Your Feedback

Energy News Monitoring


2019 is a year of significant improvement in performance and investments

Air Liquide is a world leader in gases, technologies and services for Industry and Health. Air Liquide is present in 80 countries with approximately 66,000 employees and serves more than 3.6 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy.

2019 was another year of success for the company: sales were driven by the development of Gas & Services and Global Markets & Technologies and reached EUR 21.9 billion. All Gas & Services activities, which account for 96% of Group revenue, made progress in 2019, mainly in Electronics and Healthcare. Geographically, every region grew, particularly the Europe and Asia-Pacific regions. In 2019 investment decisions rose sharply, to EUR 3.7 billion.

According to the Press Release and Management Report on Financial Results 2019, group revenue for 2019 totalled EUR 21,920 million and increased by 3.2%, compared to EUR 21,011 million in 2018 and EUR 20,349 million in 2017. The Group’s operating income reached EUR 3,794 million euros in 2019, and increased by 10.0%, compared to EUR 3,449 million in 2018 and EUR 3,364 million in 2017. The operating margin amounted to 17.3%, compared to 16.4% in 2018 and 16.5% in 2017. Net profit amounted to EUR 2,242 million in 2019 and represented an increase of 6.1%, compared to EUR 2,113 million in 2018.

Cash flow from operating activities totalled EUR 4,859 million and stood at 22.2%, compared to EUR 4,138 million in 2018.

Research & Development expenses and Corporate costs stood at EUR 310 million in 2019, compared to EUR 277 million in 2018.

Segmentally, Gas & Services revenue grew by 4.5% from EUR 20,107 million in 2018 to EUR 21,040 million in 2019 despite the slowing economic environment in the 4th quarter of 2019. The Gas & Services operating margin stood at 19.1%, an improvement by 60 basis points compared with 2018. Gas & Services Operating income recurring for Gas & Services amounted to EUR 4,028 million, an increase of +9.5% as published, and +7.2% on a comparable basis, compared to 2018. Electronics growth stood at +2.1%. Healthcare continued to improve strongly and increased by 9.7% in 2019, in particular in Medical Gases in the United States and Latin America.Electronics revenue maintained a very dynamic growth of 7.9%.

In Engineering & Construction, sales were down by 23.7% compared with 2018, and totaled, EUR 328 million compared to EUR 430 million in 2018 and EUR 335 million in 2017. The revenue was down as resources were mainly allocated to internal projects in Large Industries and Electronics.

Global Markets & Technologies continued its dynamic development with a growth of 14.9% and increased from EUR 474 million in 2018 to EUR 552 million in 2019. Biomethane grew strongly due to the ramp-up of several units in Europe.

Geographically, revenue in the Americas totalled EUR 8,460 million in 2019, an increase of 6% compared to EUR 7,982 million in 2018 and EUR 8,115 million in 2017. Large Industries sales were stable in 2019. Industrial Merchant revenue growth was at 0.7%, driven mainly by higher prices. Electronics growth stood at 2.1% and Healthcare continued to improve strongly with 9.7%, in particular in Medical Gases in the United States and Latin America. In South America, double-digit growth was driven by a strong increase in liquid gas volumes in Brazil. Electronics sales were up by 2.1% over the year.

Revenue in Europe reached EUR 7,172 million over 2019 and increased by 0.9% on a published basis, compared to EUR 7,111 million in 2018, driven mainly by good Healthcare sales and a solid growth in Industrial Merchant. Large Industries sales increased by 1.7%, driven mainly by higher hydrogen volumes for refineries in Benelux. Industrial Merchant sales growth stood at 3.4% in 2019, driven mainly by high prices and the further development of the Food and Pharmaceuticals markets. Healthcare sales enjoyed strong, fully organic growth of 5.2%.

Revenue in the Asia Pacific zone totalled EUR 4,794 million in 2019 and increased by 10% on a published basis, compared to 2018. Large Industries sales grew strongly by 9.7%, particularly in China. Industrial Merchant growth was 3.7%, mainly in China and South-East Asia. Electronics revenue maintained its very dynamic growth in 2019 and increased by 10.4%, despite a major decline in Equipment & Installations sales in the 4th quarter 2019, compared with record high sales in 2018. Large Industries sales grew by 9.7% and were driven mainly by the recent increase of three production units in China, including the contribution from Fujian Shenyuan, which was disposed of in early September. Hydrogen sales to refiners also rose strongly in Singapore. Industrial Merchant revenue was up by +3.7% thanks to the strong increase in cylinder gas volumes in China.

Revenue in the Middle East and Africa zone amounted to EUR 614 million, an increase of 1.5% over 2019 on a comparable basis. Industrial Merchant remained very dynamic in the Middle East, Egypt and India, with strong helium sales in particular. The Healthcare business continued to grow in Egypt and Saudi Arabia.

All businesses contributed to growth in 2019, in particular Healthcare and Electronics. Large Industries increased by 3.4% and benefited from hydrogen volumes in Europe and Asia. In a less favourable economic environment in the 4th quarter of 2019. Industrial Merchant growth reached 1.9% over the year, driven mainly by efficient price management, including helium. Strong healthcare growth of 5.7% was due to organic sales growth, in particular in Home Healthcare in Europe and Latin America, and in Medical Gases in the United States.

2019 Air Liquide signed numerous long-term contracts, in Russia with Severstal, on the Gulf Coast with Marathon Petroleum Company, Gulf Coast Growth Ventures (GCGV), Lyondell Basel and Methanex, and in Kazakhstan with Kazakhstan Petrochemical Industries (KPI). In 2019 Air Liquid acquired Tech Air in the United States and Southern Industrial Gas in Malaysia. The acquisition of Tech Air in the United States at the end of the 1st quarter of 2019 generated a significant scope impact of 0.4% over the year.

Air Liquide is confident in its ability to further increase its operating margin and to deliver net profit growth in 2020, at constant exchange rates.