By Tara Patel
Nov. 26 (Bloomberg) -- GDF Suez SA, the world’s second- biggest utility, confirmed its full-year and medium-term earnings targets and said it would make additional cost savings.
Full-year earnings before interest, taxes, depreciation and amortization will grow more than 10 percent this year, the Paris-based company said today in an e-mailed statement. It said this profit measure would reach 17 billion euros ($22 billion) in 2010 and a new 1 billion-euro cost-savings plan would be put in place.
GDF Suez “has provided a swift response to the rapid change in the economic environment” with a “new performance plan of 1 billion euros” in addition to cost-savings from the merger already announced, the company said.
The utility has bought back 500 million euros of shares since Sept. 1 and will delay the “execution” of the rest until the May annual general meeting, the statement said. An exceptional dividend of 8 euro cents a share will be added to payment of the final ordinary dividend in May.
The outlook comes as the utility holds its first investor day since Gaz de France SA and Suez SA merged in July. The combined company is seeking to challenge Electricite de France SA by gaining more power customers in the domestic market. The company may announce plans for a so-called future generation nuclear reactor in western Europe next year, possibly in France.
GDF Suez SA’s nine-month profit rose 19 percent on higher power and natural-gas prices. Ebitda rose to 10.4 billion euros ($13 billion) from 8.7 billion euros a year earlier, the Paris- based company said Nov. 13.
To contact the reporter on this story: Tara Patel in Paris at Tpatel2@bloomberg.net
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