|By PR Newswire||
|October 24, 2013 02:07 AM EDT||
PARIS, October 24, 2013 /PRNewswire/ --
3rd QUARTER 2013
Solid Operating Performance,
Steadily Improving Since the Beginning of the Year
Growing Activity in the 3rd Quarter
- 9-month revenue of €10,820 million, organic change of -1.0%
- 3rd quarter revenue up 0.2% on organic basis
- EBITDA of €1,859 million, organic change of + 6.2%
- EBITDA margin of 17.2%, increasing compared to September 2012 (15.9%)
Change in Gross Like-for-like Currency consolidation In millions of 30 Sep 30 Sep change change fluctuation scope euros 2012 2013 Revenue 11,118 10,820 -2.7% -1.0% -1.4% -0.3% EBITDA 1,770 1,859 +5.0% +6.2% -0.9% -0.4% EBITDA/Revenue 15.9% 17.2%
- SUEZ Environnement generated revenue of €10,820 million in the first nine months of the year. Business steadily improved since the beginning of the year onwards; the organic growth was -2.6% in the 1st quarter, -1.7% in the 1st half, and then -1.0% as at the end of September. The 3rd quarter on a stand-alone basis, generated a +0.2% increase in revenue, which was notably due to the improvement in the waste activity in Europe.
SUEZ ENVIRONNEMENT continues its commercial development, and has been notably awarded the Barcelona and Pirae (Polynesia) contracts in water, and the Saint-Etienne and Châtellerault contracts in waste. Meanwhile, the Group consolidates its positions in its four strategic priority areas, by signing the Mayotte (waste management and recovery) and Bangalore (water supply improvement service) contracts, as well as an industrial wastewater contract in Australia with Thalès.
- EBITDA amounts to €1,859 million, an organic increase of 6.2%, due to the Group's commercial momentum and ongoing tight financial discipline. The EBITDA margin continues to improve, rising from 15.9% as at the end of September 2012 to 16.8% as at the end of June 2013, before reaching 17.2% as at the end of September 2013.
- The Group's net financial debt (NFD) amounts to €7,820 million. The NFD/EBITDA ratio is 3.1x, which is in line with the annual target of around 3 times.
- Commenting on the 2013 3rd quarter results, Jean-Louis Chaussade, Chief Executive Officer made the following comments:
"Our Group's performance is solid, and registered an ongoing improvement since the beginning of the year onwards, thanks to the optimised management of our assets, to our commercial momentum, and to the positive effects of our Compass productivity plan. Although the economic environment is still tough, the 3rd quarter appears to show some signs of an improvement in Europe, and the Group is ready to continue its expansion".
1. Net Financial Debt to EBITDA ratio, calculated over a rolling 12-month period.
BREAKDOWN OF THE RESULTS AS AT THE END OF SEPTEMBER 2013
Gross Change 30 Sep 2012 Organic Currency in Revenue 30 Sep 2013 change change fluctuations scope In millions of euros Water Europe 3,210 3,261 +1.6% +2.3% -0.4% -0.4% Waste Europe 5,063 4,871 -3.8% -2.9% -0.6% -0.3% International 2,831 2,683 -5.2% -1.3% -3.8% -0.2% Other 13 5 - - - - TOTAL 11,118 10,820 -2.7% -1.0% -1.4% -0.3%
SUEZ ENVIRONNEMENT posted revenue of €10,820 million as at 30 September 2013, or a gross decrease of 2.7% (€298 million) compared with 30 September 2012, which broke down as follows:
- An organic variation of -1,0%, (-€113 million):
- Revenue in the Water Europe segment rose by €75 million, or +2.3%, as they benefited from rising water prices, as well as from the development of new businesses.
- Revenue in the Waste Europe segment was down by €145 million or 2.9%. They were affected by a decrease in the treated waste volumes, as well as by a deterioration in the price of secondary raw materials. However, the 3rd quarter showed an improvement in the trend.
- The International segment's revenue was down by €35 million or -1.3%. Excluding the impact of the completion of the Melbourne plant in December 2012, international division revenue increased by 2.0%.
- A negative exchange rate effect of -1.4% (-€154 million), which was mainly due to the depreciation of the Australian dollar (-€65 million), the British pound (-€35 million), the US dollar
(-€17 million) and the Chilean peso (-€12 million) against the euro.
- A small scope effect of 0.3% (-€30 million):
- Water Europe: -€11 million;
- Waste Europe: -€14 million;
- International: -€5 million.
- EBITDA, which was up 6.2% on an organic basis, benefited from the Compass productivity plan; at the end of September, the impact of the plan is in line with the annual target of €180 million. The increase in EBITDA is also positively affected by the end of the Melbourne plant construction in 2012.
- Net financial debt remained stable compared with the end of June 2013. It also included a positive currency effect of €120 million since January 1st.
- SUEZ ENVIRONNEMENT is therefore maintaining its objectives and remains fully mobilized to achieve its 2013 guidance.
2. The Waste and Water activities in Central Europe that were previously included in the International segment have been reclassified under the Water Europe and Waste Europe segments. USG, which was previously included in the International segment, is now included in the Water Europe segment.
3. Includes revenue of €105 million from the construction contract for the Melbourne desalination plant, which was completed in December 2012.
4. Assuming GDP growth of 0% in Europe in 2013, within a stable accounting and tax framework, and at constant exchange rates.
PERFORMANCE BY DIVISION
In EUR 30 Sep 30 Sep Gross Organic Currency Change in million 2012 2013 change change fluctuations scope Revenue 3,210 3,261 +1.6% +2.3% -0.4% -0.4%
The Water Europe segment posted organic growth of +2.3% (+€75 million).
- Lyonnaise des Eaux's organic growth was -0.2% (-€3 million).
Revenue in France was stable. They benefited from a positive price effect as a result of price indexing mechanisms (+2.0%). The Smart Water business continued its strong growth with, now, 1.5 million smart meters sold in Europe. Water volumes decreased by 1.7% over the 9-month period, although the trend improved in the 3rd quarter. The works and engineering activity was also affected by a decline in orders from local authorities. The contracts recently awarded to the Group include the Basque Coast (€46 million, 10 years, wastewater), Pirae in Polynesia (€33 million, 15 years, water), the East Libourne region association (€27 million, 12 years, water and wastewater) and Coulommiers (€8 million, 10 years, water) contracts.
- AGBAR recorded like-for-like growth of 5.3% (+€78 million).
Business is up due to highly favourable price effects in Spain and Chile. Volumes were up in Chile (+1.0%), and kept on decreasing in Spain (-5.2%). Agbar renewed the Barcelona contract, and was also awarded the wastewater contract (additional €3.5 billion, 35 years); it also successfully took over Aguas de Sabadell (350,000 inhabitants) over the summer. Furthermore, Agbar's Smart Water business continued to expand rapidly with the implementation of innovative tools for assets management and works monitoring, such as the solutions deployed in the recently won wastewater contract of San Sebastian.
In EUR 30 Sep 30 Sep Gross Organic Currency Change in million 2012 2013 change change fluctuations scope Revenue 5,063 4,871 -3.8% -2.9% -0.6% -0.3%
The Waste Europe segment reported a -2.9% organic decline in revenue (-€145 million). It was affected by a decline in volumes, due to a macro-economic environment that remained tough, and a negative price effect on secondary raw materials. Conversely, the 3rd quarter registered a noticeable improvement, with a 0.3% organic increase in revenue compared with -4.5% in the 1st half. This progress was primarily due to business activities in France and in the United Kingdom.
- SITA France experienced an organic decline of -4.0% (-€109 million), compared with -6.5% as at 30 June 2013. Business remained lower over the 9-month period, primarily as a result of the contraction in the waste treated volumes. Revenue was up slightly in the 3rd quarter, thanks to the resilience of the treatment activities. During the quarter, SITA France was awarded the Mayotte (€65 million, 9 years), Saint-Etienne (€13 million, 6 years), Vichy (€11 million, 4 years) and Châtellerault (€5 million, 4 years) contracts. In addition, the process of completion of the Clermont Ferrand waste to energy plant is underway, in line with the timetable.
- Organic growth in the United Kingdom & Scandinavia region was +2.8% (€28 million), compared with 2.1% as at 30 June 2013. Growth in the United Kingdom continued, due primarily to the energy recovery business. Sorting and recycling also benefited from a positive volume effect in the 3rd quarter. The landfill activities remained stable, as lower volumes were offset by a positive pricing effect due to the landfill tax. The progress at the Suffolk and South Tyne & Wear energy from waste units continued according to schedule, and they will come on operation in 2014. The financial closing processes for the West London and Merseyside PFIs will be finalised between late 2013 and early 2014. All the energy recovery plants will thus be in operation by end of 2017.
- The Benelux/Germany region posted an organic decrease of -5.5% (-€65 million), compared with -6.3% as at 30 June 2013. Our business in this region remained hampered by an adverse economic environment, which resulted in still decreasing industrial waste volumes. The services activities, as well as sorting and recycling also declined. The energy recovery business remained stable. In Germany, SITA signed a municipal waste treatment contract in the Gera Urban District.
- Organic growth in the Central Europe region was a modest +0.2% (€0 million) compared with +4.4% as at 30 June 2013. The services business, which accounts for most of the region's revenue, remained on a positive trend. The Group was also awarded a large number of municipal contracts, as it took advantage of the restructuring of the Polish waste collection market. However, treatment activities are decreasing. Meanwhile, SITA keeps on working to obtain a permit for the energy from waste plant in Poznan, following the financial closing, which occurred in April 2013.
In EUR 30 Sep 30 Sep Gross Organic Currency Change in million 2012 2013 change change fluctuations scope Revenue 2 831 2 683 -5,2% -1,3% -3,8% -0,2%
The organic change in the International segment was -1.3% (-€35 million), or +2.0%, excluding the completion of construction of the Melbourne plant.
- The Asia-Pacific region posted organic growth of +5.5% (+€53 million).
The water and waste activities displayed solid growth in Asia, with positive pricing and volume effects. Waste in Australia is also showing a sustained activity. In Hong Kong, the Group was awarded a construction and management contract for sludge transportation (€75 million, 10 years), which confirms its role as a first-rank operator in this region.
- Africa/Middle East/India saw a 2.9% (€13 million) organic increase in revenue.
This increase was primarily due to positive pricing and volume effects in Morocco. Moreover, in Casablanca, Lydec has extended its service business to new industrial clients in particular with Casanearshore and the Midparc platform specialized in aeronautics. The Group gained, during the quarter, two contracts in India including the contract to improve water supply and sanitation in Bangalore.
- The North America region posted organic growth of +0.6% (+€3 million).
United Water's regulated activities benefited from price increases that were primarily achieved in New York and Idaho. However, this business was affected by declining volumes, as a result of unfavourable weather over the summer period.
- Degrémont posted an organic revenue decrease of -11.2% (-€105 million), or -1.8% excluding the completion of construction on the Melbourne plant. This diminution resulted mainly from the end of large construction contracts in France. However, the business benefited from the expansion of the industrial customer base and local authority activities in the Middle East and Australia. During the quarter, Degrémont won contracts in Mirfa (€100 million, Abu Dhabi), Prague (€62 million), and for a Petrobras oil rig in Brazil (€13 million), for the revamping of a drinking water plant in Besançon, as well as the Thalès contract for the design and construction of an industrial discharge treatment system in Australia.
Furthermore, SUEZ ENVIRONNEMENT also achieved, on October 14th, a satisfactory resolution to the legal disputes related to the construction of the Melbourne Desalination plant, thereby putting an end to the claims. The positive impact of the obtained compensation will materialize through the reversal of the €58 million provision in the 4th quarter accounts. It follows on from the successful refinancing of the plant, amounting to 3.7 billion AUD, by Aquasure, which will achieve a significant reduction of its financial costs in the future.
- 20 February 2014: Publication of the 2013 annual results
- 24 April 2014: Publication of the 2014 first quarter results (Conference call)
- 22 May 2014: General Meeting of Shareholders
Ongoing improvement in business volumes since the beginning of the year
1st quarter 2nd quarter 1st half 3rd quarter 9 months Organic growth (%) of 2013 of 2013 of 2013 of 2013 2013 Total revenue -2.6% -0.8% -1.7% +0.2% -1.0%
Geographical breakdown of revenues
Revenues 30.09.2012 30.09.2013 Gross change EURm % of total EURm % of total EURm % France 4,037 36.3% 3,915 36.2% -122 -3.0% Spain 1,079 9.7% 1,157 10.7% 78 +7.2% United Kingdom 704 6.3% 695 6.4% -9 -1.3% Other Europe 1,968 17.7% 1,866 17.3% -102 -5.2% Europe (excluding France) 3,751 33.7% 3,718 34.4% -33 -0.9% Australia 797 7.2% 696 6.4% -101 -12.6% North America 704 6.3% 652 6.0% -52 -7.3% Other international 1,829 16.5% 1,839 17.0% 10 +0.5% International (excluding Europe) 3,330 30.0% 3,187 29.4% -143 -4.3% TOTAL 11,118 100.0% 10,820 100.0% -298 -2.7%
Natural resources are not infinite. Every day, SUEZ Environnement (Paris: SEV, Brussels: SEVB) and its subsidiaries deal with the challenge of protecting resources by providing innovative solutions to industries and to millions of people. SUEZ Environnement supplies drinking water to 97 million people, provides wastewater treatment services for 66 million people and collects the waste produced by 50 million people. SUEZ ENVIRONNEMENT has 79,549 employees and, with its presence on five continents, is a world leader exclusively dedicated to water and waste management services. In 2012, SUEZ Environnement generated revenues of €15.1 billion.
This document includes unaudited financial data. The aggregates shown are those customarily used and communicated to the markets by SUEZ ENVIRONNEMENT.
"This communication includes forward-looking information and statements. This forward-looking data is based on assumptions, financial forecasts, estimates and statements regarding projects, targets and expectations for transactions, future products and services, or future performances. No guarantee can be given that these forecasts will be met. Investors and holders of Suez Environnement Company securities are informed that these forward-looking information items and statements are subject to a number of risks and uncertainties, which are hard to predict and are generally beyond Suez Environnement Company's control, and which could cause the results and outcomes expected to differ materially from those expressed, suggested or predicted in forward-looking statements and information. Such risks include, but are not limited to, those developed or identified in public documents filed with the French Financial Markets Authority (AMF). The attention of investors and holders of Suez Environnement Company securities is drawn to the fact that the materialisation of all or a portion of these risks is likely to have a material unfavourable impact on Suez Environnement Company. Suez Environnement Company is not under any obligation, and does not commit to publishing changes or updates on these information items and forward-looking statements under any circumstances. Additional detailed information on Suez Environnement Company is available on the website (http://www.suez-environnement.com). This document does not amount to an offer to sell or to a solicitation to buy Suez Environnement Company securities in any jurisdiction".
This press release is available at http://www.suez-environnement.com
SOURCE Suez Environment
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Jul. 26, 2016 06:15 AM EDT Reads: 1,787
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 26, 2016 06:15 AM EDT Reads: 1,407
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Jul. 26, 2016 06:00 AM EDT Reads: 1,875
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Jul. 26, 2016 05:15 AM EDT Reads: 2,060
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 26, 2016 05:00 AM EDT Reads: 1,525
Most organizations prioritize data security only after their data has already been compromised. Proactive prevention is important, but how can you accomplish that on a small budget? Learn how the cloud, combined with a defense and in-depth approach, creates efficiencies by transferring and assigning risk. Security requires a multi-defense approach, and an in-house team may only be able to cherry pick from the essential components. In his session at 19th Cloud Expo, Vlad Friedman, CEO/Founder o...
Jul. 26, 2016 04:30 AM EDT Reads: 1,892
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 04:15 AM EDT Reads: 1,233
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Jul. 26, 2016 03:45 AM EDT Reads: 1,830
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jul. 26, 2016 03:30 AM EDT Reads: 1,068
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 02:45 AM EDT Reads: 1,539
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 26, 2016 02:00 AM EDT Reads: 1,335
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Jul. 26, 2016 01:45 AM EDT Reads: 2,196
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 26, 2016 01:45 AM EDT Reads: 1,313
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 01:30 AM EDT Reads: 1,692
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 01:30 AM EDT Reads: 1,479