Air Liquide Net Income Rises 31.9% in First Half
The industrial gas maker grew its comparable revenue 4.9% while expanding its operating margin.
Air Liquide reported a net income attributable to the Group of 1,722 million euros for the first half of 2023, a published increase of 31.9%. The company said this result was supported by a recurring net income of 1,627 million euros, which rose 11.3% excluding currency effects. Net earnings per share reached 3.30 euros, compared to 2.50 euros a share in the first half of 2022.
Total revenue for the period was 13,980 million euros, representing a comparable increase of 4.9%. On a published basis, revenue declined 1.6% due to negative currency effects and lower energy prices. The Gaz & Services segment, which accounts for 96% of total revenue, saw comparable growth of 5.3%. Within this segment, the Merchant Industrial activity grew 12.1% on a comparable basis, driven by a price increase of 10.7%.
Operating performance improved as the Group operating margin rose to 17.7%. Excluding energy effects, the operating margin increased by 80 points de base. The company said it generated 206 million euros in efficiencies, a growth of 24%. The current operating result for the Gaz & Services activity reached 2,587 million euros, a published increase of 7.6%.
Cash flow from operating activities reached 2,960 million euros, a rise of 32.1% compared to the first half of 2022. The company reported a self-financing capacity of 3,211 million euros. Net debt stood at 10,550 million euros as of June 30, 2023, down from 12,010 million euros on June 30, 2022. This figure represents an increase of 289 million euros from December 31, 2022, following the payment of more than 1.6 billion euros in dividends in May. The net debt to equity ratio was 39.2%.
Investment activity remained active with industrial investment payments of 1,714 million euros, an increase of 8.9% over the first half of 2022. The company also recorded 252 million euros from the sale of assets and activities, including the sale of its stake in Hydrogenics.
Air Liquide is expanding its hydrogen infrastructure through a joint venture with TotalEnergies to develop a network of stations for heavy-duty vehicles on European roads. The company also partnered with Lotte Chemical in South Korea to invest in hydrogen filling stations.
The company maintains a project portfolio under execution valued at 3.5 billion euros. Investment decisions for the first half reached 1.8 billion euros, and the company identifies 3.4 billion euros in investment opportunities over the next 12 months.