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(Reuters) –     French industrial gases co*pany Air Liquide on Tuesday beat analyst expectations for third-quarter sales, despite flagging slowing demand in Europe from customers in its Large Industries unit.

The group’s shares were up 4.2% by 0832 GMT, as JPMorgan in a note called the results “reassuring”.

Air Liquide, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, posted sales of 8.25 billion euros ($8.15 billion) in the third quarter, up 8.3% from a year earlier, and beating the 8.11 billion average forecast from a co*pany-provided consensus.

All three major segments recorded growth despite a “co*plex” macroeconomic environment of surging energy prices, the group said.

Its 12-month portfolio investment opportunities stood at over 3 billion euros at end-September, with 40% of the figure related to the energy transition. The group is hoping to benefit from its investments in green energy, notably hydrogen.

Air Liquide also confirmed its full-year guidance for an increase in operating margin and recurring net profit growth at constant exchange rates, “assuming no significant economic disruption”.

The co*pany said revenue in Europe contracted by 0.2%, largely due to its Large Industries segment where revenue dropped by 27.5%, in a context of surging energy prices.

Air Liquide said Large Industries volumes dropped 6%, “impacted by a slowing demand from Steel and Chemical customers, notably in Germany and Benelux.”

The euro zone is likely entering a recession, with business activity contracting in October at its fastest pace in nearly two years, a business survey showed. Factories, many of which are Air Liquide customers, have been particularly hit as energy prices soar while supply chains are disrupted from the COVID-19 pandemic and an additional hit from Russia’s war in Ukraine.

Air Liquide announced a plan in September to withdraw from Russia, which accounts for less than 1% of its turnover, adding it had signed an agreement to shift its assets in the country to local management.

($1 = 1.0126 euros)

(Reporting by Olivier Sorgho; Editing by Josephine Mason, Kim Coghill and Mike Harrison)