Air Products and Chemicals wins new contract
On December 12, 2017, Air Products and Chemicals (APD) announced that it would supply high and medium nitrogen to TP JGC Coral France located in the Indian Ocean, offshore Mozambique, Africa. This is Air Products and Chemicals’ second contract with TP JGC. Earlier, it supplied cryogenic coil wound heat exchanger technology and liquefaction license. However, Air Products and Chemicals didn’t disclose the financial aspects of the contract. TP JGC is a joint venture formed between TechnipFMC, JGC, and Samsung Heavy Industries.
Hallgeir Angel of Air Products and Chemicals, said, “This project affirms Air Products’ capabilities and world-class position for supplying high-performance membrane nitrogen generation systems for the marine and offshore market. It builds on years of experience gained on similar complex projects and integrates well in Air Products’ market-leading Nitrogen Package portfolio.”
Air Products and Chemicals continues to win new contracts, which ensures that strong organic growth is driving its revenue and net income.
Air Products and Chemicals stock fell 0.30% and closed at $160.42 for the week ending December 15, 2017. Despite a fall in the stock, Air Products and Chemicals continued to trade above 4.70%. It was above the 100-day moving average price of $153.21. Analysts appear to be bullish on the stock. They have recommended a target price of $174.10, which implies a return potential of 7.6% from the closing price as of December 15, 2017. On a year-to-date basis, the stock has risen 11.60%. Air Products and Chemicals’ 14-day relative strength index of 49 indicates that the stock isn’t overbought or oversold.
Investors looking for indirect exposure to Air Products and Chemicals can invest in the Materials Select Sector SPDR Fund (XLB), which has invested 5.5% of its portfolio in Air Products and Chemicals. The fund also provides exposure to DowDuPont (DWDP), Monsanto (MON), and Praxair (PX) with weights of 23.2%, 8.10%, and 6.7%, respectively, as of December 15, 2017.