Despite the challenging COVID-19 environment, the Air Products team has demonstrated its commitment by keeping plants running, supplying customers with essential products, and improving profitability.
That was the recognition given by Air Products’ Chairman, President and CEO, Seifi Ghasemi, as he reflected on the whirlwind year when the industrial gas giant today (11th Nov) released its fiscal year 2020 results.
“Despite significant uncertainty in the global economy and ongoing challenges from COVID-19, we continue to deliver value through our stable business model, financial position, exciting growth opportunities, and the unwavering commitment and discipline of our people,” he said.
“We were proud to announce landmark gasification and hydrogen for mobility megaprojects to meet the world’s increasing energy needs and move us all towards a better future. With our continued focus on creating shareholder value, we also increased our dividend for the 38th consecutive year, representing the largest per-share dividend increase in Air Products’ 80-year history.”
For the year ended 30th September (2020), Air Products reported GAAP net income of $1,931m and GAAP diluted EPS from continuing operations of $8.55.
On a non-GAAP basis, adjusted diluted EPS from continuing operations of $8.38 was up 2% over the prior year, as higher pricing helped to overcome an estimated $0.60-$0.65 per share negative impact from the coronavirus pandemic.
Full-year sales of $8.9bn decreased 1% from the prior year, as 3% higher pricing and 2% higher volumes were more than offset by 4% unfavourable energy pass-through, 1% unfavourable currency and 1% from a contract modification to a tolling agreement in India.
Adjusted EBITDA of $3.6bn was up 4% on higher pricing, and adjusted EBITDA margin of 40.9% was up 200 basis points.
Volume growth was primarily driven by acquisitions and higher sale-of-equipment activities, which more than offset the negative impact from the coronavirus pandemic.
Commenting on the company’s results, Ghasemi added, “I would like to thank all of our more than 19,000 employees for their unwavering commitment to keep Air Products operating successfully during these difficult times, which we expect to continue during 2021.”
“Around the world, the energy transition is a focus for economic recovery, and our expertise, technology and people put Air Products at the heart of providing sustainable energy and environmental solutions. As we put our higher purpose into action, including our focus on sustainability and diversity, we continue to stand together and work together to make a difference.”