Air Liquide has seen a decrease in both its net profit and revenue for the first half of the year, attributed to the absence of a one-time gain from a divestment in 2023, falling energy prices, and unfavorable currency effects. Despite these challenges, the company significantly improved its margin.
Impact of Previous Year’s Exceptional Gain
In the first half of 2023, Air Liquide’s net profit had been boosted by the sale of a stake in the American company Hydrogenics, resulting in a 32% increase in net profit. Without this one-off benefit, net profit for the first half of 2024 fell by 2.4% to €1.68 billion.
Excluding this exceptional item, the recurring net profit for the industrial gases group rose by 3.3%. This indicates underlying growth despite the challenging environment.
Revenue Analysis
Revenue for the first half of the year was €13.38 billion, a decrease of 4.3% due to lower energy prices and adverse currency impacts, notably the devaluation of the Argentine peso.
On a comparable basis, revenue increased by 2.6% compared to 2023, with the healthcare sector driving this growth through gas distribution to hospitals and individuals.
Margin Improvement
Air Liquide’s operating margin, excluding the impact of energy, improved by one percentage point to 19.4% in the first half of the year.
This improvement was largely due to cost savings from the widespread adoption of new digital tools.
The company confirmed its goal of further increasing its operating margin in 2024 and achieving growth in recurring net profit at constant exchange rates.
Focus on Energy Transition and Electronics
Air Liquide emphasized the growth potential of its activities related to the energy transition, decarbonization, and electronics.
The electronics sector, which requires a lot of rare gases like helium, is expected to see better growth in the third and fourth quarters of 2025, driven by high demand for semiconductors, servers, and artificial intelligence.
Investment in America
Air Liquide, which generates about 40% of its revenue in the Americas, highlighted two major contracts with ExxonMobil ($850 million) and Micron ($250 million). The company noted a record-high investment opportunity portfolio of €4 billion as of June 2024.
The company’s largest investment project, announced in June, aims to produce oxygen and nitrogen for ExxonMobil in Baytown, Texas, with a final investment decision expected in the first part of 2025.
CO2 Capture Project in Europe
In Europe, Air Liquide is involved in the Dartagnan project, which focuses on capturing, transporting, liquefying, and exporting excess CO2 from cement and lime plants around Dunkirk.
This €400 million investment recently received a green light from Brussels for €160 million in public funding.
Challenges in Europe and China
Geographically, the company identified two areas of weakness: Europe and China. The CEO noted that China has lagged since emerging from COVID-19, with large industrial clients halting operations for maintenance or extending shutdowns, and a significant drop in helium demand. Industrial activity overall remains relatively low.
In Europe, particularly in France, which accounts for 10% of its revenue, Air Liquide is focused on continuing its energy transition and industrial decarbonization projects.
Divestment in Africa
As part of its ongoing reorganization, Air Liquide signed an agreement on July 22 to sell its operations in 12 African countries to Adenia Partners. These operations, which generated annual revenue of about €60 million, represent less than 10% of Air Liquide’s revenue in Africa.