LEHIGH VALLEY - Air Products (NYSE: NYSE:APD), a prominent industrial gases company, has announced the successful performance test of its proprietary AP-DMR™ LNG process technology at the Coral South floating liquefied natural gas (FLNG (OL:FLNG)) plant in Mozambique, Africa. The technology has enabled the facility to surpass its annual LNG production target of 3.4 million tons.
The AP-DMR™ process, known for its efficiency and reliability, was chosen for Coral South FLNG, marking Mozambique's first operational LNG project and Africa's inaugural deep-water FLNG endeavor. This FLNG plant is considered the second-largest in the world. Air Products has been involved with the project since 2013, supplying crucial equipment including two coil-wound main cryogenic heat exchangers and providing technical advisory services.
Dr. John Palamara, general manager – LNG at Air Products, expressed pride in the company's role in this landmark project and noted the successful performance testing as a testament to the team's expertise.
The Coral South project, executed by TP JGC Coral France, a joint venture between Technip (EPA:FTI) Energies France SAS and JGC Corporation, and operated by Coral FLNG S.A., represents a significant step in the company's history of providing liquefaction technology and equipment for offshore LNG ventures. Air Products has a notable track record, having supplied technology to all four of the world's first deep-water offshore FLNG projects.
The company also celebrates the 10-year anniversary of its Port Manatee facility, which has seen significant expansion and investment to meet the growing demands of the LNG industry. Air Products' LNG technology plays a vital role in the global energy sector, with the company's heat exchangers operating in over 100 LNG trains across 20 countries.
The majority of the world's LNG production utilizes Air Products' technology, underscoring the company's influence in the industry. Air Products provides a range of services and equipment for various LNG applications, from large export plants to peak shavers, as well as offshore platform membrane systems and nitrogen generators for LNG carriers and terminals.
This press release statement serves as the basis for the information presented in this article.
InvestingPro Insights
Air Products (NYSE: APD) has not only made significant strides in the LNG industry with its latest technology achievements but is also navigating the financial markets with a stable footing. With a market capitalization of $54.52 billion, the company stands as a formidable player in the industrial gases sector. Despite a challenging environment with revenue showing a slight decline of 7.47% over the last twelve months as of Q2 2024, Air Products boasts a solid operating income margin of 22.35% for the same period, reflecting efficient management and strong business operations.
Investors may find comfort in the company's long history of dividend reliability, as evidenced by an InvestingPro Tip that highlights Air Products' impressive track record of raising its dividend for 41 consecutive years, and maintaining dividend payments for 54 years. This commitment to shareholder returns is further supported by a healthy dividend yield of 2.88% as of the latest data.
While the company's P/E ratio currently stands at 22.12, indicating a premium valuation relative to near-term earnings growth, another InvestingPro Tip suggests that the stock generally trades with low price volatility, which could be appealing to investors looking for stable equity investments in the current market. Additionally, with 14 analysts having revised their earnings estimates downwards for the upcoming period, it's important for potential investors to consider the broader analyst sentiment alongside the company's financial metrics.
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