By: ICN Bureau
Last updated : October 26, 2022 8:39 pm
Revenue, at close to 8.3 billion euros, was up +8.3% on a comparable basis and up +41.3% on a published basis
Linde's Group revenue for the 3rd quarter of 2022 totaled 8,247 million euros, a strong growth of +8.3% on a comparable basis with the 3rd quarter of 2021.
The Group’s revenue as published posted a significant increase of +41.3% in the 3rd quarter, with a record high energy impact of +24.4% as well as a favorable currency impact of +8.8%, while the significant scope impact was limited at -0.2%.
This performance was delivered in a challenging context of exceptionally high energy prices, strong inflation, strain on supply chains and the war in Ukraine. The Group benefited from a solid business model and diversity of business reach in terms of geographies, businesses, end-markets and customers which ensured a resilient performance and allowed the Group to take advantage of all growth opportunities. Its core positioning in growth markets of the future (in particular the energy transition, Semiconductors and Healthcare) reinforces these attributes.
Gas & Services revenue amounted to 7,897 million euros in the 3rd quarter of 2022, up by +7.2% on a comparable basis. As published revenue for Gas & Services increased by a significant +41.4% in the 3rd quarter, benefiting from a historically high energy impact (+25.6%) and a positive currency impact (+8.9%). The significant scope impact was limited (-0.3%).
Commenting on 3rd quarter sales for 2022, François Jackow, Chief Executive Officer, Air Liquide said, “The Group maintained a strong growth momentum during the third quarter despite a complex macroeconomic environment. Revenue, at close to 8.3 billion euros, was up +8.3% on a comparable basis and up +41.3% on a published basis, demonstrating the robustness of Air Liquide’s business model in the context of a surge in energy prices. All activities improved: Gas & Services, Engineering & Construction and Global Markets & Technologies.
"Within Gas & Services, which accounts for 96% of sales, the business was driven in particular by the momentum of Electronics, the solid performance of Industrial Merchant and growth in Healthcare. In terms of geographies, activity was particularly strong in the Americas and Asia, and was more contrasted in Europe," commented Jackow.
"12-month investment opportunities remain high, at more than 3 billion euros. More than 40% are related to the energy transition. In this context, the Group has decided to invest 1.1 billion euros this quarter, notably in Electronics and in projects that contribute to the fight against climate change. The robust and diversified investment backlog, currently running at 3.4 billion euros, is particularly promising for future growth," said Jackow.
With our clear strategic plan, ADVANCE, which further reinforces the resilience of its business model, for full year 2022, assuming no significant economic disruption, Air Liquide is confident in its ability to further increase its operating margin and to deliver recurring net profit growth, at constant exchange rates, added Jackow.
Electronics: Under long-term contracts, investment of around 500 million euros in the construction of three new ultra-high purity industrial gas production plants for two of the world’s largest semiconductor manufacturers in Taiwan.
Hydrogen and energy transition: Investment of 200 million euros by Shanghai Chemical Industry Park Industrial Gases (SCIPIG), an Air Liquide subsidiary, in the construction of two hydrogen production units with carbon capture and recycling technology in Shanghai Chemical Industry Park. Launch by Air Liquide of its biomethane business in China with the construction of its first production plant – with a capacity of 75 GWh/year – in Huai’an City, in the Jiangsu Province.
Healthcare: Development of the home healthcare offering with the acquisition of the diabetes division of Ethitech in South Africa by VitalAire, home healthcare subsidiary of Air Liquide.
Corporate: Russia divestment project: signing of a letter of intent with the local management team to transfer Russian operations to them in the form of an MBO (Management Buy Out) as part of an orderly, viable and responsible transfer of operations. The execution of this project remains subject to Russian regulatory approvals.