Q2 adjusted earnings per share (EPS): $2.85, a 4% increase compared to previous year.
On-site activities robust, driven by higher demand for hydrogen and contributions from new assets.
Volume down 2% due to lower demand for merchant products; price contributed 1% to the results.
EBITDA improved by 4%, with higher contribution margin and lower costs more than offsetting lower affiliate income.
EBITDA margin exceeded 40%, with nearly 500 basis point improvement.
Return on Capital Employed (ROCE) approximately 11%, relatively flat.
Future Guidance
Q3 FY2024 adjusted earnings per share guidance: $3 to $3.05.
Full-year guidance maintained at $12.20 to $12.50 per share.
Capital Expenditures (CapEx) expected to be in the range of $5 billion to $5.5 billion for fiscal year 2024.
Anticipates returning approximately $1.6 billion to shareholders through dividends in 2024.
Trends, Market Conditions, Sentiment
Continued strong results in Americas and Europe supporting performance.
Focused on reducing costs and improving pricing in an inflationary environment.
Industrial gases business and large-scale low-carbon hydrogen projects driving sustainability initiatives.
Witnessing challenging economic conditions in China and activities in the electronics industry throughout Asia.
Significant productivity actions taken to improve margins and bottom line.
LNG business performing strongly, expected to improve results moving forward.
Anticipation of bringing a significant number of smaller plants online.
Seasonal trends suggest earnings are generally higher in the second half of the fiscal year.
Notable Quotes
”Our ultimate goal will always be 0 accidents and 0 incidents.” - Seifi Ghasemi
”We have done it before, and we will do it again.” - On committing to deliver earnings per share growth of at least 10% per year on average for the next 10 years.
”Our real competitive advantage is the degree of motivation and commitment of the people in the company.” - Seifi Ghasemi
”We believe this will generate significant amounts of interest in ammonia as a direct fuel for ships.” - On the demand for blue ammonia.
”We are not going to sign any contract for either one of these two projects until we get to the stage that we can get the price that we expect.” - Regarding NEOM and Louisiana projects.
”Our earnings are generally higher in the second half of our fiscal year.” - On seasonal earnings trends.
