Linde (LIN) 28 Apr 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Linde Plc First Quarter 2022 Earnings Teleconference. At this time all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. After the speakers’ presentation, there will be a question-and-answer session. to conference like to now would hand over the Mr. I Head of Pelaez, Investor Juan Relations. sir. ahead, go Please

Please Thanks, on X the everyone first webcast. Matt it Sanjiv presentation. materials of Today's Good joined the Officer; first made give website will financial teleconference. Head Sergey. and morning our Investor disclosure are this quarter Page and in Q&A. quarter Investors our of note for of with on and outlook. statement linde.com then read Chief Lamba, at earnings performance this reconciliations available applies XXXX morning attending during Matt by we the will on call an Chief and the White, update that forward-looking After presentation provide The and Relations, the slides are I'm of which, section. statements Sanjiv adjusted Pelaez, and some Juan in numbers to I'm opening will thank up Executive Linde's you all Officer. appendix and the wrap remarks, Financial

over now Sanjiv. me call to the turn Let

Thanks, recent Juan, caused the destruction events for generations. a morning, and occurring to invasion tragedy global senseless Ukraine. level in A and seen widespread by addressing casualties I'd in Europe start has like off good and not the at everyone.

and are crisis, gases. part producing to employees help. demonstrated throughout happy Ukrainian to they've I'm As who've a all including delivering the And global must our life-saving courage company, several chosen integrated proud within of XXX countless to determination Linde do report communities across I'm the medical the continue its and globe, of incredibly that safe.

war all I pray and directly of to through begin an contributions are allow efforts this and and enough and to approximately Ukraine. towards that $X pressure their can the million. rebuilding We global bring is healing support including end to supporting indirectly, only the needs

we Russia. scaling gas in back Given these operations are circumstances,

divestment at quite the have investments our down industrial All and projects. sales. seized already certain we of assets. and to already X% to supply process We in, development small for an approximately customers engineering new initiated several business is while winding have reduce which stopped Furthermore, effort some footprint,

half Given speak will Russian on Matt contribution removed the guidance. second from this. have this, earnings more we

However, as we are scaling efforts continue back and their needs. gases support employees supply and for we to critical responsibly safety our to medical

end the of light Now economic highlight it I to thought helpful in by would climate, markets geographies. uncertain trends we're be and seeing

overarching oxygen by which to go end markets. now across foundation X, Two that industrial-related healthcare broad-based medical me both greater increases a At America developing the organic of hospital as trends strong summary were growth procedures key XX% Latin roughly offset flat in on markets you by points Let end and growth markets. consumer XXXX a lower QX gives in from are such are rates Slide of markets as Eastern and of Europe. developed the and X% sales,

are fortunately, appears needs Now COVID abating. oxygen it

home. So increased as as dining production. should and patient That to total primary to Food X% remains less for includes represents both gas sold quarter as sales normal resilient for these most Electronics especially holiday restaurant which Note rate seasonality rare low at APAC. as and in grow the sales. is continue The Americas to that of one neon, from end to parts applications we I trend health to have its bulk helium and season. X% growth expect fourth continues are is ultra-high and the markets, of nitrogen, than of customers to and fastest-growing returned to our expand growth purity percent. mid-single-digit long-term hydrogen, percentage sequential market due hospital beverage of down care food gases. well year-on-year offerings world robust Beverage return of mid-single-digit This

given the being say of of neon to and as producers that However, attention our the own well in one of we're amount refined has of at in positioned fair majority the molecule largest it vast it's U.S. sites this received, the Germany. recently the world, with

of We closely our working wins their mix of new demand. expect this year address and last XX% market to increased grew announce electronics course, project and with I are, with year. course fully the during customers to a underlying growth of versus more start-ups, The project

grew by half increase. sales to that drove Chemicals the Energy which Turning XX% markets. industrial led of Americas, up more end and double than of digit,

to as gases. We hydrogen are driving close even rates development U.S. more very seeing of are energy demand phases strong levels, refining all for other record demand across and

merchant addition, initiatives. in XX% by energy support of hydrogen the volumes almost clean year from rose In last

in market currently customers chemical clean on-site clean the lowest this years their of high current cost world end demand saw are come. weighted for in significant we some drive probability combination the thus To $X and close these exceeding producers projects, energy and the transition for growth the end requiring this projects. U.S. billion gas to reviewing to prices clean The of Our to high for are supply. energy point, with continued spend should energy XXX energy products, in

production mills and steel lower volumes industrial APAC, their production demand. Mining support more as meet to prospects I higher grew In were X% other mostly and in as regions, in future from year by lower Metals Americas increasing offset last were of good quite prior than other increased sequentially U.S. higher offset volumes production Chinese at X% China our feel countries. growth activity. steel XX% global based of in So this from about for sequentially & by year from improved space. sales

to metals increase to continue expect their Russian-based our races and mining sources, As see I and customers to levels. replace the energy world investment production

Versus led in end Americas manufacturing year but was prior the segment, the Finally, increased sequentially. general from the year, market and grew growth manufacturing. last broad-based aerospace and every by X% from XX%

to expanded major be gases space its company going level launch Florida demand the is Currently, provide propulsion gas far with we we've leading industrial rocket based plant. as at satellite ever to propulsion agreement back is rocket in and recently Apollo highest a as Now supplier of last announced all long-term U.S. week, our another to program. new NASA's key program. the players proud seen, Linde out

energy especially Looking concerns are result which in Europe, there in clearly security, around could ahead, persistent inflation.

time shortages the better global that of in COVID additional of Chinese time Additionally, what we Linde on from Russian levels. commodities, ultimately weather has coupled production the with pressure Regardless again than curtailments source could happens put most. demonstrated storm and economy, production

confident performing engineering industrial culture being continue supply the company will world. best gases three across We network and integrated have modes, the in a committed and a all an high-performance why team, I'm that's Linde

call I'd to walk Now like financial through to to over turn numbers. Matt the the

an billing fourth the Thanks, billion first overview Sanjiv. quarter quarter. from increased U.S. and of pass-through from year prior sequentially a from $X.X higher dollar, but contractual Slide the translation increased turn Sales for primarily results. Versus cost against costs, year, X% currency pound by Please X% sterling. prior euro a to the sales but XX% of reduced of energy X from declined stronger X%

trend as X% decline higher combined up from Recall are basis as these and merchant the up backlog we $X.X The split from to more increased year, to cost as much that with X% Engineering projects, contractual sequentially volume inflation. price profit and continue more to actual organic base packaged are prices. X% Operating Russian X% with Excluding will Sequentially, several points sales operating billion down and down from operating gases. for expect continue roughly increases prior QX. XXXX X% pricing prior and pass-through year, when LPG. X% between we that adjust but is price XX.X% project New profit sales items, we grew XX% as pricing excluding the no cost sales and driven from beverage, we quarter. effects decline the XXX EMEA was but Southern and and X% The a volume effect The from by volume. both into impact currency offset Hemisphere of energy food dollars, sequentially. medical begun margins X% Chinese by seasonal on but X% winding in margin volumes was higher flat have X% of headwind, partially increased organic has and operating and oxygen lower Year fourth

effect, from prior basis year operating points are and points basis sequentially. XXX Excluding XXX this up margins

margins Despite the periods. going the continues see to anticipate inflationary right, segment, to can table both cost forward. triple subsequent should pressure, quality ex margins increase geopolitical and the underlying geographic with by events almost showing You unprecedented across pass-through all improve, we digits that business the and up

the by value higher one-off other increased due should profit operating trends. was may color in a growth, levels X second be continue this than more in are costs, $X continue a is unfavorable cash XX% sustained supporting the that lower-than-normal slide. figure across the metrics entire doesn't normal and $XX blend loss. high-quality significant levels These return and at last capital, down differences highlight a happen billion share noticed We're confident both year on of management years to is margins provides to global compounder This high our ago, project Today, the from growing. to with working have It culture shareholder capital normal of run rate XX.X% quite tremendous requires demonstrate by on represents more timing QX Three strong XX.X% lower industry. year, costs operating and quarter. resilience at is The segment and EPS million capital financial long-term performance still to and important You a returns. will at of speak income and last timing and of flow return healthy we our was $X.XX which driven most like reduced the which January as overnight. XX.X%. below of one Slide I'll number Linde February. interest on final slightly leverage to progress X% to next capital and I'd statement. count, all management sequentially, we're business. Disciplined engineering the which

catch vendors are operating consistent one wind in pace. year expect that QX as QX positive flow of payment several at wasn't in range. DSO on I While March to down timing. closed due recall full to more a to year project the QX, up. of a the of how mid-XX% anticipate we but improvements weakest low quarters still stable. out accelerated downs, closed Overall, levels EBITDA are projects, quite but a out, was Engineering and was to to expect as our month, project the In all Also flow payment significantly cash with to outflows stronger payment still cash projects I I Russian light faster in the ratio year-over-year it timing. be tends much enough cash DPO

year consecutive of that far increase increases. dividend we cash, how for XX% As XXXX, dividend as XXth a announced marks which deployed we the

$XX outlook. which also new still XX, we've We tranches. while spent had you will earnings to business billion Slide on a of always allocation April. bond And our $X.X with coupon issued up already steady maturity of weighted the we in the for Despite challenges, average policy Irrespective billion across our of X.X%. evidenced February a business, We repurchase announced we as most the economic pricing, end €X capital see, by which a a to attractive program billion in predictable the six, the provides as reinvest over shareholders. which we priority finish years will capital we of invest three economic course, on is can And climate, I'll maintain access low-cost the share deal. have weighted capital. recent XX of the rewarding average by and updated of

XX% impact. growth translation excluding prior $X, XX% range to guidance when X% or of $X.XX quarter to year XX% over currency Second to represents

estimates For rate when full range a currency. $XX.XX XX% new underlying the for from the have XXXX key XX% year, to adjusting to assumptions. Both to two growth $XX.XX, or is guidance X% XX%

First, projection no the growth for is economic not with this base the quarter, our assumed Consistent but is rather guidance. there midpoint. at placeholder economic last a

mitigate. to better, the do we view does worse, better. take And does own of will if your insert If economy. it can we'll it actions You

Second, by the of removed of Russian earnings the year. contribution second we have half

outlook to cease and These felt projects, and continue engineering it the was we down from operations wind to industrial projects the are appropriate remove associated ongoing. backlog. assets, As actions sell from Russian we certain earnings

projected by residual to which we QX, QX. are earnings some anticipate So cease in

manner. Overall, we this following sanctions down in uncertainties, complexities, many all full we year and is are situation fluid operations committed outlook. While safe economic with the raising scaling to a a despite are

XXXX, to finishing In all-time mentioned, the prove came the to that. the performance fact, one as the when years together has grew We price. investors industry-leading of and at Sanjiv the of we year. year as year start EPS At Linde some XX%, only demonstrated look three after merits high stock last at merger, quickly doubted need an

Linde when XXXX, apparent a resiliency only price. once grew much new concerns stock enough sold sold without from yet, once This ultimately the EPS EPS year much at from apparent without by finished again, began, pandemic too struck was and when XX%, finished into And was Moving off. stock off concerns resiliency new another Linde achieve at all-time too we And stock growth the the of XXXX stock again high and enough high cyclicality. year price. all-time to XX% time, of cyclicality

now I Q&A. but sold high the will stock to off uncertainty inflation. has how our turn ultimately Time odds. this Linde personally, I'll we year, XXXX, from and in over been tell Now economic again of like call concerns finish

first Mike [Operator Instructions] go comes ahead. from Please question Sison Our Fargo. from Wells

nice talking through type to us I volume will the at guess you're economic each assumed talk sort be about as And regions that? about of the walk where start you to growth the of guys, generate? maybe of you growth, no year. midpoint, Hey what able

and want is across. about the out of about we so regions lay to first going then I in guidance point see just Matt bit this Sanjiv. the Mike, little that what talk just a kind talked

Matt of have economy midpoint that So full currently from all. no there at pointed assumed is at help out year our we the guidance, the

that we seen can economy we're previously. and ahead also your and put mitigation better. is you've might as just like. we'll of recognize If does do that, volume take economy If So doesn't, do do you you he's again, said, end will on assumption that that of suggested he what getting look that's going result a And go X% the think there. the to over kind better to than reiterate it do kind obviously, us benefit actions, what where

of kind of and segments I then we on give think sense move and I just I the markets and see how want really the that important Now talk about to relate three a that have. end you

is will of the that give what sense a you looking think at. currently I market

Strong demand in So the start off underlying with let's Americas. there.

well. for of the there are key need Latin is you refining as extremely COVID participate which the thing increased has seeing procedures is an of all And growth medical you semiconductor of largely We that manifested reflected well, and then kind we the slight seeing good a end continue oxygen decline, elective business if and in Healthcare to been on markets truth. extremely side well, includes specifically, and versus been through in as Utilization packaged solid hard-goods up doing know across we U.S. about of strong, out growth well. that are for refineries highlight obviously America, chemicals but in flat, $XX Manufacturing offset XX% package us. doing coming but the will, see refining a us and there certainly Obviously, seeing haven't these consistent hot we're which year-on-year above maybe quarters. double-digit XX%. I at start-up if run seeing some rates again, refining. running I will. Crack fairly of you want we seen flat we're quarter for moment, at goods if growth levels well, mid-XXXXs, the in impact as spreads out. the -- about Very has -- kind at over last few well, the to our for may,

broad-based broad-based APAC talk So see underlying tell for growth. you move quickly looking that going of patterns Americas. about and we stable out as I'm of of just well. strong pretty rest and about Pacific China all on to kind underlying strong cetera. But that see the demand again, across all demand the moment briefly the demand see and consistent you're the as a from I'll we to lockdowns, we clearly, reading underlying China Asia and et the reasonably today. press cover markets

you still of our side, will. a to but we bit the there. more Yes, impacted bit over reasonably quarter, expect out stabilized, guidance play our well. a merchant impact they know, QX, in well. anything obviously, enterprises, did volumes drop a side aren't medium finding those small take we so some have little My of kind bit on-site for seeing short of early April, be. a and on there the see holding where is to over see forecast there. factored is into in the little them business lockdowns on the are if happen that of We of I'm as We little rest And just we likely significant the you

and wildcard, is that how you as a I you, a there. you EMEA can over kind what's quarters. talked sure up, by have the pricing as to said held surprised even pricing inflation, business, I know we and EMEA We we're one EMEA volumes the really in that resiliency been business to huge prior the catching tell of two we numbers of has to of merchant as the to about. you bit have energy on up catch-ups prices, well Lastly, well, see on that side up pricing making to our Obviously, on-site over catch happening previously

we come And points basis margins points, basis demonstrating year-on-year up that sequentially, You every the pass-through that XXX can obviously, have across up XXX as ex segment operating that well. see through.

unknown broadly. the happens again, there Really, And pretty it one. not I what speculate I'm Mike. more what solid about course, to going to of gas there, news of terms cetera. is you So happens quarter hear et sourcing, think in natural of the energy the to

guys really they I'm are pleased will managing contingency we're far that. a as the happens. with business We've got they underlying how itself it, strong every there the through -- and team do that as Just and over is work able to EMEA the team concerned -- is how that managing

So that thought exhaustive perspective. I answer, kind it's you a bit but I'd give as just an broader of

just And that. help energy costs. Industrial a to gases follow-up. quick tends for Thanks their reduce customers

your of sort the steady bidding seeing in of backlog been does sale environment? you backlog $X.X So inflationary gas Are potentially up at more has potential? And billion. pretty as this go

Absolutely, Mike.

short So activity. proposal a that lot the more yes, are is, we to answer seeing

like bring gas are On year. off is we means course that backlog, that about in projects, reminder, the the the get I of of $X some of kind coming sale that a this earnings which projects year, best up billion of starting revenue and just

to project that up we And creep back advanced. kind billion the -- that We're backlog filling fairly up I good actually that's $X see. that are expect in with So direction. do expect expect more developing to move right and to of wins of and continue I

So yes, energy, whole electronics lots markets chemicals, manufacturing. more across end activity of range refining, a and as well,

again, think will So proposal we into We wins. to which have activity, in. quickly lock see I solid translate can that broad-based, how just

you. Thank

comes question Vertical Kevin from McCarthy ahead. Partners. next Please from Our Research go

Yes, your you good return on outlook can on comment morning. Sanjiv, for capital.

to level peers? ROC relates You you rising the starting the XX.X% well your marketplace your cost And how interest to And of seen you higher? had Are you an impressive for view you bidding? project that quarter. rates? of debt, move into the in that to context in have continue it of do as as in Can example, take higher

of give that. Kevin, quickly I'll response a you kind to

heard this like I've get lot managing how day work out. you remain to surprise There's That's We day ROC, that, I and we and let you've on for business. peer It's at this him about sure -- it kind sometimes this, run that into in this numerator and we do quoted as know. of goes group on day denominator truth I then both through our is that. we I'm really I've the and that been walk to that our as critical. get out, industry we so a said And when do think have well. look going of of us. hard stand kind an serum Matt a make run passionate before, the that every through

So our ROC record levels these for are industry.

a daily of operational very and hasn't Our into the and from that capital kind record aspects industry all business comes this feeds approach that of of then disciplined seen that. managing

the grow we that into will aspiration know, there is Matt? around factors Our be to and that that. piece. some as play happen that earlier remain always ROC a take to captures function will continue see CapEx ROC, But on. as And mentioned happens place, that the go buildout I various of ramps you

Kevin, sure. a can Yes, I few points that. to just add

to your far I think less the base, growing of than we're our with as And capital overachieving than intensive as consideration I we is thing safe I what is the earnings take the say but probably faster realize. probably to capital obvious outlook, people it's are expectations underlying answer some were. think we're into think

avenues require significant other we We We're end that and a of demonstrating capital. through expansion of supply markets. not have, have modes continued to of our capital. that that see through that of services a demonstrating require lot our return package the growth of some significant does We're growth see significant opportunity on don't capital through we and

Now we facility diverse for inflation estimate But you allows this us pursue inflation ourselves contract out and do, rates we We both very which the question asked, protect XX-year fees. don't over fees going long-term for rather, and execution great are that when in, projects, as lock fall. that long-term view. and to again, need against rates a same we're these we And XX-, over how views, the we have we asked will very we When also what what going on the win. a and we to try answer, the in significant of inflation projects or strong of we're is large when have impact rates opportunities course, on year we far asked take we the on that we without will have charge these get year business to as get capital. growth rise, that and

that. is have how periods, results around I structured. think disinflationary the the our think that of build Fed we a and do what showed financial And inflation results, And demonstrated post during model great recently that world given crisis the that. independent our So I is

perspective, for agnostic it we build long that the and from to generate just So value of term. it

you to I costs Russia exit the exit earnings also your in for any the flows secondly, walk you and associated impact us with there? Matt, it financial as Thank that. can may, if through from relates cash

Sure, Kevin.

to how be by that to about clear includes starts any this, we on we is X%. want And the Russia remove as did in from the gas, we So it guidance. business second and with in is the the half impact guidance, do what stated, projects or our which

As all prudent prepared situation. on the it's committed are something a it's and is conservative obviously, impact continuously that going to wanted the This our following the that we sanctions take we footprint, forward. of we that reducing working but on, and back. stated to view committed something remarks, we're removing scaling fluid to We're

Engineering the a projects, cash you is business, those it As this In outflow. I'd That as corresponding a and of of two the of obviously, is about From a percent normal obviously, the when There's, I down projects you aspect, where this business operating effect normal of completion to we separate the less is the and business. business, mentioned, stated, gas pieces. into a continuing perspective, profit through. and normal in type saw part wind than of little assets. they're backlog work sales X%

than don't the a still vendors something them. anticipate be accelerated will vendors projects. through upfront normally mid-XXs your at flow up see It down operating considering the that cost that fully wind I effect. we cash it is as all what You working this just this expect that be paying on EBITDA We you the the that would see for than effect to the And path to get down, and and front. cover you year, same That the been. then other low you Separately, paid we to on project. as these stage, for build a to pay will paying work deposits have items. we need significant have stated, cost more And we obviously project

that's how and should think I it So about it. think you model

you. Thank good. Very

Please Citi. Juvekar, P.J. go ahead.

morning. green Hi, in some that hydrogen of today gas good natural same rise with of Yes. is gray have hydrogen. the prices suggested Sanjiv, of as cost cost the Europe,

So from Europe? of Europe green orders or green you and hydrogen, security make increased in energy Have discussions accelerate would would sort seen any anything about would which you think that hydrogen sense standpoint. initial

a good moment. Obviously, question. topical that's very the at P.J.,

to we that's to point are seeing to this the out narrowing, and crisis get between makes the that carrier greater and scale, find crisis, -- challenge, together intent of ability and where it view, if path of certainly the that then hydrogen energy there prior the gray that access in of to is map. and landed in lies. this leading even effective ability it's The from to policy to move produce so up Europe. green intent once Obviously, a ability we the P.J., momentum, that road current all So the lies in clearly the to what is Europe, scale green is a cost at renewable and challenge current Europe production constrained The green. difference coming green down in that of clearly, see anything,

who obviously, customers we that path. number working So are, go are of keen a very closely down different with to

You would into made. have got XXX seen announcements we We megawatts. X

a up challenge. So be view. work all bit to take megawatt of XXX energy a kind a balance and again, of projects little of from get the order green scalability from RWE continues time point those hydrogen to that's their But a to of

a on I Thank Neon. have you. And question

supplying then And up? lot see of can sort that about comes And supply-demand adding you Ukraine. Germany. a the Intel to you the are clients. in in have you also, if you U.S. onshoring, supply mentioned I onshoring. and was of U.S. of talk build you're if some electronics neon, talked You believe need supply you well. big I And the new as capacity about the Do are know

P.J., sure.

just me of terms the we get in give into and let you So take a details then back where the step stand. overview let's and

Ukraine model. of built about the is overview world Russia, comes players the the into sourcing that of out and their third. world's Most have one-third So neon about around a refined

that We are sit refining Germany capacities in in free entire and our lucky the world. really U.S. and

war the on So our Russia this at positions Ukraine, fact, that all space decisions, happening rare of growth year, in likely recognizing in the we'd prior made is will, third. around of to kind semiconductor Ukraine to demand Obviously, gas in you were in mid-teens, last That and well. to continue if other us of to already dependence people grow. make and, terms even relative being

of online to as going come year next year and some we're this well. some capacity early that see So

As far neon global the referenced locations. Germany to that and produce in to as of things demand these stand, we U.S., we're ensures meet multiple the able out the and you which entire U.S. locations, Germany refined

course, can also U.S. the terms Germany our of meet as that Intel, TSMC, have others of we coming or onshoring Samsung, like well. the Of needs and customers all in out either

So producer very in positioned, largest of we refined the are, are the we of course, well and neon world.

you. Thank

from next Jeff Our comes question JPMorgan. from Zekauskas

companies there better of industry. companies Or two are relationships? achieving electronics can very you're do Air as that intangibles, difficult And Liquide do? When growth. more It the and your other sales Thanks that that I taking as find now seems better sales Air something that technically Products can I or that Is more market share and service Is wins the very in supply that or it best you you're customer are area at result all true? very, look competent much. electronics Linde the the that to tell.

Jeff. Thanks,

say $X me wins project as last this electronics And year, wins of we you've year. billion well. going the as this that this heard a before had not to project Jeff, last now, I'm already, I that in backlog growth year but from this just did So the that healthy We about which said I have last say expect we'll is quarter worth have and may well. electronics

So combination. clearly, solution point customers we it are to for appealing fact very a that them. the providing really that that's is And our does a to

all the on hit of you think I within that. elements

is to take with that create solutions, with able We've with had relationship leveraging take been be We've technology. as highly get and that extremely critical great operations, to electronics able relationships and some and bear kind of is both have up dealing We with relationship we the relationships bring are of see with them. which want and to to fabs we able concerned. excellence, win safe we it package and able far of see like those both practical where Intel. to to rates been TSMC to as all Those operational course, business to Samsung the Linde's that reliable,

year, at development just they're least There's a quarter, movement look I no couple such How do And rate? I SG&A slow in they overhead seems statement, first keep in of a When at your flat. follow research expenses. year, income And costs, Okay. at last it percent. think a the about and were your growing really your up this that up. again, you

on essentially, to principle before. of every look the just going you've probably day, you as it me and touch kind tell of I'm say that kind we how Jeff, at business of heard that

leverage line our we how our right we to manage how when down the and think we think business at coming top we So the about margin. variable comes it, through bottom, what about

kick lot day. in sales scrutinizing. cash time something attention guys every then something our managing total of management that, part of of admin are the something we the and every gets So a measures productivity where that tight fixed that spend And costs. and It's as costs month. that's where are That's

play productivity solutions does role you've there? Jeff, over a digital me how about heard previously. talk Now

fixed extremely our that And of piece, you're the that sure that's into cost taking sure to make when taking digital actions, One solutions and of cost of your you're managing day. actively rocket possibly just that to space all the our the of that fixed make think to provide where that possible every around It's total cash within effort. out SG&A. plays were do subset automating, into managing say Jeff. effort you're I it I there, well won't things you a the science particularly to heads that, taking out is around we productivity comes lot grind being

Thanks It much. looks like rocket science me. to so

excited could about that rocket, later. I we'll get by but talk

comes from Paribas BNP Nicola Tang Exane. go question Our Please from next ahead.

Thank have in diversify LNG, on back energy wondering has helping a hydrogen Europe, call. might particular take-or-pay little would For or part is, discuss Thank is Hi, was what green through see say, we little just Can the still hypothetically, of in in been I of of energy bit example, around on second obviously in you. security more already valid? initiative? did, -- a example, also bit rationalization to on Russian curtailments could diversification, Linde more. conflict. this we be question be you bit then energy whether energy and in everyone. topic wanted a access understand ask et you. the which if your business that cetera. EU And kind I repower talked a could I Linde the terms little which of on-site EU impact part discuss related play energy contracts about the terms to scenario? But to of you sources to a the if gas, security for And to

Nicola. Thanks,

and about are off energy start particular, talking by as in we across me we let Europe, speak that. could the happening So that just the diversity play role in actions

we So released in about go you on as gets focus ability and as and supporting to provide search we it, diversity. engineering governments greater out actually have around a that countries side, for capacity more think now their the energy the have

projects in that. us support with the have that we and development in number governments see a will moment obviously, I So around that. a at dialogue we role clearly that competence looking of LNG core given developing around the that And are happens, playing help that

a that take does of little Now time. bit

As play there. a have in you we pleased we know, these to role are projects, are complex but that

and on. diversified that I there little of of between the number these and We kind that earlier I role little translate be set that intent will bit how EUs optimistic hydrogen that all the you statements, action. green discussions clean of now that, a I will tell out energy rebar Of our course, portfolio will have governments see effort clearly with a am more we're talked about that policy intent into having in become to crucial. a focus a that and have do blue.

a to recognition go is provide traction am pragmatic what like. good realization happen ultimately hydrogen that. blue the we green, bridge I that think general or is a policy on I a in will can is think to would fact there blue there And ammonia look direction more a more seeing up little the blue that which around quickly. that scale

elsewhere happen actually to that then and the that logistical infrastructure just this that imported be of of kind example, in has they Now provide a take the dealt does make either many with that allowing projects, build that will an get as there as mean, differences ammonia all will local carriers energy that greater green contract of setting an an in access combination that that to see of get or which try those source, will out that countries form. these And piked and either elements well. be example, and sure for be liquid as regimes of using across place Germany energy however, developments understanding market again there's in how hydrogen itself, to and the world, will as challenges distribution or up as set import allows we to to of openness

energy from and that efforts we view say once that point into space So in to a Linde also can of both all in, to the provide downstream in happen is that I'd has that of kind participating play, role a engineering available. you that made of the

do though, I would you, to to of about like have it this that I and feel be people does longer than take. honest take good all that. tell So

us these this to happen in years rather of like few next take All would than to the months. tend unfortunately, things months, but see

have effort just fact. across company a have you different piece of would Europe number planning our of referenced. about as we in Obviously, most in a talking Germany, Now in you And curtailment business in the countries, energy particular, briefly that scenarios. expect, run we

We for are a there and the business, are oxygen governments products, of power a the prioritized we would is hospitals, separation -- as also which gas our side, to natural including where gets engaged you providing actively with government. crucial medical by but both locally. appreciate, is providers air the There part

the make that, are working those contingency have the on I place. and we And don't know can criticality I with of kind some Russian So in mind that we but we do any customers top plans that. that of natural do example gas, is everyone. we and they sure governments Polish of -- then to also for that side, appreciate will we exposure that other our customers direct understand have of recognize to

more kind developments. you of to a little from our those see we perspective, on that, Just give will from a sense impact

given supply exposure on talk this you XXXX you us Thank think of Thank expectations you. rockets elsewhere? bit an your remind a big from ask bit the you. opportunity, disruptions onwards. about about some Can And you've your market, agreement with can give is? the I there's to offtake just little the a talk for helium On announced I maybe Sanjiv, maybe just how Freeport And business. little Helium, side and

Sure.

question. up. wrap touch I'm a bit then going and about it that Nicola. on talk I thanks, appreciate and So helium to excited for it about Rocket get little

our designate about growing strong for been represents as think some So I And as end time. It's point, we're going own entire its for supplier us this quite rockets far aerospace sales. sector. for us are is the X% digits of in market. to concerned, double at Linde some largest And

So that. we're quite proud of

Our for liquid many rockets consume used. while often liquid gases. hydrogen, the some liquid it's primarily And is oxygen, helium, of fuel that densification nitrogen

We help propulsion them Crypton and also use to in orbit. satellites to systems Xenon their with keep

powders it advanced we In XD PST unit. bring components is and here, to addition we're benefit get portfolio, of manufacturing able our of specific provide or full parts. Linde's printing a excited were also atomized specialized provide as for because to out that, for I the we And coatings and reason some

bring we can of see can they it's companies. I to that. from And in, launches kind of this see that to now. package of you expect And the the these other as all you week So solutions grow, in number news every obviously, a appreciate comprehensive greatly

it's So good market. growth a

We about excited are it.

of bounds. and is growing BLM some Amur in on banking be that leaps And short. the Helium and people as moment U.S. recognize is the the On the kind is of in market that, Russia. positioned out significant most two over going well you delayed. which There And We impact. has have driving coming Helium There and some solutions that. U.S., components that's itself, us a great we most at year helium are extremely major were know, tremendous really to

speak. So incremental it's that helium lot of reflect costs I to rest the that We're expect year. as seeing and of likely we tight. remain for pricing obviously this quite a

we our didn't from have any perspective, our So sourcing in year. Russian helium last

kinds good across sources ultimately up. to come of these balance manage sources multiple that the a issues world, have of exactly We

dozens the meeting we and to expect of that of kind of of and kind up. given the risk hold year well, I hold is at, where managing trends our sources, tightness customers' ensuring needs the really up in seeing is that for that rest mitigate So we're the as helium market. pricing

Clark comes Societe Our Peter go ahead. next from from Please question Generale.

everyone. Hi, guys. morning Good

actually. Matt, for one First

buybacks. seems it than price, Obviously, when you've made first correction a go clear opportunity peer. the the for Linde in a share always tends big. And closest to be the year. creates much point smaller sell-off made that the about in good you very there's It You its of the that the quarter suffer in share to

could argue depressed. You the certainly price share remains

continue the first to You've unless going is at correct the been pace upwards? big buybacks entering That's QX. I the question. shares a assume pace of quite share

Peter, sure.

say So have flow. cash very healthy we I can

repeat we a disciplined call, those to the you capital to mandate know, policy, follow very maintain is raise have which, allocation an the our A, As dividend. for on we

buybacks. invest of excess lot still cash business now, goes a our and right the to all is priority Our have the to cash. we in excess And

We billion expect $XX program. the excess lot and have of cash authorization we a

so your in to or $X.X QX. about did we point, billion So

cash given frankly, a buybacks and excess we XXbX-X in again on are just see continue be the the active now, we into right as yes, are we We'll into And We to right pricing. Monday. sweep to the earnings. opportunity based that blackout now the great come will

So the market active, day. be every we will we will in be and

the you I wondering activity, surprised you, held maybe, of up I think terms comment, of But I for I Sanjiv. well, the mean, Europe, it on sluggish like starting on [ph], I'm something one surge. at be in is pointed your made as Balkans particularly One when this through you're to get peers Excellent. so energy certainly, pricing now On I guess the think, your your don't the know. you quarter. merchant gas look XX% to pass just Europe, must bulk I thoughts

outlook you in the wondering particularly? Europe, Thank demand feel how about you. Just

Peter. Thanks,

and So I fact the despite quarter I we resilient the the merchants, through that point a bulk significant increases is that the of price was of to that how making, has package first cost through pleased see the i.e., really been as we the energy the was that the result saw. side had right increase business put to

that first number So that's resilient. was been But trend in And course, changed that held do. Peter, have might had in quite far. significant I up and what that reasonably variables hasn't well, There hesitant are, and held of surprised any pleasantly we that of speculate I market way thus to quarter, the I'm a that as beyond move it to try say market.

Excellent.

no evidence So pricing demand like there's at point this anything or of that? on disruption

line at volume trend a that the moment, Peter, All not that's now. is I and for at suggesting look

you. Thank

comes McNulty, go ahead. question BMO next Please Our from John Capital Markets.

some a you arguably there that maybe mentioned indicated color come you help Yes, a the like & in of or you in you early hesitate given a Beverage to at normal terms below? Can if businesses way, relative the each good to bit. where normal point? business not just where you us for major yet And in at expectations kind the some still pre-COVID bit to so put of not. of maybe noticeably quite that's various my come least remarks, this highlighted your quite relative continue. taking us other you understand might it kind volumes off to COVID that little are markets terms of sure question. as are end it and to morning. normal Thanks kind was of this that's of But and was Sanjiv, -- to but give recovery It Slide can to may off serve, nice Are those or X, back they of segments. kind over-earning on healthcare Food are seeing I levels think volumes? that sounds

John. Sure,

me some let let other health end and clarify then first So me the talk of well. about care, as markets

elective finding saw increasing. So flat. the trend what that on countries surgeries And are in health developed was was we care, the I emphasizing was really, I'm

the markets. of all offsetting know, the back. on And hold As are declining, then we're these lot oxygen COVID there. the COVID through a kind usage They coming have by you is where of That's particularly put emerging period. volumes finding in been

I kind to on expect most back So other that level. question seeing be are is markets flattish levels your healthcare the around say all trend long-term in end due volume of around we kind of more And its of at will Coming above piece. back healthcare course. pre-COVID why end markets. geographies are across most trend pre-COVID we I at mid-single where are said digit earlier, you our versus And or broadly, I'll to the

those And seen we've different that We've to good in that quite we've recovery. see recovery. embedded pleased been markets. seen So

see. a the up, lot on that can well. as You which that XXXX slide, momentum, see clearly, from can you good saw of a that as you that X of is there's And as put Slide most green in sign, I

So Electronics, to of up kind if couple. I need maybe no that. on a pick comment

been we highly Momentum continues more that to said continue. I well grow. As growth resilient are of earlier, and is investments and you our expect levels know, to pre-COVID still around share above it's than winning there, that. as I And has and fair

kind good I strong feel watching of are ones carefully, movement energy, I people and over So market about here. again, very chemicals think that The that.

export out pricing we elsewhere, XX% into and them where that also, from market John. U.S. ability forward. growth about year-on-year companies the to finding to as U.S. is in think this is natural go pretty But competitive number natural chemical be emphasize advantage refiners going gas growth, U.S. as the That this, a footprint I gives because crucial that the are have there, and to Chinese the just I We solid that our Metals increases price make that lot production that And policy, seeing around say pick competitive. less where that continued energy again, helping I'll control world to so local -- curtailments, X really I the next will. years, is X the space. you And et in a impacted dual again, to Mining, the of the cetera, in & mid- the to am investment up. momentum rest expect which I if continue see production

for provide efforts see We of obviously, again, chip will we some challenges, is But et which continue. decarbonization questions, that shortages chain that that, in Manufacturing expect see auto, a us. where as have people lot kind of by over happen to how manufacturing a growth space we well, different supply notwithstanding will cetera. to the good part there, to growth IP solid, that underlying kind going that's demonstrate we'll stands feel and carefully continues and again, develops, And demand have where be about the Obviously, in how underlying today. watch looks of driven resilience. that for to

for it. Got very Thanks helps. color. Definitely the much

take And today from Barclays. Mike from Please our question we'll now last [indiscernible] ahead. go

XXX Sanjiv. Just or just projects me, looking one ask you're at. the question a I on so unique carbonization for wanted for to

or probability the sized you $X adjusted quarter, I billion. said $X believe last think potential investment you then around And billion I at so. today,

you're there just So Are getting more you of these just realization? looking now? at get really to projects trying confident in actually just some to are getting a more -- sense, projects

quite around that projects really spoke churn last the bit. held happen I that is a of to well. quarter tends projects number the as Mike, about What XXX portfolio of

activity. I'm would lot and the right larger seeing expect, you projects. adding that As really we pleased some a I'm in the more wheelhouse. are industrial side, on That's

in of those We many are positions. incumbent

it's because as and me to technologies then need more blue are of a want with be from want or ability green and the projects to demonstrated the have part gives a on. feel and We have we offtake very that have that can that that we around whether really access positioning we lot an customers to of discerning or that operational contractual know, to working around And confidence. that, to you existing we easily are energy, able kind do capability serve we clean we

of number stringent to You The read kind $X number. leading that billion, XXs. put together, of much put absolute to and $X And out all likely It's you're that those that And quality in to portfolio about honest. billion certainty than adjustment that's honest. there is to continue on customers X, into I as them. We seeing. $X what's higher probably right be are more of that we that five. there to in projects pointing work with is to the degree of we good to too around fairly wouldn't a feel is billion the be our get a I and -- partners

Great. Thanks.

closing to this, any our back speakers With would over like for hand the I remarks. call additional to or

Really Thank Sergey thank you. line. you, it. on everyone, appreciate

day. care. please have feel you further of your free Take any If rest out. a Have to reach questions, great

concludes conference and This gentlemen. call. ladies your today's Thank participation, for you

disconnect. now You may