Air Products Seals Major Order for PRISM

Air Products AS, the Norwegian subsidiary of industrial gas giant Air Products (APD), has clinched a major order for PRISM nitrogen systems for shipboard applications from one of the world's largest energy companies. This represents the Kristiansand, Norway-based company’s single biggest order for the system in the last three decades.

The order, which underscores the high performance and reliability of PRISM nitrogen systems, involves retrofitting 25 liquefied natural gas (LNG) vessels through the replacement of a competitive nitrogen system with a new system that incorporates Air Products' patented PRISM membrane technology.

The shipboard nitrogen systems, which are made exclusively at Air Products' facility in St. Louis, MO, have been engineered with the company’s PRISM membrane separators. These separators contain polymeric hollow fibers which utilize selective gas permeation under differential pressure to separate nitrogen from oxygen and other elements.

Air Products AS is a leading maker of gas processing systems for offshore, shipboard and landbased use. It specializes in the engineering and fabrication of shipboard nitrogen systems that produce nitrogen onsite mainly for inerting potentially hazardous fueling operations. So far, the company has delivered over 1,000 PRISM nitrogen systems for a vast spectrum of ship applications and over 220 systems for offshore installations.

Air Products benefits from a diverse customer base, sustained pricing power and cost-reduction measures. New business deals and strategic investments are expected to support results in fiscal 2014.

Air Products is seeing incremental opportunities in the LNG space. Moreover, it is making significant progress in its hydrogen business and is constructing a new world-scale hydrogen production plant in Canada.

However, Air Products’ tonnage gases business continues to face challenges due to maintenance outages. Moreover, higher energy costs pose a threat to margin expansion.

Air Products is a Zacks Rank #4 (Sell) stock.

Other companies in the chemical industry with favorable Zacks Rank include Methanex Corporation (MEOH), LyondellBasell Industries NV (LYB) and Olin Corp. (OLN). While Methanex retains a Zacks Rank #1 (Strong Buy), both LyondellBasell and Olin hold a Zacks Rank #2 (Buy).