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Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with Air Products and Chemicals Incorporated (NYSE:APD) (Allentown, Pennsylvania) say they are confident the industrial gases company will continue to perform well going into the new fiscal year, with capital expenditures expected to be in the range of $1 billion to $1.2 billion, compared with $1.07 billion for the just-ended fiscal year. Industrial Info is tracking 87 active Air Products projects.
Air Products recently reported $1.13 billion in net income for its 2017 fiscal year, which ended September 30, up from $1.09 billion for its 2016 fiscal year. Sales for the just-ended fiscal year were $8.2 billion, up 9% from the prior year.
Globally, Air Products said it has a $1.5 billion project backlog and has room to grow, with expectations of having at least $8 billion available to invest during the next three years.
For the just-ended fourth quarter, sales by the company's Industrial Gases - Americas segment totaled $953 million, a 9% increase from the prior-year quarter. Hydrogen demand was strong despite hurricane impacts on the Gulf Coast, the company said in its October 26 earnings report. The hurricane had little to no impact on costs and only a modest impact on sales, Air Products executives said during the company earnings conference call.
However, for the year, sales by Air Products' Corporate segment were down about $150 million and earnings before interest, taxes, depreciation and amortization (EBITDA) were down about $90 million, primarily driven by lower liquefied natural gas (LNG) project activity.
"For Fiscal Year 2018, although we still not yet seen LNG customers moving forward with their investment decisions, we don't anticipate an earnings headwind for the Corporate segment," said Simon Moore, vice president of Investor Relations and Corporate Relations, during the company's earnings conference call.
Industrial Info is tracking $675 million in Air Products projects in U.S. This includes a 125 million-standard-cubic-foot-per-day hydrogen plant in Baytown, Texas. The plant will use TechnipFMC plc (NYSE:FTI) (London, England) steam methane reforming (SMR) technology plus an unspecified amount of carbon monoxide to supply Air Products' Gulf Coast Hydrogen pipeline network. Completion is set for the end of this year. For more information, see Industrial Info's project report.
In Geismar, Louisiana, Air Products plans to build a 50 million-standard-cubic-foot-per-day hydrogen plant. Preliminary engineering is underway for the project at Rubicon LLC's Geismar Chemical site. Rubicon LLC is a joint venture between Huntsman Corporation (NYSE: HUN) (The Woodlands, Texas) and Chemtura Corporation (now part of Lanxess Corporation (Cologne, Germany)). The hydrogen plant project would kick off in late 2018. For more information, see Industrial Info's project report.
In New Johnsonville, Tennessee, Air Products continues construction of a 500-ton-per-day oxygen and nitrogen plant to support The Chemours Company's (NYSE:CC) (Wilmington, Delaware) titanium dioxide plant. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Air Products recently reported $1.13 billion in net income for its 2017 fiscal year, which ended September 30, up from $1.09 billion for its 2016 fiscal year. Sales for the just-ended fiscal year were $8.2 billion, up 9% from the prior year.
Globally, Air Products said it has a $1.5 billion project backlog and has room to grow, with expectations of having at least $8 billion available to invest during the next three years.
For the just-ended fourth quarter, sales by the company's Industrial Gases - Americas segment totaled $953 million, a 9% increase from the prior-year quarter. Hydrogen demand was strong despite hurricane impacts on the Gulf Coast, the company said in its October 26 earnings report. The hurricane had little to no impact on costs and only a modest impact on sales, Air Products executives said during the company earnings conference call.
However, for the year, sales by Air Products' Corporate segment were down about $150 million and earnings before interest, taxes, depreciation and amortization (EBITDA) were down about $90 million, primarily driven by lower liquefied natural gas (LNG) project activity.
"For Fiscal Year 2018, although we still not yet seen LNG customers moving forward with their investment decisions, we don't anticipate an earnings headwind for the Corporate segment," said Simon Moore, vice president of Investor Relations and Corporate Relations, during the company's earnings conference call.
Industrial Info is tracking $675 million in Air Products projects in U.S. This includes a 125 million-standard-cubic-foot-per-day hydrogen plant in Baytown, Texas. The plant will use TechnipFMC plc (NYSE:FTI) (London, England) steam methane reforming (SMR) technology plus an unspecified amount of carbon monoxide to supply Air Products' Gulf Coast Hydrogen pipeline network. Completion is set for the end of this year. For more information, see Industrial Info's project report.
In Geismar, Louisiana, Air Products plans to build a 50 million-standard-cubic-foot-per-day hydrogen plant. Preliminary engineering is underway for the project at Rubicon LLC's Geismar Chemical site. Rubicon LLC is a joint venture between Huntsman Corporation (NYSE: HUN) (The Woodlands, Texas) and Chemtura Corporation (now part of Lanxess Corporation (Cologne, Germany)). The hydrogen plant project would kick off in late 2018. For more information, see Industrial Info's project report.
In New Johnsonville, Tennessee, Air Products continues construction of a 500-ton-per-day oxygen and nitrogen plant to support The Chemours Company's (NYSE:CC) (Wilmington, Delaware) titanium dioxide plant. For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
