Air Liquide Reports Higher Half-Year Revenue and Operating Margin

The Tip Desk · June 30, 2019 · 2 min read

The industrial gas maker saw its group revenue rise 7.8% in the first half of 2019.

Air Liquide, the industrial gas maker, reported group revenue of 10,952.1 million euros for the first half of 2019, a 7.8% increase compared to 10,162.4 million euros in the same period of 2018. On a comparable basis, the growth was 4.9%. The Gaz & Services segment drove this performance, contributing 10,535.8 million euros to total revenue.

Operating profitability improved as the group current operating result rose 12.2% to 1,813.9 million euros. The Gaz & Services segment recorded a current operating result of 1,938.4 million euros, an 11.4% increase over the first half of 2018. The company said this result was supported by a pricing policy reflecting higher costs, efficiency programs, and active asset portfolio management.

Regional performance varied, with the Americas zone reporting a current operating result of 729.8 million euros, a 14.8% increase. The company attributed part of this growth to the acquisition of Tech Air in the United States at the end of the first quarter of 2019. Europe reported a current operating result of 687.9 million euros, up 5.6%.

Net income attributable to the group was 1,059.2 million euros, a 1.8% increase. The company stated that recurring net income attributable to the group rose 12.1% when excluding a provision for the sale of units in Fujian and a gain on financial debt costs from the first half of 2018. Earnings per share rose 1.6% to 2.48 euros.

Investment activity remained active with industrial and financial investment decisions totaling 1.8 billion euros in the first half of 2019. This represents a 22% increase compared to the first half of 2018. These decisions included a large air separation unit in the United States, a membrane electrolyzer in Canada for decarbonized hydrogen, and nitrogen production units in China.

Gross debt rose 1,812 million euros between December 31, 2018, and June 30, 2019. The company said this was primarily due to the impact of the IFRS 16 standard, which totaled 1,340 million euros, and a public bond issue of 600 million euros with an 11-year term. Net debt excluding lease liabilities was 13,699 million euros at June 30, 2019, a decrease of 518 million euros compared to June 30, 2018.

Recurring return on employed capital (ROCE) increased by 30 basis points to 8,3%. The company reported that industrial investments currently under execution total 2.2 billion euros.