Feb. 14 (Bloomberg) — Suez Environnement, Europe’s second-
biggest water company, reported a 22 percent drop in profit
against a “challenging economic” backdrop and after taking a
charge on an Australian desalination plant.
The shares slid as much as 6.3 percent, the most in seven
months, after the Paris-based company said today that net income
fell to 251 million euros ($336 million) in 2012 from 323
million euros a year earlier. That missed the 265.8 million-euro
mean estimate of 10 analysts surveyed by Bloomberg.
Suez Environnement, 34 percent-owned by GDF Suez SA,
previously warned that an impairment on its Melbourne
desalination plant, combined with an economic slowdown, would
hurt earnings. Suez took 83 million euros of provisions for the
plant in the first half and has recovered 20 million euros
since. It took 262 million euros in provisions for the plant a
year earlier, according to an earnings presentation.
The water utility, together with Veolia Environnement SA,
has seen demand for industrial waste collection slump after
manufacturers reduced factory output. Suez reported a 9.5
percent drop in the amount of waste “eliminated” at its
European division last year while overall volumes treated fell
2.5 percent due to the slowdown, according to today’s statement.
Suez said it will propose a full-year dividend of 65 euro
cents a share and pledged that the payout for 2013 would be
equal to or higher than that.
Financial targets for 2013 were set for earnings before
interest, taxes, depreciation and amortization of at least 2.55
billion euros, and a debt-to-Ebitda ratio of about three,
according to the company. 2012 Ebitda was 2.45 billion euros.
The shares were down 3.8 percent to 9.467 euros as of 1
p.m. local time, the most intraday since Sept. 26. They’re
almost unchanged over the past year.
Veolia Chief Executive Officer Antoine Frerot said in
January that talks with Suez last year on a plan for a tie-up
between the two water utilities failed because of insurmountable
hurdles on the French market.
To contact the reporters on this story:
Tara Patel in Paris at
tpatel2@bloomberg.net;
Ladka Bauerova in Prague at
lbauerova@bloomberg.net
To contact the editor responsible for this story:
Will Kennedy at
wkennedy3@bloomberg.net
