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By Olivier Cherfan and Gianluca Lo Nostro
July 26 (Reuters) -
French industrial gas supplier Air Liquide maintained its 2024 forecast on Friday as it posted a first-half operating margin in line with market expectations, largely driven by cheaper processes that helped boost efficiency.
The company said it expects a higher operating margin and recurring net profit growth, at constant exchange rates, in 2024. It is targeting an increase of 320 basis points (bps) in operating margin by 2025.
Air Liquide, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, said its operating margin rose 100 bps to 19.4% in the January-June period. Analysts, on average, polled by Vara Research, were expecting an operating margin of 19.3%.
Revenue in the company's gas and services segment, which accounts for more than 96% of the total, increased 2.6% to 12.80 billion euros ($13.89 billion) in the first six months, aided by Air Liquide's healthcare business and its U.S. operations.
"Overall, a reassuring print, even if broadly in line," J.P.Morgan said about the update, retaining its "neutral" rating on the stock.
Air Liquide announced two major agreements with ExxonMobil
and U.S. chipmaker Micron Technology in June for low-carbon hydrogen and ammonia production and supply of ultra-pure nitrogen and other gases, respectively.
There is a "very strong demand" in semiconductors, "driven
by digital technology, server requirements, artificial intelligence" and "we are very well positioned in this sector.", CEO François Jackow said in a post-results call.
Air Liquide's shares were up 0.5% at 165.68 euros, as of 0913 GMT.
($1 = 0.9212 euros)
(Reporting by Olivier Cherfan and Gianluca Lo Nostro; Editing by Sherry Jacob-Phillips and Sonia Cheema)
((olivier.cherfan@thomsonreuters.com; gianluca.lonostro@thomsonreuters.com))
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