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WOKING, England - Linde (NASDAQ:LIN), a $214.75 billion industrial gas giant with a robust GOOD financial health score according to InvestingPro, has signed a long-term agreement to supply industrial gases to Blue Point Number One’s 1.4 million metric ton low-carbon ammonia plant in Ascension Parish, Louisiana, according to a company press release.
The industrial gas company, which generates $33 billion in annual revenue and maintains an impressive 11% return on invested capital, will invest more than $400 million to build, own and operate an air separation unit (ASU) that will supply oxygen and nitrogen to the Blue Point project. The facility is expected to start operations in 2029. Discover more detailed insights and metrics with InvestingPro’s comprehensive research report, one of 1,400+ available for top US stocks.
Blue Point Number One is a joint venture between CF Industries, JERA and Mitsui & Co. The project aims to be one of the largest low-carbon ammonia facilities globally, addressing growing demand for ammonia as an energy source.
The new ASU will be the largest in southeast Louisiana’s Mississippi River corridor, complementing Linde’s existing hydrogen and syngas infrastructure in the region. This marks Linde’s third ASU supplying a major autothermal reforming plant, following similar facilities in Texas and Canada.
"This will be Linde’s third state-of-the-art ASU supplying a major autothermal reforming plant," said Sean Durbin, Executive Vice President North America at Linde. "It is also the latest of a series of investments by Linde in our U.S. Gulf Coast industrial gases corridor."
Christopher Bohn, Executive Vice President and Chief Operating Officer at CF Industries Holdings, Inc., noted that Linde’s experience in developing major clean energy projects made them a strategic choice for the Blue Point project.
In other recent news, Linde’s financial performance continues to draw attention from analysts. Bernstein SocGen Group reiterated their Outperform rating for Linde, maintaining a price target of $500, following the company’s presentation at the Bernstein Strategic Decisions Conference. Analysts highlighted Linde’s ability to manage economic challenges, emphasizing its strengths in the gases model and contract protection. Despite pressures on volumes, Linde has consistently exceeded earnings per share (EPS) expectations for 25 consecutive quarters and is anticipated to achieve a 7% year-over-year EPS growth in 2025.
Bernstein analysts also adjusted their price target for Linde, reducing it from $525 to $500, while reaffirming the Outperform rating. The analysts noted Linde’s efficient business model and strong profitability prospects, particularly in light of structural changes in the industrial gases sector and growth opportunities in the energy transition and electronics markets. Linde’s stock is currently trading at a forward price-to-earnings ratio of about 26 times, which is at the lower end of its historical premium range. The firm remains a top sector pick for the ninth consecutive year, with analysts praising its financial model and consistent ability to deliver growth and returns.
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