SUEZ: Recycling and Recovery Europe division revenue affected by material prices

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Source: SUEZ

Paris, France – Publishing the 2015 annual results, SUEZ` Recycling and Recovery Europe division reported revenue of € 6,357m, an organic decrease of 1.1 percent. Volumes treated increased by 0.2 percent overall. The division’s revenue was affected by falling secondary raw material and electricity prices (-€ 83m). Adjusted for this effect, revenue would have been stable on an organic basis (+0.1 percent). The main geographic regions reported positive organic growth, with the exception of France, which was down 4.0 percent. The UK/Scandinavia segment was up +3.3 percent and Benelux/Germany rose +2.2 percent.

The operating performance of SUEZ` Recycling and Recovery Europe division was down 1.0 percent (-€ 8m). The steps taken to improve competitiveness, along with growth in volumes and prices in all countries, excluding France, offset the negative impact of falling selling prices for electricity (-€8m) and expenditures associated with closing certain waste storage sites (-€30m).

The Group was awarded the waste management contract for Centrale Laitière, Danone’s subsidiary in Morocco, for a four-year term. SUEZ will thus manage the industrial waste produced by Centrale Laitière’s four production plants and logistics platforms across the country. SUEZ will also bring expertise as part of its “zero waste” strategy. SUEZ and CEMEX inaugurated a new facility in Rugby (UK) that turns waste into Solid Recovered Fuel (SRF). This facility will supply the city’s cement plant with sustainable fuel for the next 25 years. With the 240,000 tons of SRF produced at this site, the Group now supplies 1.1 million tons worldwide.

Concerning major commercial successes, in the Recycling & Recovery Europe division SUEZ was awarded the public service concession for the collection and treatment of waste from Covaldem in France (€ 459m, 19-year term) and the waste collection contract for the city of Heilbronn (€ 43m, 8-year term) in Germany. It also consolidated its positions in energy recovery, with the renewal of the contract to operate the Energy Recovery Unit in Caen, as well as three other contracts in Brittany and the Paris Region worth a total of c. €400m.

The International division reported revenue of € 3,997m in 2015, representing very strong organic growth of 9.3 percent (€ 317m).

  • Asia reported a +21.5 percent (+€ 62m) increase at constant scope and exchange rates. This was due to higher volumes of waste treated, higher prices, particularly in energy recovery, and the start of new construction contracts.
  • North America reported +12.2 percent (+€ 89m) growth at constant scope and exchange rates, notably driven by the start of the Nassau contract and growth in water volumes sold in the United States (+2.6 percent).
  • Growth in the Africa/Middle East/India region was +11.4 percent (+€ 99m) at constant scope and exchange rates; the business benefited from the start of new construction contracts in the Middle East, including the Mirfa contract, as well as from an increase in water volumes sold in Morocco (+0.9 percent).
  • The Europe/LatAm segment rose by a sharp +9.2 percent (+€ 55m) at constant scope and exchange rates, due to the strong operating performance in all regions, except for France, which was down.
  • Australia increased by +1.6 percent (+€ 15m) at constant scope and exchange rates. This performance was due to both the continued increase in volumes of waste treated (+4.8 percent) and the rise in the price of services.

The full report can be downloaded under suez-environnement.fr.

Source: SUEZ