|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
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Oct. 23, 2016 08:00 PM EDT Reads: 3,959
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Oct. 23, 2016 07:30 PM EDT Reads: 2,057
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Oct. 23, 2016 07:15 PM EDT Reads: 2,415
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 23, 2016 07:00 PM EDT Reads: 1,237
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 23, 2016 07:00 PM EDT Reads: 4,539
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 23, 2016 06:45 PM EDT Reads: 1,005
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 23, 2016 05:30 PM EDT Reads: 824
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Oct. 23, 2016 05:30 PM EDT Reads: 2,845
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 23, 2016 05:00 PM EDT Reads: 835
SYS-CON Events announced today that SoftNet Solutions 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 23, 2016 05:00 PM EDT Reads: 740
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
Oct. 23, 2016 04:30 PM EDT Reads: 1,319
SYS-CON Events announced today that Embotics, the cloud automation company, 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. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 23, 2016 04:30 PM EDT Reads: 802
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Oct. 23, 2016 04:15 PM EDT Reads: 1,473
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Oct. 23, 2016 03:30 PM EDT Reads: 1,476
SYS-CON Events announced today that Coalfire 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. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 23, 2016 03:30 PM EDT Reads: 1,525