PARIS, November 3 /PRNewswire-FirstCall/ -- Revenues: EUR 29.7
billion Organic growth: + 6% Total growth: + 8% At September 30,
2005, SUEZ revenues, prepared according to IFRS, showed organic
growth of +6.0%[1]. This performance confirms the Group's strong
growth dynamics, at the high end of its stated objectives (average
organic growth rate for 2004-2006 between 4% and 7%). At September
30, 2005, revenues were EUR 29.7 billion (versus EUR 27.5 billion
at September 30, 2004)[2]. Organic revenue growth, to which all
Group business lines made significant contributions, was generated
by: - SUEZ Energy Europe (+EUR 392 million, +4.1%) thanks to
increased wholesale electricity and natural gas sales (+EUR 218
million), to the expansion of Electrabel activities in France
(+29%), Germany (+22%) and Italy (+19%). Distrigas also contributed
+EUR 149 million (+13%). - SUEZ Energy International (EUR 517
million, +13.8%), which benefited from dynamic commercial activity.
Electricity sales volumes rose, particularly in North America (+EUR
386 million), due to the success of direct sales to industrial and
commercial customers and to the startup of new power plants. Sales
in Latin America and in Asia/Middle East grew by EUR 79 million
(+9.6%) and EUR 78 million (+9.6%) respectively; - SUEZ Energy
Services (+EUR 441 million, +6.4%) mainly in France (+EUR 259
million), the Netherlands (+ EUR 70 million) and Italy (+EUR 50
million) ; - SUEZ Environment (+EUR 306 million) whose 4% organic
growth rate was driven by Water in Europe (+EUR 103 million, +4.5%)
and international activities (+EUR 127 million). Waste Services in
Europe (+EUR 33 million, +1%) grew by 2% in France and 3.6% in the
UK, while activity in Germany, where recovery is proceeding, was
stable. Total revenues grew by 8%. The Group generates 89% of its
revenues in Europe and North America, with 79% from the European
continent alone. Growth in total revenues (+EUR 2,201 million)
breaks down as follows: - organic growth (+EUR 1,656 million), -
impact of natural gas price increases (+EUR 504 million), - changes
in Group structure (-EUR 1 million), out of which -EUR 318 million
from withdrawals from consolidation (mainly Aguas Andinas[3] -EUR
72 million, Sita Canada -EUR 47 million, as well as SES assets -EUR
112 million) and +EUR 317 million from companies consolidated for
the first time, principally in Italy (ALP Energie Italia +EUR 119
million) and in Spain (Agbar +EUR 76 million), - exchange rate
fluctuations (+EUR 42 million), including +EUR 92 million for the
Brazilian real and -EUR 91 million for the U.S. dollar. REVENUE
CONTRIBUTION BY BUSINESS ACTIVITY Sept. 30, Sept. 30, Gross change
Organic (in EUR millions) 2005 2004 growth (2) reported IFRS(1)
IFRS SUEZ Energy 10,045.9 9,134.0 10.0% 4.1% Europe(3) SUEZ Energy
4,261.7 3,690.1 15.5% 13.8% International3) SUEZ Energy 7,415.8
6,969.2 6.4% 6.4% Services SUEZ Environment 8,006.4 7,736.0 3.5%
4.0% TOTAL GROUP 29,729.8 27,529.2 8.0% 6.0% (1) See page 6 for the
2004 reported revenues restated under the IFRS format. (2) See page
5 for a breakdown of growth on a comparable basis. (3) Sales from
the electricity and natural gas sectors (i.e. SUEZ Energy Europe
and SUEZ Energy International) total EUR 14,307.6 million, for
organic growth of +6.8%. - SUEZ ENERGY EUROPE Sept. 30, Sept. 30,
Gross change Organic (in EUR millions) 2005 2004 growth reported
IFRS SUEZ Energy 10,045.9 9,134.0 10.0% 4.1% Europe SUEZ Energy
Europe business activities grew +10% by the end of September 2005.
On a comparable basis, and excluding the natural gas price effect
(+EUR 360 million), revenues progressed by +EUR 392 million, for an
organic growth of +4.1% due in particular to wholesale electricity
sales and to price increases tied to higher fuel prices and, at
Distrigas, to increased sales volumes. - Electricity In terms of
organic growth, electricity sales increased by +EUR 445 million, or
+8.0%. At September 30, 2005, electricity sales were 106.6 TWh, of
which 48.4 TWh in Belgium (down by 3.3 TWh), 34.3 TWh outside
Belgium (up by 1.9 TWh), and 23.9 TWh from the European wholesale
market (an increase of 5.3 TWh). - In Belgium, total revenues
decreased (-3.6%). The impact of the complete deregulation of the
Flanders electricity market (and, to a lesser extent, the impact of
partial deregulation in Brussels and Wallonia since July 1, 2004)
was almost entirely offset by rate increases, mainly due to higher
fuel prices. - In the Netherlands, electricity sales in volume
terms increased by +5.2% in an environment of generalized price
increases. - In the rest of Europe, under the combined impact of
newly signed industrial contracts (Berlin, Ford, Citiworks, etc.),
the startup of the Torrevaldaglia (Italy) plant in March 2005 and
higher prices, sales in France, Germany, and Italy recorded organic
increases of +29%, +22% and +19% respectively. - Wholesale sales
achieved within the framework of the optimization, at the European
level, of Electrabel production facilities and contracts portfolio
amounted to EUR 1,039 million at September 30, 2005, to be compared
with EUR 698 million[4] at September 30, 2004 (23.9 TWh at
September 30, 2005 compared with 18.6 TWh for September 30, 2004).
- Natural gas - Organic growth in non-Group sales by Distrigas
increased +12.7% (+EUR 149 million) thanks to commercial dynamism
in France where 79 industrial sites are now being supplied (versus
22 in 2004), and to increased sales of LNG cargoes. Non-Group
natural gas sales in Belgium and Luxemburg were stable. -
Electrabel natural gas sales outside the Group declined (-13.2%, or
-EUR 171 million), mainly due to reduced sales on a wholesale basis
and hedging operations linked to gas positions (-EUR 122 million)
and to a lesser extent to partial deregulation in Wallonia (from
July 1, 2004) - Other Activities Other activities, which mainly
comprise invoicing of services and sales of steam and fuels were
down -EUR 48 million (-3.3%) notably due to re-invoicing of
punctual charges in 2004. - SUEZ ENERGY INTERNATIONAL Sept. 30,
Sept. 30, Gross change Organic (in EUR millions) 2005 2004 growth
reported IFRS SUEZ Energy 4,261.7 3,690.1 15.5% 13.8% International
Revenues at SUEZ Energy International advanced by +13.8% (or +EUR
517 million) on a comparable structural, exchange rate and natural
gas price basis. This organic growth was particularly noticeable in
the United States (increased commercial activity). More
specifically, this revenue growth was due to: - North America (+EUR
386 million) mainly with the commercial success of SERNA (SUEZ
Energy Resources North America), via direct energy sales to
industrial and commercial customers (+EUR 327 million) and the
impact of the startup of the Wise and Hot Springs power plants in
July 2004 and February 2005 respectively (+EUR 43 million). -
Asia/Middle East (+EUR 78 million) with the February 2004 startup
of the Baymina power station (770 MW) in Turkey (+EUR 30 million),
as well as increased sales of natural gas to South Korea (+EUR 22
million). - Latin America (+EUR 79 million), particularly in Brazil
where sales increased by +EUR 38 million, due mainly to the
progressive replacement of initial contractual volumes by new
bi-lateral contracts with distributors and industrial customers.
Chile, Peru and Argentina continue to enjoy a favorable
environment, both in terms of volumes and prices. - SUEZ ENERGY
SERVICES Sept. 30, Sept. 30, Gross change Organic (in EUR millions)
2005 2004 growth reported IFRS SUEZ Energy 7,415.8 6,969.2 6.4%
6.4% Services Organic growth of SUEZ Energy Services was +EUR 441
million (+6.4%). This growth was particularly well-sustained for
installation and maintenance activities in France (+10.1%) and in
the Netherlands (+8.6 %). In Italy, revenues grew by +EUR 50
million. For Ineo, growth was sustained mainly by the ORMMA
contract with the French Defense Ministry, and satisfactory revenue
progression with service sector customers. Service activities in
France (Elyo) recorded organic growth of +5.5% mainly as a result
of commercial developments and related work and, more marginally,
by the impact of rate adjustments (renegotiated or increased fuel
oil prices) and rigorous weather conditions. Conversely,
engineering activities recorded a 4.9% revenue drop due to the
completion of some turnkey projects, such as Sines in Portugal. -
SUEZ ENVIRONMENT Sept. 30, Sept. 30, Gross change Organic (in EUR
millions) 2005 2004 growth reported IFRS SUEZ ENVIRONMENT 8,006.4
7,736.0 3.5% 4.0% Water Europe 2,521.9 2,317.6 8.8% 4.5% Waste
Services 3,394.3 3,380.6 0.4% 1.0% Europe Degremont 621.8 574.7
8.2% 7.5% International 1,468.4 1,463.1 0.4% 9.5% SUEZ Environment
generated EUR 8.0 billion in revenues at September 30, 2005, versus
EUR 7.7 billion at September 30, 2004. Organic growth came to +4%,
or +EUR 306 million. - Water Europe activities recorded an increase
of +4.5% (+EUR 103 million), mainly due to Agbar in Spain and to
activities in France (+EUR 38 million, or +3.2%) with signings of
new waste water contracts and sustained renewed service contracts.
- Waste Services Europe is progressing in the U.K. (+EUR 19 million
or +3.6%) and in France (+EUR 31 million or +1.9%) thanks in
particular to the startup of new incinerators and to better
economic environment. Waste Services in Germany continued their
recovery due to the startup of new treatment and sorting
facilities. - Degremont benefited from progress with new contracts
in South America and Jordan, increasing organic growth at September
30, 2005 to EUR 43 million or +7.5%. - International activities
recorded positive organic growth (+EUR 127 million, or +9.5%) in
water and waste services following the rate renegotiation in
Chile[5] (+10.5 %), the price rise and increase in volumes for the
landfill storage in Australia (+8.7%) and new contracts signed in
the Water sector in China (+21.1%). REVENUE BREAKDOWN BY GEOGRAPHIC
ZONE The majority of Group revenues (89%) was generated in Europe
and North America, with 79% from the European continent alone. The
revenue breakdown by geographic zone is as follows: (in EUR
millions) Sept. % Sept. % Change 30, 2005 contribution 30, 2004
contribution 2005/2004 France 6,888.1 23.2% 6,152.5 22.3% 12.0%
Belgium 7,794.0 26.2% 8,186.9 29.7% -4.8% Subtotal, 14,682.1 49.4%
14,339.4 52.1% 2.4% France-Belgium Other European 7,820.5 26.3%
6,591.0 23.9% 18.7% Union Other European 858.4 2.9% 811.6 2.9% 5.8%
countries Subtotal Europe 23,361.0 78.6% 21,741.9 79.0% 7.4% North
America 2,980.7 10.0% 2,660.6 9.7% 12.0% Subtotal Europe 26,341.7
88.6% 24,402.5 88.6% 7.9% and North America South America 1,535.3
5.2% 1,365.0 5.0% 12.5% Asia, Middle East 1,450.4 4.9% 1,346.2 4.9%
7.7% and Oceania Africa 402.3 1.4% 415.5 1.5% -3.2% TOTAL 29,729.8
100.0% 27,529.2 100.0% 8.0% In 2004, wholesale sales were
exclusively recorded within the Belgium zone and totaled EUR 839
million. In 2005, this activity amounted to EUR 1,057 million and
was split between France, Belgium and Other European countries
respectively for EUR 200 million, EUR 357 million and EUR 500
million. BREAKDOWN 0F ORGANIC GROWTH ON A COMPARABLE BASIS Organic
growth in revenues on a comparable basis was as follows: (in EUR
millions) Sept. 30, Sept. Organic 2005 IFRS 30, 2004 growth IFRS
Revenues 29,729.8 27,529.2 Changes in Group structure(1) - 316.8 -
317.7 Exchange rate fluctuations 41.6 Natural gas price variations
504.2 Comparable 29,413.0 27,757.3 6.0% (1) Respectively, 2005
revenues from companies consolidated for the first time, and 2004
revenues from deconsolidated companies. SEPTEMBER 2004 REPORTED
REVENUES RESTATED UNDER THE IFRS FORMAT Sept. 30, Netting
Collections Other Sept. (in EUR millions) 2004 of for 3rd
adjustments 30, 2004 reported trading parties(b) IFRS sales(a) SUEZ
Energy 9,896.8 (737.9) (24.9) 9,134.0 Europe SUEZ Energy 4,036.6
(254.2) (92.3) 3,690.1 International SUEZ Energy 6,968.2 1.0
6,969.2 Services SUEZ Environment 8,482.2 (8.3) (733.5) (4.4)
7,736.0 TOTAL GROUP 29,383.7 (1,000.4) (733.5) (120.6) 27,529.2 (a)
Netting of trading sales: in financial statements prepared under
French accounting standards, the contribution of trading activities
of an operational nature tied to assets and to optimizing the
production base, the fuel contract portfolio or energy sales is
presented as a total amount in "Revenues" and in "Purchases and
changes in inventory." Pursuant to IAS 18 "Income from ordinary
activities," the results produced in connection with certain of
these operations are reported as net amounts in "Revenues" when the
sales contracts in question can be settled through offsetting
purchases or when the sales contracts are part of swap strategies.
(b) Collections for 3rd parties: proceeds received on behalf of
third parties in the Environment sector, presented under "Revenues"
and under a separate entry for "Operating expenses" are, according
to the same principle, now presented as a net amount. These
adjustments have no impact on Group margins. Related volumes sales
having also been adjusted. SUEZ, an international industrial and
services Group, designs sustainable and innovative solutions in the
management of public utilities as a partner of public authorities,
businesses and individuals. The Group aims to answer essential
needs in electricity, natural gas, energy services, water and waste
management. SUEZ is listed on the Brussels, Luxembourg, Paris, New
York and Zurich stock exchanges and is represented in the major
international indices: CAC 40, DJ STOXX 50, DJ EURO STOXX 50,
Euronext 100, FTSE Eurotop 100, MSCI Europe and ASPI Eurozone. The
Group employs 160,700 people worldwide and achieved revenues of
40.7 billion in 2004, 89% of which were generated in Europe and in
North America. Disclaimer This press release contains certain
forward-looking statements, particularly with respect to future
events, trends, plans or objectives. These statements are based on
management's current views and assumptions and involve a number of
risks and uncertainties which may lead to a significant difference
between actual results and those suggested either explicitly or
implicitly in these statements (or suggested by past results).
Additional information about these risks and uncertainties appears
in documents filed by SUEZ with the U.S. Securities and Exchange
Commission and the Autorite des Marches Financiers (French
securities regulator). The present forward-looking statements are
made as of the date of the present release, with no undertaking by
SUEZ to update or revise them, whether in connection with new
information, future events, or any other factor. Press contacts:
Financial analysts' contacts: Catherine Guillon: +331-4006-6715
Arnaud Erbin: +331-4006-6489 Caroline Lambrinidis: +331-4006-6654
Eleonore de Larboust:+331-4006-1753 Antoine Lenoir: +331-4006-6650
This release is also available on the Internet:
http://www.suez.com/ References: [1]. See page 5 for a breakdown of
organic revenue growth on a comparable basis. [2]. Revenue trend
comparison based on proforma IFRS revenue figures for 2004. The
reconciliation to reported revenue figures at September 30, 2004 is
shown on page 5. [3]. Aguas Andinas is accounted for under the
proportional method (60%) since October 1, 2004. [4]. Under IFRS
format. [5] Since October 1, 2004, Aguas Andinas is consolidated at
60% by the proportional method. DATASOURCE: SUEZ CONTACT: Press
contacts: Catherine Guillon: +331-4006-6715, Caroline Lambrinidis:
+331-4006-6654, Antoine Lenoir: +331-4006-6650; Financial analysts'
contacts: Arnaud Erbin: +331-4006-6489, Eleonore de
Larboust:+331-4006-1753
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