After a bruising second quarter that saw Air Products plunge to a $1.7bn loss, the industrial gas major is now betting on a return to financial stability, outlining plans to become cash flow neutral as early as fiscal 2026.
As it looks to shore up its balance sheet, the company has set out plans to scale back its capital expenditure over the coming years. Total spend is expected to fall from around $5bn in fiscal 2025 to roughly $2.5bn annually by fiscal 2030, according to its projections.
“Going forward, our focus will be on opportunities that meet our high return thresholds with high-quality customers and contracts,” said CEO Eduardo Menezes, speaking on the recent Q2 earnings call.
The revised spending outlook is split across four categories: base growth, maintenance, ongoing mega-projects in Saudi Arabia (Neom) and Louisiana (Darrow), and a shrinking pool of the worst-performing energy transition projects. These include costly and delayed ventures like the Edmonton blue hydrogen facility in Alberta, Canada, now forecast to cost $3.3bn and come onstream in 2028.
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