LNG

Air Products, the leading global supplier of LNG equipment and a global player in industrial gases and large-scale green fuel and power projects, reported an increase in fiscal first-quarter net income even as revenues slipped.

Air Products said that fiscal first-quarter net income amounted to $621.6 million to the end of December, up from $583.8M in the same three months last year.

The company remains the leading supplier of LNG equipment for the majority of plants operating worldwide.

Basic earnings per share for the Allentown, Pennsylvania-based company amounted to $2.74 per share compared with $2.58 per share in the prior-year quarter.

Sales slip

Air Products posted sales that were about 6 percent lower in the quarter at $2.99 billion, down from $3.17Bln in the same period of 2022.

During the past year the company has taken major LNG technology orders including for the Petronas LNG Complex in Bintulu, Malaysia, for the QatarEnergy’s North Field South project in Ras Laffan and for NextDecade’s Rio Grande LNG Phase I project in the Port of Brownsville in Texas.

The company said that the favourable currency changes were more than offset by 11 percent lower energy cost pass throughs, which negatively affected sales but had no impact on net income.

“Despite significant geopolitical and economic headwinds, the team at Air Products performed well, increasing our adjusted EPS by seven percent over last year,” said Air Products' Chairman, President and Chief Executive Seifi Ghasemi.

“Our reported results were lower than our expectations, mainly due to a slowdown in manufacturing in Asia, particularly in China; lower helium demand; cost headwinds from a sale of equipment for projects; and currency devaluation in Argentina,” Ghasemi explained.

Ambitious strategy

“We are moving forward to successfully implement our ambitious, long-term growth strategy through our core industrial gases business and as a leader in low-carbon intensity hydrogen to generate a cleaner future for the world,” the Chairman stated.

The company also has among its key projects the $12Bln gasification and power joint venture with Saudi Aramco, ACWA Power and the US firm’s Saudi unit, Air Products Qudra, in the Jazan Economic City in Saudi Arabia.

Air Products is also awaiting more progress on the TotalEnergies-led Mozambique onshore LNG export project in Cabo Delgado province where it is expected to be an equipment supplier.

Air Products, the US LNG equipment-maker and industrial gases company with several mega-projects in the Middle East and Asia, has signed a deal with the Uzbekistan Government and the national gas company to acquire a gas-to-syngas facility for $1 billion in the former Soviet republic.

Air Products, the LNG equipment-maker and industrial gases company now branching out with mega-projects in the Middle East linked to the NOEM smart city project in Saudi Arabia and with a gasification business in China, reported a 6 percent increase in fiscal first-quarter net income.

The company reported net income of $584 million compared with $549.6M in the same three months last year.

Air Products, which is a leader in the industrial gases sector, reported fiscal first-quarter sales of $3.2 billion, up 6 percent over the prior year’s $2.99Bln on 7 percent higher pricing, 3 percent higher energy cost pass-through and 2 percent higher volumes.

The LeHigh Valley, Pennsylvania-based company, also achieved the financial close and transfer of the second group of assets for the $12 billion gasification and power joint venture with Saudi Aramco, ACWA Power and the US firm’s Saudi unit, Air Products Qudra, in the Jazan Economic City in Saudi Arabia.

“Higher pricing across the largest segments drove the results, complemented by favorable volume growth, primarily in Asia and the Americas, from higher on-site and merchant demand,” said the company.

LNG projects

The US company is also the leading supplier of LNG equipment for the majority of plants operating worldwide,

Air Products equipment is lined up for several LNG projects under development, including Qatar’s LNG production expansion, Sempra Energy’s Costa Azul LNG export terminal project in Mexico and the currently delayed TotalEnergies-led Mozambique onshore project in Cabo Delgado province.

The company increased its quarterly dividend on its common stock by 13 cents per share to $1.75 per share.

“We continued to advance mega-scale hydrogen energy projects globally, including the joint venture with AES Corp. to invest about $4 billion to build, own and operate the US's largest green hydrogen facility in Wilbarger County in Texas,” explained Air Products.

The Canadian federal and provincial governments also announced C$475 million (US$357M) in project funding for the Air Products multi-billion-dollar landmark net-zero hydrogen energy complex in the oil and gas province of Alberta.

“The committed team at Air Products worked hard to deliver strong results this quarter, overcoming significant economic weakness, currency challenges and other headwinds,” said Chairman, President and Chief Executive Seifi Ghasemi.

“We are proud to have reached significant project milestones, including completing the second phase of the $12Bln Jazan gasification and power project, continuing to make good progress on the project financing for the NEOM (smart city) green hydrogen project, and announcing plans for the largest green hydrogen project in the US to be located in Texas,” added Ghasemi.

“Importantly, we again increased the dividend, as we have done for more than 40 consecutive years and expect to pay out more than $1.5 billion to our shareholders in 2023,” stated Ghasemi. 

ACWA Power, a leading Saudi developer and operator of power generation, has joined with China to sign a share purchase agreement for a $1 billion combined-cycle gas turbine (CCGT) project in Uzbekistan, the Central Asian nation and leading natural gas producer.

Air Products, the LNG equipment-maker now branching out with mega-projects in the Middle East and with a growing gasification business in China, reported fiscal first-quarter sales of $3 billion and higher net income.

US LNG equipment-maker and industrial gases company Air Products has signed a $12-billion project financing and assets agreement for a gasification and power venture for Jazan Economic City with partners Saudi Arabia Oil Company (Aramco) and Saudi firm ACWA Power.

Saudi Arabian utility company ACWA Power International, a project partner in green hydrogen with US LNG equipment-maker and industrial gas company Air Products, has launched an initial public offering (IPO) to list its shares on the Saudi stock exchange, the Tadawul.

The Public Investment Fund of Saudi Arabia, the nation’s sovereign wealth fund, has increased its stake in utility company ACWA Power, whose joint venture partner in a major Saudi green-hydrogen project is US LNG-equipment supplier Air Products of the US.

US LNG equipment-maker and provider Air Products posted a rise of 7 percent in fiscal full-year net income to $1.93 billion as it was awarded three major LNG contracts for plants in Mozambique in southeast Africa, Qatar and Algeria.

Air Products, the US industrial gases and LNG equipment provider, has signed a deal in conjunction with ACWA Power of Saudi Arabia and a new smart city planned in the Kingdom for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy.

The location is Neom, a proposed cross-border city in the Tabuk Province of northwest Saudi Arabia.

It is planned to incorporate smart-city technologies and also function as a tourist destination. The site is near the Red Sea and the borders of Egypt and Jordan.

The joint venture project is the first partnership for Neom with leading international and national partners in the renewable energy field and Air Products said it would be a cornerstone for its strategy to become a major player in the global hydrogen market.

“It is based on proven, world-class technology and will include the innovative integration of over four gigawatts of renewable power from solar, wind and storage,” said Air Products.

“There will be production of 650 tons per day of hydrogen by electrolysis using Thyssenkrupp technology and the production of nitrogen by air separation using Air Products technology,” it added.

The production of green ammonia will amount to 1.2 million tons per year using Haldor Topsoe technology. The project is scheduled to be onstream in 2025.


“Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to help produce green hydrogen for the transportation market,” said the Lehigh Valley, Pennsylvania-based company.

Air Products conducts its industrial gases business alongside its provision of LNG equipment products such as the main cryogenic heat exchangers for plants and its proprietary propane pre-cooled mixed refrigerant liquefaction process.

Most of the worldwide LNG production comes from Air Products technology and the company provides key equipment for the natural gas liquefaction process for large export plants, small and mid-sized plants and floating LNG facilities.

The company is also involved in Chinese industrial gases projects and other similar ventures in Saudi Arabia

“We are honored and proud to partner with ACWA Power and Neom and use proven technologies to make the world’s dream of 100 percent green energy a reality,” said Seifi Ghasemi, Chairman, President and Chief Executive for Air Products.

“Harnessing the unique profile of Neon’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of carbon-dioxide emissions annually,” added Ghasemi.

Mohammad A. Abunayyan, the Chairman of ACWA Power, said the project stems from Crown Prince Mohammed bin Salman’s aspirations for Neom to become the global pioneer in sustainable living.

“ACWA Power is proud to take part in this ground-breaking and first-of-its-kind investment,” stated Abunayyan. 

“We have a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost,” he explained. 

“With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits,” stated Abunayyan.

The project is based in Neom’s industrial cluster and is enabled by its unique mandate.

The investment is intended to integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.