Séché Environnement: Strong Activity in 2013

Source: Séché Environnement

Paris, France — As at December 31, 2013, Séché Environnement reported consolidated revenue up by 6.6 percent for current data, at €469.1m vs. €439.9m a year earlier. Activity was suspended in Hungarian subsidiary Hungaropec beginning at the start of fiscal year 2013 and Séché Environnement estimates that it does not have the means to continue its activities under the conditions required by Hungarian authorities. This change in scope had a €2m impact on 2012 consolidated revenue.

Restated for revenue under IFRIC 12, representing investments made in asset disposals (€25.1m as at December 31, 2013 vs. €16.9m a year earlier), consolidated revenue excluding IFRIC 12 increased by +5.0 percent at constant scope and by +5.7 percent at constant scope and exchange rates. In a listless macroeconomic context throughout the fiscal year, particularly on industrial markets, divisions saw a healthy level of recurring activity, buoyed by the contribution of new contracts signed in 2012 (+€9m).

As expected, the fourth quarter of 2013 proved less dynamic compared to strong growth over the first nine months of the fiscal year, due largely to the high comparison base in the fourth quarter of 2012 within both the recovery and treatment divisions.

Activity in the fourth quarter of 2013

The consolidated revenue reported for the fourth quarter of 2013 amounted to €116.1m (vs. €122m a year earlier), a decline of 4.8 percent in current data compared to the fourth quarter of 2012. In a continuing listless macroeconomic context during this period, the recovery and treatment divisions saw a healthy level of activity, but compares with a high level of activity during the same period a year earlier in certain markets:

With revenues of €69.3m vs. €70.7m a year earlier, the Hazardous Waste division recorded a slight decline at constant scope (-2.0 percent). Restated for the scope effect associated with the consolidation of Gerep using the equity method (-€1.0m) and the foreign exchange effect over the period (-€0.2m) the division was virtually stable at comparable data (-0.4 percent).

This trend confirms the division’s solidity in France, while international business declined considerably (-34.6 percent at constant exchange rates), at €5m vs. €7.7m a year earlier, due to the decline in Spanish business and above all an unfavorable base of comparison in the fourth quarter of 2012 (€2.7m PCB spot contract in Latin America).

In France, HW activity in the fourth quarter was sustained by eco-services (comprehensive services and decontamination) as well as recovery and platform activities, whereas incineration activity slowed down, penalized by a mediocre industry backdrop.

The Non-Hazardous Waste division posted revenue of €46.8m in the fourth quarter, posting an 8.7 percent decrease at current data compared to last year (€51.3m).

Restated for revenue under IFRIC 12 (€5.8m in the fourth quarter of 2013 vs. €7.9m in the same period last year), as well as the application of IFRS 10 and 11 to Sogad (-€0.5m), revenue change for the division excluding IFRIC 12 revenue and at constant scope amounted to -4.4 percent.

The period suffered from a high comparison base in the fourth quarter of 2012 in decontamination activities (spot contract), whereas storage activities continued to decline in line with previous two quarters.

Outlook for 2014

In an economic context that is hard to predict, in 2014 Séché Environnement will rely particularly on solid industrial markets and its recurring contracts with communities will likely be confirmed. Revenue growth will likely be sustained by service activities (comprehensive services, etc.) and by recovery, particularly within the HW division.

The NHW division will likely rely on the solid performance of sorting activities and recurring public service contracts. Moreover, the current fiscal year should generally benefit from an improved performance by the Strasbourg-Sénerval facilities with all locations running properly and the additional contribution of the heating network and energy sales.

Quelle: Busines Wire