France: GDF SUEZ Posts Solid 1H Results

GDF SUEZ reported solid results for first-half 2012, with EUR 50.5 billion in revenues representing an increase of +10.6%, despite a continued difficult economic and regulatory environment, in particular in the mature markets where the Group is present.

Thanks to growth in current operating income, recurring net income, Group share, increased by + 6% to EUR 2.5 billion. Net income, Group share, amounts to EUR 2.3 billion, in decrease by -14.9% in comparison with net income for the first half 2011, which was positively impacted by EUR 595 million capital gains.

These results confirm the 2012 financial objectives2, assuming average weather conditions and a stable regulatory environment:

• Recurring net income Group share between EUR 3.7 and EUR 4.2 billion
• Ordinary dividend stable or higher than in 2011
• Net debt/EBITDA ratio ~2.5x and an “A” category rating

Gross Capex for 2012 is now estimated to range between EUR 10 and 11 billion3.

In addition, the Efficio 2 performance plan target of EUR 0.6 billion is confirmed, with EUR 0.3 billion achieved at June 30 and included in the 2012 indicative EBITDA of some EUR 17 billion.

The company’s Global Gas & LNG business line kept up its strong growth with an EBITDA increase of +13.6% to EUR 1,415 million. This growth was sustained by its exploration-production activity, with the favorable evolution of commodities prices during the period and increased production in the Gjøa field in Norway, as well as improved performance of the LNG activity, particularly in Asia. The annual gas and liquid hydrocarbons production target remains 55 Mbep.

Reporting on first half results, Gérard Mestrallet, Chairman and Chief Executive Officer of GDF SUEZ, declared: “The solid results of the first half demonstrate the Group’s strong resistance in a deteriorating economic environment. Thanks to its long-term strategy and leading positions both in Europe and internationally, particularly in emerging countries, the Group has powerful assets: leadership positions in both electricity and gas, presence across the entire energy chain – from generation to energy services – and capacity for dynamic and profitable development in key promising energy and environment markets. The 220,000 employees of the Group have been able to adapt, allowing it to immediately capitalize on the combination with International Power and on the creation of the Energy Europe business line. GDF SUEZ is thus in as position to achieve all its 2012 objectives. The Group will pursue the continuous improvement of its financial and industrial performances, especially thanks to a strong action of cost-reduction and control of investments”.

[mappress]
LNG World News Staff, August 02, 2012