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Veolia half year results 2016: further strong growth

Veolia announced its half year results which continue to show strong growth, in line with the Group's objectives for 2016.
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Veolia’s sales are improving, with an increase of 0.1% in the second quarter. This growth is the result of good sales momentum over the period:
  • In relation to municipal activities, the Group has won numerous large contracts, such as the renewal of the partnership with Milwaukee (USA), for the management of wastewater for the city and the surroundings area for a period of 10 years
  • On our industrial markets, a record 25-year term contract has notably been signed with the petrochemical giant Sinopec, covering the management of the entire water cycle on its Yanshan site, near Beijing. 

Net profit Group share meanwhile was €342 million, up 6.4% (+ 10.1% at constant exchange rates) compared to the first half of 2015.

Debt fell sharply to €8,678 million as at 30 June 2016, as against €9,223 million as at 30 June, 2015.

Note that the Group continued its cost savings plan, which amounted to €121 million in the first half.

Finally, Veolia completed the refocusing operation begun in 2012, and is announcing the conclusion of an agreement with the Caisse des Dépôts Group, regarding the sale of its stake in Transdev.
 

 
Antoine Frérot, the Group Chairman and CEO said: "The results achieved during the first half are once again satisfactory. We continue to see the effects of our strict management, with savings above our projections. This results in a further increase in margins and an improvement in our performance indicators. Growth in revenue at constant exchange rate moved into positive ground in the second quarter. This was achieved through good commercial dynamism and the signature of some very significant contracts on our priority markets. The latest is that we have just signed a major contract for the treatment of industrial wastewater in China with SINOPEC, China's largest oil industry group; it represents €3.3 billion in cumulative revenue over a period of 25 years. I am also pleased to announce that we have concluded a divestment project with Caisse des Dépôts regarding our stake in Transdev, which allows us to finalize our refocusing operation. Our continued sales momentum and our cost reduction efforts mean we are able to confirm our targets for 2016 and be very confident about achieving our goals in 2018."