French energy giant GDF Suez saw profits fall after an ‘uncertain and challenging’ outlook for Europe’s power market.
The company saw earnings down 2.6% before interest, tax, depreciation and amortisation to EU7.6billion, but reduced its debt burden by more than EU4.4billion to EU32.2billion.
GDF admitted in its half-year findings that the company faced “still uncertain and challenging economic environment, particularly in power generation in Europe where depressed market conditions do not yet offer any sign of improvement.”
Outages at the company’s Doel 3 and Tihange 2 nuclear plants until June 2013 were mitigated by growth in international activities with the commissioning of power plants in Oman, Saudi Arabia and Peru.
The company’s gas and LNG line saw EBITDA decline by nearly 24% because of lower production and repair work at the Snøhvit and Njord fields in Norway, while international business grew 0.6% year on year.
“In a challenging environment, especially in Europe, the Group’s strong operating performance demonstrates our resilience,” said chief executive and chairman Gérard Mestrallet.
