Suez Env looks to minimise the Melbourne factor

Suez Environnement unveiled a reassuring set of full-year 2011 results earlier this week, posting EBITDA of €2.5 billion (up 7.6% including the impact from its Melbourne desalination contract) on revenues of €14.8 billion (up 6.9%).

The €237 million Melbourne-related hit to the group’s net result in 2011, combined with revised expectations of 0% worldwide GDP growth in 2012, mean that the company now expects revenue and EBITDA to be at least as high in 2012 as they were last year, with dividends remaining flat at worst.

“Ultimately, the fundamentals remain good despite a difficult economic climate,” noted CM-CIC analyst Olivier Bails.

75% of the RO trains are now understood to be in place at the Melbourne plant, with 94% of the water transfer pipeline and 99% of the power cables in situ. Meanwhile, the group has a dedicated team working towards recouping €285 million in claims related to project losses.