Suez 9-month sales, opg profit rise, confirms full-year targets UPDATE

Suez 9-month sales, opg profit rise, confirms full-year targets UPDATE

	Published : Thu, 15 Nov 2007 08:54 By : Agencies Print this Story

(Updates with additional detail and background)

PARIS (Thomson Financial) - Suez reported nine-months sales and operating profit growth in line with expectations and the group said it is on track to achieve its earnings targets for this year.

The French electric, water and waste utility posted nine-months sales of 34.2 bln eur, up 5.6 pct from 32.4 bln a year earlier, boosted by higher electricity sales in Europe and abroad as well as strong growth in its liquefied natural gas operations.

Nine-months operating profit rose 14.6 pct to 3.9 bln eur from 3.4 bln eur a year earlier.

Suez said the performance in the third quarter confirmed its target for growth in earnings before interest, tax, depreciation and amortization above 10 pct this year, as well as for operating profit growth above 15 pct.

Suez's ongoing 70-bln-eur merger with Gaz de France is expected to be completed during the first half of 2008, the company said.

Suez said growth at its European energy division, which accounts for about a third of sales and half of operating profit, was boosted by higher electricity prices and volumes.

The division's operating profit rose 25.8 pct to 2.1 bln eur in the first nine months of the year on a 6.4 pct sales increase to 12.4 bln.

Higher electricity sales were partly offset by lower natural gas sales by Suez's Belgian subsidiary Electrabel. Suez blamed the decline on weather conditions in the first half of the year in the Benelux counties, where average temperatures were 36 pct higher than a year earlier.

Suez Environment, the water and waste management division that Suez is spinning off as part of its merger with GDF, reported a 5.3 pct sales increase to 8.79 bln eur, while operating profit rose 6.1 pct to 792 mln.

Growth was particularly strong in the division's European waste management operations, Suez said, thanks to higher volumes and new contracts including some in Paris, Montpellier and Saint Etienne.

greg.keller@thomson.com

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