Confirmation of 2008 Performance Objectives PARIS, May 6
/PRNewswire-FirstCall/ -- in EUR billions March 31, 2008 March 31,
2007 Total Growth Organic Growth Revenues 13.7 12.2 + 12.3% + 9.9%
EBITDA (new 2.3 2.1 + 11.4% + 12.7% definition) (1) Current
Operating 1.7 1.5 + 9.9% + 11.3% Income (1) (1) See reconciliation
tables, page 6. At March 31, 2008, revenues came to EUR 13.7
billion, representing total growth of + 12.3% and organic growth of
+ 9.9% compared with 1st quarter 2007. Organic growth stemmed
mainly from: - increased electricity sales and continued
development, in particular internationally (Latin America and North
America) and in Europe (the Benelux countries, Italy and Spain), -
additional gas arbitrage opportunities, - greater energy services
activity in Europe (robust order book, harsher winter than
1stquarter 2007, and higher fuel prices), - progress in SUEZ
Environment's water and waste services activities in Europe and
internationally. At EUR 2.3 billion (+ 11.4%) EBITDA is in line
with the expectations of the Group which confirms its EBITDA growth
target for 2008 of approximately + 10%. At EUR 1.7 billion, Current
Operating Income was up substantially, reflecting improved
profitability in electricity, particularly from very strong
performance in Brazil (spot electricity sales). Operations in the
United States (electricity and LNG), France and Spain, also made
significant contributions to this advance, as did Energy Services
in Europe and Environment in Europe and internationally. Net debt
at EUR 13.1 billion remained stable in relation to year-end 2007.
Total revenues grew +EUR 1,503 million: - Organic growth (+EUR
1,213 million); - Effect of natural gas price increases (+EUR 358
million); - Changes in Group structure (+EUR 133 million),
including: - first time consolidations (+EUR 243 million): SUEZ
Environment +EUR 110 million (waste activity acquisitions mainly in
the United Kingdom and France), SUEZ Energy Europe +EUR 90 million,
SUEZ Energy International +EUR 32 million (acquisition in Panama),
and SUEZ Energy Services +EUR 11 million (acquisition of Crespo y
Blasco in Spain). - Disposals (-EUR 110 million): SUEZ Environment
-EUR 89 million (sale of Applus by AGBAR), SUEZ Energy
International -EUR 12 million, and SUEZ Energy Services -EUR 9
million; - Exchange rate fluctuations (-EUR 200 million),
relatively limited, whose impact were felt mainly by SUEZ
Environment (-EUR 52 million) and SUEZ Energy International (-EUR
140 million). The Group generated 90% of its revenues in Europe and
North America, of which 82% in Europe. Revenue breakdown by
business activity in EUR millions Revenues March 31, 2008 March 31,
2007 SUEZ Energy Europe 5,890 5,013 (1) SUEZ Energy 1,851 1,586
International (1) SUEZ Energy Services 3,056 2,837 SUEZ Environment
2,909 2,768 SUEZ Group 13,707 12,204 Organic growth (2) + 9.9%
Total growth + 12.3% (1) Total revenues in the natural gas and
electricity segments (made up of SUEZ Energy Europe and SUEZ Energy
International) amounted to EUR 7,741,6 million, with organic growth
of + 12.4%. (2) See page 6 for a breakdown of organic growth on a
comparable basis. - SUEZ ENERGY EUROPE in EUR millions March 31,
March 31, Total Organic 2008 2007 change growth Revenues 5,890
5,013 + 17.5% + 9.4% Total revenues of SUEZ Energy Europe rose +
17.5% (+EUR 877 million) at March 31, 2008. On a comparable basis,
in particular excluding the impact of changes in natural gas
prices, organic growth in revenues was + 9.4% . Electricity Sales
of electricity rose to EUR 3,506 million versus the end of March
2007 figure of EUR 3,075 million, with organic growth at + 13.8%.
The increase in electricity sales is due both to the price dynamics
experienced in Europe since mid-2005 and to increasing sales
volumes outside the Benelux countries: - In the Benelux countries,
the overall revenue trend reflects the increase in market prices
for electricity (strongly influenced by higher fossil fuel prices).
Sales in Belgium also benefited from higher transportation and
distribution prices, with no impact on margins. Sales volumes were
down slightly (-0.8 TWh, or - 3.2%) resulting mainly from a decline
in sales to distributors in Belgium. - Electricity volumes sold
outside the Benelux countries increased + 2.2%, and account for 42%
of all electricity sales in Europe. This growth is due mainly to
development of the Group's southern Europe activities, with a
higher level of activity at the Castelnou power plant in Spain due
to improved market conditions versus the same period the year
before, increased power plant capacity at Leini and Tirreno Power
in Italy, and to the 2007 wind farm acquisitions in Portugal. -
Natural gas Sales of natural gas by Electrabel (+ 26%) were helped
mainly by changes in natural gas prices (October 1, 2007 rate
increase) and transportation and distribution rates without impact
on margins. To a lesser degree, natural gas sales also benefited
from more favorable weather conditions than in 2007. Distrigas
revenues were up + 38.7% as a result of increased natural gas
prices and a sharp increase in trade-offs due to more favorable
market conditions. Other activities The drop in revenues from Other
activities (-EUR 65 million) was due to trading activity levels and
to energy sales related services. - SUEZ ENERGY INTERNATIONAL In
EUR millions March 31, 2008 March 31, 2007 Total change Organic
growth Revenues 1,851 1,586 + 16.8% + 23.4% SUEZ Energy
International revenues grew + 23.4% (+EUR 346 million) in organic
terms, due to strong commercial dynamism across all geographic
zones, in a context of strong energy demand and rising prices.
Specifically, organic growth originated from: - Latin America (+EUR
149 million), thanks to increased spot electricity sales in Brazil
(+EUR 100 million); the increase in sales in Peru (+EUR 19 million)
and Chile (+EUR 29 million) were due mainly to higher prices. -
Liquefied Natural Gas business (+EUR 82 million): continued
optimization of London-based activity in the context of higher
prices and seized arbitrage opportunities (5 cargos versus 1 during
1st quarter 2007). - North America (+EUR 73 million), mainly due to
the commercial successes of SERNA (SUEZ Energy Resources North
America, electricity supplier to commercial and industrial
customers in the US) as well as to progress in the merchant power
plant business. - Asia / Middle East (+EUR 42 million) thanks to
expansion in the Gulf countries (+EUR 19 million, including the
impact of the Sohar Power Company commissioning at the end of May
2007), and to positive price trends in Thailand (+EUR 8 million)
and Turkey (+EUR 16 million). - SUEZ ENERGY SERVICES in EUR March
31, March 31, Total Organic millions 2008 2007 change growth
Revenues 3,056 2,837 + 7.7% + 7.0% Organic growth in SUEZ Energy
Services revenues was + 7% (+EUR 198 million). - In France,
installation and maintenance activities continued to record a
strong development (+ 7.6%, or +EUR 59 million), based on
contributions from all entities (Ineo, ENDEL, AXIMA, Seitha).
Services activities (Elyo France) experienced sustained growth (+
7.1%) due to more favorable weather conditions than for the same
period in 2007 and to expanded commercial development. - In the
Netherlands, business activity rose substantially (+ 14.6%, or +EUR
38 million), having fully profited from a strong order book at the
end of 2007. In Belgium, activity remained stable under the
combined effect of sustained Services activity and reduced
Installation activity when compared the high level of activity
during 1st quarter 2007 (Norway and the Netherlands). - Tractebel
Engineering (+ 18.5%, or EUR 15 million) benefited from dynamism in
all its divisions, particular in the nuclear area (+ 22%). -
Outside France and Benelux, business activity reflected satisfying
organic growth, particularly in Italy, Switzerland, and the
countries of eastern Europe, but also in electricity and natural
gas subsidiaries. - SUEZ ENVIRONMENT in EUR millions March 31,
March 31, Total Organic 2008 2007 change growth Revenues 2,909
2,768 + 5.1% + 6.6% Water Europe 914 911 + 0.3% + 8.3% Waste Europe
1,397 1,302 + 7.3% + 4.2% International and 598 555 + 7.8% + 9.7%
others SUEZ Environment reported organic growth of + 6.6% (+EUR 172
million). Total revenue growth was + 5.1%, affected mainly by
exchange rate fluctuations and disposals (sale of Applus by AGBAR
at year-end 2007). Water Europe announced sustained organic growth
of + 8.3% (+EUR 68 million) thanks to AGBAR (+ 12.2%, +EUR 42
million) in Spain and internationally, and to Lyonnaise des Eaux (+
5.4%, +EUR 23 million) based on commercial expansion of its water
and wastewater activities. Waste Europe posted organic growth of +
4.2% (+EUR 53 million). In France (+ 3.9%, +EUR 26 million), its
growth is fairly balanced between its services and treatment
businesses. In the United Kingdom and in Scandinavia (+ 5.3%, +EUR
15 million), growth resulted in particular to Private Finance
Initiative (PFI) contracts and commercial dynamism in industrial
and commercial collection activities. In the Benelux countries and
Germany (+ 3.7%, +EUR 13 million), growth is principally related to
sorting and recycling activities and to the higher level of
production of a new treatment plant. International recorded strong
organic growth (+ 9.7%, +EUR 51 million), coming from Asia-Pacific
(+ 13,5%) thanks to increased volumes and higher prices in water
and waste services in China and to steady development of waste
treatment and landfill disposal in Australia, water rate
adjustments obtained in the regulated North American market (+
9.9%) and expanded activities in the CEMME(1) Region (+ 10%).
Degremont (+ 7%) benefited from a strong commercial activity level,
with for instance contracts awarded in the Middle East now in
execution phase (Doha West, Barka 2). SUPPLEMENTARY ANALYSIS -
REVENUE BREAKDOWN BY GEOGRAPHIC ZONE 90% of Group revenues were
generated in Europe and North America, with 82% in Europe alone.
The revenue breakdown by geographic zone is as follows: REVENUES
March 31, % March 31, % Change 2008 2007 2008/2007 in EUR millions
France 3,359.3 24.5% 3,103.8 25.4% + 8.2% Belgium 3,831.2 28.0%
3,346.3 27.4% + 14.5% Subtotal France-Belgium 7,190.5 52.5% 6,450.0
52.9% + 11.5% Other European Union 3,833.9 28.0% 3,338.9 27.4% +
14.8% Others countries of Europe 175.8 1.3% 180.4 1.5% -2.5%
Subtotal Europe 11,200.3 81.7% 9,969.3 81.7% + 12.3% North America
1,136.3 8.3% 1,089.2 8.9% + 4.3% Subtotal Europe and North America
12,336.6 90.0% 11,058.5 90.6% + 11.6% Asia, Middle East & 630.3
4.6% 555.9 4.6% + 13.4% Oceania South America 557.9 4.1% 431.3 3.5%
+ 29.4% Africa 182.1 1.3% 158.0 1.3% + 15.3% TOTAL REVENUES
13,706.9 100.0% 12,203.7 100.0% + 12.3% (Change in total revenues).
NB: March 2007 data have been restated and now included in the
Asia, Middle East & Oceania zone is the SUEZ Energy
International subsidiary Baymina (Turkey), previously recorded
under "Other countries of Europe." - BREAKDOWN OF ORGANIC GROWTH ON
A COMPARABLE BASIS Organic growth in revenues and current operating
income is analyzed on a comparable basis. REVENUES March 31, March
31, Organic in EUR millions 2008 2007 growth Revenues 13,707 12,204
Changes in Group structure (1) -243 -110 Exchange rate fluctuations
-200 Natural gas price variations 358 Comparable basis 13,464
12,251 + 9.9% (1) Accounting respectively for 2008 revenues from
newly consolidated companies and 2007 revenues from disposals.
CURRENT OPERATING INCOME March 31, March 31, Organic in EUR
millions 2008 2007 growth Current operating income (1) 1,677 1,525
Changes in Group structure (2) -7 -7 Exchange rate fluctuations -19
Comparable basis 1,670 1,499 + 11.3 % (1) Current operating income
at March 31, 2007 is adjusted upward (EUR 1,525 million versus EUR
1,454 million) to take into account the classification of a
recovery of provision for a nuclear cycle guarantee recorded in the
2007 six-month and annual financial statements. (2) Accounting
respectively for 2008 current operating income from newly
consolidated companies and 2007 current operating income from
disposals. - EBITDA RECONCILIATION March 31, March 31, 2008 2007
EBITDA (previous definition) 2,335 2,131 Movements in provisions
for pensions and similar commitments 61 19 Dividends -34 -28 Share
in income of associates -70 -65 EBITDA (new definition) 2,292 2,057
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,
Francfurt, Milano and Zurich stock exchanges and is represented in
the major 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 149,000 people worldwide and achieved
revenues of EUR47.5 billion in 2007, 89% of which were generated in
Europe and in North America. Disclaimer This press release contains
certain non-historic information which constitutes statements of a
prospective nature, and in particular forward-looking statements
regarding events, trends, plans or future objectives. These
statements are based on current opinions and hypotheses of
management and are subject to risks and uncertainties which may
imply a significant difference between the real results and those
included either explicitly or implicitly in these statements (or
previous results). Additional information concerning these risks
and uncertainties are included in the documents filed by SUEZ March
18, 2008 with the Autorite des Marches Financiers. The
forward-looking statements are presented at the date of the
communication, and SUEZ does not undertake to update or to revise
them, whether as a result of new information, future events or for
any other reason. Press contacts: Analyst contacts: France:
+33-1-4006-6651 / 6668 +33-1-4006-6629 Belgium: +32-2-510-76-70
This release is also available on the Internet:
http://www.suez.com/ (1) Central Europe, Mediterranean and Middle
East Region. DATASOURCE: SUEZ CONTACT: Press contacts: France,
+33-1-4006-6651 / 6668, Belgium, +32-2-510-76-70; Analyst contacts:
+33-1-4006-6629
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