Air Products CEO Seifi Ghasemi said the company has delivered excellent results for the year, despite significant external challenges, as the industrial gas giant today (4th Nov) reported its fiscal year 2021 results.

“The committed, dedicated and motivated team at Air Products proved once again that they can delivered results now while developing and executing megaprojects for profitable growth in the future.”

“We delivered excellent results for the year, despite significant external challenges. We announced significant projects across our core gasification, carbon capture and hydrogen growth platforms, including the net-zero hydrogen facility in Alberta, Canada and the massive blue hydrogen project in Louisiana, while also closing on the $12bn Jazan acquisition.”

For the year, Air Products reported GAAP net income of $2.1bn, up 10% over the prior year.

Full-year sales of $10.3bn increased 17% over the prior year, on 6% higher energy pass-through, 5% higher volumes, 4% favourable currency and 2% higher pricing.

Air Products has said volume growth was primarily driven by the EMEA and Global Gases segments, and pricing improved in all three regions and across most major product lines.

On a non-GAAP basis, adjusted EPS from continuing operations of $9.02 increased 8% over the prior year, and adjusted EBITA of $3.3bn was up 7% over the prior year.

Q4 Results

For its fiscal fourth quarter (Q4), Air Products reported GAAP net income of $619m, up 25% over the prior year, and GAAP net income margin of 21.8%, up 50 basis points.

GAAP EPS from continuing operations of $2.51 was up 15% over the prior year.

Q4 sales of $2.8bn increased 22% on 9% higher volumes, 8% higher energy cost pass-through, 3% higher pricing and 2% favourable currency.

Volume growth from improved hydrogen and merchant demand and new assets more than offset reduced contributions from the Lu’An facility in China.

Results by segment

Americas sales of $1.2bn were up 22% over the prior year on 15% higher energy cost pass-through, 4% higher pricing, and 3% higher volumes, driven primarily by hydrogen and merchant demand.

Operating income of $290m increased 22% on higher volumes, pricing and lower maintenance costs; adjusted EBITDA of $476m increased 16%. Operating margin of 26% decreased 20 basis points. 

Adjusted EBITDA margin of 42.7% decreased 230 basis points, as an approximately 550 basis point negative impact from higher energy cost pass-through was partially offset by lower costs and higher equity affiliate income.

EMEA sales of $674m increased 33% over the prior year on 14% higher volumes, driven primarily by hydrogen and merchant demand and new assets; 12% higher energy cost pass-through; 4% higher pricing; and 3% favourable currency.

Operating income of $136m increased 11% on higher volumes, pricing and favourable currency, partially offset by energy cost escalation during the quarter; adjusted EBITDA of $229m increased 14% on these same factors as well as higher equity affiliate income. Operating margin of 20.2% decreased 420 basis points.

Adjusted EBITDA margin of 34% decreased 560 basis points, with higher energy cost pass-through accounting for approximately 400 basis points of the decline.

Asia sales of $754m increased 6% over the prior year on 5% favourable currency and o1% higher pricing. Volumes were flat, with new plants offsetting reduced contributions from Lu’An. 

Operating income of $206m decreased 2% as favourable pricing and currency were more than offset by higher costs, and operating margin of 27.3% decreased 220 basis points.

Adjusted EBITDA of $341m increased 3% as favourable pricing and currency more than offset higher costs. Adjusted EBITDA margin of 45.3% decreased 100 basis points.