Current Affairs: Rising Margins Can Leave Transition Returns Unchanged

C-MACC Weekly Sustainability and Energy Transition Report

Current Affairs: Rising Margins Can Leave Transition Returns Unchanged

• 1st Topic of the Week: Customer-supplied energy can lift reported margins without increasing earnings, while grants lower funded capital, making cash returns more informative than sales growth alone.
• 2nd Topic of the Week: Hydrogen’s shrinking pipeline can obscure committed growth as customer purchase and power obligations strengthen financing without eliminating the underlying production cost premium.
• Additionally, favorable energy spreads and production costs support expansion only when suppliers secure customer access and sufficient returns on the capital they must fund through weaker markets.

Exhibit 1: Customer-Supplied Energy Can Raise Reported Margins And Worsen Revenue-Based Carbon Intensity.

Source: Air Liquide – Capital Markets Day 2026

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