Air Liquide: Compared Quarterly Revenue Increases by 8%-April 27, 2022 08:10

(AOF) – Air Liquide sales increased 8% on a comparative basis to € 6.9 billion, including € 6.6 billion in gas and services activities, at 29% announced in the first quarter. According to industrial gas experts, this rise reflects “especially the significant rise in energy prices that are contractually passed on to large corporate customers.” Gas & Services, which account for more than 95% of the Group’s activities, increased by 7.1% on a comparable basis.

“This in particular reflects the strong growth in the activities of electronics and industrial merchants, again demonstrating the ability to adapt prices to reflect rising costs,” said the industrial company.

In terms of efficiency, Air Liquide continues to improve its performance. In the first quarter of 2022, despite the high inflation situation, the goal of producing an efficiency of € 77 million and exceeding € 400 million annually was confirmed.

Cash flow was € 1.4 billion, a significant increase of 12.6% and 8.7% excluding the effects of exchange rates. Sales are 23.3% excluding energy effects, which is stable compared to the first quarter of 2021. In particular, we can secure 784 million euros, or 13% of sales excluding energy effects, in industrial investment financing. ..

In 2022, if there is no major economic turmoil, Air Liquide is confident in its ability to regain operating profit at constant exchange rates and achieve growth in recurring net profit.

AOF-Details

Key Point

-Born in 1902, the second largest industrial and medical gas in the world after Lindeplux Air.

-Sales of € 23.3 billion consisting of three branches: 96% gas and industrial services, engineering and construction, followed by GMT-Global Markets and Technology.

-Revenue balance by region – 38% in the Americas, 33% in Europe and 22% in Asia Pacific.

-A business model based on multi-year contracts (1/3 of the revenue generated by 20-year contracts) and long-term industrial partnerships. It provides good visibility of future results and operating profit of over 20%.

-Open Capital. 33% are individual shareholders and 2.5% are employees. François Jackow is the new Group Managing Director since June 2022.

-A sound balance sheet with a net debt rating of A has dropped to € 10.4 billion, or 58.5% of shareholders’ equity.

Task

-Advance the 2015 strategy with three priorities 1-Financial performance: Annual sales increase by 5-6%, profitability of more than 10% of capital used, investment from 2022 to 2025 Reduction of absolute CO2 emissions from 2025 by decision, half of which is devoted to energy transfer-2-Industrial decarbonization by supply of low-carbon industrial gas, CO2 capture and management-3-5 occupations Innovations for: Hydrogen Mobility, Electronics, Health, Industrial Merchants and High Technology-Space, Very Low Temperatures, Quantum…;

-Innovation strategy aimed at raising more than € 300 million and aiming for outstanding operations, core business or openness to disruptive technologies: Global network of 6 innovation campuses, Academic Innovation Center with +400 partnerships / dedicated Labs: Digital Factory for Data Expertise, Alident for IoT, m-Lab for Molecular, i-Lab for deciphering Trends, 60% for energy migration … / Partnering with Chinese Funds CSE and Accelair Funds , Funding Venture Capital ALIAD.

-Environmental strategy for carbon neutrality with two interim goals by 2050, 2025 (starting absolute reduction of emissions) and 2035 (33% reduction compared to 2015): CO2 capture, hydrogen by electrolysis Production and use of biomethane / € 8 billion investment in hydrogen value chain by 2035, partnering with Rothschild & CO and Solar Impulse to support SMEs providing solutions for the environment and decarbonize the world Invested in a € 200 million fund to participate in the Hydrogen Financing Fund (short-term investment with Baker Hughes, Charg Industries, Plug Power, TotalEnergies, Vinci, € 15 billion leverage effect);

-The ability to pass on higher energy prices to customers.

-At the end of 2021, industrial investment opportunities will be € 3.3 billion, 40% of which will be in energy conversion.

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