OREANDA-NEWS. August 05, 2013. Amidst particularly challenging market conditions for power generation in Europe and the outages at the Belgian nuclear plants Doel 3 and Tihange 2 until early June 2013, the half year results reflect good operational performance, growth in international activities and exceptional weather conditions.

GDF SUEZ reported revenues of EUR 42.6 billion for first half of 2013, a gross decrease of -1.5% but an increase of +1.9% organic growth. Ebitda reached EUR 7.6 billion, a gross decrease of -6.6% and an organic of -2.6%. The impact on Ebitda of favorable weather is estimated at EUR +369 million whereas the impact of the Belgian nuclear plants outage is estimated at EUR -318 million.

Recurring net income, Group share decreased by -1.7% to EUR 2.4 billion. Net income, Group share, amounts to EUR 1.7 billion, in decrease in comparison to June 30, 2012, mainly due to impairments taken on certain assets and goodwill mostly in Europe for a net amount of EUR 441 million.

The Group continued its developments during the first half with a gross capex of EUR 3.3 billion. 46% of the growth capex were directed towards fast growing countries.

In addition, the Perform 2015 action plan is on track as of end of June 2013 with a gross Ebitda contribution of EUR 380 million plus 100 million below Ebitda.

Progress achieved in the portfolio optimization program led to a decrease in net debt at the end of June of more than EUR 3 billion. The Group confirms the target of a cumulative impact of EUR 11 billion over 2013-2014.

Net debt was EUR 32.2 billion at June 30, lower by EUR 4.4 billion compared to the end of December 2012. The net debt/Ebitda ratio was 2.3x in line with the target (?2.5x). The average cost of gross debt decreased further to 3.66%.

In early July, GDF SUEZ successfully issued hybrid notes on the euro and sterling markets for an amount equivalent to EUR 1.7 billion accounted for as 100% equity under IFRS standards and bearing an average coupon of 4.4%, enabling the buy-back of a portfolio of debt bearing an average coupon of around 5%. With this operation, the Group is reinforcing its financial flexibility and nearing its end of 2014 net debt target of EUR 30 billion.

At the end of June, the Group has a high level of liquidity at EUR 16.8 billion, EUR 9.1 billion of which is held in cash and EUR 7.7 billion in available lines of credit.

These results pave the way for confirming the Group’s 2013 targets, assuming average weather conditions and a stable regulatory environment:

Net Recurring Income Group share between EUR 3.1 and EUR 3.5 billion. This target is based on an estimated Ebitda between EUR 13 and EUR 14 billion, with pro forma equity consolidation of SUEZ Environnement as of 01/01/2013


Gross capex between EUR 7 and EUR 8 billion

Net debt/Ebitda ratio ?2.5x and an “A” category rating

The Group maintains its policy of providing shareholders with an attractive return and will pay an interim dividend, on November 20, 2013, of EUR 0.83 per share for fiscal year 2013 (whose ex-dividend date is set for November 15, 2013), at the same level of the interim dividend paid for fiscal year 2012.