Veolia Environnement’s half-year results show a doubling of global profits but some decline in UK revenues.
The group’s current net income hit €321m (£225m) compared with €153m in the first half of 2014 off the back of a 7.3% revenue increase to €12.318bn from 2014’s €11.482bn.
Despite the positive figures, it was noted that lower energy and recycled raw material prices took €114m out of the revenue total (-1% impact).
Revenue in the UK and Ireland fell 2.9% due to the decline in construction income from PFI contracts, despite increases in landfill volumes.
The French waste business painted a prettier picture, with a 1.4% decline in Q1 boosted by 3.8% growth in Q2. This was attributed to a number of contract wins, a 4% increase in volumes, and the “less unfavourable” impact of raw materials prices.
The group said it had met its 2015 targets for financial growth.
Antoine Frérot, Veolia Environnement’s chief executive officer, said: “During the first half of 2015, Veolia has once again demonstrated its ability to significantly improve results. All of our financial indicators have increased, leading to a significant increase in margins.
“During the first half of 2015 alone, Veolia achieved 110% growth in current net income, which is equal to that of the entire 2014 fiscal year. As a result, our 2015 objectives are fully confirmed.
“Our strategy of restoring margins, balance sheet equilibrium and strong free cash flow generation allows us to approach the next stages of our development for the 2016-18 period with great confidence.”
On 23 July, Shanks released its Q2 trading update showing financial performance was in line with their expectations.
Peter Dilnot, Shanks chief executive, said: “Shanks has made an encouraging start to the year, with all three divisions trading in line with our expectations. Our end markets in the Dutch commercial division continue to show signs of improvement as forecast. We were also particularly pleased to commission our £80m Barnsley, Doncaster and Rotherham PFI facility on schedule earlier this month.
“Whilst ongoing fluctuations in the GBP:EUR exchange rate may impact our reported results, the board remains confident that the group’s underlying result for the full year will be in line with its expectations.”