The French environmental services group Suez recorded a net loss of 228 million euros in 2020, halved compared to the first half, and again rejected the takeover offer from Veolia.
Recurring net income (excluding exceptional items) is also in loss, more limited, of 38 million euros, against a recurring net profit of 350 million in 2019, the group said in a press release on Friday.
The board of directors of Suez for its part decided unanimously that "
the conditions were not met to favorably welcome
" the project of Veolia, he said in a separate press release, while the two groups are launched into a judicial guerrilla war over this hostile takeover project.
To read also: The CEO of Veolia puts pressure on the "board" of Suez
"
The operation planned by Veolia calls into question the Suez 2030 plan and would negatively impact the value of the Suez group
", estimated the board of directors.
"
The race for size does not bring a decisive benefit in the essential service professions
", he added.
And referring to the publication of annual figures on Friday, the board ruled that "
the company's 2020 results (...) confirm that the price of the Suez share proposed by Veolia, and payable no earlier than May 2022, is not satisfactory
”.
"
The intrinsic value of Suez remains much higher than the proposed price
", insists the board of directors.
He also considers that the merger project between Veolia and Suez “
puts the employment of Suez employees at risk
”.
Finally, the board reiterates its "
wish to reach a negotiated and agreed solution between Suez and Veolia
" and indicates that it "
will take all useful measures to ensure that Veolia does not impose its own interests during the general meeting of shareholders of Suez
”.
In 2020, Suez sales amounted to 17.2 billion euros, down 4.5% (and 2.6% on a comparable basis).
The group had already announced at the end of January that it would exceed its objectives for the second half of the year, but the final results are above these estimates, with in particular an operating profit of 704 million euros for the period July-December (against a previous estimate between 670 and 680 million euros).
The CEO of Suez, Bertrand Camus, praised “
very solid
” performance in 2020, with a “
good financial trajectory in the second half of the year and which continues at the start of the year
”, during a conference call.
“
Despite the health and economic context, our 2020 results allow us to approach the current year with confidence
,” he added, indicating that the group had decided to raise its objectives for 2021. Suez aims now a turnover of more than 16 billion euros and an operating result of between 1.4 and 1.6 billion euros.
Bertrand Camus also underlined that the group was going to pursue its strategy aimed at “
repositioning itself on high added value services
”, in particular through acquisitions.
