By Katherine Hamilton
Air Products expects to record a pre-tax charge of not more than $3.1 billion to exit three projects in the U.S. as it looks to streamline its business.
The Lehigh Valley, Pa., industrial gas supplier said Monday it expects to record the charge in its second quarter. The charge isn't expected to affect adjusted earnings per share in this year.
Air Products plans to terminate an agreement with World Energy for the Sustainable Aviation Fuel expansion project in Paramount, Calif. That exit is related to challenging commercial aspects, the company said.
Plans to build a green liquid hydrogen facility in Massena, N.Y., which was expected to produce 35 metric tons per day, has been cancelled. Recent regulatory developments rendered existing hydroelectric power supply ineligible for a tax credit, which was the primary reason for that decision.
Air Products also ended a carbon monoxide production project in Texas, citing unfavorable project economics.
"The decision to exit these three projects will streamline our backlog and focus Company resources on projects that drive value for Air Products' shareholders," Chief Executive Officer Eduardo Menezes.
Air Products said it doesn't expect any additional cancellations in the future.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 24, 2025 17:01 ET (22:01 GMT)
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