GDF SUEZ posts higher than expected profit in 2008 but focuses on savings

The most important project of the company on the local market, the construction of a 1,600 MW thermal energy plant in the southeastern city of Constanta, estimated to cost €2.4 billion, is currently on stand-by, according to Business Standard data. Moreover, the plant that the company was to build for the ArcelorMittal Galati steel producer, with a capacity of between 600-1,000 MW, is no longer a priority, said market sources.

In terms of anti-crisis measures, the French-Belgian group said it will focus on raising liquidities in the near future, and on a savings plan worth €1.8 bln by 2011. GDF SUEZ posted a higher than expected net profit in 2008, worth €6.5 bln, up 13 percent year-on-year, due to good performance on all segments and markets.

The group made no profit estimates for this year, considering that the global recession is affecting the price of energy, but said that earnings before interest, taxes, depreciation, and amortization (EBITDA) will increase from its 2008 level of €13.9 bln.