Veolia Environnement H1 Profit Soars; Backs Full-year View

(RTTNews) - French resource management firm Veolia Environnement S.A. (VE) Thursday reported a jump in its profit for the first half of the year, supported by growth in revenues. Further, the company reaffirmed its full-year outlook.

Net income attributable to owners of the company climbed to 151.1 million euros ($199.5 million) from 0.8 million euros in the prior year. Prior-year results have been restated.

After adjusting for share of net income of equity-accounted entities, adjusted net income attributable to owners of the company totaled 187.5 million euros, while it was 133.8 million euros last year.

Revenue improved 1.4 percent to 11.232 billion euros from 11.074 billion euros in the previous year, while the rise was 3 percent at constant exchange rates. The growth was 0.6 percent at constant consolidation scope and exchange rates.

By business, Water activities recorded 2.3 percent revenue growth at 5.113 billion euros, amid increase in Construction activity and the favorable impact of price increases in Central and Eastern Europe.

Waste revenue increased 4.8 percent to 4.175 billion euros. The business witnessed solid momentum in the U.K., driven by the increase in commercial collection and hazardous waste volumes and the contribution of integrated contracts.

Energy services generated 1.834 billion euros, down 7 percent from last year. This was mainly due to the negative impact of weather conditions in the winter of 2013-2014 compared with the particularly harsh weather in the prior year, as well as the impact of the programmed end of gas cogeneration contracts in France.

Antoine Frérot, Chairman and CEO, said, "First half results were satisfying and encouraging. Revenue growth continues and our commercial efforts targeting the industrial sector are already bearing fruit."

For 2014, the company confirmed its goals of significant growth in adjusted net income, increase in revenue as well as around 10 percent growth in adjusted operating cash flow at constant exchange rates.

The stock closed at 13.86 euros in Paris on Wednesday.