Air Products and Chemicals Wins New Business Contract
New business deal
On July 31, 2017, Air Products and Chemicals (APD) announced that it entered into a business agreement with TP JGC Coral France. According to the agreement, Air Products and Chemicals will provide its proprietary cryogenic coil wound heat exchange technology along with the license for the liquefaction process for floating liquefied natural gas.
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The new facility will be located in Mozambique, Africa. It will be the 20th country to use Air Products and Chemicals’ proprietary LNG technology. Dr. Samir J. Serhan, Air Products and Chemicals’ executive vice president, said, “Air Products is very pleased to be involved with a few more firsts in our work with the global LNG industry. The Coral South LNG Project is Air Products’ first time providing our proprietary LNG technology in Mozambique, and it will also be the first deep-water FLNG project for Africa. We believe our involvement with other FLNG efforts in different parts of the world gives us unparalleled experience in the floating LNG market.”
After announcing strong fiscal 3Q17 earnings, Air Products and Chemicals stock rose for the week. Air Products and Chemicals rose 2.6% for the week and closed at $147.22. For a detailed analysis of the company’s 3Q17 earnings, read Air Products & Chemicals Delivered Strong Fiscal 3Q17 Earnings.
The strong gains during the week resulted in the stock trading 3.60% above the 100-day moving average price of $142.11, which indicates an upward trend in the stock. On a year-to-date basis, the stock has returned 2.40%. The relative strength index of 58 indicates that the stock isn’t overbought or oversold.
Investors looking for exposure in Air Products and Chemicals can invest in the Materials Select Sector SPDR Fund (XLB). XLB has invested 4.70% of its portfolio in Air Products and Chemicals. The fund also provides exposure to Dow Chemical (DOW), DuPont (DD), and Monsanto (MON) with weights of 11.70%, 11.60%, and 8.60%, respectively, as of August 4, 2017.