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57 min ago 2 min read
Industrial gas major Air Products has reported an operating loss of $2.1bn in its third quarter (Q3) financials, largely due to the axing of its planned 1,700-tonne-per-day blue hydrogen project in Louisiana.
The company reported a GAAP loss per share (EPS) of $6.47 after taking $2.9bn in charges linked to the announced in June.
Excluding these charges, adjusted EPS increased 12% to $3.47, ahead of the company’s expectations. Air Products also increased its full-year adjusted EPS forecast to $13.39 –$13.49 and expects to spend around $3.5bn on capital projects this financial year.
Despite this hit, however, the company reported Q3 sales of $3.2bn, up 5%.
CEO Eduardo Menezes said the company has a “clear pathway to reduce capital expenditures and drive continued profitable growth.”
In the quarter, Air Products also finalised a with Yara for renewable ammonia from the Neom Green Hydrogen Project in Saudi Arabia, allowing product from the facility to be marketed and distributed through Yara’s existing global supply chain.
In the Americas, sales of $1.3bn increased 5% while operating income of $395m increased 6%. Air Products attributed the operating income growth primarily to higher volumes at hydrogen and carbon monoxide (HyCO) facilities, a new on-site asset, and favourable pricing.
Asia sales of $886m increased 9% from the prior year. Volume growth was driven by higher on-site volumes, including new assets, and improved helium volumes. Operating income of $256m increased 18%.
European sales rose 6% to $816m. Operating income increased 2% to $231m. Operating income of $231m increased 2%, driven by higher pricing, net of higher power costs, favourable currency, and favourable business mix attributable to higher-margin on-site volumes.
Activity in Saudi Arabia boosted equity affiliates’ income in the Middle East and India to $101m, an 18% increase.
