SUEZ` recycling & recovery division reports slight increase in Q3/2017

692
Source: SUEZ

Paris, France — In third-quarter 2017 SUEZ reported a 0.7 percent increase in revenue to €11,301m, and +1.3 percent growth on an organic basis. The Recycling & Recovery Europe division posted +2.9 percent (+€131m) organic growth in revenue at end-September 2017. Performance was notably driven by a substantial positive price effect on secondary raw materials, particularly scrap metals and paper, up 42 percent and 15 percent, respectively, compared with 2016. Volumes treated increased by +0.4 percent, which is a marked improvement over the first half of the year.

  • Revenue in France was up +4.6 percent (+€100m) on an organic basis. This growth mainly reflects the increase in secondary raw materials prices. Processed volumes rose by +0.4 percent after being down 0.7 percent at end of June 2017.
  • The United Kingdom/Scandinavia region was down 2.0 percent (-€20m) on an organic basis. This performance was due to the completion of the construction of the energy-from-waste (EfW) plants in the United Kingdom, which affected revenue in the region, as well as to the planned downturn in landfill activity. These impacts were only partially offset by the commissioning of new EfW plants.
  • Revenue in the Benelux and Germany region rose +3.4 percent (+€36m) on an organic basis. The services business grew, mainly due to higher volumes and prices in collection activities; business and competitiveness improvement is particularly noticeable in the Netherlands.

The “Industrial Waste Specialties” segment grew at a rapid pace of 5.6 percent (+€15m) on an organic basis. This performance was driven primarily by the soil remediation activity dynamics.

  • The Africa/Middle East/India region achieved strong organic growth of +5.3 percent (+€42m). This increase was largely attributable to growth in the Middle East activities, which benefited in particular from the contribution of the Barka contract.
  • Revenue in Italy/Central and Eastern Europe was up 12.4 percent (+€33m) on an organic basis. This performance comes from the commissioning of the waste-to-energy plant in Poznan in Poland and from the positive contribution from the recycling and recovery activities.
  • Australia posted organic growth of +2.7 percent (+€19m) largely owing to the +8.0 percent increase in the volume of collected waste.
  • Asia was down slightly 3.0 percent on an organic basis (-€10m). The positive impact of bringing new hazardous waste treatment capacities on stream in China was partially offset by the termination of major engineering and equipment supply contracts last year. The recycling & recovery activities in China and the water activities in Macau continued to grow steadily.
  • North America was down 6.3 percent on an organic basis (-€47m), due mainly to the termination of the Indianapolis and Jacksonville contracts in the United States and lower water volumes sold (-5.8 percent) as a result of extremely unfavorable summer weather conditions.

Commenting on the third-quarter 2017 results, Jean-Louis Chaussade, Chief Executive Officer, stated: “The growth of the results over the period is in-line with our 2017 targets. Hence, we are fully confident in their fulfillment. Revenue at the Recycling & Recovery Europe division continued to rise, fueled by the recovery in commodity prices and the improvement in volumes during the last quarter. The International division grew by 4.3 percent in Q3 and won several major long-term contracts, including one to build a waste-to-energy plant in Belgrade, Serbia, and another for a new wastewater recycling plant in Perth, Australia. Finally, revenue in the Water Europe division edged up slightly, helped by relatively satisfactory volumes sold across all regions, despite flat inflation rates in both France and Spain.“

And he added: „SUEZ is therefore on its trajectory, carrying out the acquisition of GE Water and launching the integration of the industrial water activities and all the synergies work.”

Source: SUEZ