Suez: share collapses 15%, with late profit warning
(CercleFinance.com) - The sharpest drop in the SBF 120 index today, Suez shares have collapsed 15% this morning, falling below 12 euros, after last night's late profit warning for 2017, which are due to be announced on 1 March.
The dividend from the last fiscal year has also been set at 0.65 euro, i.e. the minimum that was previously announced.
The end of 2017 was marked by specific factors that weighed on the group's operating results, lamented Jean-Louis Chaussade, CEO of the utility group. Admittedly, the group has confirmed its forecast of ("slight") organic growth for 2017. However, in Q4 the operating result was penalised by extraordinary costs of 45 million euros relating to Spain, and the decision to terminate contracts in Morocco and India "due to operational difficulties". In short, the group's operating result fell by 2% in organic terms in Q4 (+1.4% excluding these items).
Suez has clarified that its 2017 turnover will reach at 15.8 billion euros, up 1.5% in organic terms. In these same terms, EBITDA will slip by around 2% to 2.64 billion and the group's operating result also by 2% to 1.28 billion euros (compared with "slight organic growth" according to previous forecasts). This will result in net income, group share, of about 300 million euros, including the costs related to GE Water (45 million euros) and the voluntary redundancy plan.
In addition, the group's 2017 dividend, which was previously declared as "greater than or equal" to 0.65 euro, has now been set at its former minimum amount.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The dividend from the last fiscal year has also been set at 0.65 euro, i.e. the minimum that was previously announced.
The end of 2017 was marked by specific factors that weighed on the group's operating results, lamented Jean-Louis Chaussade, CEO of the utility group. Admittedly, the group has confirmed its forecast of ("slight") organic growth for 2017. However, in Q4 the operating result was penalised by extraordinary costs of 45 million euros relating to Spain, and the decision to terminate contracts in Morocco and India "due to operational difficulties". In short, the group's operating result fell by 2% in organic terms in Q4 (+1.4% excluding these items).
Suez has clarified that its 2017 turnover will reach at 15.8 billion euros, up 1.5% in organic terms. In these same terms, EBITDA will slip by around 2% to 2.64 billion and the group's operating result also by 2% to 1.28 billion euros (compared with "slight organic growth" according to previous forecasts). This will result in net income, group share, of about 300 million euros, including the costs related to GE Water (45 million euros) and the voluntary redundancy plan.
In addition, the group's 2017 dividend, which was previously declared as "greater than or equal" to 0.65 euro, has now been set at its former minimum amount.
Copyright (c) 2018 CercleFinance.com. All rights reserved.