By Geraldine Amiel
PARIS--GDF Suez SA (GSZ.FR) will see its earnings hit this year
as regulated energy tariffs set by the French government won't
offset supply costs, its chairman and Chief Executive Gerard
Mestrallet said Thursday.
The company expects to lose around 185 million euros ($242.2
million) in earnings before interest, tax, depreciation and
amortization this year, and for the fourth quarter alone, the
Ebitda shortfall is estimated at EUR165 million, Mr. Mestrallet
said at a press conference ahead of an analyst meeting.
The French government is to announce Monday the set tariffs for
next year; Mr. Mestrallet declined to make any comment on them
until then.
Earlier Thursday, French daily Le Figaro reported that regulated
gas prices in France are to rise between 2% and 3% next year.
Late Wednesday, the group announced the acceleration of a plan
as it seeks to cut its debt and loosen ties with waste and water
unit Suez Environnement SA (SEV.FR) and European activities due to
a deteriorating economy there.
Speaking on French radio RTL, Prime Minister Jean-Marc Ayrault
said the government is negotiating with GDF Suez to try to alter
the mechanism and the contracts that determine rises in regulated
gas prices.
"I can't confirm the exact figure, but it's true that we are
regularly confronted with these price increases linked to the
contracts indexed to the price of oil," said Mr. Ayrault.
Write to Geraldine Amiel at geraldine.amiel@dowjones.com
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