Industrial gas major Air Products has warned that weakness in the helium market will continue to weigh on earnings, with the gas’s exposure to LNG supply and shifting demand dynamics leaving it prone to future supply crises.
The company said during its third-quarter earnings call that helium headwinds have shaved around 55 to 60 cents from earnings per share this year, contributing to a 4% year‑on‑year decline in operating income to $374m in the third quarter.
The fall reflected higher maintenance and depreciation costs, previously announced project exits, and the impact of lower helium demand, partially offset by stronger pricing in non‑helium products.
CEO Eduardo Menezes said the key question for the market was whether current conditions reflected “a cycle or a structural change”. He noted that the US Bureau of Land Management (BLM), once the largest source of helium and a major balancing mechanism, has become “less and less of a factor”.
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