Air Liquide, the French industrial-gas supplier, has reported a decline in revenue for the third quarter. This can be attributed to the significant drop in energy prices during this period. However, despite this setback, the company remains optimistic about its future prospects.
Decrease in Revenue
Air Liquide recorded a revenue of €6.81 billion ($7.21 billion) for the third quarter, reflecting a 17% decline compared to the same period last year. Analysts had expected slightly higher revenue of €6.83 billion, according to FactSet's consensus.
The primary reason for the revenue decrease is the contracted pass-through of lower energy prices to Air Liquide's customers. On a comparable basis, however, the company managed to achieve a 1.5% increase in revenue for the quarter.
Record Backlog and Investment Plans
Despite the drop in revenue, Air Liquide remains positive about its project pipeline and investment decisions. The company's project backlog reached a record level of €4.2 billion during the quarter. Additionally, it made investment decisions totaling €1.3 billion, also setting a new record.
These figures highlight the company's commitment to future growth and development, despite the challenging market conditions.
Optimistic Outlook for 2023
Looking ahead to 2023, Air Liquide maintains its expectations of an improved operating margin and recurring net profit at constant-exchange rates. This demonstrates the company's confidence in its ability to navigate through the current economic environment and deliver positive results in the long run.
Overall, Air Liquide's Q3 results may have been impacted by the decline in energy prices, but its strong project backlog and investment plans signify a promising future.
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