Air Products says Saudi project driving earnings

Air Products and Chemicals

Air Products and Chemicals Inc. said that the second phase of its Saudi gas project has started contributing to income in the second quarter of 2023.

Middle East and India equity affiliates’ earnings increased 39 percent year-on-year, primarily due to the completion of the second phase of the Jazan project, the world’s largest industrial gas complex in Saudi Arabia, the company said in its Q2 2023 earnings report.

On an adjusted basis, the New York Stock Exchange-listed industrial gas maker anticipates its current quarter’s profit to be in the range of $2.85 to $2.95 per share. 

Analysts are expecting $2.92 per share, Reuters reported, citing Refinitiv data.

The Pennsylvania-based company upped its full-year adjusted earnings forecast to $11.30 to $11.50 per share from $11.20 to $11.50. 

The company, which supplies industrial gases to various sectors from manufacturing, food and beverages and electronics, reported revenue of $3.2 billion.

Profit stood at $2.74 per share for the quarter, a 17 percent increase over the prior year.

CEO Seifi Ghasemi said higher pricing and volumes in the base business helped the company’s quarterly performance, despite the world’s ongoing economic and geopolitical challenges.

In 2015, Air Products was awarded a 20-year contract by Aramco under a joint venture of Air Products and ACWA Holding to build, own and operate the world’s largest industrial gas complex.

The facility will supply 75,000 metric tonnes per day (20,000 oxygen and 55,000 nitrogen) to Saudi Aramco’s refinery and Integrated Gasification Combined Cycle in Jazan, according to the company’s website.

The Jazan project was completed by Air Products’ major execution centres in the United Kingdom, United States, China and India.

The joint venture owns and operates the facility under a 25-year contract for a fixed monthly fee, with Aramco supplying feedstock to the gas venture.