG have lost 9.4% over the past year compared with a 10.7% decline of its industry.

Zacks Investment Research
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The company's projected adjusted EPS for the third quarter is in the range of $2.10-$2.20. For the full year, the company expects adjusted EPS in the range of $8.15-$8.30. These projections consider various factors such as current global economic activity, uneven global industrial production, reduced global automotive production, stabilizing demand in Europe, sustained growth in Mexico and India and low single-digit growth in China.

Zacks Rank & Key Picks

PPG currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 148.9% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.32 per share, indicating a year-over-year rise of 131.6%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 104.4% in the past year.

Agnico Eagle Mines currently carries a Zacks Rank #2 (Buy). AEM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 76.6% in the past year.

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