Air Liquide’s Hydrogen Strategy has been revised, following a difficult period marked by a significant decline in sales in the third quarter of 2023. This drop, estimated at 17.4%, is attributed to “lower energy prices” and unfavorable exchange rate fluctuations.
Challenges and prospects for the energy sector
The July-September period saw sales ofAir Liquide were 6.8 billion euros, compared with 8.24 billion the previous year, bringing cumulative sales for the first nine months of the year to 20.79 billion euros, down 7.4% on the previous year. However, excluding currency effects, sales grew by 1.5% in the quarter and 3.7% in the first nine months, according to the Group. It should be noted that fluctuations in energy costs between 2022 and 2023 were contractually passed on to customers and therefore did not impact earnings.
Air Liquide’s Gases and Services Industry
The gas and services business, which accounts for 95% of the Group’s sales, also reported a 17.9% fall in quarterly sales, but a 1.7% increase on a like-for-like basis. Air Liquide remains confident in its ability to increase its operating margin and achieve growth in recurring net income for the current year, maintaining constant exchange rates.
Regional Impact and Focus on Electronics
In the third quarter, like-for-like sales grew in all geographic regions, with the exception of Asia-Pacific (-2%). The Group’s electronics division suffered a -5.2% drop in sales compared with a third quarter 2022 marked by exceptionally high sales. This decline can be explained by the slowdown in the memory market, which impacted sales of specialty and advanced materials.
Air Liquide’s Commitment to Hydrogen
Air Liquide continues to invest heavily, with a portfolio of projects in progress valued at 4.2 billion euros and investment decisions of 1.3 billion euros in the quarter, reaching record levels. The Group maintains a strong commitment to hydrogen in its various forms.
In the United States, Air Liquide is a member of six of the seven Clean Hydrogen Hubs selected in October for government funding. This commitment reinforces the Group’s ambition to create a reliable hydrogen network on an industrial scale.
In partnership with Trillium Energy Solutions, Air Liquide is developing the hydrogen refueling market for heavy-duty vehicles in the United States. In addition, a partnership has been signed with INPEX Corporation, LSB Industries Inc. and Vopak Moda Houston LLC to study a large-scale low-carbon ammonia (NH3) production and export project in Houston, USA, with direct access to the Gulf of Mexico. The ammonia thus produced can be converted into hydrogen, contributing to the decarbonization of industry and transport.
In Europe, Air Liquide recently confirmed an investment of over 400 million euros to build an electrolyzer that will supply low-carbon hydrogen to the TotalEnergies refinery at Gonfreville in Normandy. The project benefits from 190 million euros in state aid approved by Brussels.
