EuroBusiness Media (EBM): GDF SUEZ, one of the world's leading energy companies, reports 2008 first-half results. Gérard Mestrallet, welcome. You are the Chaimand and CEO of GDF SUEZ. What are your comments on the group's first-half results, which are the very first results of the newly merged GDF SUEZ?
Gérard Mestrallet (GM): Well, we can say that the first results of GDF SUEZ are excellent, despite difficult external economic conditions. The first-half revenue of the new group was 43.1 billion euros, up 17%. The net income was 3.4 billion euros, up 14%. All branches of the business contributed to our numerous commercial and industrial advances. These results show the strength of our businesses, and our growth potential linked to our position in markets where there is huge demand. We’re in a long-term business, which gives visibility to our outlook and our earnings. We achieved these first-half earnings even as we invested 5.7 billion euros during the same time period -- a 50% increase compared to the first half of 2007. Our financial structure is very robust, as is our balance sheet, with a net debt of 18.8 billion euros, and a debt ratio of 29%. Therefore, all of our indicators are in line with the ambitious targets we set for ourselves. They speak to the strength and growth potential coming from the unique complementarities between Gaz de France and SUEZ.
EBM: And on the industrial side, what is your update for the first-half?
GM: Over the past 6 months, we’ve greatly accelerated our industrial development in all of our businesses. As I’ve said, we’ve invested 5.7 billion euros, and resolutely continued our leadership strategy. Some major strategic advances were made: for example, in the nuclear sector, a three-way agreement with Total and Areva on a nuclear project in the United Arab Emirates; or the acquisition of a stake in the Georges Besse II plant, which is a uranium enrichment plant. Our energy production capacity also increased sharply, bolstering our existing position, specifically in Brazil in Jirau, in the United Kingdom, in the US, in Thailand, in Italy and in the Middle East, with 2 recent projects in Abu Dhabi and Bahrein. Our sourcing was also secured thanks to new gas reserves, natural gas discoveries in Egypt and LNG supply contracts.
EBM: Lastly, what is your outlook for the end of this year, and beyond?
GM: GDF SUEZ has a solid financial structure characterized by a high cash generation and low debt. In light of our excellent first-half results, we confirm our medium-term growth targets, namely: above 10% EBITDA growth this year, reaching 17 billion euros in 2010. We plan to make industrial investments of 30 billion euros, over the period 2008, 2009, 2010. Operational synergies will be 1 billion euros per year by 2013. We also confirm our dynamic dividend policy, offering an attractive yield compared to the sector. We renew our objective of paying out more than 50% of recurring net profit, and we aim to increase the ordinary dividend by 10 to15% per year, between the one paid out in 2007 and the one to be paid out in 2010. Starting in 2008, we are initiating a new policy of giving shareholders an advance on the current year’s dividends, already to be paid out during the second-half of each year. For 2008, on November 27 we will pay 0.8 euros per share, namely 1.7 billion euros. Legally speaking, this will be considered an advance on the dividend. The AGM in May of 2009 will then authorize the payment of the remainder of the ordinary dividend for 2008, plus an exceptional payout of 0.8 euros per share. We will also buy back 1 billion euros worth of our own shares by the end of 2008. We are thereby implementing a growth model that benefits all of the stakeholders of the company, be they shareholders, clients or employees. Today, GDF SUEZ, a new global leader in energy, has – that’s my opinion -- the best human, industrial and financial strengths to meet the energy challenges of tomorrow.
