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• Revenues: EUR 42.2 billion (+ 2.3%)
• EBITDA: EUR 7.9 billion  (+ 2.2%)
• Net income, group share: EUR 3.3 billion  (- 6.3%)
• Gearing: 43% (vs. 46% as of 12/31/08)
• Free cash flow¹: EUR 6.7 billion  (+ 65%)
• Net CAPEX: EUR 4.0 billion 

Solid performance and strong liquidity generation

The first GDF SUEZ H1 results confirm the Group’s profitable growth, despite comparison with a particularly high 2008 performance and a difficult economic environment.

The Group achieved results growth with a 2.2% increase in EBITDA to EUR 7.9 billion. Revenues also increased 2.3% to total EUR 42.2 billion. Net income, group share came to EUR 3.3 billion.

The Group’s growth comes along with a strong liquidity generation, with EUR 6.7 billion in free cash flow, for an increase of 65%. As a result, the Group is able to finance its industrial development, to remunerate its shareholders, and to reduce debt by more than EUR 1 billion, bringing the Group’s gearing down to 43%.

These results reflect the strength and resilience of the Group’s positions in a depressed economic environment. GDF SUEZ relies upon a business model based on a balanced and diversified energy portfolio adapted to its markets. During first-half 2009, the Group benefited in particular from the high degree of availability of its nuclear power generation plants (90%), guaranteeing competitive production costs. The Group’s fine performance is also due to its electricity sales hedging policy and the Global Gas & LNG business line’s first-quarter non-recurring gains. The Infrastructures business line also made a solid and recurring contribution to these results, related to an ambitious investment program. The Energy Services business line reported slight growth. Finally, SUEZ Environnement showed good operating performance resilience, notably in water, and a sound balance sheet, with strong free cash flow generation, in line with announced priorities.


All of these factors contributed to the Group’s improved results, more than offsetting the impact of the economic crisis on certain activities as well as the tariff shortfall for natural gas sales in France. The negative impact of the tariff shortfall widened by EUR 363 million during the first quarter, reaching close to EUR 2 billion. Nonetheless, since the April 1 tariffs adjustment the Group was able to entirely cover costs.
 

Strong balance sheet and confirmed development strategy

During first-half 2009, the GDF SUEZ Group consolidated its position as world energy leader with first class positions in natural gas, electricity and energy services.

Thanks to a strong balance sheet, the Group pursues its industrial strategy, focused essentially on organic growth, as illustrated by recent commercial and industrial developments, including:
 

• Exploration & Production and LNG: development of the Touat gas licence, licence acquisitions in Azerbaijan and Qatar, and entry in Australia’s LNG sector via the Bonaparte project;
• Electricity generation: continued development of electricity projects representing 21 GW  (including France, Brazil, the Middle East, the United States…);
• Success in financing electricity generation projects: agreement with the Brazilian Development Bank for the financing of the Jirau dam, the financing of the Al Dur project in the Middle East;
• Natural gas supply: strong Group mobilization in France and in Europe to ensure uninterrupted natural gas supplies during the Russo-Ukrainian crisis, and extension until 2029 of natural gas supply contracts with GasTerra;
• Nuclear: equity stake of one third plus one share in the company formed to build and operate the Penly EPR, development projects in France, Abu Dhabi, the United Kingdom, and Romania;
• Infrastructures: commissioning of the new Obergailbach natural gas compression station;
• Renewable energy (developments in wind, solar, biomass, and photovoltaic power) and energy efficiency (data centers, hospitals, etc.);
• Environment: success in the world most important PPP, for the seawater desalination plant in Melbourne for the State of Victoria.

The Group continued implementation of its Efficio performance plan, EUR 650 million of which will be achieved by year-end 2009. Measures taken have already improved Group profitability.

Following the third quarter, expected to be down from the same period the year before, the Group expects to see more noteworthy growth in activity during fourth-quarter 2009.

The Group confirms all the 2009² and medium-term performance targets announced to the market.

Given its results and financial structure, on December 18, 2009 the Group will distribute an interim dividend of EUR 0.80 per share for fiscal year 2009 and confirms its policy of attractive and competitive shareholder remuneration³.

On the occasion of the first half results presentation, Gérard Mestrallet, Chairman and Chief Executive Officer, commented: “During first-half 2009, the Group demonstrated the effectiveness of its business strategy and the soundness of its financial position, generating strong liquidity in a challenging economic context. It was thus able both to strengthen each of its activities, thanks to successful contract awards and foremost partnerships throughout the world, and to maintain its ambitious EUR 30 billion, three-year investment program. At the same time, the Group reduced its debt level and is implementing a dynamic shareholder remuneration program. The structural soundness of GDF SUEZ, the commitment of its personnel, and its balanced and diversified development model place the Group in an ideal position to take rapidly advantage of recovery in its major markets.”
 

Calendar

• August 27, 2009 : 2009 Fist half results – analysts and press conference
• November 12, 2009: Publication of 3^rd quarter results
   

¹ Free cash flow = cash flow generated from operations, less net taxes and interest, plus changes in working capital needs, minus maintenance capital expenditures.

² 2009 Ebitda > 2008 (based on average temperatures and excluding significant changes in the regulatory context or market conditions). Total investments for 2008-2010 of EUR 30 billion. Maintenance of a strong “A” credit rating.

³ 10% to 15% average annual growth in dividends per share for dividends paid between 2007 and 2010 (based on the Gaz de France dividend paid in 2007 for 2006).

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