AIR LIQUIDE GROUP SOCIETE D'OXYGENE ET D'ACETYLENE D'EXTREME-ORIENT
RESULTS OF FIRST-HALF 2000
At its meeting of September 18, 2000, the Board of Directors of Société d’Oxygène et d’Acétylène d’Extrême-Orient (SOAEO) approved fiscal accounts for the first half of 2000.
During this period, SOAEO's consolidated net earnings totaled 14.5 million euros (95.2 million francs), compared to 13.3 million euros (87,5 million francs) in the 1st half of 1999, for an increase of 8.8%. This includes a positive foreign exchange effect of +11.1%, due to the recovery of Asian currencies.
Net earnings of SOAEO's equity affiliates (in Singapore, Hong Kong and Malaysia), which account for most net earnings, reached 12.9 million euros (84.7 million francs) during the first half. This is 18.9% higher (5.7% at constant exchange rates) than the year-earlier period. There was a sharp pick-up in the electronics industry in the region, especially in Singapore.
Elsewhere in South-East Asia, recent investments are gathering steam and have considerably boosted sales (+45.0% and 32.3% at constant exchange rates) and operating income (+39.1% and 28.9% at constant exchange rates). Net earnings growth lagged however due to the rise in financial expenses resulting from the increase in industrial investments, most of which, such as the plant commissioned in Thailand in the second half of 1999, are backed up by long-term contracts.
SOAEO S.A.'s half-year earnings, which consist mainly of dividends paid or declared by subsidiaries in the 1st or 2nd half, totaled 4.4 million euros (29 million francs), compared to 8.5 million euros (56 million francs) in H1 1999.
We expect SOAEO to pursue its earnings growth in 2000.
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SOAEO is a subsidiary of the Air Liquide group. It includes consolidated subsidiaries (mainly in Indonesia, the Philippines and Thailand) and others accounted for by the equity method (mainly in Hong Kong, Singapore and Malaysia). Although equity affiliates currently account for most of SOAEO's earnings, the contribution of recently created consolidated subsidiaries is increasing.
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