Linde plays down gas supply fears and raises 2022 earnings guidance
Reuters
Published Jul 28, 2022 11:16
Updated Jul 28, 2022 17:16
By Bartosz Dabrowski and Andrey Sychev
(Reuters) -Linde, the world's largest industrial gases company, on Thursday said gas supply issues in Europe would not be devastating to its operations and raised its full-year earnings guidance.
Frankfurt-listed shares in the U.S.-German company were up 2.3% as of the market's 1530 GMT close after Chief Executive Sanjiv Lamba told a conference call that volatility in Linde's operations would be limited.
"Because we produce gases which are critical either from a medical or a process safety perspective, the German government ... allocates us on a preferential or priority basis," Lamba said.
He added that Linde was in intense conversations with the German government around electricity and energy allocations.
Linde said it expects adjusted earnings per share to grow between 15% and 17% in 2022, excluding foreign currency effects, having previously guided for 11% to 13% EPS growth for the full year.
The company, which recorded impairments of $993 million from its Russia exit, said all its Russian earnings were excluded prospectively as of July 1.
Linde in June ended its participation in Russia's Amur gas and chemicals complex in accordance with its plan to suspend all business development activities in the region, ceasing supply to certain customers and divesting industrial assets.
The European Union accounts for 25% of Linde's sales, which is the same as U.S. competitor Air Products (NYSE:APD) but lower than 39% of French peer Air Liquide (EPA:AIRP).
Linde reported a 15% rise in quarterly adjusted EPS to $3.10, ahead of the $2.96 forecast from analysts polled by Refinitiv.
The group's total sales increased by 12% to $8.5 billion in the April-June period, above analysts' forecast of $8.3 billion.
Linde has consistently beaten analysts' quarterly estimates over the past two years, benefiting from a higher pricing environment and growing hydrogen investments as countries look to cut back on emissions.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.