Air Products and Chemicals, Inc. (NYSE:APD) Q1 2020 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 10:00 am ET

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Air Products and Chemicals, Inc. (NYSE:APD) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Seifi Ghasemi

service to our customers. Our dream of the future is for Air Products to become the largest American chemical company as measured by market capitalization.

We will achieve this by focusing on growth, driven by our core competencies. Our dream of the future is for Air Products to be the leader in providing solutions to the world's environmental sustainability challenges through gasification of coal, pet coke and refinery residues, developing solutions to capture CO2 from gasifiers and hydrogen plants, and further developing technologies and making Air Products the leader in providing hydrogen for transportation around the world. Our dream of the future is to be a company that has a higher purpose beyond just creating value for our shareholders through improved financial performance.

We want to be a company, where people from all walks of life and nationalities come together, work together, and feel that they belong and that their contribution matters and/or appreciated. A company that is focused on innovation to solve the substantial environmental issues facing all humanity. A company that is passionate and contributes to the well-being of all the communities in which we operate around the world. A global company that brings people from all over the world together to collaborate, improve understanding and prevent conflicts that arise from misunderstanding. We are committed to work very hard to realize our dreams of the future by executing on our Five Point Plan strategy.

Now please turn to Slide number 7, you can see our exciting gasification strategy. We continue to be very focused on successfully executing this strategy and the announced projects, and we are making excellent progress and we continue to be very optimistic about this sector.

The Slide number 8 summarizes the Gulf Coast Ammonia project we announced earlier in January. As I said, this is the largest US investment in the history of Air Products and winning this project is a direct result of the value of our Gulf Coast hydrogen pipeline, the competitiveness of our hydrogen plants and our expertise to develop, build and operate the largest projects in the history of industrial gas industry. As a result, this project will exceed our commitments in terms of financial returns.

Please now turn to Slide number 9. We have talked extensively about the significant opportunities for capital investment to generate significant shareholder value. At the same time, the cash generation strength of our existing business allows us to be confident in raising our dividend for the 38th consecutive year. The more than 15% increase we announced yesterday to $1.34 per share per quarter is the largest per share dividend increase in our history and will result in almost $1.2 billion directly returned to our shareholders in form of dividend next year.

Now please turn to my favorite slide, Slide number 10. You can see that our EBITDA margin continues to be more than 40%, which is up over 1,500 basis points from early 2014.

Now, I would like to turn the call over to