Higher waste vol­umes boost Q1 core earn­ings of Suez

The Gulf Today - Business - - INTERNATIONAL -

PARIS: French waste and wa­ter group Suez re­ported higher firstquar­ter earn­ings due to a sharp im­prove­ment in the vol­umes of waste treated in Europe, and de­spite lower pa­per prices caused by a Chinese ban on im­ports. Suez’s firstquar­ter rev­enues rose 9.1 per cent to 4.06 bil­lion eu­ros ($4.80 bil­lion).

On an or­ganic ba­sis, be­fore the in­te­gra­tion of its GE Wa­ter ac­qui­si­tion, rev­enues were up 1.7 per cent, while at con­stant ex­change rates, they were up by 13.8 per cent.

“The macro-eco­nomic en­vi­ron­ment is im­prov­ing, we are see­ing higher vol­umes of waste treated and prof­itabil­ity is rising,” chief fi­nan­cial of­fi­cer Jean-marc Bour­sier said on an earn­ings call.

Core earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) were up 3.4 per cent to 635 mil­lion eu­ros while EBIT (earn­ings be­fore in­ter­est and tax) climbed by 2.8 per cent to 289 mil­lion eu­ros.

Suez also con­firmed its 2018 earn­ings guid­ance for rev­enue growth of about nine per cent and EBIT growth of about 10 per cent, both at con­stant ex­change rates.

Suez said rev­enue in its key Euro­pean re­cy­cling divi­sion was up 0.5 per cent to 1.54 bil­lion eu­ros as price hikes in its ser­vices ac­tiv­i­ties and a 3.6 per cent in­crease in vol­umes were off­set by a 37 per cent fall in pa­per prices due to the Chinese im­port ban on waste im­ports.

Rev­enues at Suez’s new WT&S in­dus­trial wa­ter divi­sion rev­enue the re­sult of its 2017 takeover of GE Wa­ter — pro­gressed 4 per cent to 611 mil­lion eu­ros on a pro-forma ba­sis.

Suez chief ex­ec­u­tive Jean-louis Chaus­sade said efforts to ex­tract syn­er­gies from WT&S were yield­ing re­sults. He added that the unit’s or­der book grew 30 per cent in the first quar­ter.

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