WOKING, UK - Linde plc (NASDAQ:NYSE:LIN), a global leader in industrial gases and engineering, has reported a significant increase in its small on-site project portfolio, marking the fourth consecutive year of growth for this segment of the company. Throughout 2023, Linde secured 53 new small on-site projects, which involve the provision of nitrogen and oxygen gases to various industries, with a combined capital expenditure of $270M.
The company's small on-site projects utilize Linde's ECOVAR® technology, which is recognized for its efficiency, flexibility, and reliability. This proprietary technology also supports Linde's commitment to environmental sustainability by enabling customers to reduce their ecological footprint.
Demand for Linde's on-site nitrogen plants, branded as NITRON™, has been particularly strong from sectors involved in battery storage, including applications for consumer electronics and electric vehicles. Additionally, the company has seen a substantial number of projects for its next-generation VITRON® on-site oxygen plants, with significant interest from the glass and metals industries. These plants are part of Linde's portfolio of oxy-fuel applications, which aim to cut fuel consumption and emissions for customers.
Sanjiv Lamba, Linde's Chief Executive Officer, emphasized the benefits of the company's small on-site technology, stating, "Linde's proprietary small on-site technology enables our customers to be more efficient and sustainable across diverse end markets." He also noted the popularity of Linde's modular multi-plant solutions, which offer customers increased operational flexibility and cost savings.
Linde, with 2022 sales reported at $33B, serves a wide array of end markets, including chemicals and energy, food and beverage, electronics, healthcare, manufacturing, metals, and mining. The company's industrial gases and technologies are integral to various applications, ranging from the production of clean hydrogen and carbon capture systems, which are critical for energy transition, to the provision of life-saving medical oxygen and high-purity specialty gases for the electronics industry. Linde also offers advanced gas processing solutions that support customer growth, efficiency enhancements, and emission reduction efforts.
This announcement is based on a press release statement from Linde plc.
InvestingPro Insights
In light of Linde plc's (NASDAQ:LIN) continued growth in its small on-site project portfolio, investors may find the following data and insights from InvestingPro particularly relevant. Linde's aggressive share buyback strategy and its impressive record of raising its dividend for 32 consecutive years underscore the company's commitment to shareholder returns. Moreover, the company's stock is trading at a low P/E ratio relative to near-term earnings growth, which could indicate a potentially undervalued investment opportunity.
Current InvestingPro data highlights Linde's substantial market capitalization of $196.54B, a testament to its prominence in the Chemicals industry. The company's P/E ratio stands at 33.21, with an adjusted figure of 32.57 for the last twelve months as of Q3 2023. Additionally, Linde's PEG ratio for the same period is an attractive 0.55, suggesting that its earnings growth may not be fully reflected in its current stock price.
For those considering an investment in Linde, the company's strong fundamentals are further supported by a robust gross profit margin of 46.11% over the last twelve months as of Q3 2023. With a dividend yield of 1.25% and a recent dividend growth of 8.97%, Linde demonstrates its ability to consistently return value to its shareholders.
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