Earnings Release • Nov 23, 2010
Earnings Release
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November 3, 2010
Results at September, 30 2010
Revenues1 EUR 60.1 billion (+3.8%) EBITDA1 EUR 11.0 billion (+8.8%) Net debt1 EUR 31.8 billion (-€1.7 billion from 30 June 10)
Total revenues as of September 30, 2010 were €60.1 billion for a total variation of +3.8%. This result confirms the Group's solid 1st half performance.
Revenues of the first 9 months are marked mainly by:
At the end of September 2010, the Group's electricity sales came to 272 TWh and sales of natural gas to 621 TWh.
EBITDA over the period came to €11.0 billion, with a total variation of +8.8% and organic growth of +3.8% versus September 30, 2009. This trend is explained mainly by:
1 Unaudited data as of September 30, 2010, examined by the Board of Directors on November 2, 2010. <GDF SUEZ HEADQUARTERS
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GDF SUEZ - SA WITH CAPITAL of €2,249,175,953 - NANTERRE TRADE REGISTER 542 107 651 www.gdfsuez.com
These effects were partially offset, however, by the falloff in Global Gas and LNG results in line with the trend observed as of June 30 and due to the unfavorable market conditions.
The Group confirms its objective of EBITDA growth in 2010 and a 15% increase in 2011 over 20092 . It also confirms continuation of its ambitious industrial development program on the order of €10 billion for the year. In all, and over the last three years, the Group will thus have invested €30 billion in its industrial tool.
The net debt was €31.8 billion at the end September 2010, down €1.7 billion from end June 2010. This figure mainly reflects industrial investments the Group has made, the impact of selling the Group's share of Gas Natural Fenosa, the favorable effect of exchange rate fluctuations during the third quarter, and SUEZ ENVIRONNEMENT's hybrid debt issue.
The operation is progressing as scheduled and several decisive steps have been taken: consultation with the employee representative bodies, signature of the merger deed and other principal agreements, authorization by the Brazilian and U.S. anti-trust authorities (the Federal Trade Commission) and authorization in term of foreign investments in the United States ("CFIUS"). Preparation for the future integration is well under way in order to facilitate expected synergies once the operation is completed.
Purchase of Société Générale shares in Gaselys, now a wholly-owned GDF SUEZ subsidiary, with the objective of creating a European energy trading leader.
2 The 2011 objective is based on the assumptions of average weather conditions, no substantial change in regulations or the macroeconomic environment, and on the underlying 2010-2011 assumptions of an average Brent price of \$74-79 per barrel, average price of baseload electricity in Belgium of €48-48/MWh, and average price of gas at Zeebrugge of €15-17/MWh.
These two operations extend the average maturity of the total debt from 6.1 years as of June 30, 2010 to 7.5 years now.
| In EUR millions | Revenues 09/30/ 2010 |
Revenues 09/30/2009 |
Total change | Organic growth |
|---|---|---|---|---|
| Energy France | 9,752 | 9,785 | -0.3% | -0.4% |
| Energy Europe & International | 23,147 | 20,884 | +10.8% | +5.3% |
| Benelux / Germany | 10,268 | 9,453 | +8.6% | +7.2% |
| Europe | 5,869 | 5,762 | +1.9% | +0.1% |
| Latin America | 2,328 | 1,477 | +57.6% | +19.7% |
| North America | 3,229 | 3,019 | +7.0% | -2.0% |
| Middle East, Asia & Africa | 1,452 | 1,173 | +23.8% | +13.9% |
| Global Gas & LNG* | 6,557 | 7,798 | -15.9% | -16.3% |
| Infrastructures* | 844 | 707 | +19.4% | +19.4% |
| Energy Services | 9,640 | 9,804 | -1.7% | -0.9% |
| Environment | 10,131 | 8,917 | +13.6% | +9.7% |
| GDF SUEZ Group | 60,070 | 57,895 | +3.8% | +1.2% |
*The total revenues figure, including intragroup services, comes to €14,043 million for the Global Gas and LNG Business Line and to €4,192 million for the Infrastructures Business Line.
Total change in revenues was +€2,175 million:
| In EUR millions | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenues | 9,752 | 9,785 | - 0.3% | -0.4% |
As of September 30, 2010, the Energy France Business Line generated EUR 9,752 million in revenues, nearly stable as compared to the September 30, 2009 figure.
The decline in sales revenue based on average climate conditions for the period came to -5.3% and is primarily explained by the full effect of the -11.3% decrease in regulated tariffs on natural gas for public distribution, which came into effect on April 1, 2009. At the end of September, the impact of the April 1 and July 1, 2010 tariff increases was still limited considering the seasonal nature of sales.
Natural gas sales volumes were 191 TWh, up +3.3% over 2009. GDF SUEZ maintained a market share of about 90% in the residential market and about 76%3 in the business market (industrial customers, retail,…).
Electricity sales volumes reached 26 TWh, progressing 4.6% over 2009, mainly thanks to the development of the residential customer portfolio, which exceeded 900,000 customers at the end of September. Since the beginning of 2010, more than 200,000 additional individual customers have been won over. At end September 2010, the total number of sites served, individual and professional, was 1,130,000.
Electricity production was 23.6 TWh, progressing 9.3% thanks to better hydraulic supply than 2009, the startup of new gas-fired plants, and the commissioning of more than 100 MW of additional wind supply since the beginning of the year.
| In EUR millions | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenues | 23,147 | 20,884 | +10.8% | +5.3% |
At the end of September 2010, division revenues came to €10,268 million, progressing 8.6% over 2009 with organic growth of 7.2% (a positive impact from changes in scope stemming mainly from the proportional consolidation of Stadtwerke Wuppertal in Germany).
Electricity sales volumes were €7,703 million, up 9% over September 30, 2009, with volume sold up 13% at 96.9 TWh (+11.3 TWh).
Electricity production came to 65.9 TWh, with a slight progression of +0,4 TWh (+0,6%) over September 2009.
In Belgium and Luxembourg, sales were up by 0.6 TWh (+1.1%) to 54,9 TWh thanks to a resumption of demand from major accounts in Belgium.
Electricity sales volumes in the Netherlands, at 16.5 TWh, grew by 1.5 TWh and €26 million, or +7%.
3 After adjustment of the reference contract by the CRE.
In Germany, the electricity sales volumes were up by 6.6 TWh to 13.8 TWh, mainly due to the increased sales on the wholesale market due to the exchange of production capacities with E.ON.
Lastly, the division's electricity sales outside Benelux-Germany grew by 2.6 TWh for revenues of €719 million, and concerned sales on wholesale markets in France, the United Kingdom, Poland and Hungary.
Natural gas sales totaled €2,079 million, a +7,2% increase, thanks to the strong growth in volumes to +11,3 TWh, or +22.1%, due mainly to the favorable weather conditions, partly offset by unfavorable price effects (-€4.6 /MWh on average).
As of September 30, 2010, division revenues totaled €5,869 million, a total increase of +1.9% over September 30, 2009.
The exchange rate fluctuations were positive in Central Europe and Eastern Europe (+€60 million) as well as in the United Kingdom (+€35 million).
Organic revenues, stable in relation to the previous year, is explained by the following variations:
The division's revenues amounted to €2,328 million at September 30, 2010, marking a +57.6% increase and organic growth of +19.7%.
Revenue includes €313 million from positive changes in scope, mainly stemming from the merger and takeover of electrical businesses in Chile (in particular Electroandina and Edelnor, at the end of January 2010). There is also the benefit of positive exchange rate fluctuations (+€208 million) related mainly to the appreciation of the Brazilian Real.
Electricity and natural gas sales increased respectively by +6.5 TWh, amounting to 36.5 TWh, and by +2.9 TWh, reaching 9.6 TWh.
The organic growth of revenue is explained mainly by the rise in volumes sold in Brazil, and to the average sales prices (+€166 million, mainly as the hydraulic power station of San Salvador was put into service in August 2009), by increased spot sales (volumes up and higher spot price, mainly during the third quarter of 2010), and by the contribution of the commissioning of assets (+€107 million), mainly in Chile (with the Mejillones LNG terminal and the Monte Redondo wind farm) as well as the Guanacaste wind farm in Costa Rica.
4 Poland and Hungary
5 Romania, Slovakia, Greece and Turkey
6 United Kingdom, Spain and Portugal
As of September 30, 2010, the division's revenues were €3,229 million, up +7% thanks to positive exchange rate fluctuations (+€127 million) with the appreciation of the US dollar, and change in scope for +€146 million with the full consolidation of Astoria I.
While electricity sales reached 44.9 TWh and increased by +6.4 TWh, natural gas sales are down by -2.1 TWh7 to 48.8 TWh.
This variation is explained mainly by the drop in LNG business in the United States (-€196 million) due to the sharp decrease in volumes sold and in prices.
The division's total revenue progressed by +23.8% to €1,452 million, mainly due to positive exchange rate fluctuations (+€89 million).
The organic growth of +€13.9% (+€176 million) was mainly driven by Senoko (+€96 million) thanks to recovering demand in Singapore, by Thailand (+€29 million), which witnessed periods of maintenance in early 2009, and by the launch of operation and maintenance activities as service started up on several units of the Marafiq project in Saudi Arabia.
The division's electricity sales reached 19.9 TWh and progressed +1 TWh. Natural gas sales were at 0.5 TWh following changes in Group structure.
| In EUR millions | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenues | 6,557 | 7,798 | -15.9% | -16.3% |
| Revenues, including intra-group |
14,043 | 15,138 | -7.2% | n.a. |
The Global Gas & LNG Business Line's total sales revenues, including intra-group services, comes to €14,043 million, with a total drop of -€1,095 million, or -7.2% compared to the first 3 quarters of 2009.
Sales revenues from the Global Gas & LNG Business Line was €6,557 million, down -€1,242 million (-15.9% in total change) from September 30, 2009.
The business line's revenue decline was due mainly to the following effects:
7 On the basis of sales of 50.9 TWh at the end of September 2009, excluding volumes transported to Mexico.
Exploration–Production revenues were practically stable (+1%) with a dip in total hydrocarbon production (24.6 Mbep at end September 2010 versus 26.1 Mbep at end September 2009) offset by the 40% rise in the average price of oil over the period (average price of Brent at €58.4/Bep at the end of September 2010 versus €41.8/Bep at end September 2009).
| En millions d'euros | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenue | 844 | 707 | +19.4% | +19.4% |
| Revenue, including intra group |
4,192 | 4,015 | +4.4% | n.a. |
The total revenue of the Infrastructures Business Line, including intra-group services, amounted to €4,192 million, increasing +4.4% from September 30, 2009.
The growth of total revenues was supported by:
Revenues reached €844 million, up +19.4% from September 30, 2009. This growth is explained by the development of the volumes dispatched by GrDF and GRTgaz on behalf of third parties because of the increased opening of markets.
| in EUR millions | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenues | 9,640 | 9,804 | -1.7% | -0.9% |
The Energy Services Business Line revenues reached €9,640 million, with an organic decline of -0.9% from September 2009.
In France, services activities (Cofely France) slowed slightly (-1.8% in organic terms, or -€43 million), with the favorable effects of commercial development compensating the drops in energy prices and resulting workload volumes for service contracts. Installation and maintenance activities experienced organic growth of +4.1% (or +€108 million). This performance resulted mainly from a growth of +8.0% in business at Inéo, the activity of the HVAC sector (-1.0%) and Endel (+0.7%) experiencing a certain stability.
In Belgium and the Netherlands, business is in organic decline, respectively by -3.1% (-€37 million) and -12.0% (-€98 million). In Belgium, this development is explained by the strain the economic situation is having on the installation professions beset with less business in the energy sector. In the Netherlands,
government projects in the infrastructures field are not offsetting the contraction in demand of private customers in all regions.
Tractebel Engineering continues its sustained development with an organic growth of 1.3% (or +€5 million) in revenue.
Outside France and Benelux, business is showing organic growth of +3.0% in Northern Europe (or +€28 million) thanks to the performances registered in Germany. In the United Kingdom, business is sustained by the workloads for the London Olympic Games contract. In the countries of Southern Europe, the level of business is off -5.7% (-€64 million), mainly in Spain where the number of new projects is sharply reduced, and in Italy where the workload volumes on resulting service contracts remain low. Lastly, International Overseas shows organic growth of +5.0% (+€17 million).
| In EUR millions | 09/30/2010 | 09/30/2009 | Total change | Organic growth |
|---|---|---|---|---|
| Revenues | 10,131 | 8,917 | +13.6% | +9.7% |
SUEZ ENVIRONNEMENT achieved revenues of €10,131 million at the end of September 2010, up +13.6% and up +9.7% in organic growth over the same period in 2009.
The three segments grew, and were especially sustained internationally and in the sorting and recycling businesses in Europe. During the 3rd quarter of 2010, SUEZ ENVIRONNEMENT confirmed its commercial dynamics, winning contracts such as the Suffolk and South Tyne and Wear waste PFIs in the United Kingdom and the Strasbourg and Achères wastewater contracts in France.
The change in revenues and the operational performance at end September 2010 were detailed in the SUEZ ENVIRONNEMENT publication of October 28, 2010.
An interim management statement in relation to the trading of GDF SUEZ Energy International in Q3 will be available, at the latest the 10 of November, on the GDF SUEZ website and can be downloaded using the following address: www.gdfsuez.com
| REVENUES In EUR millions |
30/09/2010 | % | 30/09/ 2009 | % | Change 2010/2009 |
|---|---|---|---|---|---|
| France | 21,625 | 36.0% | 21,506 | 37.1% | 0.6% |
| Belgium | 8,718 | 14.5% | 9,298 | 16.1% | -6.2% |
| Subtotal France-Belgium | 30,343 | 50.5% | 30,804 | 53.2% | -1.5% |
| Other, European Union | 18,386 | 30.6% | 17,848 | 30.8% | 3.0% |
| Other countries of Europe | 896 850 |
1.4% | 896 896 |
1.5% | -5.1% |
| Subtotal Europe | 49,579 | 82.5% | 49,548 | 85.6% | 0.1% |
| North America | 3,802 | 6.3% | 3,576 | 6.2% | 6.3% |
| Subtotal Europe/North America | 53,382 | 88.9% | 53,124 | 91,8% | 0.5% |
| Asia, Middle East and South Pacific | 3,287 | 5.5% | 2,310 | 4.0% | 42.3% |
| South America | 2,753 | 4.6% | 1,843 | 3.2% | 49.4% |
| Africa | 649 | 1.1% | 619 | 1.1% | 4.8% |
| TOTAL REVENUES | 60,070 | 100.0% | 57,895 | 100.0% | 3.8% |
| In EUR millions | 30/09/2010 | 30/09/2009 | Organic growth |
|---|---|---|---|
| Revenues | 60,070 | 57,895 | |
| Changes in Group structure Exchange rate fluctuations |
-1,281 | -602 780 |
|
| Comparable basis | 58,789 | 58,073 | +1.2% |
| In EUR millions | 30/09/2010 | 30/09/2009 | Organic growth |
|---|---|---|---|
| EBITDA | 10,964 | 10,077 | |
| Changes in Group structure Exchange rate fluctuations |
-383 | -128 248 |
|
| Comparable basis | 10,581 | 10,197 | +3.8% |
GDF SUEZ develops its businesses around a responsible-growth model to take up great challenges: responding to energy needs, ensuring the security of supply, combating climate change, and optimizing the use of resources. The Group provides high-performance, innovative energy solutions to individuals, municipalities, and businesses, relying upon a diversified natural gas supply portfolio, a flexible, low CO2-emitting production base, and unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production, and environment services. GDF SUEZ employs 200,650 persons worldwide and achieved revenues of EUR 79.9 billion in 2009. The Group is listed on the Brussels, Luxembourg, and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone, and ECPI Ethical Index EMU.
This communication contains forward-looking information and statements. These statements include financial projections, synergies, cost-savings and estimates, statements regarding plans, objectives, savings, expectations and benefits from the transactions and expectations with respect to future operations, products and services, and statements regarding future performance. Although the management of GDF SUEZ believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of GDF SUEZ securities are cautioned that forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of GDF SUEZ, that could cause actual results, developments, synergies, savings and benefits to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include those discussed or identified in the public filings made by GDF SUEZ with the Autorité des marches financiers (AMF), including those listed under "Facteurs de Risques" (Risk factors) section in the Document de Référence filed by GDF SUEZ with the AMF on 6, April 2010 (under no: D.10-218). Investors and holders of GDF SUEZ securities should consider that the occurrence of some or all of these risks may have a material adverse effect on GDF SUEZ.
Tel. France:+33 (0)1 4422 2435 Tel. Belgium: +32 2 510 76 70 E-Mail : [email protected]
Tel: +33 (0)1 4422 6629 E-Mail: [email protected]
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