Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  Air Liquide    AI   FR0000120073

AIR LIQUIDE

(AI)
  Report
Delayed Quote. Delayed Euronext Paris - 10/30 12:35:27 pm
125.5 EUR   -0.16%
10/29AIR LIQUIDE(L) : Raised to Buy by DZ Bank
MD
10/27AIR LIQUIDE(L) : Goldman Sachs remains Neutral
MD
10/26AIR LIQUIDE(L) : UBS gives a Buy rating
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Air Liquide: H1 2020 Results -2-

share with twitter share with LinkedIn share with facebook
07/30/2020 | 02:35am EDT
      begun to gradually recover since the beginning of May. Large Industries 
      sales were down by -3.5%. Industrial Merchant, which was down -8.2%, was 
      the most impacted by the public health crisis. Healthcare activities, 
      which account for more than 40% of Gas & Services sales in Europe, remain 
      fully mobilized to fight against COVID-19 and saw revenue growth of 
      +10.8% in the 1st half. 
 
   -- Revenue in Asia-Pacific reached 2,236 million euros in the 1st half, down 
      -2.1% on a comparable basis. China was the first country to suffer the 
      effects of the COVID-19 pandemic, with a -2.5% decline in sales in the 
      1st quarter. The recovery in this country was also very fast, with 
      revenue in China posting growth of +2.1% in the 2nd quarter, with 
      positive growth in all industrial activities. Part of the region remains 
      affected by the pandemic and lockdown measures. In the 1st half 2020, 
      Large Industries (-2.0%) was supported by the resilience of its business 
      model. Industrial Merchant (-5.8%) was the most impacted. Electronics 
      (+1.5%) represents a third of the region's sales and posted a very 
      dynamic growth of +12% excluding Equipment & Installation sales. 
 
   -- Revenue in the Middle East and Africa amounted to 269 million euros, down 
      -7.3% over the 1st half of the year on a comparable basis. Industrial 
      Merchant sales were very weak during the 2nd quarter following the 
      introduction of lockdown measures across the region. Large Industries 
      demonstrated its strong resilience despite a major customer maintenance 
      turnaround during the 1st quarter, with the region's two major units -- 
      in Saudi Arabia and South Africa -- continuing to operate at a good level 
      during the 2nd quarter. Healthcare, posted strong growth, notably in 
      Saudi Arabia. 
 

Healthcare is highly mobilized in the fight against COVID-19 and posted significant growth of +8.7%. Electronics also enjoyed very solid growth of +2.0% (+8.9% excluding Equipment & Installations sales), driven by very dynamic sales in Carrier Gases and Advanced Materials. Industrial Merchant (-8.1%) was the hardest hit by the public health crisis, but price impacts remained strong at +2.9%. Sales in Large Industries were down slightly, by -2.5% over the half year, due to a weaker demand in the 2(nd) quarter in particular in Europe and the United States -- two regions which were strongly affected by the pandemic.

 

Contribution to consolidated revenues from Engineering & Construction stood at 104 million euros in the 1(st) half, and reflected the priority allocation of resources to internal projects as well as the impact of the pandemic which led to closure of the workshop in China for four weeks and to several projects being postponed by a few months.

 

Global Markets & Technologies revenue reached 249 million euros, up +3.2%. The biogas activity remained very dynamic in the United States and Europe. Order intake for Group projects and third-party customers enjoyed a strong increase and included helium cryogenic refrigerators, Turbo-Brayton LNG reliquefaction units and hydrogen stations.

 

Efficiencies amounted to 200 million euros over the first six months of the year, in line with the annual objective now fixed at more than 400 million euros. Moreover, exceptional cost reductions under the public health crisis response plan were to offset the low activity level and are not, due to their nature, sustainable over the long term.

 

Group operating income recurring (OIR) amounted to 1,813 million euros in the 1(st) half of 2020, stable as published and up slightly +0.2% on a comparable basis versus 2019. The operating margin (OIR to revenue) stood at 17.6%, an improvement of +100 basis points compared with the 1(st) half of 2019, and of +50 basis points excluding the energy impact. Gas & Services operating margin as published stood at 19.6%, an improvement of +120 basis points compared with the 1(st) half of 2019, and of +60 basis points excluding the energy impact.

 

Net profit -- Group share amounted to 1,078 million euros in the 1(st) half of 2020, an increase of +1.8% as published. Despite the pandemic and the resulting significant decline in activity, net earnings per share were up +1.8% compared with the 1(st) half of 2019 and reached 2.29 euros per share.

 

Cash flow from operating activities before changes in working capital amounted to 2,371 million euros in the 1(st) half of 2020, which corresponds to a high level of 23.1% of sales, a marked improvement of +170 basis points compared with the 1(st) half of 2019(1) . Net cash flow from operating activities after changes in working capital requirement amounted to 2,153 million euros, up markedly by +9.9%. The net debt-to-equity ratio, adjusted for the seasonal effect of the dividend payment, stood at 64.5%, down sharply compared with end-June 2019 (70.7%).

 

Industrial investment decisions totaled 1.3 billion euros, stable compared with the 1(st) half of 2019, despite the challenging global health situation. Electronics reached a record level of investment during the 1(st) half, notably thanks to the signing of several new units in Asia. The 12-month portfolio of investment opportunities stood at 2.9 billion euros, stable compared to the end of 2019 and up compared to the 1(st) quarter of 2020.

 

The Group confirmed the start-up dates of the main projects for 2020 and maintained its forecast for the additional contribution to 2020 sales of unit start-ups and ramp-ups of between 150 million and 180 million euros. Based on the health situation as of the beginning of the 3(rd) quarter, the Group's best estimate regarding the additional contribution to sales for 2021 is in the range of 300 million euros, reflecting notably the postponement of certain start-ups and ramp-ups to 2021 due to the COVID-19 crisis.

 

Recurring return on capital employed after tax (Recurring ROCE)(2) stood at 8.4%, an increase of +10 basis points compared with the 1(st) half of 2019.

 

In the 1(st) half of 2020, the Group maintained its dividend payment and increased industrial capital expenditure while refinancing in advance the debt maturing in 2020. These initiatives underline the robustness of the balance sheet and net cash flow from the Group's operating activities in a crisis context and its ability to ensure its future growth.

 

_____________________________

(1) Compared with restated 1(st) half 2019 following changes in 2019 annual financial statements: financial costs before taxes linked to IFRS 16 are reclassified in other financial expenses whereas they were included in net finance costs on 30 june 2019. A distinction is now made between other non-cash items under which the adjustment of this cost is recognized as well as income and expenses under IAS 19 and IFRS 2 and other cash items.

 

(2) Based on the recurring net profit, see reconciliation in appendix.

 

Table of Contents of the activity report

 

H1 2020 PERFORMANCE 6

 

Key Figures 6

 

Income Statement 7

 

Change in Net debt 16

 

INVESTMENT CYCLE 17

 

RISK FACTORS 19

 

2020 OUTLOOK 21

 

APPENDICES 22

 

Performance indicators 22

 

Calculation of performance indicators (Semester) 23

 

Calculation of performance indicators (Quarter) 26

 

2(nd) quarter 2020 revenue 26

 

Geographic and segment information 27

 

Consolidated income statement 27

 

Consolidated balance sheet 28

 

Consolidated cash flow statement 29

 

H1 2020 PERFORMANCE

 

Unless otherwise stated, all variations in revenue outlined below are on a comparable basis, excluding currency, energy (natural gas and electricity) and significant scope impacts.

 

Key Figures

 
                                                     2020/2019    2020/2019 
                                                      published    comparable 
(in millions of euros)       H1 2019     H1 2020      change       change (a) 
Total Revenue                10,952      10,273      -6.2%        -3.2% 
Of which Gas & Services      10,536      9,920       -5.8%        -2.7% 
Operating Income Recurring   1,814       1,813       0.0%         +0.2% 
Operating Income Recurring 
 (as % of Revenue)           16.6%       17.6%       +100 bps 
Variation excluding energy                           +50 bps 
Other Non-Recurring 
 Operating Income and 
 Expenses                    (86)        (92) 
Net Profit (Group Share)     1,059       1,078       +1.8% 
Net Profit Recurring (Group 
 Share) (b)                  1,126       1,113       -1.1% 
Earnings per Share (in 
 euros)                      2.25        2.29        +1.8% 
Cash Flow before changes in 
 working capital 
 requirements                2,348(c)    2,371       +1.0%(c) 
Net Capital Expenditure (d)  1,537       1,309 
Net Debt                     EUR13.7 bn  EUR13.2 bn 
Net Debt to Equity ratio 
 (e)                         70.7%       64.5% 
Return on Capital Employed 
 after tax - ROCE            8.1%        8.3%        +20 bps 
Recurring ROCE (f)           8.3%        8.4%        +10 bps 
 

(a) Change excluding the currency, energy (natural gas and electricity) and significant scope impacts, see reconciliation in appendix.

(b) Excluding exceptional and significant transactions that have no impact on the operating income recurring, see reconciliation in appendix.

(c) Compared with restated 1(st) half 2019 following changes in 2019 annual financial statements: financial costs before taxes linked to IFRS 16 are reclassified in other financial expenses whereas they were included in net finance costs on 30 june 2019. A distinction is now made between other non-cash items under which the adjustment of this cost is recognized as well as income and expenses under IAS 19 and IFRS 2 and other cash items.

(d) Including transactions with minority shareholders.

(e) Adjusted to spread the dividend payment in 1(st) half out over the full year.

 

(f) Based on the recurring net profit, see reconciliation in appendix.

 

Income Statement

 

(MORE TO FOLLOW) Dow Jones Newswires

07-30-20 0135ET


Stocks mentioned in the article
ChangeLast1st jan.
AIR LIQUIDE -0.16% 125.5 Real-time Quote.-0.55%
DOW JONES AFRICA TITANS 50 INDEX 1.20% 469.73 Delayed Quote.-12.38%
DOW JONES SOUTH AFRICA(ZAR) 0.07% 1598.89 Delayed Quote.-11.38%
S&P AFRICA 40 INDEX 0.89% 154.11 Delayed Quote.-11.58%
share with twitter share with LinkedIn share with facebook
All news about AIR LIQUIDE
10/29AIR LIQUIDE(L) : Raised to Buy by DZ Bank
MD
10/27AIR LIQUIDE(L) : Goldman Sachs remains Neutral
MD
10/26AIR LIQUIDE(L) : UBS gives a Buy rating
MD
10/26AIR LIQUIDE(L) : Bernstein reiterates its Buy rating
MD
10/23GLOBAL MARKETS LIVE : Intel, Mattel, NordeaÖ
10/23AIR LIQUIDE(L) : Gets a Buy rating from Credit Suisse
MD
10/23AIR LIQUIDE(L) : JP Morgan reiterates its Neutral rating
MD
10/23AIR LIQUIDE(L) : Goldman Sachs reaffirms its Neutral rating
MD
10/23AIR LIQUIDE : Q3 2020 Revenue -6-
DJ
10/23Air Liquide -- Q3 2020 Revenue -5-
DJ
More news
Financials
Sales 2020 20 608 M 23 998 M 23 998 M
Net income 2020 2 351 M 2 738 M 2 738 M
Net Debt 2020 12 140 M 14 137 M 14 137 M
P/E ratio 2020 25,2x
Yield 2020 2,19%
Capitalization 59 193 M 68 981 M 68 930 M
EV / Sales 2020 3,46x
EV / Sales 2021 3,25x
Nbr of Employees 67 000
Free-Float 97,1%
Chart AIR LIQUIDE
Duration : Period :
Air Liquide Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AIR LIQUIDE
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 149,18 €
Last Close Price 125,50 €
Spread / Highest target 49,0%
Spread / Average Target 18,9%
Spread / Lowest Target -0,40%
EPS Revisions
Managers
NameTitle
BenoÓt Potier Chairman & Chief Executive Officer
Fabienne Lecorvaisier Chief Financial Officer & Executive Vice President
Thierry Peugeot Director
Jean-Paul Agon Lead Independent Director
Si‚n Herbert-Jones Independent Director
Sector and Competitors