GDF Suez Sees Long Lasting Energy Issues in Europe

France’s GDF Suez is convinced that the current situation of the European gas markets is serious and long lasting. The company wrote down assets for €9.1 billion and goodwill for €5.8 billion, while betting on gas infrastructures and LNG value chain to grow in the next three years. 

“Our industrial vision forced to decide significant impairments of some of our European businesses, which do not affect the growth perspectives of the Group worldwide. In fact, we have raised our financial targets for 2014… Our strategy is clear: to be the benchmark energy player in fast growing markets and to be leader in the energy transition in Europe,” Gérard Mestrallet, Chairman and Chief Executive Officer of GDF SUEZ, commented in a note released on Thursday. 

GDF Suez reported a €3.4 billion net recurring income, a €7.5 billion gross Capex and a 3.0 billion net Capex. The company registered an 8% decline in gross revenues and a 13.2% plunge in Ebitda. These results were mainly caused by ‘a negative foreign exchange variations in fast growing markets but also in mature countries, by the loss of Ebitda from companies sold in connection with the Group’s asset optimization program, by the decrease of electricity prices and by the temporary decrease in E&P production.’ 

Nonetheless, it achieved 2013 targets.

‘The Group’s operational results in 2013 are strong and confirm our strategy in a very difficult economic environment for thermal power production and gas storage in Europe,’ Mestrallet added.