LNG

Air Products, the largest US LNG and industrial gas company, said fiscal third-quarter net income declined by 9 percent to $457 million, primarily reflecting the negative impacts from Covid-19.

The company also attributed the fall to a prior year gain, partially offset by pricing actions and charges as well as LNG project execution.

Third-quarter sales were 7 percent lower than a year ago at $2.1 billion due to 4 percent lower energy pass-through, 3 percent lower volumes and 2 percent unfavorable currency, partially offset by 2 percent higher pricing.

The LeHigh Valley, Pennsylvania-based company said the estimated Covid-19 impact on sales was 9 percent, primarily due to volume impacts in the Americas and European merchant businesses.

The company said the impact was partially offset by positive volume contributions from new plants and LNG activities without giving details.

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. The company provides key equipment for the natural gas liquefaction process for large export plants, small and mid-sized plants and floating LNG facilities.

“As the world continues to navigate challenging conditions related to Covid-19, I am very proud of the Air Products team who have demonstrated their true character and commitment in keeping our plants running and our customers supplied with essential products,” said Chairman, President and Chief Executive Seifi Ghasemi.

“Meanwhile our onsite business - which represents more than half of our sales - remains stable, and we continued to execute on our growth strategy, announcing two new mega-projects in Saudi Arabia and Indonesia which together represent planned Air Products investment of approximately $5.7Bln,” stated Ghasemi.

The sales in the Industrial Gases-Americas division fell by 11 percent to $850 million. This was due to 6 percent lower energy pass-through and 5 percent lower volumes.
Operating income of $248M was down 5 percent, primarily due to the lower volumes.

In Industrial Gases-Europe, the Middle East and Africa sales were posted of $430M, a fall of 13 percent in the same prior-year quarter.

This was mainly due to 7 percent lower volumes and lower merchant demand impacts. Operating income came to $105M, down 15 percent.

Industrial Gases-Asia reported sales of $652M, down 4 percent, driven in part by 3 percent unfavorable currency. The division’s operating income came to $222M. down 4 percent.

Chairman Ghasemi said that there was still significant uncertainty in the global economy and the Covid-19 recovery was showing mixed results around the world.

“Despite these challenges, we have shown that with our stable business model, financial position, significant growth opportunities and the total commitment of our people, we can and will continue creating value for shareholders over the long term,” he concluded.

Air Products, the US industrial gases and LNG equipment provider, said its new steam methane reformer (SMR) and cold box in Geismar in Louisiana are on stream and supplying the neighbouring industrial operations of chemicals company Huntsman Corp.

Air Products, the US industrial gases and LNG equipment provider, said its  joint venture in Saudi Arabia held a ceremonial ground-breaking to mark the start of work in building a world-class, fully-integrated industrial gases hub in the Jubail Industrial City.  

The significant investment by Air Products and local partner Qudra Energy, involves building, owning and operating a world-scale steam methane reformer (SMR) to produce hydrogen.

There will also be an air separation unit (ASU) to produce oxygen and nitrogen, hydrogen pressure swing adsorption (PSA) units to recover hydrogen from off-gases and a pipeline networks will be installed to connect and transport industrial gases to the broad refinery and chemical customer base in the region. 

Air Products, based in Lehigh Valley in Pennsylvania,  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 involves in Chinese projects such as the Lu'An gasification project.

“It is an honor to be here and to witness the start of another world-scale project in the Kingdom,” said Seifi Ghasemi, Chairman, President and Chief Executive of Air Products.

“Air Products is leading the way in developing technologies and solutions that make a difference for our world,” added the CEO.

“These are our priorities and where we are focused. In collaboration with the Royal Commission, this investment in Jubail demonstrates that focus and is another example where we can bring Air Products’ full suite of capabilities in support of sustainable energy and chemicals production to the Kingdom of Saudi Arabia,”  explained Ghasemi.

Samir Serhan, Chairman of the Air Products Saudi venture and Executive Vice President for Air Products said the investment in Jubail is a continuation of operational leadership for large-scale energy projects throughout the Middle East region. 

“This mega-project again showcases the core strengths and capabilities we bring to support the creation of a world-leading downstream sector in Saudi Arabia,” added Serhan.

Mohammad A. Abunayyan, Vice Chairman of Air Products Qudra and Chairman of Vision Invest and Qudra Energy, said that the venture continues to demonstrate its commitment to the Kingdom of Saudi Arabia.

“We at Qudra Energy are proud of our partnership with Air Products, and we look forward to this and other investments to be undertaken through Air Products Qudra in the near future,” stated  Abunayyan.

Air Products said that when fully built in 2023, the industrial gases hub will reliably serve the continued growth of Jubail Industrial City and support the growing prosperity of the Kingdom of Saudi Arabia.

It will also enable Jubail to achieve higher values for off-gases and introduce new technologies to convert low-value feedstocks into high-value products. 

The SMR hydrogen production plant to be built, owned and operated by Air Products Qudra, will match the largest ever built by Air Products. 

The plant, which will serve refineries and petrochemical industries to fulfil the growing demand in the Eastern Region of Saudi Arabia.

“The Jubail facility will include an ASU and PSAs and the location will serve as the pipeline hub for industrial gases to be supplied to individual customer connections in the region,” said the partners.

The investment includes building the second hydrogen fueling station in Saudi Arabia at the site. 

Saudi Aramco, the world's largest oil production company, and Air Products inaugurated the first hydrogen fueling station in Saudi Arabia at Air Products’ new Technology Center in the Dhahran Techno Valley Science Park in June 2019.  

Air Products, the US maker of LNG processing equipment and a leading industrial gases provider and plant developer, reported a 13.4 percent rise in fiscal quarterly net income from continuing operations as sales declined 2 percent from a high base to $2.2 billion.