SUEZ : Results for 1st Half of 2007
August 30 2007 - 4:35AM
PR Newswire (US)
PARIS, August 30 /PRNewswire-FirstCall/ -- - Strong Growth in
Operating Results, 2007 Targets Confirmed and Excellent Prospects
for the Medium Term - EBITDA: 4.1 Billion Euros (+ 10.4%) - Current
Operating Income: 2.8 Billion Euros (+ 17.3%) - Net Result, Group
Share: 1.9 Billion Euros (vs 2.2 Billion Euros) - Excluding Net
Impact of Disposals 1.6 Billion euros (+ 11.8%) - Sharp Increase in
Results, Sound Financial Situation In the first six months of the
year, the Group's operating performance saw a sharp increase in
spite of unfavorable weather conditions in Europe. All divisions
made significant contributions to these excellent results, which
have reached historic levels. Double digit growth in the main
operating indicators: EBITDA + 10.4%; and Current Operating Income:
+ 17.3%. These results are in line with the Group's targets for
2007. The Net Income Group Share came to 1.9 billion euros
(compared to 2.2 billion euros at June 30, 2006) due to lower
divestments (net impact of disposals of 226 million euros compared
to 726 million euros at June 30, 2006). Excluding the effects of
these divestments, Net Income Group Share increased + 11.8% to
reach 1.6 billion euros. The Group generated 2.9 billion euros in
cash flow from operations(1) in this first half of the year, an
increase of nearly 50% compared to June 30, 2006. This cash flow
enabled the Group to finance the strong increase in investments and
remunerate its shareholders (dividends up by 20% and 508 million in
share buybacks). The gearing ratio came to 52%. The net debt of
12.9 billion euros includes the investment in Gas Natural for
approximately 1 billion euros and changes in the consolidation
method for 1.3 billion euros (including Agbar for approximately 800
million euros). Targets for 2007 Confirmed These excellent
performances reported for the first half of 2007 confirm the
relevance of SUEZ leadership strategy implemented over the last
years in energy and environment. Based on these results, the Group
has confirmed its targets for accelerated profitable growth in
2007: - Growth in EBITDA of over 10% - Growth in Current Operating
Income of over 15% - Investments: 5 billion euros per year on
average - ROCE for 2007 higher than in 2006 (i.e. + 13%) - Share
buybacks of over 1 billion euros - Maintaining a "A" category
rating Accelerated industrial development in energy and the
environment Since the beginning of the year, SUEZ has completed
important strategic milestones: - Electrabel squeeze-out and
streamlining of Group structures in Belgium (acquisition of
Suez-Tractebel by Electrabel for 18 billion euros) - Strengthening
of Spanish partnerships in the environment sector with the joint
public offer with Caixa for Agbar, as well as in the energy sector
with the increase to 11.3%(2) in the capital of Gas Natural and the
acquisition of 100% of the shares of Crespo y Blasco in the energy
services. SUEZ also accelerated its industrial development and
stepped up its commercial activities: - Increased production
capacity all over the world: - New and renewable energies:
acquisition of a wind farm in Portugal, and of Ventus Energy in
Canada (3,500 MW of potential wind farm developments); construction
in Brazil of a hydroelectric plant and a co-generation plant using
sugar cane biomass (over 1,100 MW in total), - 3,200 MW of
developments in Europe with gas and coal-fired plants and 8,200 MW
of total production capacity in the Middle East. The Group has the
third largest generating park in the world (52,000 MW), which is
among the most diversified. By 2012, it plans to reach 75,000 MW,
an increase of 50%, 40,000 MW of which will be in Europe. -
Development in nuclear energy: projects development in France, the
United Kingdom, Romania, and Bulgaria; ongoing recruitment of 700
engineers and technicians. - Continued expansion in LNG: First
delivery in Zeebrugge under the 1st European LNG contract with
Qatar, permits received for an offshore terminal near Boston. -
Confirmation of SUEZ's world leadership in Seawater Desalination
through many projects in the Middle East, Australia (Perth) and
Spain (Barcelona and Alicante) and in the wastewater reuse (France
and Qatar). - Acquisitions in the Waste sector in the United
Kingdom and in the Czech Republic. - Numerous orders intake for
energy services for offerings providing improved energy efficiency
and a reduction in CO2 emissions. Strong prospects for the medium
term SUEZ board of directors reviewed the medium term prospects of
the Group's dynamic stand alone strategy. This leads to
simultaneous, sustainable development in its core energy and
environment businesses, as it benefits from its unique resources
and advantages. The relevance of this strategy is strengthened by
the rapid changes in this sector: energy markets have been opened
up to the competition, major challenges in the area of new
infrastructure and security of supply, the fight against climatic
changes, conservation of natural resources and sustainable
development in the energy and environment. Based on its commercial
success and its particularly promising growth prospects for all its
core businesses, the Group has set ambitious financial goals for
2007-2010: - Group's EBITDA Gross Operating Income over 10 billion
euros by 2010 (50% increase over 2006), - Investments of over 20
billion euros while maintaining a double-digit ROCE, - Maintaining
its "A" rating, - Dynamic, competitive shareholder remuneration
policy. This program gives SUEZ an important financial flexibility
which will allow the Group to seize industrial and financial
opportunities that are value accretive. These promising prospects
would be strengthened by the planned merger with Gaz de France.
Gerard Mestrallet, President and CEO of SUEZ, says: "The strategy
we have implemented over the last 10 years has allowed SUEZ to post
increased half-yearly results once again. These results demonstrate
the effectiveness of the Group's business model which has benefited
from the growing demand for clean and efficient solutions in energy
and environment. SUEZ is unique in its sector, and is in a strong
position to continue to further implement its strategy of organic
growth and dynamic expansion internationally, and to take a major
role in the consolidation." The Live video webcast of the 2007
first-half results will be broadcasted on Thursday August 30 at
08:30 (Paris time) on SUEZ website: http://www.suez.com/ 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 main international indices: CAC 40, BEL
20, DJ STOXX 50, DJ EURO STOXX 50, Euronext 100, FTSE Eurotop 100,
MSCI Europe and ASPI Eurozone The Group employs 140,000 people
worldwide and achieved revenues of EUR 44.3 billion in 2006, 89 %
of which were generated in Europe and in North America. Important
Information This communication does not constitute an offer to
purchase or exchange or the solicitation of an offer to sell or
exchange any securities of Suez or Gaz de France, nor shall there
be any purchase, sale or exchange of securities in any jurisdiction
(including the United States, Germany, Italy and Japan) in which
such offer, solicitation, purchase or sale or exchange would be
unlawful prior to the registration or qualification under the laws
of such jurisdiction. The distribution of this communication may,
in some countries, be restricted by law or regulation. Accordingly,
persons who come into possession of this document should inform
themselves of and observe these restrictions. To the fullest extent
permitted by applicable law, Suez disclaims any responsibility or
liability for the violation of such restrictions by any person. The
Gaz de France ordinary shares which would be issued in connection
with the proposed business combination set out in the communication
to holders of Suez ordinary shares (including Suez ordinary shares
represented by Suez American Depositary Shares) may not be offered
or sold in the United States except pursuant to an effective
registration statement under the United States Securities Act of
1933, as amended, or pursuant to a valid exemption from
registration. In connection with the proposed business combination,
and as far as necessary, the required information documents will be
filed with the Autorite des marches financiers ("AMF") and, if
applicable, the United States Securities and Exchange Commission
("SEC"). Forward-Looking Statements This communication contains
forward-looking information and statements. These statements
include financial projections, synergies, cost-savings and
estimates and their underlying assumptions, statements regarding
plans, objectives, savings, expectations and benefits from the
transaction and expectations with respect to future operations,
products and services, and statements regarding future performance.
Although the managements of Suez believes that the expectations
reflected in such forward-looking statements are reasonable,
investors and holders of Suez ordinary shares are cautioned that
forward-looking information and statements are not guarantees of
future performances and are subject to various risks and
uncertainties, many of which are difficult to predict and generally
beyond the control of Suez, that could cause actual results,
developments, synergies, savings and benefits from the transaction
to differ materially from those expressed in, or implied or
projected by, the forward-looking information and statements. These
risks and uncertainties include those discussed or identified in
the public filings made by Suez with the AMF and the SEC, including
those listed under "Facteurs de Risques" in the Document de
Reference filed by Suez on April 4, 2007 (under no: D.07-0272), as
well as those listed under "Risk Factors" in the Annual Report on
Form 20-F for 2006 that Suez filed with the SEC on June 29, 2007.
Except as required by applicable law, Suez does not undertake any
obligation to update any forward-looking information or statements.
(1). Free Cash Flow +/- changes in working capital (2). Out of
which 1.35% subject to CNE approval This release is also available
on the Internet: http://www.suez.com/ Press Contacts:
+33-1-40-06-66-51/66-68 Belgium +32-2-510-76-70 Analyst Contacts:
+33-1-40-06-65-31/66-29 DATASOURCE: SUEZ CONTACT: Press Contacts:
+33-1-40-06-66-51/66-68; Belgium +32-2-510-76-70; Analyst Contacts:
+33-1-40-06-65-31/66-29
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