) has supported the decision made by the Department of Energy
(DOE) regarding export of liquefied natural gas (LNG). The DOE
has conditionally authorized Freeport LNG Expansion, L.P. and
FLNG Liquefaction LLC to export domestically produced LNG to
countries that do not have a Free Trade Agreement (FTA) with the
U.S from the Freeport LNG Terminal in Texas.
The terminal is conditionally authorized to export at a rate of
up to 1.4 billion cubic feet of natural gas a day for a period of
20 years should it clear an environmental review and secures
final regulatory approval.
Dow, which fully appreciates the resolution of DOE, finds it to
be a measured and a balanced approach, providing more clarity and
certainty required for businesses to take crucial investment
Dow feels that it should create an environment that encourages
production and smart regulation. The decision by DOE will allow
domestic manufacturers to continue to further advance the revival
of American manufacturing.
Shale gas revolution in the U.S. has created a compelling and
competitive advantage for domestic manufacturing industry. It is
leading to increased natural gas production and providing
assurance to domestic manufacturers who seek to invest in the
U.S. and create jobs, as Dow is doing in the U.S. Gulf Coast.
Dow reported its first-quarter 2013 results last month. The
company posted a profit of $550 million or 46 cents a share, a
roughly 33% rise from $412 million or 35 cents a share earned a
year ago. Profits soared on the strength of the agriculture
science business, which witnessed record sales of seeds and crop
Excluding one-time items, Dow earned 69 cents a share in the
quarter, up from 61 cents a year ago. It comfortably beat the
Zacks Consensus Estimate of 60 cents.
Dow will focus on organically growing its attractive
businesses and driving earnings growth, leveraging its feedstock
strength. The company will also continue to pursue its cost
reduction strategy while reducing debt and maximizing shareholder
returns. However, Dow does not see a material improvement in the
macroeconomic environment this year.
Dow currently holds a Zacks Rank #3 (Hold).
Other companies in the chemical industry having favorable
Zacks Rank are
Shin-Etsu Chemical Co., Ltd.
). All of them retain a Zacks Rank #1 (Strong Buy).
CELANESE CP-A (CE): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
To read this article on Zacks.com click here.