Suez / United Water
Third Quarter

Paris, October 30, 2001

Continued strong revenue growth  through September 30, 2001: + 26 %

· Total revenues: + 26.1% (EUR 30.6 billion)

· Organic growth: + 8.7% (+19.1% including energy trading)

· International:         + 43.2 %

The group's total revenues through September 30, 2001 rose to EUR 30.569 billion, a gain of 26.1% compared with the same period in 2000. For the third quarter alone it reached 24.5%.

This strong growth illustrates Suez’s capability of leveraging its positions in its three global businesses not only internationally but also in its domestic markets where the Group continues to record sustained organic growth.

Organic growth: excluding energy trading activities, organic growth rose +8.7%. Including trading, it rose +19.1%. Third quarter organic growth (+7.3%) conveys the dynamism of Group activities.

External Growth was +7.1%. Changes in consolidation (EUR 1.715 billion) reflect the Group's recent acquisitions, mainly in Energy. These included Electrabel Nederland (the former EPON in the Netherlands), Energie Saarlorlux (Germany), Tractebel LNG North America (formerly Cabot LNG in the US), the subsidiaries of Sithe Energies (Thailand), and entry of Sulzer Infra and GTI into the Fabricom group. Other acquisitions were in Waste Services with Sembsita Australia (formerly Pacific Waste Management, in Australia) and Sellbergs (Sweden), and in water treatment with Nalco's acquisition of Exxon's holding in ONES (formerly NEEC).

Internationalization: revenues generated outside France and Belgium (EUR 16.6 billion) progressed 43.2%, including energy trading, representing 54.4% of the total compared with 48% in the period ending September 2000.

REVENUE CONTRIBUTION BY BUSINESS ACTIVITY

Gross Change

Net

Change (1)

 

(in millions)

9/ 30/01

EUR

% International

9/30/00

EUR

% International

39.4 %

11.3 % (2)

 Energy

18,758.7

46.0 %

13,455.7

33.4 %

9.3 %

4.4 %

 Water

7,386.3

74.5 %

6,756.6

73.2 %

11.1 %

6.6 %

 Waste Services

3,981.4

62.3 %

3,582.5

60.1 %

9.3 %

13.4 %

 Communications

442.3

-

404.7

-

NS

NS

 Others

-

-

48.5

-

26.1 %

8.7 %(2)

 TOTAL

30, 568.7

54.4 %

24,248.0

48.0 %

1. Organic growth on constant structural, accounting method, and exchange rate bases, excluding energy trading.

2. Including EGE trading (+EUR 2.534 billion), organic energy growth reached 30.0% and for the Group as a whole reached 19.1%.

 

WATER (Ondeo) + 9.3 %

1. Water management (ONDEO Services) advanced 7.9% despite the impact of lower rates in the UK (starting April 1, 2000).

· International water revenues rose 10.2%, of which + 6.5% was organic. Results are excellent in Spain and in Latin America thanks to negotiated rate hikes in Chile and Argentina.

· In France, organic growth grew 4.5%, largely related to the development of wastewater activities but also the growth in services to industrial customers.

2. Treatment (Ondeo Nalco), mainly serving industrial customers, progressed by 15.2%, benefiting from the acquisition of the remaining equity in ONES (water treatment and speciality chemicals for the petroleum industry). Despite the US economic downturn, organic growth came to + 2.7%, thanks in particular to the "industrial energy services" division (petroleum and petrochemicals) where Nalco strengthened its leadership positions.

3. Water engineering (Ondeo Degrémont) recorded growth of + 0.6% due mainly to the European municipal authority market, partially offset by the decline in "Equipment Standards" activities.

 

(in millions)

6/30/01
EUR

6/30/00
EUR

Gross change in %

Ondeo Services

4, 575.5

4, 240.5

7.9 %

  -International

2, 946.6

2, 674.0

10.2 %

  -France

1, 628.9

1, 566.5

4.0 %

Ondeo Nalco

2, 211.0

1, 919.6

15.2 %

Ondeo Degrémont and others

599.8

596.5

0.6 %
 

7, 386.3

6, 756.6

9.3 %

Press Contacts:

Anne Liontas: (331) 4006 6654

Susanne Trabitzsch: (331) 4006 6650

This release is also available on Internet :  http://www.press.suez.com