Veolia Profit Surges as Water Operations Improve
Published on by Water Network Research, Official research team of The Water Network in Business
Company Reported a Surge in Profit After an Improvement in Water and Waste Operations Countered a Decline in Demand for Energy Services
Net income rose to 151.1 million euros ($200 million) from a restated 800,000 euros a year earlier, when impairments on waste services in Germany almost wiped out profit, the Paris-based company said today in a statement. Adjusted net income of 187 million euros beat the 162 million-euro average of five analyst estimates compiled by Bloomberg.
Chief Executive Officer Antoine Frerot, who survived a leadership challenge this year, is seeking to cut debt, boost profitability on municipal contracts and move into new markets such as water-treatment works for the mining, oil and food industries. Having pledged to increase Veolia's reliance on industrial contracts, narrow its global spread and focus on high growth economies such as China and the Middle East, Frerot said today Veolia will maintain its 2014 profit targets.
Veolia's sales from energy services fell 10 percent in the first six months after demand for heating dropped due to an "exceptionally mild winter," according to the company. Waste-handling volumes rose 1.7 percent in the period, although the pace of improvement dropped off in the second quarter after a 2.8 percent gain in the first quarter, Chief Financial Officer Philippe Capron said on the call.
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