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linde-records-9-1bn-profit-in-2023
linde-records-9-1bn-profit-in-2023

Linde records $9.1bn profit in 2023

Linde recorded an operating profit of $9.1bn in 2023 and $2.3bn operating profit in the fourth quarter.

Full-year sales totalled $32.9bn, down 2%, while quarterly sales came in at $8.3bn, up 5% year-on-year.

Sanjiv Lamba, CEO, said, “Despite the challenging environment in 2023, the Linde team once again delivered industry leading results including a 25.4% ROC, 27.6% operating margin and EPS growth rate of 16%.”

He added it closed the year with an $8.5bn project backlog which will contribute earnings growth “for years to come”.

“Looking ahead, the geopolitical and macro environment remain uncertain. However, we are well positioned to win more than our fair share of high-quality projects and again create shareholder value by leveraging all of the opportunities that lie ahead,” he said.

Manufacturing (22%) and Chemicals & Energy (22%) accounted for the highest percentage of sales year-on-year, followed by Healthcare (17%), Metals & Mining (14%), Food & Beverage and Electronics (both 9%).

Sharing views on the merits of blue and green hydrogen, Linde notes blue hydrogen is the preferred option for production at scale, offering low technical risk, lowest overall cost and most reliable and proven solution today. It finds most of the large opportunities are tied up with blue hydrogen, which Linde has capitalised on with OCI.

The nascent green hydrogen market lacks scale and is primarily for the merchant hydrogen market, it adds. Electrolysers are unproven at gigawatt scale, overall cost is high and it requires abundant and cost-effective renewable power.

Fourth quarter results by segment

US recorded sales of $3.5bn, up 5% versus prior-year quarter, and compared with fourth quarter 2022, underlying sales increased 6%, driven by 5% higher pricing and 1% volumes. Operating profit totalled $1.07bn.

APAC (Asia Pacific) sales of $1.64bn were also 5% above prior year, with operating profit of $452m.

EMEA (Europe, Middle East & Africa) sales of $2.1bn were up 4% versus prior year. Compared with fourth quarter 2022, underlying sales grew 2%, driven by 6% higher pricing partially offset by 4% lower volumes. Operating profit totalled $615m.

Linde Engineering recorded $658m sales, 17% above prior year, with an operating profit of $119m.

Linde recently confirmed plans to purchase renewable energy from two solar projects in the provinces of Guangdong and Jiangsu, China, after signing two new long-term power purchase agreements (click here).

Last month it reported a record number of small on-site projects in 2023, having signed 53 new contracts for the supply of nitrogen and oxygen during the year, representing a capex of $270m (click here).


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