Air Products and Chemicals, Inc. APD recently announced a $1 billion investment deal with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC ("UNG") to acquire, own and manage a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan.
The state-owned energy company UNG’s multibillion-dollar gas-to-liquid (GTL) facility is one of the most cutting-edge energy plants in the world. It includes a natural gas-to-syngas industrial complex that converts natural gas into synthetic fuels with a high added value for domestic use and possibly export.
Air Products will purchase, own and operate two large-scale air separation units, two large-scale auto-thermal reforming units and a hydrogen production unit within the Uzbekistan GTL complex under the terms of the purchase agreement, which is fully aligned with Air Products' leading on-site business model. Air Products will additionally provide oxygen, nitrogen, hydrogen and syngas to UNG under a long-term, take-or-pay/fixed fee contract. The natural gas and utilities besides all product offtake will be provided by UNG.
The company will use its best-in-class operational and supply expertise for this strategic acquisition in Uzbekistan, a country with a high pace of economic growth and strong government support. The Republic will be able to meet its expanding energy production and societal needs by leveraging UNG's seamless manufacturing of low-cost, high-purity fuels. APD is optimistic about the potential opportunities in Uzbekistan and the Central Asian area and looks forward to capitalizing on this long-term, sustainable collaboration.
Shares of APD have gained 9.2% over the past year against 13.9% decline of its industry.
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Air Products expects full-year fiscal 2023 adjusted earnings per share of $11.30-$11.50, indicating 10-12% year-over-year growth. For the third quarter of fiscal 2023, the company expects adjusted earnings per share in the range of $2.85-$2.95, suggesting a rise of 10-14% from the year-ago quarter.
Air Products and Chemicals, Inc. Price and Consensus
Air Products and Chemicals, Inc. price-consensus-chart | Air Products and Chemicals, Inc. Quote
Zacks Rank & Key Picks
Air Products currently carries a Zacks Rank #3 (Hold).
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