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Air Products to Supply Hydrogen Dispensers to China Energy

Air Products and Chemicals Inc . APD inked a deal with state-owned Shenhua New Energy Co. Ltd. (New Energy), a subsidiary of China's energy conglomerate China Energy Investment Group Co., Ltd. (China Energy). Per the deal, Air Products will provide two hydrogen dispensers to China Energy's first commercial hydrogen fueling station project in Rugao City of Jiangsu Province, eastern China.

For the project, Air Products will supply SmartFuel hydrogen dispenser for fueling the hydrogen fuel cell powered vehicles. The fueling station is slated to commence operation in mid-2018 and is expected to be one of the largest in China in terms of fueling capacity. This move is part of the company's efforts to support China's hydrogen energy industry.

Prior to this, Air Products participated in several China's demonstration projects, such as powering the official shuttle buses for the 2008 Beijing Olympic Games, 2010 Asian Games and 2011 Shenzhen Universiade.

Air Products' shares have moved up 10.4% in the last six months, outperforming the industry 's 2.7% gain.

For fiscal 2018, Air Products anticipates adjusted earnings in the range of $7.15-$7.35 per share, up 13-16% from the prior year. The guidance includes an expected benefit of 20-25 cents per share from the U.S. Tax Cuts and Jobs Act. For the fiscal second quarter, Air Products expects the same in the band of $1.65 to $1.70 per share. Also, it projects capital expenditure of $1.2-$1.4 billion for the current year.

Air Products has built a strong project backlog. These projects are anticipated to be accretive to earnings and cash flow over the next few years. In addition, strategic investments in high-return projects, new business deals and acquisitions are expected to drive results in fiscal 2018. The company also remains on track with its cost-reduction programs, which is likely to support margins.

Air Products and Chemicals, Inc. Price and Consensus

Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote

Zacks Rank & Stocks to Consider

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the chemical space are LyondellBasell Industries N.V. LYB , Kronos Worldwide Inc. KRO and BASF SE BASFY .

LyondellBasell has an expected long-term earnings growth rate of 9% and sports a Zacks Rank #1 (Strong Buy). The company's shares have moved up 21.1% in a year. You can see the complete list of today's Zacks #1 Rank stocks here .

Kronos has an expected long-term earnings growth rate of 5% and flaunts a Zacks Rank #1. Its shares have gained 52% over a year.

BASF has an expected long-term earnings growth rate of 6.7% and carries a Zacks Rank #2 (Buy). Its shares have moved up 8.2% in a year.

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Air Products and Chemicals, Inc. (APD): Free Stock Analysis Report

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LyondellBasell Industries N.V. (LYB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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