Air Liquide, a global leader in industrial gases, reaffirmed its financial targets for 2024 on Wednesday, despite a slight decline in third-quarter revenue. The 0.7% drop in sales, which totaled €6.76 billion during this period, was mainly attributed to unfavorable exchange rate fluctuations and a decrease in energy prices. However, the group emphasized that these variations, which are fully passed on to customers, do not affect its financial results.
The company is “confident” in its ability to improve its operating margin and deliver further growth in recurring net income, at constant exchange rates, for the full year. On a comparable basis, third-quarter sales rose by 3.3%. For the first nine months of the year, Air Liquide recorded a 2.8% growth in revenue, reaching €20.14 billion.
Performance of the Gas and Services Division
The Gas and Services division, which accounts for 95% of the group’s total activity, reported third-quarter revenue of €6.44 billion, representing a modest decline of 0.6% in published data. However, on a comparable basis, this division showed solid growth of 3.6%.
In China, activity performed particularly well, driven by the recovery in the semiconductor and large industries sectors, marked by the start-up of a large hydrogen production unit last March.
Strategic Investments and International Expansion
Air Liquide also highlighted the importance of its investment decisions, which reached a record level of €1.4 billion in the third quarter. These investments are primarily focused on Asia, where the group continues to expand its capacity. Among the key projects, a €60 million investment was announced for the acquisition and operation of an air separation unit in China. Additionally, the company is investing in an advanced materials production center in South Korea and is strengthening its presence in Taiwan with the construction of six nitrogen generators.
Development in the United States and Europe
In North America, Air Liquide will inject $150 million to increase oxygen production capacity for LG Chem’s electric vehicle battery plant, located in Tennessee. In Europe, a major investment of €100 million will be made in partnership with Aurubis AG, a global leader in copper recycling, for projects in Germany and Bulgaria.
Adaptation and Divestitures in Africa
In July, Air Liquide completed the sale of its activities in 12 African countries to Adenia Partners. This operation represents an annual turnover of around €60 million. However, the group remains a key player on the continent, with 1,600 employees and €700 million invested over the past three years. In the Middle East and Africa region, Air Liquide reported third-quarter revenue of €296 million, with a notable increase in medical gas volumes in South Africa and the development of diabetes management tools in Saudi Arabia.
