Air Products recorded a 65% jump in net income to $3.9bn in its 2024 full-year consolidated results, fuelled by the $1.2bn after-tax gain from the sale of its former LNG business at the end of the fourth quarter to Honeywell.
Fourth quarter net income totalled $2bn, on the back of $3.2bn sales, leading to an adjusted EPS of $3.56, up 13%, and EBITDA margin exceeding 44%. The bottom line was driven by ‘higher volumes and favourable pricing’, according to Zacks Equity Research. Revenues were $12.1bn for the full year, down around 3.9% year-on-year.
Quarterly sales growth was headed by Asia ($861m, up 7%) while the segment-leading Americas totalled $1.3bn (down 3%) and Europe sales fell 3% too to $731m. Middle East and India equity affiliates’ income of $92m was ‘flat’ year-on-year while corporate and other sales fell 11% to $257m.
Alongside the headline LNG sale, Air Products announced plans to construct two new air separation units at the Company’s Conyers, Georgia, and Reidsville, North Carolina locations to serve local merchant markets, and $70m to expand gas separation and purification membranes at its Missouri manufacturing and logistics centre.
Read more: Air Products announces record $70m membrane expansion in Missouri
The investment is being driven by growing product demand in biogas and hydrogen recovery applications, as well as use of nitrogen and clean fuels for the aerospace and shipping industries respectively.
In the clean hydrogen sector, Air Products signed a 15-year agreement with TotalEnergies to supply 70,000 tonnes of green hydrogen annually, and announced plans to build networks of commercial-scale, multi-modal hydrogen refuelling stations in California, Canada and Europe. It also stated a trial with Daimler Mercedes-Benz GenH2 truck for converting its fleet to hydrogen-powered vehicles. NEOM, the largest green hydrogen project in Saudi Arabia, is around 60% complete and will generate up to 600 tonnes per day of green hydrogen.
Air Products’ Chairman, President and CEO Seifi Ghasemi said alongside the strategic divestiture of the LNG business at the end of September, it demonstrated commitment to its core industrial gas business while providing clean hydrogen at scale to serve significant demand in the heavy transport and industrial sectors.
He said the TotalEnergies deal is “a great example” of its ability to sign offtake agreements that are aligned to its traditional on-site business model.
Read more: Air Products and TotalEnergies sign major green hydrogen supply deal
Air Products also continues to generate strong and steady cash flow, he added, and it expects to pay out approximately $1.6bn in dividends to shareholders. It expects capital expenditures in the range of $4.5-$5bn for fiscal 2025.
The industrial gas major formed a new senior management board to execute the industrial gas giant’s two-pillar growth strategy in July. Its new strategy involves growing its industrial gas business, including related technology and equipment, and to be ‘a first mover’ in clean hydrogen.
Read more: Air Products names new senior management board
Methanol Chemicals Company (Chemanol) recently entered into a 20-year supply agreement with Air Products Qudra, aiming to enhance its methanol production capabilities as part of an extensive revamp project.
The partnership, which is set to unfold over the next 18 months, will see Air Products Qudra providing the essential industrial gases needed to modernise Chemanol’s facilities, a move expected to elevate the company’s operational efficiency within the methanol sector.
Read more: Chemanol partners with Air Products Qudra in 20-year methanol revamp deal
