Atlas Copco sees growth in LNG, hydrogen applications

Company publishes 2023 annual report

Atlas Copco said demand for equipment and services in its Compressor Technique business was strong and order volumes increased throughout the year, especially for equipment in the first half of 2023.

Revenues reached MSEK 75 552 (61 058), an organic increase of 18%. The operating profit increased by 28% to MSEK 18 488 (14 425), corresponding to a margin of 24.5% (23.6). The Compressor Technique segment covers equipment for compression of air and gases, gas treatment equipment and related services. Stationary industrial air compressors and associated air-treatment products, spare parts and service represent about 90% of revenues. Large gas and process compressors, including related service, represent about 10%.

In total, the order intake increased 9% organically. Solid order growth was achieved for the service business with increased order volumes in all regions. The favorable order development was supported by higher demand for spare parts, repair, maintenance, and service contracts, the latter supported by an increased number of connected products in the market. The order intake for equipment increased with increased order volumes in all regions.

Orders for industrial compressors increased primarily driven by growing demand for large industrial compressors, while the demand for small and medium-sized compressors grew at a more moderate pace. The overall growth was a result of a generally favorable business environment but was also helped by solid demand from customer segments contributing to the transition to a low-carbon society, such as the production of batteries for electric cars, solar panels, LNG, and hydrogen applications. In total, order volumes increased in all regions.

The order intake for gas and process compressors increased significantly, supported, but not entirely driven by, several larger orders related to LNG and carbon capture applications in the first quarter. Order volumes increased in all regions, most notably in North America and Asia

The business area continued to invest in innovation during the year, and several new products were introduced to the market to strengthen the product offering. The business area also continued to invest in market presence by adding resources and digital capabilities in research and development, marketing and sales, and service. The service offer was further strengthened with an increased focus on connectivity and data analytics to further support our customers. The efforts to reduce the environmental footprint of the business area’s own operations remained, with additional investments in solar panels as one example. Several activities to support customers in their sustainability ambitions were also carried out. The product offering was further developed with a strong focus on reducing customers’ environmental footprints. Among other things, even more energy efficient products were rolled out to the market, especially through further developed variable speed technology. The business area also established a dedicated organization focused on supporting customers in optimizing their energy efficiency at the installed base of products. The business area invested in a new production and distribution facility in Wuxi, China, in production for the gas and process division in Pune, India, as well as in a new factory in Pune, India, for the manufacturing of industrial compressors.

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