PARIS (dpa-AFX) - French water treatment and waste management firm Suez Environnement Co SA (SZEVY.PK, SZEVF.PK) Thursday reported a decline in full-year 2012 profit, that reflected charges related to Australian desalination plant as well as a challenging economic context in Europe. However, the company expects higher EBITDA in 2013.
Jean-Louis Chaussade, CEO of the company stated, 'We have maintained a strong commercial dynamic and have also strengthened our competitiveness efforts through COMPASS, our performance optimization program.'
For the full year, the company posted group share net income of 251 million euros, lower than 323 million euros a year ago.
The firm said its 2012 results were affected by non-recurring charges during the first half of the year. First-half results included impact of depreciation in marked to market value of the company's investment in Acea of 58 million euros, net additional charges on Melbourne plant of 52 million euros and restructuring and other costs of 38 million euros for implementing the cost reduction program.
Final take-over of the Melbourne desalination plant was completed on December 17, 2012, the company said.
Earnings before interest, taxes, depreciation and amortization or EBITDA totaled 2.45 billion euros, down 2.5 percent from last year, but stable at a constant scope.
Operating income increased 10.2 percent to 1.15 billion euros, partly due to contribution improvement of the Melbourne plant. Meanwhile, income from operational activities decreased as a result of less gains on disposals and impairment due to the market value of the Group's interest in Acea.
Annual revenues increased 1.8 percent to 15.1 billion euros, with growth in all divisions. In France, revenues improved 1.8 percent, while Europe revenues, excluding France, declined 2.8 percent. International revenues, excluding Europe, grew 7.3 percent.
For 2013, the company targets EBITDA equal to or higher than 2.55 billion euros. Growth of revenues are expected to be in levels compared with 2012. The company also aims a dividend related to 2013 results equal to or higher than 0.65 euros per share.
Further, Suez Environnement said it will propose a full-year dividend of 0.65 euros per share, to be paid in cash.
In Paris, the shares are currently trading at 9.51 euros, down 3.34 percent, on a volume of 2.01 million shares.
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