air products & chemicals inc (APD) Key Developments
Air Products Announces Opening at its Doe Canyon Helium Plant
Aug 19 15
Air Products held a grand opening at its new Doe Canyon helium production facility in Colorado. The Doe Canyon helium plant is the only one in the world extracting helium from a gas stream composed primarily of carbon dioxide (CO2). The helium from this new facility further diversifies Air Products' supply chain to ensure a reliable and stable supply of product for its customers. Much of the helium produced in the United States comes from the United States Bureau of Land Management (BLM) system, however, the BLM system is in decline, and eventually that storage supply will be depleted. At the same time, the world's demand for helium is likely to continue to grow and is why new sources of helium are needed. The purified helium at the new Colorado facility will be liquefied on-site for subsequent delivery to Air Products' customers. The plant is expected to produce up to 230 million standard cubic feet of helium per year, replacing more than 15% of the current BLM reserve helium supply as that system declines. Most of the helium produced around the world is a by-product of natural gas (methane) processing. However, not all natural gas fields contain helium, and in fact very few gas fields have high enough helium concentrations to make it economical for extraction. In this case, the natural gas is composed of primarily CO2, and it contains high enough concentrations of helium to make it economical for extraction. Air Products'Colorado facility will use a new technology process to produce pure helium from the CO2 stream. Kinder Morgan, operator of the Doe Canyon Unit, supplies this CO2 to the Permian Basin in West Texas, where the CO2 is used for enhanced oil recovery (EOR). Air Products will extract the helium and return the CO2 to Kinder Morgan for its intended EOR use.
Air Products Signs Second Deal to Supply Integrated Oxy-Fuel Solution to Techpack Solutions in Korea
Aug 17 15
Air Products announced it has been selected by Techpack Solutions in Korea to supply its integrated oxy-fuel solution. It is Air Products' second project to support this leading Korean container glass maker to reduce emissions and improve energy efficiency and productivity. The integrated solution encompasses Air Products' oxy-fuel combustion system, including Cleanfire® HRiTM oxy-fuel burners and an automatic flow control skid. The company will also install a PRISM® vacuum swing adsorption (VSA) oxygen generator to supply reliable and economical on-site oxygen used to power the oxy-fuel burners for melting glass. Oxy-fuel technology is proven to bring multiple benefits such as over 50% reduction in nitrogen oxide emissions, 10-20% in energy savings, about 25% increase in productivity, reduction of capital, and improvement in efficiency and glass quality. Air Products is a leader in oxy-fuel technology with over 50 years of experience and offers integrated solutions, from gas supply to combustion systems, technology, customized control systems, technical and design expertise, commissioning service, safety and site training, and maintenance contracts and project management. The company has already installed more than 1,500 Cleanfire burners around the world.
Air Products Appoints Charles Cogut to its Board of Directors
Aug 11 15
Air Products announced the appointment of Charles Cogut to its board of directors. He is also a member of the board of trustees and executive committee of Cold Spring Harbor Laboratory.
Air Products Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended June 30, 2015; Provides Earnings Guidance for the Fourth Quarter of 2015; Revises Earnings Guidance for the Full Fiscal Year 2015
Jul 30 15
Air Products reported unaudited consolidated earnings results for the third quarter and nine months ended June 30, 2015. For the quarter, the company reported sales of $2,470.2 million against $2,634.6 million a year ago, as underlying sales growth of 4% was offset by unfavorable currency and lower energy pass-through. Operating income was $422.5 million against $413.8 million a year ago. Income from continuing operations before taxes was $436.7 million against $425.6 million a year ago. Income from continuing operations was $333.2 million or $1.47 per diluted share against $323.5 million or $1.46 per diluted share a year ago. Net income attributable to the company $318.8 million or $1.47 per diluted share against $314.0 million or $1.46 per diluted share a year ago. Adjusted EBITDA was $757.7 million against $695.9 million a year ago. Non-GAAP operating income was $482.3 million, non-GAAP net income was $358.6 million or $1.65 per diluted share. Capital expenditures – non-GAAP basis was $433.2 million against $518.1 million a year ago.
For the nine months, the company reported sales of $7,445.5 million against $7,762.0 million a year ago. Operating income was $1,226.9 million against $1,184.1 million a year ago. Income from continuing operations before taxes was $1,264.7 million against $1,199.7 million a year ago. Income from continuing operations was $967.6 million or $4.30 per diluted share against $911.0 million or $4.12 per diluted share a year ago. Net income attributable to the company $933.4 million or $4.30 per diluted share against $887.7 million or $4.13 per diluted share a year ago. Cash provided by operating activities was $1,657.9 million against $1,584.0 million a year ago. Additions to plant and equipment was $1,214.7 million against $1,264.9 million a year ago. Adjusted EBITDA was $2,189.5 million against $1,998.1 million a year ago. Capital expenditures – non-GAAP basis was $1,332.5 million against $1,419.9 million a year ago.
The company expects fourth quarter of 2015 EPS from continuing operations to be between $1.75 and $1.85 per share.
For the full fiscal year 2015, the company is raising its guidance from continuing operations to $6.50 to $6.60 per share, which at the midpoint, represents a 13% increase over fiscal 2014 and is $0.13 higher than the target the company committed to in October. The company expects capital expenditures – GAAP basis between $1,650 million to $1,700 million and capital expenditures – non-GAAP basis between $1,980 million to $2,080 million. For the full year, the company still expects tax rate to be about 24.5%.
Air Products Appoints Charles 'Casey' Cogut to Its Board of Directors
Jul 29 15
Air Products announced the addition of Charles 'Casey' Cogut, Senior M&A Counsel at the law firm Simpson Thacher & Bartlett LLP (STB), to its board of directors. Cogut joined Simpson Thacher & Bartlett LLP in 1973 and served as partner in STB from 1980-2012.