Rita and Katrina impacts Air Products financially


Air Products announced it currently anticipates the impact of hurricanes Katrina and Rita to its business operations will result in an unfavourable fiscal fourth quarter impact in the range of $.05 to $.07 per share.

The losses are attributable to property damage and business interruption in both its gases and chemicals businesses. In accordance with the company’s accounting policies, these impacts only reflect expected insurance recovery for certain property damage costs and do not reflect any expected insurance recovery for business interruption.

At the end of last month Air Products declared force majeure regarding liquid hydrogen from New Orleans, Louisiana and Sarnia, Ontario, Canada – plants, which represent approximately 90 per cent of the company’s liquid hydrogen production in North America.

The company’s New Orleans industrial gas complex sustained extensive damage from hurricane Katrina. The company’s Sarnia production facility was originally shut down due to a planned suspension of a supplier’s feedgas when the hurricane hit the New Orleans facility. The Sarnia plant has resumed partial operations, relieving but not mitigating the shortage. The New Orleans facility should begin operations within the coming months, with substantial operations anticipated by the end of the calendar year.

... to continue reading you must be subscribed

Subscribe Today

Paywall Asset Header Graphic

To access hundreds of features, subscribe today! At a time when the world is forced to go digital more than ever before just to stay connected, discover the in-depth content our subscribers receive every month by subscribing to gasworld.

Please wait...