Praxair Boosts N. Dakota Packaged Biz, Starts New Plant - Analyst Blog

To reap the benefits of the growing industrial gas market, Praxair Inc. PX is making all efforts possible to fortify its position as a world-class industrial gas producer and distributor. In the past five years, the company's earnings have grown by 8.50%, while another 11.7% hike is anticipated in the next five years versus 10.7% projected for the industry. Year-to-date, the company has yielded a 2.9% return.

Praxair generated nearly 26% of its annual revenues from On-site delivery of gases; 34% came from the Merchant business; 30% from Packaged gas sales while 10% were derived from miscellaneous sources in the past three years (2011−2013).   

Yesterday, Praxair announced the start-up of a new packaged gas fill plant in North Dakota. The plant can efficiently fill industrial gases, including oxygen, nitrogen, argon and carbon dioxide, in cylinders, vessels and trailers.    

Only a couple of days ago, Praxair had announced the start-up of a new air separation plant, with a capacity of 600 tons per day, in Memphis, TN, in order to strengthen its presence in southeastern U.S. Through it, the company can supply liquid and gaseous oxygen, nitrogen and argon to various customers in the region, satisfying their cylinder as well as bulk and on-site gas needs.
 
Additionally, in Apr 2014, Praxair began operating an air separation plant, with a capacity of 270 tons per day, in Pisco, Peru. Just a month prior, in Mar 2014, another new air separation plant, with daily production capacity of 1,250 metric tons, was started by the company for the Steel Authority of India (SAIL).

A series of plant start-ups and contract wins across various nations signify the growing preferences for Praxair's world class technology, high quality products and gas supply services. By 2017, the company anticipates to reach revenues of $16 billion, including hydrogen sales of $1.7 billion.

Praxair presently has a $38.8 billion market capitalization and carries a Zacks Rank #3 (Hold). Other major players in the same industry include Compass Minerals International Inc. CMP, Eastman Chemical Co. EMN and PetroLogistics LP PDH. While Compass Minerals International sports a Zacks Rank #1 (Strong Buy), both Eastman Chemical and PetroLogistics hold a Zacks Rank #2 (Buy).