GDF SUEZ Reports H1 2014 Results
OREANDA-NEWS. Solid H1 2014 results despite a number of exceptional elements: very unfavorable hydrological conditions in Latin America, extremely warm weather in France and decision to temporarily halt Doel 3 and Tihange 2 plants
Excluding weather effect in France and 2013 gas tariff adjustment, net recurring income, Group share, is increasing by + 6.7%
Net debt is maintaining its downward trend to EUR 26.0bn in particular through a strong cash flow generation in increase by more than 12% and through the impact of an hybrid bond
2014 financial targets confirmed
Several tangible progresses fueling the growth along the two Group's strategic axes: be leader in the energy transition in Europe and be the benchmark energy player in fast growing markets
FY 2014 financial targets confirmed
The Group confirms its guidance of a net recurring income, Group share2 between EUR 3.3 and 3.7 billion, assuming average weather conditions for the full year and excluding the impact from the outage of Doel 3 and Tihange 2 during the second semester. This guidance will be adjusted by the months of effective outage of the two plants (ie EUR -40 million per month on the net recurring income, Group share) which will be noticed during the second semester of 2014.
Besides, the Group confirms all its other financial targets for the year 2014 :
net capex between EUR 6 and 8 billion,
net debt/Ebitda ratio below or equal to 2.5x and " A " category credit rating,
dividend: 65-75% pay-out with a minimum of EUR 1 per share and payable in cash
Reporting on first half results, GЁ¦rard Mestrallet, Chairman and Chief Executive Officer of GDF SUEZ, stated: "For the first half of 2014, the Group has posted solid results, in spite of a difficult economic context and unfavourable weather conditions. All of its business lines are focused on implementing the Group's strategy - a strategy that is based on two fundamental aims: be the benchmark energy player in fast growing markets and be leader in the energy transition in Europe. Following a number of industrial successes over the first half of the year, the Group confirms its balance sheet financial strength, continuing with its efforts to reduce the debt and bring its costs down thanks to the healthy results of the Perform 2015 program. The Group's net debt has once again fallen as a result of significant increase in cash flow generation. These results allow us to continue our development strategy and confirm our financial targets for 2014."
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