Published:
Suez Environnement - Results for 1st Half of 2008
PARIS, August 28 /PRNewswire-FirstCall/ --
- Solid Operational Performance, in Line With 2008 Objectives
- Confirmation of 2008-2010 Financial Objectives
- Revenue: EUR6,030 million, + 7.5%(1)
- EBITDA : EUR1,006 million, + 5.2%1
- Free Cash Flow : EUR275 million, + 18.8%
- Net Result Group share: EUR201 million
- Stable Net debt : EUR5.4 billion
In the first half of the year, Suez Environnement (2) reported a solid
performance with sustained revenue growth, increase in operational
performance and strong free cash flow generation, in line with 2008
objectives and resilient to the H1 2008 macro-economic slow down.
Boosted by buoyant sales in both water and waste activities, and the
tuck-in strategy, revenue increased by +7.5%1 in total and by +9.7%1 at
constant foreign exchange rates, from EUR5,611 million1 as of June 30, 2007
to EUR6,030 million as of June 30, 2008. All divisions contribute to growth.
EBITDA(3) amounted to EUR1,006 million, up to +5.2%1 and of +7.3%1 at
constant foreign exchange rates, from EUR956 million last year1, driven by
robust European base and increased profitability of international activities.
The EBITDA margin came in at 16.7%.
Current Operating Income amounted to EUR508 million. Before IPO costs of
EUR19 million, Income from Operating Activities came to EUR537 million as of
June 30, 2008, up +3.7%1 over the previous year, and Net Result Group share
amounted to EUR220 million.
A positive impact on corporate tax, following the IPO, is to come in H2
2008 with retroactive effect as of January 1st, 2008, following the creation
of a tax group comprising Suez Environnement and its French subsidiaries,
which will generate an annual tax saving estimated at EUR40 million per
annum. In addition, a portion of SUEZ' deficit as of December 31, 2007,
estimated at EUR0,5 billion, will be allocated to Suez Environnement.
Suez Environnement generated EUR275 million of Free Cash Flow before
disposals, up +18.8% compared to June 30, 2007, with net debt remaining
stable at EUR5,4 billion at June 30, 2008 compared to December 31, 2007 while
improving its net debt/EBITDA ratio to 2.60x.
Positioned on attractive and long term environmental markets, Suez
Environnement confirms its 2008-2010 financial objectives.
Solid performances reported from Water Europe and Waste Europe, boosted
at the international
All divisions contribute to operational performance and cash generation:
WaterEurope:
Water Europe Revenues increased by +8.5% excluding Applus to EUR1.9
billion, fuelled by commercial successes in water and wastewater for both
municipal and industrial customers, as well as price increases and
development in new services inFrance and inSpain. Overall inEurope,
unfavorable weather conditions led to lower volumes sold.
WaterEurope operating results (EUR388 million of EBITDA) are increasing
inFrance buoyed by price increases, development of new services and work
activities, on-going efficiency efforts. In Agbar, operating result improved
due to price increases inSpain andChile, while margins are slightly
decreasing in the healthcare business due to an adverse loss ratio.
WasteEurope:
WasteEurope posted EUR2.9 billion in revenues as of June 30, 2008, up
+7.9% growth. InFrance, operations increased +4.6%(4) mainly resulting from
treatment activities (notably sorting and recovery), as well as services
(municipal collection and other services). Waste activities in the UK
generated a +8%4 growth thanks to price increases, of which a +GBP8/ton
landfill tax increase, to the Cornwall and Northumberland PFI contracts and
increase in the metal recycling activities. Scandinavia posted +7.8%4 growth
mainly from industrials, commercials and treatment activities, andBelgium
was boosted by the full operation of the Sleco incinerator.
Waste Europe Operating profitability (EUR459 million of EBITDA) is driven
by strong performance in treatment activities with a general increase of gate
fees, higher prices for electricity sold from both incinerators and biogas
facilities and development of recycling and material recovery activities.
International:
Revenues came in at EUR1.2 billion, up +4.8% increase compared to last
year, bolstered by buoyant activities inAsia-Pacific (with increased
operations inChina andAustralia), inCentral Europe notablyPoland, and
North America driven by a dynamic rate case strategy. Degremont posted +6.3%4
growth, with the launch of new contracts inMiddle East andSpain with the
Barcelona desalination plant.
International Operating profitability (EUR185 million of EBITDA) shows a
sharp increase resulting from development of regulated activities
characterized by higher margins and wastewater contract renegotiations in the
US, margin improvements for Degremont, completion of Spolana soil remediation
contract inCzech Republic and improved volumes and network efficiency for
Lydec inMorocco.
Highlights and Development
Since the beginning of the year, Suez Environnement has achieved several
strategic milestones, as follow:
- Successful listing process: Suez Environnement was listed on
July 22, 2008 on Euronext Paris and Brussels concomitantly with GDF
SUEZ merger, creating the only traded pure-player, dedicated
exclusively to water and waste activities worldwide. GDF SUEZ,
together with GBL, CDC, Areva, CNP Assurances and Sofina holds 48.04%
of Suez Environnement's shares capital at August 20, 2008, through a
shareholders pact, which insures a stable sharehold base fostering
long term growth.
- Successful public offer on AGBAR, after which Suez Environnement,
Criteria and Hisusa together hold 90% of AGBAR.
Suez Environnement pursued its industrial development and its commercial
activities:
- Development in Italy with ACEA via a new joint venture(5)
relating to municipal water activities.
- Acquisition of Fayolle(6) waste activities in France,
pursuit of MBT development, creation or improvement to sorting
facilities.
- Development in the material recovery with the start of
operations of Montpellier methanization facility, acquisition of
BellandVision (Germany) in packaging recycling, new structuring
Partnerships with industrials companies such as Renault in car
dismantling, Michelin in tyre recovery, and Nexans in cable recycling.
- Strengthening of US positions through the acquisition of
Utility Service Company7 (US no.1 water tank maintenance service
company), and NACO7 and WPT7 from Earth Tech.
- Increased presence in China through the acquisition of 7.5%
of Chongqing Water Group7.
- Acquisition by AGBAR of 51% of ESSAL, 4th Chilean water
distribution company.
Confirmation of 2008-2010 financial objectives
The operational performance reported for the first half of 2008 confirms
Suez Environnement's solid and profitable growth strategy, based on an
industrial business model in attractive environmental markets.
Suez Environnement confirms its financial objectives for 2008-2010, based
on organic growth and tuck-in acquisitions, independent of strategic
acquisitions:
- Revenue growth: organic growth more than or equal to +5% and
tuck-in acquisition growth more than or equal to +2%
- 2008 EBITDA(7) target between EUR2,100 million and EUR2,150
million
- EBITDA growth: +8% average annual growth in 2009 and 2010
- Investments of approx. EUR4.5 billion(8) over the 2008-2010
period
- Dividend policy: EUR320 million paid in 2009 and more than
10% growth in the next 2 years
- Net debt / EBITDA ratio < 3x over 2008-2010
- Continuing efforts to improve operational performance.
The live video webcast of the 2008 first-half results presentation will
be broadcasted today at 08:30 (Paris time) on Suez Environnement website:
http://www.suez-environnement.com.
Financial report and consolidated accounts for H1 2008 are available, and
on line on Suez Environnement website: http://www.suez-environnement.com
Natural resources are not infinite. Each day, Suez Environnement (Paris:
SEV,Brussels: SEVB) and its subsidiaries deal with the challenge to protect
resources by providing innovative solutions to industries and to millions of
people. Suez Environnement supplies drinking water to 68 million people,
provides wastewater treatment services for 44 million people and collects the
waste produced by 46 million people. Suez Environnement has 62,000 employees
and, with its presence on a global scale, is the world's leader exclusively
dedicated to environmental services. In 2007, Suez Environnement, a 35% GDF
SUEZ affiliate, achieved sales turnover of 12 billion euros.
Disclaimer
Some of the statements in this document are forecasts and projections
("forward-looking statements") based upon current assumptions concerning
future events. Such statements are not promises or guarantees, and they are
subject to factors of risks and of uncertainties, the majority of which are
outside the control of Suez Environnement and that could cause actual results
to differ materially from those suggested by any such statements or our
expectations. Those factors include, but are not limited to, risks or
uncertainties relating to our highly competitive industry, our ability to
make and integrate acquisitions, our ability to obtain financing for
acquisitions and for other needs on terms acceptable to us, our ability to
identify, enter and expand in high-growth potential markets, the legal,
fiscal, political and economic conditions of the countries in which we
operate, the currencies in which we do business, our ability to remit funds
freely from the jurisdictions where we operate, our ability to manage our
foreign exchange exposures, our dependence on our management team, our
workforce requirements, our brands, our ability to monetize our businesses
and our dependence on the growth of our markets, as well as general economic
and market conditions.
All forward-looking statements attributable to us are based upon
information available to us on the date such statements are made and are
expressly qualified in their entirety by the above cautionary statements. We
expressly disclaim any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement to reflect any change
in our expectations with regard thereto or any change in events, risks,
outcomes, conditions or circumstances on which any forward-looking statement
is based, whether as a result of new information, future events, or otherwise.
To learn more about Suez Environnement, go to:
http://www.suez-environnement.com
---------------------------------
(1) Excl. Applus, sold in November 2007
(2) Suez Environnement Company named Suez Environnement thereafter
(3) EBITDA new definition
(4) In organic growth
(5) Subject to regulatory approval, 45% stake of Suez Environnement
(6) Deal closed and paid in the second half of 2008
(7) EBITDA new definition
(8) Excl. the public offer on AGBAR and strategic acquisitions
SOURCE Suez Environnement
Copyright © 2009, PRNewswire
newsblaze
Copyright © 2009, NewsBlaze,
Daily News
Tags: ,ENV,OIL,UTI,ERN,Suez-Environnement
_ _Is your favorite bookmark site missing?
Ask for it.