Air Products has reported second quarter fiscal 2023 results, including GAAP EPS from continuing operations of USD 1.97, down 17 percent from prior year. This includes an unfavourable USD 0.77 per share impact, primarily from business and asset actions related to the Company’s withdrawal from projects in Indonesia and Ukraine. GAAP net income of USD 450 million was down 16 percent and GAAP net income margin of 14.1 percent decreased 410 basis points from the prior year as higher costs, including the charge for business and asset actions, were only partially offset by higher pricing and higher volumes, as well as higher equity affiliates’ income from the Jazan project.
For the quarter, on a non-GAAP basis, adjusted EPS from continuing operations of USD 2.74 increased 17 percent over the prior year. Adjusted EBITDA of USD 1,151 million was up 13 percent and adjusted EBITDA margin of 36.0 percent increased 140 basis points over the prior year, as higher pricing, higher volumes, and higher equity affiliates’ income more than offset higher costs.
Second quarter sales of USD 3.2 billion increased nine percent over the prior year on eight percent higher pricing and six percent higher volumes, partially offset by four percent unfavourable currency and one percent lower energy cost pass-through. Higher pricing across the regions and higher on-site volumes drove the results.
To read the full report click here.
Q2 FY23 (comparisons versus prior year)
- GAAP EPS# of USD 1.97, down 17 percent; GAAP net income of USD 450 million, down 16 percent; and GAAP net income margin of 14.1 percent, down 410 basis points
- Adjusted EPS of USD 2.74, up 17 percent; adjusted EBITDA of USD 1,151 million, up 13 percent; and adjusted EBITDA margin of 36.0 percent, up 140 basis points
- Higher pricing and volume drove improved results in all regional segments
Recent Highlights
- Completed Jazan Phase II in January 2023, which began contributing to equity affiliates’ income during the second quarter
- Issued inaugural green bonds in USD 600 million and €700 million debt offerings, making Air Products the first U.S. chemical company to qualify green and blue hydrogen projects as an eligible expenditure category
- Continued to drive the Company’s hydrogen leadership through first-mover low-carbon intensity and zero-carbon energy transition mega projects globally; brought over 30 new assets on-stream in Asia
- Signed four LNG process technology and equipment agreements during the quarter, including with Bechtel Energy, Inc. for Sempra Infrastructure’s Port Arthur LNG Phase 1 Project in Jefferson County, Texas and with Technip Energies for the Xi’An LNG Emergency Reserve & Peak Regulation Project with Shaanxi LNG Reserves & Logistics Company Ltd. in ShaanXi Province, China
- Announced two new world-scale carbon monoxide projects in Texas with secured, long-term off-take contracts from Eastman and LyondellBasell