2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Suez Environnement, profit and loss account
Y/E 31/12 (€million) 2003 2004
Revenues
European Water Services 3,944 4,115
European Waste Services 4,923 4,420
International/Other 3,442 2,871
Total 12,310 11,406
Gross Operating Income
European Water Services 597 640
European Waste Services 793 724
International/Other 554 567
Total 1,944 1,931
In 2004, the water and waste management activities were again regrouped. Ondeo Industrial
Solutions (OIS) was incorporated into European Water Services in 2004. Lyonnaise des Eaux
generated revenues of €2,630 million in France during 2004. Degremont’s revenues in 2004 were
approximately €825 million, and water revenues outside Europe accounted for approximately €1,500
million in 2004.
2003 to 2005’s years of consolidation: activities ceased
2003 Location Contract Population served
Canada Halifax Wastewater O&M 380,000
UK England Northumbrian Water Plc 6,296,000
USA Atlanta Water O&M 2,000,000
Vietnam Thu Duc Bulk water BOT 1,000,000
Total 9,676,000
2004 Location Contract Population served
Colombia Bogota Wastewater BOT 1,500,000
Puerto Rico Puerto Rico Water & wastewater O&M 3,900,000
Total 5,400,000
2005 Location Contract Population served
Bolivia La Paz* Water & wastewater BOT 1,400,000
Argentina Santa Fe Water & wastewater BOT 1,830,000
Total 3,230,000
* To be confirmed
Overall, exit strategies have differed. The Halifax contract was handed back to the municipality and
subsequently re-emerged in a different form, while in Puerto Rico and Atlanta the contract was
terminated by mutual consent. The Vietnam contract ended after a perceived change in strategy by
the Government. Suez sold its holding in Northumbrian Water (Ondeo Services UK) in two stages in
order to deconsolidate NWL’s €3.1 billion net debt. Bogota unilaterally ended the Saltire contract.
Suez ended the La Paz/El Alto contract due to local political pressure (although this may again
change), while the Aguas de Santa Fe concession was sold to a local investor. Despite various
problems, the Jakarta, Buenos Aries and Manila contracts continue to be operated by Suez, although
they currently remain under active review.
In Europe, the emphasis is currently on organic growth and gaining contracts in Central and Eastern
Europe (where EU subsidies can be mobilised). The three priority markets in Central and Eastern
European are the Czech Republic, Hungary and Slovakia.
In September 2003, Suez Ondeo sold Ondeo Nalco to a US based consortium of the Blackstone
Group, Apollo Management L.P., and Goldman Sachs Capital Partners for US$4.35 billion. Nalco and
Calgon were acquired for US$4,157 million and US$406 million respectively in 1999.
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Pinsent Masons Water Yearbook 2005 – 2006