Industrial gas producer and supplier, Praxair Inc. (PX) recently announced that it has been awarded a five-year hydrogen supply contract from the U.S.-based space agency, NASA. The contract is valued at approximately $53 million. The news lifted market sentiments for the stock, resulting in a hike of nearly 1.42% in the company’s share price at the end of trading session on Jan 22.
As disclosed, Praxair will supply liquid hydrogen to four space stations of NASA, including the Stennis Space Center in Mississippi, Kennedy Space Center in Florida, Marshall Space Flight Center in Alabama and Glenn Research Center in Ohio. Also, the company has been awarded a five-year contract to supply oxygen at the Kennedy Space Center.
To fulfill NASA’s requirement, Praxair will be using three of its hydrogen production facilities situated in Alabama, Indiana and New York. Also, the company is planning to gear up the production capacities at the Niagara Falls, NY-based facility to suitably meet future supply demands.
We believe that such contract wins are reflective of growing preferences for Praxair’s world-class products and services. Industrial gases are being increasingly used in manufacturing, transportation, healthcare, food and beverages, and metal fabrication industries. Hydrogen has found use in the refining industry, while oxygen is used in healthcare, and nitrogen and carbon dioxide in oil and gas production.
Increased applications of industrial gases are a boon for companies like Praxair. The company is slated to release its fourth-quarter 2014 results on Jan 28, 2015, before the market opens. Other important players in the industry include Innophos Holdings Inc (IPHS) — earnings release expected on Feb 17; Olin Corp. (OLN) — earnings release scheduled on Feb 5; and Air Products & Chemicals Inc. (APD) — earnings release scheduled on Jan 29.
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