France: GDF Suez Posts Revenues of EUR 65.4 Billion

GDF Suez today announced results for the quarter ended September 30, 2011.

Revenues at September 30, 2011 were EUR 65.4 billion with a +8.9% gross increase and +3.3% organic growth that confirm the robust performance of the first half-year, thanks to the Group’s international development, good results in exploration-production and LNG activities, the contribution of assets commissioned in 2010 and 2011 despite exchange rate negative effect, mostly from the US dollar, and despite an economic environment which remains difficult.

EBITDA for the period reached EUR 12.1 billion with a +10.2% gross increase and a -0.4% organic variation compared to September 30, 2010, boosted by significant scope effects. This trend also reflects:

• strong growth in results from the Global Gas & LNG Business line thanks to exploration-production and LNG activities,
• improvement in results from the Energy Europe & International Business line, notably in North and Latin America,
• decrease in results from the Energy France and Infrastructure Business lines due to unfavorable weather conditions,
• sustained growth in results from the Energy Service business line,
• continuing good operational performance of SUEZ ENVIRONNEMENT in spite of the difficulties met in Melbourne.

At September 30, the unfavourable weather impact on the company’s domestic markets is estimated at EUR 480 billion.  In France, the gas tariff freeze decided by the government on retail regulated tariff results in a shortfall of EUR close to EUR 290 million for the fourth quarter in addition to EUR 108 million for the three first quarters 2011.

The Group confirms a 2011 EBITDA target between EUR 17 and EUR 17.5 billion²  before the impact of the two elements above.

The Group confirms equal or superior net earnings per share² in 2011 taking into accounts capital gains on announced disposals.

The Group reaffirms its policy of providing shareholders sustainable and competitive return with a stable or increased dividend in 2011 versus 2010 dividend.

Net debt was EUR 41.7 billion at the end of September 2011, up EUR 1 billion compared to the end of June 2011. This includes the positive effect of the sale of 25% of GRTgaz but also the acquisition of gas storage in Germany, the implementation of the EUR 500 million share buyback program announced September 6 for EUR 137 million and negative effect of currency variation and of mark to market for EUR 0.9 billion.

Gross Capex was EUR 7.6 billion as of September, 30, 2011.

Since September 30, the sale of G6 Rete Gas and of Bristol Water were closed with a total impact of EUR 1.1 billion on the Group’s net debt.

At September 30, 2011, the gearing is 53.3% and the net debt/EBITDA ratio is 2.5. The Group’s average net debt maturity exceeds ten years and its liquidity is EUR 22.9 billion.

1 Euro = 1.3991 U.S. dollars

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Source: GDF Suez, October 27, 2011