PARIS: French water and waste-management services supplier Suez SA posted 2.9% rise in net profit on growth at its international businesses outside of Europe, where demand remained sluggish, and signaled interest in buying the water assets of General Electric Co. GE, -0.43%
Suez Chief Executive Jean-Louis Chaussade said buying the GE business, which the U.S. Company said was up for sale last December, fitted well with the French company’s plans to grow its provision of water services to industry. Chaussade declined to mention a price or any detail on how Suez, primarily a provider of water services to municipalities, would finance the possibly multibillion-dollar acquisition.
Suez’s net profit rose to 420 million euros ($445 million) in the year to end-December, up from EUR408 million in 2015, on a 1.2% rise in revenue to EUR15.32 billion revenue and better-than-expected cost control, the company said. Analysts polled by FactSet expected an average net profit of EUR432 million and revenue of EUR15.30 billion.
The company, whose major shareholder is energy company Engie SA, said it managed to cut costs by EUR180 million last year up from a EUR150 million target.
Faced with slow business in France and the rest of the European Union in recent years, Suez had expanded in international markets to benefit from stronger demand there. The company generated 33% of its revenue from outside Europe in 2016, up from 26% a year earlier. Revenue from its international unit rose 7% in the year while revenue fell 1.9% in France and 0.7% in Europe outside France, the company said.
Suez expects revenue and earnings before taxes and interest to rise slightly this year.
The company kept its dividend unchanged at EUR0.65 a share and said it intends to keep the dividend at the same level or raise it next year.
