PARIS - Air Liquide (OTC:AIQUY), a global leader in gases, technologies, and services for industry and health, has entered into a groundbreaking long-term Virtual Power Purchase Agreement (VPPA) with Statkraft, Europe’s largest renewable energy producer. This strategic move marks Air Liquide's first venture into financial instruments designed to further its decarbonization goals.
Under the agreement, Air Liquide will receive renewable energy certificates from wind farms in Poland, contributing to a reduction of 38,000 tonnes of CO2 emissions annually. This initiative aligns with Air Liquide's ADVANCE strategic plan, aiming for a 33% reduction in absolute CO2 emissions from scopes 1 & 2 by 2035 and achieving carbon neutrality by 2050.
The VPPA is structured to provide a fixed price for a variable price and renewable energy certificates, offering benefits to both the renewable electricity producers and industrial consumers. It ensures income security for the seller and cost visibility and stability for the buyer.
Jérôme Pelletan, Chief Financial Officer and Member of the Executive Committee at Air Liquide, commented on the significance of the agreement, stating that it exemplifies the company's strong commitment and innovative approach to meeting its climate objectives. He also indicated that this contract paves the way for more such agreements in the future.
Air Liquide, established in 1902, operates in 73 countries with around 67,100 employees and caters to over 3.9 million customers and patients. The company's core activities involve essential small molecules such as oxygen, nitrogen, and hydrogen, which are pivotal for life, matter, and energy.
The company's 2025 strategic plan, ADVANCE, focuses on achieving global performance by integrating financial and extra-financial aspects.
With a revenue of over 29.9 billion euros in 2022, Air Liquide is listed on the Euronext Paris stock exchange and is part of several major indices, including the CAC 40, CAC 40 ESG, EURO STOXX 50, FTSE4Good, and DJSI Europe.
This information is based on a press release statement from Air Liquide.
InvestingPro Insights
Air Liquide's foray into Virtual Power Purchase Agreements (VPPAs) with Statkraft is a testament to their commitment to sustainability, a crucial aspect of their ADVANCE strategic plan. In light of this move, let's delve into some key financial metrics and InvestingPro Tips that could offer additional insights into the company's performance and investment potential.
InvestingPro data shows that Air Liquide's Price/Earnings (P/E) Ratio stands at 28.92 as of the last twelve months ending Q3 2023. This metric can help investors gauge the company's valuation in the context of its earnings. While the P/E ratio is high, suggesting a premium valuation, it is important to consider this in conjunction with the company's growth prospects and industry position. The company's Price/Book (P/B) ratio is 7.75, which can offer insight into how the market values the company's net assets. Additionally, Air Liquide has experienced a solid revenue growth of 14.68% over the last twelve months as of Q3 2023, indicating robust business expansion.
When it comes to InvestingPro Tips, two points stand out. Firstly, Air Liquide has raised its dividend for 4 consecutive years, with a notable dividend growth of 20.0% in the last twelve months as of Q3 2023. This could be appealing for income-focused investors. Secondly, the company is trading near its 52-week high, at 98.21% of this peak value, reflecting strong investor confidence and market performance.
For investors seeking deeper analysis and more InvestingPro Tips, Air Liquide's profile on InvestingPro offers additional insights. There are 11 more tips available that could further inform investment decisions, ranging from the company's industry standing to its financial health and stock performance. Interested readers can explore these by visiting the InvestingPro profile for Air Liquide. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use coupon code PRONEWS24.
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