We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Air Products (APD) Clinches Jiutai Syngas Supply Contract
Read MoreHide Full Article
Air Products and Chemicals, Inc. (APD - Free Report) has won a long-term onsite contract to supply syngas for the multi-billion-dollar mono-ethylene glycol project of Jiutai New Material Co. in Hohhot, China. The project is expected start in the fourth quarter of fiscal 2021. Air Products expects the project to add more than 20 cents to its earnings per share starting fiscal 2022.
Per the contract, Air Products will build, own and operate the air separation, gasification, and gas clean up processing facility and is set to invest roughly $650 million for the same. The plant will include the recently-acquired Shell gasification technology.
The facility, to be designed to produce more than 500,000Nm3/hr of syngas, will include five gasifiers, two air separation units (ASU) of approximately 100,000nm3/hr with syngas purification and processing along with related infrastructure and utilities.
Air Products, last month, raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings per share in the range of $7.40 to $7.45 (a 17-18% increase from the prior year level), up from the earlier view of $7.25 to $7.40. The company expects adjusted earnings in the band of $1.95 to $2.00 for the fiscal fourth quarter, up 11-14% year over year. It also foresees capital expenditure of $1.8-$2 billion for fiscal 2018.
Coming to stock performance, Air Products has outperformed the industry in a year’s time. While shares of the company have moved up around 14.4%, the industry saw a rough 6.7% rise.
The company has a capacity to deploy at least $15 billion in high-return investments over the next five years, which will boost shareholders’ value.
Air Products also has a strong project backlog. The projects are anticipated to prove accretive to earnings and cash flow over the next few years. Moreover, strategic investments in high-return projects, new business deals and acquisitions are likely to drive fiscal 2018 results.
Air Products and Chemicals, Inc. Price and Consensus
Some other top-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Celanese Corporation (CE - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) .
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 22.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1. Its shares have gained 18.9% in a year’s time.
LyondellBasell has an expected long-term earnings growth rate of 9.5% and carries a Zacks Rank #2. The stock has rallied 28.4% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Air Products (APD) Clinches Jiutai Syngas Supply Contract
Air Products and Chemicals, Inc. (APD - Free Report) has won a long-term onsite contract to supply syngas for the multi-billion-dollar mono-ethylene glycol project of Jiutai New Material Co. in Hohhot, China. The project is expected start in the fourth quarter of fiscal 2021. Air Products expects the project to add more than 20 cents to its earnings per share starting fiscal 2022.
Per the contract, Air Products will build, own and operate the air separation, gasification, and gas clean up processing facility and is set to invest roughly $650 million for the same. The plant will include the recently-acquired Shell gasification technology.
The facility, to be designed to produce more than 500,000Nm3/hr of syngas, will include five gasifiers, two air separation units (ASU) of approximately 100,000nm3/hr with syngas purification and processing along with related infrastructure and utilities.
Air Products, last month, raised its adjusted earnings guidance for fiscal 2018. It now anticipates adjusted earnings per share in the range of $7.40 to $7.45 (a 17-18% increase from the prior year level), up from the earlier view of $7.25 to $7.40. The company expects adjusted earnings in the band of $1.95 to $2.00 for the fiscal fourth quarter, up 11-14% year over year. It also foresees capital expenditure of $1.8-$2 billion for fiscal 2018.
Coming to stock performance, Air Products has outperformed the industry in a year’s time. While shares of the company have moved up around 14.4%, the industry saw a rough 6.7% rise.
The company has a capacity to deploy at least $15 billion in high-return investments over the next five years, which will boost shareholders’ value.
Air Products also has a strong project backlog. The projects are anticipated to prove accretive to earnings and cash flow over the next few years. Moreover, strategic investments in high-return projects, new business deals and acquisitions are likely to drive fiscal 2018 results.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote
Zacks Rank & Other Stocks to Consider
Air Products is a Zacks Rank #2 (Buy) stock.
Some other top-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Celanese Corporation (CE - Free Report) and LyondellBasell Industries N.V. (LYB - Free Report) .
Huntsman has an expected long-term earnings growth rate of 8.5% and a Zacks Rank #1 (Strong Buy). The company’s shares have rallied 22.2% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Celanese has an expected long-term earnings growth rate of 10% and a Zacks Rank #1. Its shares have gained 18.9% in a year’s time.
LyondellBasell has an expected long-term earnings growth rate of 9.5% and carries a Zacks Rank #2. The stock has rallied 28.4% in a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>