Three major gas companies’performances in 2023Q2

Operating income performance of the three major international gas companies was mixed in the second quarter of 2023. On the one hand, industries such as home healthcare and electronics in Europe and the United States continued to heat up, with volume and price increases driving year-on-year increases in profits for each company; on the other hand, the performance of some areas was offset by weak demand from large-scale industries, and unfavorable transmission of currencies and the cost side of the equation.

1. Revenue performance varied among the companies

Linde’s second quarter operating income was $8,204 million, down 3% year-on-year. Operating profit (adjusted) realized $2,286 million, an increase of 15% year-on-year, mainly due to price increases and the cooperation of all divisions. In particular, Asia Pacific sales in the first quarter were $1,683 million, up 2% year-over-year, primarily in the electronics, chemicals and energy end markets. Total revenues for French Liquid Air 2023 amounted to €6,806 million in the second quarter and accumulated to €13,980 million in the first half of the year, an increase of 4.9% year-on-year. In particular, Gases & Services saw revenue growth in all regions, with Europe and the United States performing moderately well, driven by developments in the industrial and healthcare sectors. Gases and Services revenue amounted to EUR 6,513 million in the second quarter and EUR 13,405 million cumulatively in the first half of the year, accounting for around 96% of total revenue, up 5.3% year-on-year. Air Chemical’s third-quarter fiscal 2022 sales amounted to $3.034 billion, down around 5% year-on-year. In particular, prices and volumes rose by 4% and 3%, respectively, but at the same time costs on the energy side declined by 11%, as well as the currency side also had an unfavorable impact of 1%. Third quarter operating profit realized $644 million, an increase of 2.68% year-on-year.

2. Revenue by submarkets was mixed year-on-year Linde: Americas revenue was $3.541 billion, up 1% year-on-year, driven by healthcare and food industries; Europe, Middle East and Africa (EMEA) revenue was $2.160 billion, up 1% year-on-year, driven by price increases. support; Asia Pacific revenue was $1,683 million, up 2% year-over-year, with moderate demand from end markets such as electronics, chemicals and energy. FALCON: From the point of view of regional gas service revenues, first-half revenues in the Americas amounted to EUR5,159 million, up 6.7% year-on-year, with general industrial sales up 10% year-on-year, mainly thanks to price increases; healthcare industry grew 13.5%, still thanks to price increases in the U.S. medical industry gas and the development of home healthcare and other businesses in Canada and Latin America; in addition, sales in the large-scale Industrial sales declined 3.9% and Electronics declined 5.8%, mainly due to weak demand. First-half revenue in Europe amounted to €4,975 million, up 4.8% year-on-year. Driven by strong developments such as home healthcare, healthcare sales increased by 5.7%; general industrial sales increased by 18.1%, mainly due to price increases; driven by developments in the home healthcare sector and inflation-induced increases in the price of medical gas, healthcare industry sales increased by 5.8% year-on-year. Asia-Pacific region in the first half of revenue of 2,763 million euros, up 3.8%, the large industrial areas of weak demand; general industrial areas of good performance, mainly due to price increases in the second quarter and the increase in sales in the Chinese market; the electronics industry revenue grew steadily in the second quarter of 4.3% year-on-year growth. First-half revenue in the Middle East and Africa region was €508 million, up 5.8% year-on-year, with gas sales in Egypt and South Africa performing moderately well. Airchemicals: In terms of gas service revenues by region, the Americas achieved operating income of US$375 million in the third fiscal quarter, up 25% year-on-year. This was mainly due to higher prices and increased sales volumes, but at the same time the cost side also had a negative impact. Revenue in Asia was $241 million, an increase of 14% year-on-year, with volume and price increases year-on-year, while the currency side and cost increases had an unfavorable impact. Revenue in Europe was $176 million, up 28% year-over-year, with price increases of 6% and volume increases of 1%, partially offset by cost increases. In addition, Middle East and India revenue was $96 million, up 42% year-over-year, driven by the completion of the second phase of the Jazan project.

3. Companies are confident of full-year earnings growth Linde said it expects adjusted EPS for the third quarter to be in the range of $3.48 to $3.58, up 12% to 15% over the same period last year, assuming currency exchange rate growth of 2% year-over-year and flat sequentially. 12% to 15%. French Liquid Air said the group is confident of further improving operating margins and achieving recurring net income growth at constant exchange rates in 2023. Air Products said its full-year adjusted EPS guidance for fiscal 2023 will improve to between $11.40 and $11.50, an increase of 11% to 12% over last year’s adjusted EPS, and its fourth-quarter fiscal 2023 adjusted EPS guidance will be between $3.04 and $3.14, an increase of 7% to 10% over the fourth-quarter fiscal 2022 adjusted EPS.