Revenue published comparable
(in millions of euros) H1 2019 H1 2020 change change
Gas & Services 10,536 9,920 -5.8% -2.7%
Engineering & Construction 176 104 -41.0% -41.3%
Global Markets & Technologies 240 249 +3.5% +3.2%
TOTAL REVENUE 10,952 10,273 -6.2% -3.2%
Revenue by quarter
(in millions of euros) Q1 2020 Q2 2020
Gas & Services 5,191 4,729
Engineering & Construction 52 52
Global Markets & Technologies 127 122
TOTAL REVENUE 5,370 4,903
2020/2019 Group published change -1.3% -11.0%
2020/2019 Group comparable change +0.6% -6.9%
2020/2019 Gas & Services comparable change +1.1% -6.5%
Group revenue for the 1(st) half of 2020 totaled 10,273 million euros. The limited decline in sales over the half year of -3.2% for the Group and -2.7% for Gas & Services underlined the resilience of the business model despite the COVID-19 pandemic which affected all activities and regions. In China, the first country to be impacted by the virus, sales were up during the 2(nd) quarter. Business in Europe has been gradually recovering since May whereas it stabilized in the United States in June after showing the first signs of a recovery on specific markets in May. Consolidated sales of Engineering & Construction (-41.3%) reflected the priority allocation of resources to internal projects as well as the impact of the pandemic which led to closure of the manufacturing workshop in China for four weeks and to several projects being postponed by a few months. Global Markets & Technologies reduced the pace of its activity during the pandemic while pursuing its development with sales growth of +3.2% in the 1(st) half. The Group's published revenue was down -6.2% as the slightly positive currency impact +0.1% was not sufficient to offset the strong negative energy impact of -2.7% and the significant scope impact of -0.4%.
Gas & Services
Gas & Services revenue for the 1(st) half of 2020 reached 9,920 million euros. 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% and +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. Sales as published were down -5.8%, negatively affected by unfavorable energy (-2.8%) and significant scope (-0.4%) impacts, despite the slightly positive currency impact (+0.1%).
Revenue by geography and business published comparable
line (in millions of euros) H1 2019 H1 2020 change change
Americas 4,217 3,975 -5.7% -5.1%
Europe 3,611 3,440 -4.7% +0.2%
Asia-Pacific 2,405 2,236 -7.0% -2.1%
Middle East & Africa 303 269 -11.3% -7.3%
GAS & SERVICES REVENUE 10,536 9,920 -5.8% -2.7%
Large Industries 2,904 2,430 -16.3% -2.5%
Industrial Merchant 4,827 4,509 -6.6% -8.1%
Healthcare 1,821 1,959 +7.6% +8.7%
Electronics 984 1,022 +3.9% +2.0%
Gas & Services revenue in the Americas totaled 3,975 million euros in the 1(st) half, marking a decline of -5.1%. North America was affected by the pandemic as of the end of March and after showing initial signs of a recovery in certain markets at the end of May, the activity stabilized in June. Latin America, which was affected by the virus later in the 2(nd) quarter, continues to fight against COVID-19. Large Industries sales were down slightly over the half year (-1.3%). With revenue down -8.3%, Industrial Merchant was the most affected by the public health crisis and lockdown measures. Electronics posted strong growth of +5.1%. Healthcare remains fully committed to the fight against the pandemic, notably through the supply of medical oxygen, and posted sales growth of +5.4%.
Americas Gas & Services H1 2020 Revenue
-- Large Industries revenue was down slightly, by -1.3%, in the 1st half,
mainly due to weak air gases volumes in the United States, in particular
for Chemicals in the 2nd quarter as a result of lockdown measures.
Following a dynamic 1st quarter and a moderate decline in the 2nd quarter,
hydrogen volumes for Refining stabilized pending a recovery in fuel
demand. Growth in Latin America was driven mainly by the start-up and
ramp-up of new units.
-- Industrial Merchant sales, which were down -8.3% over the 1st half, were
strongly impacted by the public health crisis. The slowdown in industrial
sectors such as Construction and Metal Fabrication therefore triggered a
major decline in sales in the United States, notably for hardgoods and,
to a lesser extent, cylinders and liquid gas. The marked fall in volumes
was partially offset by fixed revenues from the provision of gas
cylinders and liquid storage tanks, and high price impacts (+4.0%) which
benefited from the price increases campaigns at the beginning of the
year. Consumption-related markets such as Food and Pharmaceuticals and
the Research sector were more resilient. In Canada, liquid nitrogen
volumes were also affected by the slowdown in oil exploration activities.
In Latin America, volumes were weaker during the 2nd quarter, as the
region was hit later by the public health crisis.
-- Healthcare revenue was up +5.4% in the 1st half, driven by medical gases
sales growth across the region. In the 2nd quarter, sales of medical
oxygen to fight COVID-19 in the United States did not fully offset the
decline in proximity care activity due to the interruption of
non-emergency services, but the situation improved towards the end of the
quarter. In Latin America, the Healthcare teams were highly mobilized in
the fight against COVID-19. Medical oxygen sales as well as ventilators
and installations in hospitals were up markedly, in particular in
Argentina and Brazil, as well as Home Healthcare sales.
-- Electronics revenue was up +5.1%, with Advanced Materials and Equipment &
Installation sales up sharply across the half year.
Americas -- Air Liquide has signed a long-term agreement with Steel
Dynamics, Inc. (SDI), one of the largest steel producers and metals recyclers
in the United States, to supply gaseous oxygen, nitrogen, and argon to SDI's
new Electric Arc Furnace (EAF) steel mill in Sinton, Texas. To support the new
agreement, Air Liquide plans to invest over 100 million U.S. dollars to
install an Air Separation Unit (ASU) on its Gulf Coast pipeline network in
Ingleside, Texas, and extend its pipeline network to SDI's site.
Revenue in Europe was stable over the half year (+0.2%), reaching 3,440 million euros. The region was particularly impacted by the public health crisis as of mid-March, notably in Southern Europe, and activities have 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 1(st) half.
Europe Gas & Services H1 2020 Revenue
-- Large Industries sales were down -3.5% during the 1st half, due to a
slowdown in activity during the 2nd quarter related to the public health
crisis. Air gases volumes were weak in Steel and, to a lesser extent, in
Chemicals, due mainly to a significant fall in Construction and
Automotive activities. Following a dynamic 1st quarter, demand for
hydrogen from Refiners in the Benelux was weaker during the 2nd quarter.
The eastern part of Europe was more resilient, with air gases sales up
during the 1st half in Russia and Turkey. Overall activity in the region
has been gradually recovering since May.
-- Industrial Merchant sales were down -8.2% during the 1st half. The entire
region was affected by the public health crisis, with weak cylinder and
liquid gas sales, in particular in Western and Southern Europe. The Food
and Pharmaceuticals sectors were more resilient than those linked to
industrial production. The first signs of a gradual recovery were visible
as of May, in particular with a rebound in cylinder gas sales in Benelux
and Southern Europe. Price impacts remained high at +1.6%.
-- Healthcare has been deeply involved in the fight against COVID-19 and was
up +10.8% over the half year. The business line notably benefited from
the marked increase in sales of medical hydroalcoholic gel produced by
its subsidiary schülke as well as the sale of, at cost price,
ventilators by Air Liquide Medical Systems as part of the emergency
measures implemented to manage the pandemic. Following a major increase
in medical oxygen volumes in March and April, activity levels are
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