GDF Suez Q1 Core Profit Falls 10%

GDF Suez posted a 10 percent drop in first-quarter core earnings due to lower gas prices and the outage of two Belgian nuclear plants but left its 2015 forecasts unchanged.

 

The French gas and power group, which is changing its name to "Engie", said quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 3.6 billion euros ($3.9 billion), down from 4.0 billion a year earlier.

 

Revenue slid 3 percent to 22.1 billion euros from 22.7 billion. The company confirmed its annual targets, saying it expected a better performance in the second half.

 

In February, the firm forecast 2015 net recurring income of between 3.0 billion and 3.3 billion euros, provided weather conditions in France are average.

 

GDF Suez said it expect its Doel 3 and Tihange 2 reactors to restart on July 1, but added that this would depend on getting clearance from the Belgian nuclear regulator.

 

Asked whether the firm would commit to an unchanged 1 euro-per-share dividend on 2015 earnings even if the reactor did not reopen, Chief Executive Gerard Mestrallet said GDF Suez would pay at least 1 euro "whatever the circumstances".

 

GDF Suez shares closed 1.1 percent higher on Monday. They are up 7.8 percent over the past six months and virtually unchanged in the year to date.

 

Mestrallet reiterated that the French state - which owns a third of its capital - is expected to acquire double voting rights at the company's shareholders meeting on Tuesday, which will allow it to reduce its stake in the group without losing influence.

 

Sources have told Reuters that the state could sell a block of up to 10 percent of the company's shares.