Finance

Third quarter 2017 results

SEPTEMBER 30, 2017 RESULTS
THIRD-QUARTER IMPROVEMENT IN ORGANIC REVENUE GROWTH
BUSINESS ACTIVITY AND PERFORMANCE IN LINE WITH FULL-YEAR TARGETS
GE WATER ACQUISITION CLOSED 

Q3 2017 results1:

  • Revenue: €11,301m, organic growth of +1.3%
  • EBIT: €926m, organic growth of +1.4%
  • Net financial debt: €9,013m; net financial debt / EBITDA2 ratio of 3.4x

  

in € m September 30, 2016 September 30, 2017 Organic change Gross change Change at constant exchange rates FX change
Revenue 11,225
11,301
+1.3%
+0.7%
+0.8% -0.2%

EBITDA
EBITDA / revenue

1,9573

17.4%

1,924

17.0%

-1.0%
-1.7%
-2.1%
+0.4%
EBIT
EBIT / revenue

9323

8.3%

926

8.2%

+1.4% -0.6% -1.2% +0.6%

 

  • In third-quarter 2017 SUEZ reported a 0.7% increase in revenue to €11,301m, and +1.3% growth on an organic basis. The Recycling & Recovery Europe division posted dynamic 2.9% organic revenue growth, benefiting primarily from higher commodity prices. The International division satisfyingly showed an inflection with 4.3% organic growth in the third quarter, after the construction activities reached a low point in first-half 2017. Lastly, the Water Europe division was stable (+0.2%), mainly due to a decline in the works activities, which offset the momentum in Latin America.
  • EBITDA at end-September 2017 stood at €1,924m, down 1.7% or -1.0% on an organic basis. EBIT rose by 1.4% on an organic basis to €926m. In second-quarter 2016, EBITDA and EBIT had benefited from the €36m reversal of a provision for risk relating to the 2015 revaluation of the Chongqing Water Group stake, in connection with the creation of Derun Environment; this provision reversal has been treated as a scope effect.
  • Group net financial debt was €9.0bn compared with €8.0bn at end-2016, or 3.4 times EBITDA. It notably includes an impact of €856m related to the finalization of the acquisition of GE Water and a forex impact of -€346m.

 

Commenting on the third-quarter 2017 results, Jean-Louis Chaussade, Chief Executive Officer, stated:

1 Excluding IFRIC 21
2 The ratio of net financial debt/EBITDA calculated over a rolling 12-month period
3 EBITDA and EBIT for the International division had benefited in Q2 2016 from the €36m impact of the completion of the acquisition of Derun Environment