The paragraph introduces the Air Products Third Quarter Earnings Release Conference Call and the participants, including the Vice President of Investor Relations, Chairman, President, and CEO, Chief Financial Officer, Executive Vice President, General Counsel and Secretary, and Incoming Head of Investor Relations. The call will discuss forward-looking statements and financial measures, and a cautionary note is provided. The call will also be available on the company's website. The Chairman then begins the call.

The speaker thanks the listeners for joining the call and introduces Eric Guter, the new Vice President of Hydrogen for Mobility. Eric expresses his gratitude and excitement for his new role. The speaker also mentions that Sidd, the previous Vice President, will be leaving the company and thanks him for his contributions. The speaker then discusses the company's safety record and management philosophy.

In the third quarter, the company exceeded its adjusted earnings per share guidance and saw improvements in all areas of the organization. They are maintaining their full year guidance and expect to continue their growth strategy focused on operational excellence and clean hydrogen projects. They also reached significant milestones, including a large green hydrogen supply agreement and the planned sale of their LNG business. These moves validate their long-term strategy and demonstrate strong demand for clean hydrogen.

In July, Air Products announced a collaboration with Mercedes-Benz to decarbonize the heavy transport sector and took delivery of hydrogen fuel cell trucks. They also plan to build a network of commercial hydrogen fueling stations. The company has shown a 10% average growth rate for adjusted earnings per share in the past 10 years and aims to continue this trend while remaining the safest and most profitable industrial gas company. They also take a balanced approach to determining dividends and have significantly grown their EBITDA margins. The Chief Financial Officer, Melissa Schaeffer, will now provide a summary of the third quarter financial and business segment results.

In the third quarter, the company's underlying sales, volume, and price were up 1% compared to last year, but the overall top line was down 2% due to unfavorable currencies. On-site volume was positive, but overall volume was flat due to lower demand for merchant products. EBITDA increased 5%, driven by positive contribution margin and favorable business mix. Adjusted earnings per share was $3.20, up 7% from last year, mainly due to better operating results. Volume, price, and costs all had a positive impact on earnings, but currency had a negative impact. The company is implementing productivity actions and exercising cost control to improve profitability.

In summary, the company's additional debt led to higher interest expense and one-time items helped lower the effective tax rate for the quarter. The Americas segment saw positive underlying sales, while Asia and Europe had relatively stable sales. The Middle East and India segment saw a decline in sales and operating income, while the corporate and other segment had higher sales and profits due to equipment sales. Overall, the company's EBITDA and EBITDA margin improved, driven by strong pricing and volume in certain regions.

The company is making good progress on productivity actions and is committed to investing and growing their industrial gases business. They have recently announced expansions and are focused on delivering low-carbon hydrogen. The Management Board has undergone organizational changes, and the CEO is committed to continuing to lead the company and implement their growth strategy.

The article's author discusses the importance of good governance and succession planning in their company. They have decided to bring in a fully qualified potential successor as President and a member of the Board of Directors. This person should have a clear record of success and international experience. The author also mentions a recent green hydrogen announcement with Total and the potential for further offtake arrangements in the future.

The speaker, John, states that they have been discussing potential customers for hydrogen for the past five years. He mentions that the customers will decide when to make a public announcement about their commitment to hydrogen, depending on various factors. He praises Total's commitment to green hydrogen and mentions that they have become a major customer for Air Products. He also mentions that other customers are now approaching Air Products due to Total's decision, putting them in a good position for future contracts. However, he states that they will not disclose any information until a contract is finalized.

The speaker discusses their company's plans to sell their products and mentions a recent agreement with Total. They also provide an update on their project in Louisiana and express confidence in its progress. They mention the demand for blue hydrogen and their plans to use it in their pipeline and convert it to ammonia for export to other countries.

The speaker discusses the current state of Air Products, including potential future deals and projects. They also mention a potential slowdown in volume and pricing in the industrial gas industry, particularly in China.

The speaker discusses the impact of price increases on the company's performance and notes that while the U.S. market is doing well, Europe and China are weak. They also provide an update on the sustainable aviation fuel project in Los Angeles, stating that it is on hold until permits are obtained, but there is high demand for the product.

The company has secured a contract to supply hydrogen to a unit in Europe, but the project is on hold until permits are obtained. The tax rate for the quarter was lower than expected, but the full-year rate is expected to be 18%. The Alberta project is expected to come on-stream in 2025, but it is uncertain if it will contribute to fiscal year results. Construction may be delayed due to harsh winter conditions.

The speaker, Seifi Ghasemi, responds to a question about the company's Q4 guidance and explains that the wide range is due to the unstable geopolitical situation and uncertainties surrounding the upcoming election and Federal Reserve decisions. He urges investors to focus on the year guidance rather than just the quarter guidance. The next question is about the company's performance in different regions and the speaker provides an update on the manufacturing and electronics sectors, as well as the availability of Helium in Asia.

Seifi Ghasemi is optimistic about entering 2025, citing the strong performance of the U.S. economy and success in holding onto price increases in Europe. He expects Asia to hold steady, with potential for improvement in the electronics sector. He is confident in Air Products' ability to deliver 10% EPS growth each year. Duffy Fisher asks about the economics and business model for the two hydrogen stations mentioned, one in Europe and one in California.

Seifi Ghasemi, CEO of Air Products, explains that the company intends to own the entire supply chain for their green hydrogen project. This includes producing the hydrogen, building and owning the stations, and selling the hydrogen to customers. The specifics of the project will depend on market developments, but the goal is to have control over the entire process. In terms of the company's sequential earnings, there may be a tax headwind in Q4, but the midpoint of the guidance shows a $0.30 increase in EPS from Q3 to Q4.

Seifi Ghasemi discusses the factors driving the company's strong fourth quarter results, including cyclicality, productivity actions, and new projects. He also addresses the question of the Louisiana project and the potential market for blue ammonia, stating that they are on track for a 2028 start-up and that there is demand for ammonia in the export market and as a marine fuel for shipping.

In this paragraph, Seifi Ghasemi discusses the World Energy Project and the progress they have made towards obtaining permits. He mentions that they are waiting for the permits to be finalized before making a final decision on the project. Ghasemi also briefly mentions the Total green hydrogen agreement, but does not disclose any details about pricing or return hurdles.

In this paragraph, Seifi Ghasemi is asked about the return profile for their clean-energy projects and whether it is above their traditional project hurdle. He confirms that it is, but also mentions the need to be cautious in his comments due to ongoing negotiations. He also discusses the potential for further clean-energy project announcements in the next 12 months, but emphasizes the importance of securing tangible offtake agreements before committing to new projects. He also notes the increase in demand for green hydrogen, which was previously underestimated by competitors.

In response to a question about future projects, the speaker states that they are committed to delivering at least 10% growth in earnings for the next year and will provide more details during their fourth quarter results announcement. They also mention that their goal is to maintain 10% growth for the next 10 years.

During a recent conference call, Seifi Ghasemi, the CEO of Air Products, was asked about the price discussions on clean hydrogen between Alberta, Louisiana, and NEOM. Ghasemi stated that the company has been giving overall guidance for pricing, with blue hydrogen being twice the price of gray and green being twice the price of blue. He also mentioned that pricing will vary depending on the difficulty of serving a customer. In response to a question about future projects, Ghasemi stated that the company will not make any final investment decisions until they have secured more offtakes.

Seifi Ghasemi, CEO of Air Products, stated that the company plans to fully load its three facilities in NEOM, Louisiana, and Edmonton before making any further announcements or taking any FID for another project. The only exception is the green hydrogen project in Northern Texas, but they will not take FID until there is clarity on the interpretation of green hydrogen rules. Ghasemi emphasized the importance of being respectful to investors and not making any announcements without clear demand, as it may have caused concern in the past. He wants to avoid this and fully demonstrate demand before making any major project announcements.

During a recent conference call, Seifi Ghasemi, CEO of Air Products, discussed the company's plans for green hydrogen production in Northern Texas. He stated that the project is fully sold out and targeted for the California market, with a potential to sell at $30 per kilogram. However, the company is waiting for clarity on the definition of green hydrogen and the potential for $3 in investment tax credits. Ghasemi also mentioned that they will not make any decisions on the project until the beginning of next year, when they expect to have more information.

The question was about the current and potential impact of the two possible outcomes on the IRA rules for the company. Seifi Ghasemi explains that there are two dimensions to the IRA, one related to CO2 sequestration and the other to green hydrogen. The controversy lies in the definition of green hydrogen and whether it includes using green electricity or not. Air Products' stance is that green hydrogen must be produced using green electricity 24/7, not just during peak hours. They have been clear about their three pillars for green hydrogen.

The company is currently building a small green hydrogen plant in upstate New York using hydropower from Niagara Falls. The plant will have a capacity of 35 tons per day and will produce liquefied green hydrogen. The company is optimistic about the project due to significant demand for mobility in the region.

The project mentioned in the previous paragraph is progressing as planned and is expected to be completed on time. The exact date for its completion is estimated to be sometime in 2027. The speaker, Seifi Ghasemi, thanks everyone for joining the call and looks forward to discussing fourth quarter results in the future. The call has now ended.

This summary was generated with AI and may contain some inaccuracies.