Air Liquide has today (23rd Oct) released its third quarter (Q3) results reporting a “marked recovery” in sales across all regions and all business lines.
The French industrial gas group said highlights from Q3 included the mobilisation of its healthcare teams around the world in the fight against Covid-19, particularly to supply medical oxygen; the finalisation of its agreement with Sasol to acquire the biggest oxygen production site in the world; and its more than $160m investment to build a new ASU and partial oxidation unit in the US.
“This third quarter saw a marked recovery in sales. Compared with the 2nd quarter of 2020, which was impacted by the pandemic, all business lines and all regions improved,” Benoît Potier, Chairman and CEO of the Air Liquide Group, commented.
Group revenue for Q3 totalled €5bn. Air Liquide said its business model has proven its resilience in recent months in a challenging public health context.
Business has been picking up across all regions with sales at -0.9% on a comparable basis in the quarter, near 2019 levels.
China saw the most dynamic level of recovery, with Q3 sales up markedly, whereas the situation was more contrasted in the rest of the Asia-Pacific region.
Activity is picking up in Europe, and posted slight growth compared with 2019.
Signs of a more gradual recovery can be seen in North America and business remains strong in South America, in particular for Large Industries and Healthcare.
Consolidated Engineering & Construction sales (-24.4%) reflected the priority allocation of resources to internal projects.
Global Markets & Technologies returned to double-digit growth, with sales up markedly by +11.4% during Q3.
Air Liquide said its’ group revenue was down -8.7% due to the materially negative impacts of currency (-3.7%), significant scope (-2.6%) and energy (-1.5%).
Gas & Services revenue for Q3 reached €4.8bn, slightly down -0.9% on a comparable basis.
Air Liquide again cited the markedly negative impacts of currency (-3.8%), significant scope (-2.7%) and energy (-1.5%) as the reason for this.
Significant scope impact included the disposal of schülke in Healthcare and the reduction of the Air Liquide’s participation in a reseller in Japan during Q3 2020, and the disposal of Fujian Shenyuan in September 2019.
“Gas & Services, which represent 96% of group sales, were almost flat, with contrasted situations,” Potier said.
“Momentum in Healthcare and Electronics remained particularly good; Large Industries sales recovered, whereas Industrial Merchant, which showed a marked sequential improvement, still remained at a level below 2019.”
“By region, sales in Europe and Asia were stronger than in Q3 2019 on a comparable basis, and the Americas improved compared with Q2 2020.”
“Global Markets & Technologies also saw a return to growth, whereas Engineering & Construction sales demonstrated progressive improvement, compared to previous quarters.”
