First Read: Air Products and Chemicals "Louisiana clean ammonia project..."

Research evidence excerpt

First Read: Air Products and Chemicals "Louisiana clean ammonia project..."

Global Research

30 June 2026ab

First Read

EquitiesAir Products and Chemicals

Louisiana clean ammonia project canceled United States

Chemicals, Specialty

12-month rating Neutral

Decision to not move ahead a likely positive

APD announced this morning (link) that it will not move ahead with the Louisiana 12m price target US$316.00

clean ammonia project (Darrow), as returns to not meet their requirements (both

Yara and APD issued similar statements). Sentiment on Darrow and APD shifted

Price (29 Jun 2026) US$271.35

more negative recently and APD was indicating that project costs were coming in

lower, and therefore they may do the project. From our conversations, investors RIC: APD.N BBG: APD US

have preferred that APD cancel the project, reduce capital spend, and therefore Trading data and key metrics

have more flexibility to invest in more attractive projects (ie Electronics) and/or

52-wk range US$306.20-230.76

buybacks. Cancelling this project should considerably reduce FY27/28 capex and

Market cap. US$60.5b

provide more flexibility.

Shares o/s 223m (COM)

With this announcement, APD also canceled a green Hydrogen project in Arizona Free float 100%

and some smaller investments as well, indicating there isn't enough demand/ Avg. daily volume ('000) 388

returns in hydrogen for mobility markets in those areas. The net impact from the Avg. daily value (m) US$111.8

cancellations is a ~$2.9B write down ($2.2B post tax), of which ~$925M in cash. Common s/h equity (09/26E) US$16.4b

From our conversations, expectations were that APD may need to write down ~ P/BV (09/26E) 3.7x

$1B if canceled, so this is similar or better than those expectations (indicated cash

Net debt to EBITDA (09/26E) 3.2x