By Gaelle Sheehan and PierreJohn Felcenloben
(Reuters) -French industrial gases firm Air Liquide (EPA:AIRP) said on Thursday that first-half net profit surged 32%, driven by price hikes, a strong performance by its industrial clients business and cost savings.
Net profit climbed to 1.72 billion euros ($1.9 billion) despite a 1.6% decline in revenue to 13.98 billion euros.
The supplier of gas-related services to industries and hospitals reported cost savings of 206 million euros, 23.6% more than the prior year.
Chief Financial Officer Jérôme Pelletan said the cost savings had come through digitisation, centralised purchasing and "speeding up work on shared service centres".
"Being able to generate efficiencies at a time when purchase prices are rising is quite an achievement, and we're particularly pleased about it", he added.
Shares were up 1.5% to 160.58 euros at 0831 GMT.
Earnings per share came in at 3.30 euros, above a company collated consensus of 3.05 euros.
The company's gas & services division, accounting for 96% of business, saw its revenue climb 5.3% when exchange rate effects are discounted. Within that division, its business aimed at industrial clients continued to grow, with revenue jumping 12.1%.
Air Liquide said it still expects to increase its operating margin and deliver profit growth this year. It has not given numerical targets.
The company said in April it was considering 3.4 billion euros in investment opportunities over the next 12 months. More than 40% of those are linked to energy transition and are well balanced between America, Europe and Asia, it said.
Air Liquide, said in February it wanted to take advantage of an historic opportunity to invest in clean energy, helped in particular by the U.S. Inflation Reduction Act (IRA) and the European Union's net-zero emissions programme.
Air Liquide, one of the largest hydrogen producers in the world, is also considering using its developing biogas production capabilities, which amounts to 1.5 Twh, CEO François Jackow said, to decarbonise hydrogen production.