Air Products Scraps Louisiana, Arizona Clean Energy Projects, Takes Up To $2.9B Charge; Neom Green Hydrogen Deal Finalized
APD sits 27% above its 52-week low of $229.11.
Summary
Air Products announced it will not proceed with its Louisiana Clean Energy (LCEC) project and is discontinuing its zero-carbon liquid hydrogen facility in Casa Grande, Arizona. The company expects to record a pre-tax charge of up to $2.9 billion in its fiscal third quarter related to these project exits. This follows the 8-K filed earlier today which disclosed the significant charge. Separately, Air Products is finalizing an agreement with Yara for renewable ammonia from the Neom Green Hydrogen Project in Saudi Arabia, a positive development for its green hydrogen portfolio. The substantial charge reflects significant write-downs on these clean energy initiatives, impacting nearly 5% of the company's market capitalization. Additional financial details are expected in the Q3 earnings release.
At the time of this announcement, APD was trading at $290.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $60.4B. The 52-week trading range was $229.11 to $307.96. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.