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Suez reveals the results of its strategic plan are ahead of objectives

  • Suez reveals the results of its strategic plan are ahead of objectives
    Bertrand Camus, CEO of SUEZ. Photo: SUEZ

Suez announced today in a statement that the strategic plan it launched last year, Shaping SUEZ 2030, is delivering results ahead of the objectives. The French water management firm said there will be “an exceptional dividend or share buyback of at least one billion euros as soon as possible, and by no later than the first half of 2021.”

The group is presently immersed in a battle with Veolia after its competitor announced an offer to buy 29.9% of Suez’s shares from Engie.

“The implementation of Suez’ strategy announced in 2019, is delivering tangible results already this year on several workstreams, allowing the Group to bring the overall timeline forward”, the group said.

Suez believes that the tangible results obtained in less than a year justify an acceleration of the strategic plan. It reports its asset rotation program is well advanced, with higher valuation levels that those envisaged in the strategic plan. In addition, the performance program is now aiming for €1.2bn in annual savings by 2023, of which €900m to be achieved by 2022.

The statement outlines Suez’s growth perspectives for 2021 and 2022, while the guidance previously communicated for 2020 is confirmed:

  • Revenues seen above €16 bn in 2021 and above €17 bn in 2022;
  • EBIT targeted between €1.35 and €1.50 bn in 2021 and at around €1.7 bn in 2022
  • Recurring EPS targeted at between €0.75 and €0.80 in 2021 and €0.90 and €1.0 in 2022

Bertrand Camus, CEO of SUEZ, said “Less than a year after the presentation of our SUEZ 2030 plan, its results exceed our objectives thanks to the continuous commitment of our teams. Driven by the major issues arising from the climate emergency, our priorities are to invest in value-added services to fuel the Group’s ability to support our clients and therefore our growth, as the Ieader in environmental services. The steps announced today to reinforce our strategic plan offer a significant increase in value already in 2022 for all Suez’ shareholders.”

The President of the Board of Directors Philippe Varin, commented as well: “The Board of Directors welcomes the tangible results from the implementation of the SUEZ 2030 transformation plan. The Board supports the management in the reinforcement of the plan, which will significantly increase the value creation potential of an independent Suez group, for the benefit of all stakeholders.”
 

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