GDF Suez LNG profit climbs

February 26, 2015

France’s GDF Suez said its EBITDA for the Global Gas & LNG business line in 2014 amounted to €2,225 million, up 9.7% compared to 2013.

Organic growth came in at 10.9%, spurred by a fall in net additions to provisions, strong LNG activity in Europe and Asia, and the rise in total hydrocarbon production (newly commissioned facilities), GDF Suez said in a statement on Thursday.

The company posted revenues of EUR 74,686 million, a drop of 6.6% (gross) compared to 2013. This decrease is mainly due to the impact of climatic conditions on sales of natural gas in France (2014 was particularly mild) and lower electricity market prices in Europe, according to the statement.

Given the recent major drop in oil and gas price, which has a significant impact, in the short term, on the Group’s businesses (estimated at around EUR – 900 million on Ebitda 2015 and EUR – 350 million on Net recurring income), GDF Suez said it has decided to launch a quick operational reaction plan in addition to Perform 2015, focused on targeted reductions in opex (EUR 250 million impact on Ebitda 2015) combined with a shift of some growth capex (EUR 2 billion over 2015-2016).

This plan enables the Group to announce for 2015 a Net recurring income, Group share between EUR 3.0 and 3.3 billion, at average weather in France, in line with the figure published for 2014, the statement added.

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Image: GDF Suez